Pub. 17 2018-2019 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 I S S U E N O . 4 , 2 0 1 8 6 new jersey auto retailer Chairman’s MESSAGE | BY LENNY DATELLO New Jersey Face Major Issues In 2019 Cutting through the BS is in my DNA. I say what’s on my mind and I am committed to representing New Jersey’s 520 franchised auto retailers to the best of my ability during my tenure as Chairman. There will be dozens of issues that will confront the Coalition in 2019, but following are three main areas I’d like to focus on during the coming year: • Developing an apprenticeship program to help address the shortage of auto technicians; •Working to reign in illegal brokering to protect consumers; and • Promoting the many benefits of the franchise system. New Jersey’s franchised auto retailers directly employ 38,000 people in a wide variety of good-paying, local jobs that can’t be outsourced. However, the industry continues struggling to recruit, train and retain qualified, skilled employees, particu- larly in our Service Departments. NJ CAR will be working on a variety of workforce develop- ment initiatives in 2019. First up is a comprehensive appren- ticeship program in cooperation with the New Jersey Depart- ment of Labor. This much-needed initiative is a natural fit for franchised dealers, where we can match technicians-in-train- ing with an established professional that complements their secondary and post-secondary education. NJ CAR is prepar- ing to apply for a Growing Apprenticeship In Nontraditional Sectors (GAINS) grant to serve as a workforce intermediary to help in this effort. My daughter, Breanna, has also stepped up to lead a brand- new program to highlight the many job opportunities avail- able in New Jersey’s franchised automotive retail industry. She will travel around the state, educating students (and po- tential future employees) about the challenging and rewarding careers available in our industry (and encourage dealerships to develop their own apprenticeship programs?) Motor vehicle brokering is another area I want to focus on this year. The law is clear – no individual or business can engage in buying, selling or dealing in motor vehicles without a valid new or used car dealer license. All licensed retailers are required to meet rigorous financial, facility, and custom- er satisfaction standards to qualify as a franchisee. However, unlicensed brokers regularly claim to offer new motor vehicles for sale and lease, offer vehicle financing and make many more blatantly false statements. In the real world, brokers possess minimal facilities (if any), no inventory, no repair capabil- ity and, most importantly, do not possess a franchise. They routinely use manufacturers’ trademarks they have no right to use and constantly violate the Consumer Fraud Act, the Motor Vehicle Advertising Regulations and many other laws. But, since a licensed new car dealer ultimately completes the paperwork with a consumer in a brokered deal, regulators are reluctant to bring enforcement actions against brokers, because finding them can be like trying to tackle smoke. The franchised dealer is easy to find, has deeper pockets and is left holding the bag when a deal goes south. State government must apply the same regulatory pressure on unlicensed brokers as it does on licensed dealers to ensure New Jersey consumers are protected and NJ CAR will contin- ue pressuring regulators to enforce the laws on the books. The last major issue I’d like to focus on this year is to contin- ue promoting the many benefits of the auto franchise system. WE know what they are- aggressive price competition, ready access to warranty and safety recall repairs and promoting the public interest in highway safety. We need the rest of the world to know these benefits, which is why NJ CAR will be launching a public relations campaign this year aimed at ham- mering this message to legislators and other industry influenc- ers using a wide variety of tools. It’s fitting that we launch this campaign as Tesla, the glori- fied battery company, makes its way back to the State House, looking to expand its number of factory-owned stores from 4 to 16 locations by 2022. In 2015, Tesla had a soundbite – “dealers are against electric vehicles (EVs).” It was a bold- faced lie, but it worked. Now, the bloom is off the rose. Tesla offers three EV models, while the other manufacturers offer dozens of EV options, with dozens more coming soon. There are published reports that the company is under investigation by the Department of Justice. Tesla was fined by the Securi- ties and Exchange Commission (SEC); they are vulnerable to consumer fraud claims by consumers who put down $1000 deposits expecting to purchase a $35,000 vehicle that has yet to be offered for $35,000. And let’s not forget how they have repeatedly missed production goals and stumbled trying to simply deliver vehicles. Every single franchised new car and truck dealer in New Jer- sey must join with NJ CAR to promote the many benefits of the motor vehicle franchise system and speak out against Tes- la’s unwise factory-direct sales model that harms consumers. 2019 will be a challenging year for our industry and I am proud to lead NJ CAR as they work on our behalf to address these challenges.