Pub. 12 2013-2014 Issue 3

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S F A L L 2 0 1 3 4 new jersey auto retailer Chairman’s MESSAGE | BY ERIC NIELSEN The Needs of the Many Outweigh the Needs of the Few Dealers have rights. Some of these rights may not be respected by the manufacturers. Sometimes they are outright ignored by the manufactuer. And our rights may not be fully understood OR enforced by DEALERS. That’s right, we, the dealer body, are responsible for making sure OUR rights under the law are enforced. The State of New Jersey isn’t going to fight our battles for us and neither is the Attorney General. It is up to dealers to take a stand for the entire auto retail industrywhen amanufacturer trys to findaway toavoidcomplyingwith theNew Jersey Franchise Practices Act. While New Jersey’s law is one of, if not THE strongest in the country, it currently has no penalty if a manufacturer refuses to comply. A dealers’ only recourse is to make their manufacturer aware when they are violating the law and take them to court if they refuse to comply with the statute. We must move in a determined and deliber- ate way that ensures that laws currently on the books are understood by the dealers and respected by the manufacturers. We must be smart and cautious how we go about enforcing our rights. For instance, two-tier pricing is prohibited by the New Jersey Franchise Practices Act. There’s no sugar-coating the fact that manufacturers have the upper hand when it comes to finding ways around the pro- hibition. They create incentive programs that, on the surface, look to benefit every franchisee. However, they often result in “haves” and “have-nots” among the deal- ership body. A strict enforcement of the prohibition of two-tier pricing could result in some dealers (the “haves”) losing valu- able incentives if a manufacturer chooses to pull the whole program. NJ CAR must work with dealers to build a consensus around a particular course of action on ANY issue affecting dealers rights under the law, as well as ensuring manufacturers comply with the law. Of course, any dealer, at any time, has the right to take unilateral action against a manufacturer. If they do, they must be aware that their actions WILL have an impact on their fellow dealers. Dealers won’t agree on a course of action 100% of the time, but we are a more power- ful voice when we present a united front. As one of the most famous lines in the Star Trek canon says, “The needs of the many outweigh the needs of the few.” One par- ticular issue may benefit your dealership today, but hurts many others around the State. The next issue may be the one that hurts your business. Compromise has become a dirty word in some circles, but listening to all sides of an issue and arriving at a rational course of action that meets the needs of a majority of dealers is the prudent thing to do and bol- sters the entire industry. We are strongest when we speak with a single voice. CHAIRMAN’S MESSAGE  continued on page 9