GNYADA January 2015 Newsletter

Neale Kuperman Sworn in as NADA Treasurer NADA’s 98 th annual convention was held in San Francisco from January 23 to 25. Neale Kuperman 5

(pictured) was sworn in as Treasurer of the organization, which represents more than 16,200 new car dealerships with both domestic and international franchises. At the same time, New Yorker Bill Fox was sworn in as NADA Chairman. With more than 16.4 million new cars and light trucks sold in 2014, Fox says that “NADA has forecasted sales of nearly 17 million news cars and light trucks for 2015. More sales mean more employment and more opportunity for the auto retail industry.” David Karp was among the TIME Dealer of the Year Award recipients, which honors dealers who excel in busi- ness and work diligently and untiringly to help their com- munities and their industry.

convention. Attendees had a choice of 120 workshop ses- sions in 24 categories to learn about the latest trends and opportunities.

Congratulations to the new 2015 Executive Committee.

A record number of dealers attended this year’s

6 General Motors Agrees to Follow NY Franchise Law for Labor Rate Reimbursement

(e)

As we reported in December, GM recently released its Service Policies and Procedures Manual , which pur- ports to govern how and when a GM dealer may seek to alter its labor reimbursement rate for warranty work. The Manual , as presented to dealers, is not consistent with NY franchise laws and raised serious concern that GM dealers in NY would not have their labor rate increase submissions granted by GM. GNYADA President Mark Schienberg, wrote to GM expressing concern and reminding GM of its obligations under New York franchise laws. GM assured Mr. Schienberg of its intention to comply with New York requirements and would not enforce any policies that were incon- sistent with New York law.

We have received a recent report that GM is, in fact, abiding by New York law in granting labor rate increases submitted pursuant to New York Franchise Law. To properly make a labor rate submis- sion under New York law, a dealer must gather 100 sequential repair orders or the number of sequential repair orders written within a 90-day period, whichever is less, covering repairs made no more than 180 days before the submission. A calculation is then made of the average labor rate on repairs, excluding any repairs involving: parts sold at wholesale; tires; routine maintenance not covered under any retail customer warranty such as fluids, filters, and belts; vehicle reconditioning; and (a) (b) (c) (d)

batteries replaced as part of a routine maintenance operation.

If your dealership is interested in participating in GNYADA’s Warranty Parts Reimbursement Program for

parts and labor, please see the enclosed flyer and contact Bill Cordes at the Association.

WARRANTY PARTS REIMBURSEMENT SERVICE GNYADAHelpsDealers ImprovePro tability • GNYADAhasbeenassistingdealers increasewarrantyreimbursement rates sincepassingFranchiseLaw reforms. • The Greater New York Automobile Dealers Association has a 100% success rate and has helped increase the bottom line ofmore than 600ofourmemberdealerships. • New provisions in the 2014 Franchise Law allow greatermarkups, resulting inhigher reimbursements todealers. • Routinemaintenance, tiresandbatteriesareexcluded! • GNYADA’s team saves you time and e ort by completing this time- consuming tediousapplicationprocess. • Dealersneedonly supplyaccounting copiesof repairorders. • $2,900perapplication. G N

TobeginyourWarrantyPartsReimbursementSubmission foryourdealership contact, BillCordes at 917.763.5318 oremail Phyllis at phyllisa@gnyada.com .

GNYADA thanks Richard Sox, Esq., of Bass, Sox, Mercer for this article.

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

The Newsletter • January 2015 3

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