GNYADA July 2014 Newsletter

It’s Getting Hot - KeepWorkers Safe

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Shorts not recommended in the repair shop Clothing should protect each employee from known chemical and environmental hazards. Shorts do not provide protection from machin- ery, tools, chemical spills, sparks or other hazardous materials regularly found in repair shops. GNYADA recommends that employ- ees who work around machinery or hazardous substances should wear long pants in the workplace.

extreme temperatures includes: frequent breaks for workers to cool down in an air conditioned or shady area frequent hydration (water, juice, or other non-caffeine beverages) providing as much air flow as possible (to limit the build-up of excess heat) Train and instruct supervisors to monitor employees for signs of heat stress during extreme hot weather or heat waves, especially anyone who works outside. OSHA considers heat related illnesses and injuries (and fatalities) as very serious and pre- ventable. n n n

Dealers are required to provide a “safe work environment” under OSHA’s general requirements, and that includes preventing heat-related illnesses. As dealerships are among the businesses targeted by OSHA in this regard, we have provided some reminders and tips on how to comply with this requirement, below. There are steps dealers can take to provide a safe work place for all employees. Working safely under

17 Porsche and Kia Amend Dealer Agreements Two automakers recently instituted programs with potentially adverse effects on dealers. Below is an update on those developments. These tactics underscore the importmance of reading all communications from the factory, and respond- ing promptly.

Porsche sent dealers a Dealer Agreement thatcontained new dealer obligations that related to facil- ities, new vehicle sales effectiveness, CPO sales effectiveness, ownership transfers, and customer data among others. Some dealers objected timely (with the help of franchise counsel). Update: Porsche offered dealers a revised Sales and Service Agreement, making many of the changes that were requested. The new proposals are under review and may be subject to some additional tweaking before becoming final. Kia announced plans to allocate it new luxury model only to certain dealerships, based on CSI, sales performance, and exclusivity of facilities. New York’s franchise law requires manufacturers to make all models within a linemake available to every franchisee. Further, the vehicles must be allocated fairly, without regard to a dealer’s performance at the time of the launch. Also, the fran- chise law requires that facility requirements be “reasonable.” Update: So far, Kia has been holding firm on providing the new model to only some dealers, in violation of state law, and won’t reveal how those dealers are selected. However, based upon infor- mation disclosed to other industry members, it appears that production plans for the vehicles will be sufficient for all Kia dealers to receive a fair allocation. We will advise dealers if there is any formal announcement or outcome of any challenges to Kia’s practice.

The foregoing information is provided for educational purposes only and is not to be construed or interpreted as legal advice. GNYADA thanks Richard Sox, Esq. of Bass Sox Mercer for providing the information for this item.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • July 2014 9