GNYADA March 2017 Special Edition Newsletter

For Dealer Principals / General Managers / Sales Managers The Newsletter A Publication of Greater New York Automobile Dealers Association

New York’s #1 Automotive Marketing Event

MARCH 2017 Volume 27, Issue 2

COMING IN HOT TO NEW YORK: The New York International Auto Show, is a treat for car enthusiasts who want a first look at what’s new in the automotive industry. From April 14 th to 23 rd , more than 1,000 vehicles —many making debuts —will take over New York City’s Javits Center. Vehicles ranging from luxury sports cars to off-road pickups, as well as a few concept cars, will gleam on the show floor. Activities include the Automotive Forum, Dealer Preview, Ride & Drives, Industry Symposiums, Virtual Reality presentations and more. Plus, there are always a few surprises. No other event creates as much excitement about new cars as the Association’s 117-year-old Show.

Visit autoshowny.com for more!

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The Newsletter • New York International Auto Show Special Edition I March 2017

As a dealer member of GNYADA, you are eligible for special discounts on Dealer VIP Tickets for the 2017 New York International Auto Show. Dealers could use these discounted VIP Auto Show Tickets to thank valuable employees, special customers, and reliable vendors. In addition to Dealer VIP Tickets; show posters and discount coupons are available to you to help maximize the excitement of the Auto Show for your customers. To order VIP Tickets, contact Felecia at 718.746.5300 or Felecia@autoshowNY.com .

Dealer Preview Reception: There’s No Networking Event Like It

Thursday, April 13 Javits Center Don’t miss one of the most exclusive events in the city, The Dealer Preview . Dealers are invited to the area’s number-one automotive networking event to join in celebrating the 2017 New York Auto Show and the retail auto industry. The Dealer Preview will be held in the River Pavilion, on Level 4. Invitations for the event will be mailed shortly, and questions can be

GNYADA thanks the sponsors of the Dealer Preview: • TD Bank

directed to the Association at 718.746.5900 for more details.

• Newsday • NY Post

COCKTAIL RECEPTION: 5PM-7PM SHOW FLOOR OPEN: 5PM-10PM

• Arent Fox • Auto Trader • Telemundo • iHeart Media • Univision

Formal invitation to follow via mail.

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The Newsletter • New York International Auto Show Special Edition I March 2017

Auto Shows Drive New Vehicle Sales For 117 years, the New York International Auto Show has heralded the arrival of the latest new cars and trucks available for car buyers to purchase at area dealerships. Surveys of Show attendees confirm that people continue to have a passion for cars and they visit the Show because they want to research their next new car or truck. Combined with the increase in OEM’s advertising to consumers and the explosion of television, print, online and social media reports, the New York Auto Show is unique in that it is a global newsmaker as well as a regional sales event rolled into one.

Findings from 2016 NYIAS exit survey: Auto Shows Influences Buying Behavior

68 % of attendees intend to purchase a car in the next 12 months after the show. 57 % of attendees use the Show to compare vehicles and shop before going to a dealer. 38 % added brands to their consideration-list as a result.

Auto Shows Attendees Live Locally and are Ready to Buy

85 % of attendees indicated that they plan to visit a dealership or dealer/ manufacturer website after the Show

69 % of the attendees at the New York International Auto Show live in the GNYADA membership geographic area

51 % 49 %

of attendees were female

were male

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The Automotive Forum is one of the must attend events of the New York Auto Show’s press week. This one-day program brings together leaders from OEMs, suppli- ers, retailers, and the media to discuss how industry and economic conditions will shape the future. The Forum goes beyond the headlines and explores how recent developments will impact the auto industry. Top automotive executives will cover subjects such as Dealership of the Future, The View from Wall Street, Regulation in the Trump Era and The Shift from Selling Sheet Metal to Mobility. GNYADA members receive a $100 discount on registration to the 2017 Automotive Forum. Registration for the Forum also includes access to the Auto Show’s press preview on April 12 & 13. Visit autoforumny.com for the full Forum agenda, a list of speakers, and to register.

Discounted Registration for GNYADA Members

HOSPITALITY HOURS:

GNYADA members are invited to join us at our Hospitality Lounge on Level 4 of the Jacob Javits Center for light refreshments and a place to relax while visiting. The Lounge will be open during the days and times listed. GNYADA Members’ Hospitality Suite

Mon, April 10: Tues, April 11: Wed, April 12: Thur, April 13: Fri, April 14: Sat, April 15: Sun, April 16:

Mon, April 17: Tues, April 18: Wed, April 19: Thur, April 20: Fri, April 21: Sat, April 22: Sun, April 23:

8am-5pm 9am-5pm 7am-8pm 7am-11pm 8am-8pm 7am-8pm 8am-6pm

8am-8pm 7am-8pm 7am-8pm 8am-8pm 8am-8pm 8am-8pm 8am-9pm

The New York International Automobile Show is sponsored by: The Greater New York Automobile Dealers Association 718.746.5900 gnyada.com GNYADA Chairman: Nick Toomey, Rallye BMW GNYADA President: Mark Schienberg Show Committee Chair: John LaSorsa, LaSorsa Buick-Chevrolet, Inc. VIce Chair: Brian Miller, Manhattan Motorcars, Inc. Committee:

Oliver Brodlieb, East HIlls Chrysler Jeep Dodge Gary Brown, Brown’s Jeep Chrysler Dodge Lee Certilman, Nardy Honda Louis G. Giordano, Croton Dodge Chrysler Jeep Maryann Kolb, Bill Kolb, Jr., Subaru Inc.

Larry Orlando, Tower Ford, Inc. Robert Penn, Penn Toyota, Ltd. Jack Weidinger, North Bay Cadillac Co., Inc. Andrew Weinstock, Biener Audi, Inc.

AUTOSHOWNY.COM #NYIAS

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The Newsletter • New York International Auto Show Special Edition I March 2017

To read these stories and get the latest news online, visit the GNYADA website at www.gnyada.com

For Dealer Principals / General Managers / Sales Managers The Newsletter A Publication of Greater New York Automobile Dealers Association

1 Bold ‘All New’ New York Auto Show Debuts Next Month

MARCH 2017 Volume 27, Issue 2

HIGHLIGHTS

Used Car Recall Disclosure a Priority page 3 NYC Sign Disclosure Requirements page 4 Dealer Pays $194K for Improper Hazardous Waste Disposal page 6 Allied Member Memo: Advertising Compliance & Review page 7 Window-Tint Law Not So Clear page 10 New York’s Elite Auto Tech Students Compete page 11

Reflecting our ever-changing industry, GNYADA is shaking up this year’s New York International Auto Show (NYIAS), to maximize the excitement the Show brings to New York during the spring selling season. Kick starting the changes will be two fully- revised press preview days allowing automakers’ press conferences to start earli- er and coincide with a new transportation and mobility forum: The Empire State of Mobility Conference. The new conference takes place on Wednesday, April 12 and reflects the grow- ing importance of autonomous vehicles. Specifically, it will address how to convert fundamental shifts in mobility into lucrative business opportunities, promote access to jobs, make logistics smarter, empower the public and make transportation more sus- tainable.

The inaugural conference is preceded on Tuesday, April 11 by the highly-anticipated annual Automotive Forum conference, host- ed by NADA, J.D. Power and the NYIAS, which will address issues impacting the future of transportation and auto retailing. For more details visit autoforumny.com . Global Newsmaker In addition to the dozens of significant world and North American introductions scheduled and the important announcements expected from the exhibiting automakers, several other mobility-related events are also taking place. With safety being a huge component of the autonomous vehicle revolution, the Auto Show is moving up the World Traffic Safety Symposium, to correspond with press week. By doing this, the Show will engage compa-

The Newsletter is published by GNYADA, a not-for-profit organization representing franchised automobile dealers in the New York metro area. 18-10 Whitestone Expressway Whitestone, New York, 11357

Dealer Hotline 718.746.5900

(continued on page 2)

www.gnyada.com

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The Newsletter • March 2017

New York Auto Show (continued from cover)

nies that are at the forefront of safety technology with automakers and the safety community. The annual Symposium will take place on Thursday, April 13. “We have completely redrawn our press days to help manage these new events,” said GNYADA president, Mark Schienberg. “Our public days remind us that there is still no better way to grab the attention of prospective car-buyers than to intro- duce them to the latest new cars and trucks. Over a million visitors are expected to walk the Javits Center’s four floors during the 10-day run of the Show. In addition, millions more will experience these exciting new vehicles on television, in print, and online.” What’s Your Drive? In another new move, the NYIAS launched its 2017 poster campaign exclusively via social media for the first time. The tagline What’s Your Drive, is designed to start the conver- sation about what stirs emotions and generates excitement about owning and driving a car. “After more than a century, excite- ment is still a major force motivating people to buy and drive cars. With all the talk of cars driving themselves, we wanted to have a little fun this year and remind people how exhila- rating driving can be,” remarked NYIAS Chairman John LaSorsa. “Nothing exemplifies individual free- dom better than the automobile, and nothing represents New York better than its storied streets,” LaSorsa con- tinued. “By combining them in a fun, imaginative way, this year's poster captures these two iconic symbols of urban chic with automotive excel- lence, creating an image that will res- onate with Show visitors.”

Some of the exciting new vehicles coming to the 2017 New York International Auto Show

customers, both of which help to build excitement about the upcoming Show.

The poster art is the backbone of a comprehensive media campaign fea- tured on billboards, television and print ads, subway cars, plus a wide range of social and digital media. Dealers all over the tristate area have received the official Auto Show poster to display in their stores and discount coupons to hand out to their

For more information about the Auto Show, visit autoshowny.com .

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

The Newsletter • March 2017

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2 Used Car Recall Disclosure a Priority Dealers trying to keep up with what needs to be done to sell a used car subject to an open recall face a confusing maze of different The signed acknowledgment from the customer should indicate the following:

available from the manufacturer.

policymakers in Washington, D.C., to explain the negative impacts a BAT could have on the costs of vehicles. NADA Chairman Mark Scarpelli called for BAT advocates to prove how a border tax or import tariff would ease the vehicle affordability problem already confronting millions of dealership customers. Mr. Scarpelli urged dealers to stay engaged with their representatives in Congress regarding this matter, and pledged to represent the interests of dealers and their customers as tax reform moves forward. 3. If the car the dealer is selling is not the dealer's brand, the dealer will arrange to have it repaired by a franchise dealer which sells that brand before the customer takes delivery or will notify the customer that they need to make the repair. If repair parts are unavailable, the acknowledgment should state this, too. 4. If the customer accepts the vehicle at the agreed price after disclosure of a recall is made, the customer should sign and date the acknowledgment. A copy of this acknowledgement should be given to the customer, and the dealership should retain a copy, in addition to the recall report. Dealers are advised to consult their attorney for a specific acknowledge- ment form to be used for their dealership. For further questions about creating this form, please call the Association at 718.746.5900.

Means Committee. NADA warned about a BAT’s potential to raise expenses (taxes, cost of goods) on companies with global supply chains, in turn causing reductions in employment and higher prices falling to consumers. One of NADA’s – and the automotive industry’s – largest worries is the prospect of a border tax or import tariff raising the cost of all imported vehicles, as well as American-made vehicles containing parts manu- factured overseas. NADA has been steadily communicating with 1. That the dealer has disclosed, and that the customer has received, a report about open recalls as found on safercar.gov , prior to delivery. 2. If the car is the dealer's brand, then either: The dealer will repair the vehicle prior to delivery, or Parts are not yet available from the manufacturer, but the dealership will notify the customer as soon as the repair can be made, free of charge, or The safercar.gov report shows no recalls on the vehicle but a bulletin from the manufacturer has alerted the dealership about a recall, in which case the repair will be done either prior to delivery, or as soon as parts are n n n

information from numerous agencies. The FTC, the State Attorney General, DMV, and the NYC Department of Consumer Affairs are a few groups that oversee dealer practices, and each have given their opinions and guidance on this issue. The difficulty for dealers is that the guidance is not always the same; however, one area where these agencies overlap is the requirement of disclosure. Dealers are advised to disclose any recall on a used vehicle to the customer and to have them sign an acknowledgement that they have been provided that information before delivery. Providing the customer with a report from NHTSA’s safercar.gov website, along with any information from your OEM, is the best way to meet the agencies’ requirements.

NADA Director’s Column Every Dealer Should Have Concerns About a Border Adjustment Tax

NADA Director for Metro New York Bob Vail, Vail Buick GMC

Voicing concerns over a possible Border Adjustment Tax (BAT) has become a priority issue for NADA. The organization recently joined with a group of business associations in contacting Representative Kevin Brady, Chairman of the Ways and

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

The Newsletter • March 2017 3

NYC Sign Disclosure Requirements

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In April 2016, the New York City Department of Consumer Affairs implemented new disclosure requirements related to the sale of used vehicles. Dealers are advised to review the requirements (explained below) to make sure all signs are compliant. New Requirements NYC dealers that sell used cars must have a sign, at least 216 sq. inches, with letters at least 2” tall, displayed in close proximity where used vehicles are sold, stating that the dealership sells both new and used vehicles. All used vehicles, products, and parts must be clearly labeled using words like “secondhand”, “used”, “not new”, “demo model”, “pre-owned”, “refurbished”, or “recycled.” Display the total selling price of each used vehicle at eye-level, either within five feet of the vehicle (indicating to which vehicle it applies) or on the vehicle's dashboard or window/windshield. The price of the car must be written in characters at least one inch high. The sign must disclose, in text at least one-half as high and one-half as broad as the largest print on the sign, n n n “Total Selling Price” Signs

that taxes, registration, and title fees are not included in the selling price.

“Add-On Product” Signs

Dealers must have signs that list each after-market product offered for sale and state the price immediately next to the product (one product/price per line). Signs must have letters at least one-inch high, unless separately posted on each vehicle, in which case the letters must be one-half inch high. Extended Warranties: a range of selling prices may be posted and must include factors affecting price (make, model, year, mileage). All signs must include the following statement in bold and capital letters at least half as high and half as broad as the largest print on the sign (but no smaller than a quarter inch high): YOU ARE NOT REQUIRED TO BUYANYADD-ON PRODUCTS IN ORDER TO PURCHASE A CAR AT THE ADVERTISED PRICE. If you have questions about these signage requirements or about the DCA's enforcement of the new regulations, please call GNYADA at 718.746.5900. n n n n

GNYADA at Your Fingertips

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The Association encourages all its dealer members and their employees to stay connected and tuned in to the latest GNYADA news and updates by using the resources below:

activities of the Association, news about its dealer members, as well as what’s going on at the Center for Automotive Education & Training.

Targeted Email Distribution Lists

GNYADA tries to limit the number of emails we send to our growing lists, by targeting emails to those within a dealership for whom the message is most applicable. If you would like to register yourself or a staff member to receive GNYADA emails, please email PhyllisA@gnyada.com .

GNYADA.com

Social Media

The Association maintains a very robust website ( gnyada.com) , with an incredible amount of information to which all members have access. If you do not have a User ID or have forgotten it, please contact Phyllis Aguilar, at 718.746.5900 or via email at PhyllisA@gnyada.com .

For dealers and employees who are active on social media, GNYADA wants you to know the Association has a Twitter presence. We invite anyone with Twitter to follow us at https://twitter.com/GNYADA_official It’s a great way to keep up with the

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

The Newsletter • March 2017

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Injury and Illness Reporting Requirements Incident reports from 2016 must be displayed in dealership through April 30, 2017

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spot in the dealership between February 1 and April 30. Form 301 (Injuries and Illnesses Incident Reporting) allows dealers to provide detail on individual incidents. Dealers are required to complete this form within seven calendar days of learning about a work-related injury/illness and to keep the form on file for five years, available for OSHA to review. Forms can be accessed online at www.osha.gov. GNYADA's Field Service Reps are also available to drop off printed forms when they visit your dealership. For any further questions about these reporting requirements, call GNYADA at 718.746.5900.

restricted work activity or job transfer medical treatment beyond first aid The following forms must be com- pleted in order to comply with OSHA’s injury/illness reporting requirements: Form 300 (Log of Work-Related Injuries and Illnesses) is the primary document used to classify work-relat- ed injuries and illnesses and the sever- ity of each. Dealerships use this elec- tronic form to record the incidents that occur in any calendar year. (If you own multiple stores, each must file a Form 300.) Form 300A is a paper form that con- tains the same information as Form 300, and it must be posted in a visible n n employer and freelancer; a list of services; the services' value and rate/method of compensation; and the date on which the hiring party must deliver payment. For hourly workers, the written contract is required once the worker's wages reach $800 for the prior 120-day period. If an employer expects that a worker will earn $800 in a 120-day period, the best practice is to offer the contract at the outset. Freelancers must be paid either on or before the contracted date, or, within 30 days of the completion of services. If a business violates the new law, freelancers have two years to file n n n

Automobile dealers with ten or more employees are required to keep detailed logs of work-related injuries and illnesses and to post incident summary forms. Reports of injury/ill- ness incidents for a given year must be displayed in dealerships annually from now till April 30 of the follow- ing year. A work-related injury/illness must be reported if it resulted in any of the following: death n

unconsciousness missed workdays

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or more must have written contracts that contain: the name and mailing address of the n Freelance projects valued at $800 an administrative complaint, if they choose. The City may commence a civil action against an employer engaged in a pattern of violations of the new law and seek up to $25,000 in penalties. Workers who complete tax form 1099 can already file wage-theft complaints with the NYS Department of Labor. Now, they can take action on the city level and be entitled to statutory damages, double damages, injunctive relief, and attorney’s fees. Other specifics of the City law (No. 1017-2015) can be reviewed on legistar.council.nyc.gov . GNYADA will keep members posted on any developments. Freelance Workers Act, Effective May 15 in NYC 6 NYC Mayor Bill De Blasio signed into law the Freelance Isn’t Free Act, establishing protections for freelance workers which takes effect on May 15, 2017. Based on the Act’s definition of “freelance workers,” independent contractors fall into this category. At a dealership, independent contractors could include dealership valets, maintenance workers, and more. The new law includes the right for freelancers to receive a written contract that assures timely payment in full and indicates that they are protected against retaliation. Highlights of the new law include: n

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

The Newsletter • March 2017 5

Dealer Pays $194K for Improper Hazardous Waste Disposal Avoid harsh penalties at your dealership

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Ignitability (flash point <140°F) Toxicity (harmful when ingested or absorbed, fails the TCLP chemical analysis test) Corrosiveness (pH level of 2 or lower or 12.5 or greater) Reactivity (unstable, violent reactions with water) To review the New York State Department of Environmental Protection's hazardous waste list, visit http://www.dec.ny.gov/regulations/8765.html . Hazardous waste has one or more of the following characteristics: Last month, a New York dealer and one employee were found guilty of violating the New York State Environmental Conservation Law (ECL), paying over $194,000 in fines and restitution as a result. The dealership had buried more than 140 gallons of hazardous substances at their facility, including four 55 gallon drums of used oil, containers of used oil filters, and approximately 20 tires. In addition, the dealership drained automotive fluids from inside their facility outside into a pit in the ground. Lastly, the dealership had a large, unprotected pile of solid waste, classifying them as a solid waste management facility, without the proper permit. To avoid severe fines, dealerships must make sure that any hazardous waste generated at their facility is properly disposed of and properly labeled. Sometimes nonhazardous waste is mislabeled as hazardous; if so, it must be disposed of as hazardous waste. (Hazardous waste disposal is much more expensive than nonhazardous waste disposal/recycling.) Additionally, hazardous waste must be stored and managed differently than nonhazardous waste. De ning hazardous waste

Examples of potentially hazardous wastes generated at dealerships

Solvent Paint waste Lead acid batteries Florescent light bulbs Gasoline Contaminated oil Air bags

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Examples of (often) nonhazardous wastes generated at dealerships

Used oil Used tires Drained oil filters Used antifreeze

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Dealers can avoid violations, fines, and legal action by staying educated on hazardous waste rules and regulations, including labeling and disposal methods.

Call Walden Environmental Engineering, a GNYADA Allied Member, at 516.624.7200 for more information regarding hazardous waste disposal.

Disposing of hazardous waste in appropriate intervals is also very important. Disposing of it too quickly can cause your dealership to be categorized as a Large Quantity Generator, subjecting you to additional hazardous waste taxes.

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

The Newsletter • March 2017

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AlliedMember Memo

8 Advertising Compliance & Review Four Ad Violations for Dealers to Watch Out For

Ad compliance has never been more important; because, in today’s digital era, an ad is forever. Unlike years past, when print ads often wound up in the trash with yesterday’s newspa- per, today’s ads “live on” for decades, and they can be accessed and reviewed by regulators at any time. Regulators on every level of govern- ment have begun enforcing automo- tive advertising compliance: Federal: The Federal Trade Commission (FTC) and the Truth in Lending Act (Regulations Z and M.) State: New York's Unfair and Deceptive Trade Practices Act and enforcement under the State Attorney General's Advertising Guidelines. Local: New York City’s Department of Consumer Affairs and individual counties’ Offices of Consumer Affairs. Recent history reveals a pattern of enforcement actions involving certain ad violations: GNYADA has learned about the fol- lowing identity-theft scam: Last summer, an individual used what appeared to be a legitimate North Carolina driver’s license to complete a no-money-down vehicle purchase at a New Jersey dealership. The deal was approved and financed by a lender, who soon after began pursuing the individual for nonpay- ment. After the lender contacted the dealership regarding the customer's payment delinquency, it became 9

is exclusive to his/her dealership, as it is a rebate available on that particular vehicle statewide. Further, unless rebates are available to all consumers, advertising prices with the rebate amount subtracted/factored in, is deemed deceptive. “Free Giveaways”: Federal regula- tions, the FTC and state and local agencies have determined “free give- away” language to be deceptive, if the advertised item is only free contingent on a separate purchase. To avoid the consequences of an enforcement action, the best practice is to have all dealership ads, including online ads, routinely reviewed by legal counsel for compliance. Karl Chip Seman, Esq. of Grunwald & Seman, P.C., a GNYADA Allied Member, offers comprehensive monthly reviews and compliance audits of dealership advertis- ing, and liaises with many dealerships’ ad agencies. The Association thanks Mr. Seman for his contributions to this article.

Conflicting Representations: The text of an ad is, in fact, a representa- tion. When it prominently makes one statement (e.g., “up to $3,000 off vehicle trade-ins”) and the disclaimer states otherwise, this is a violation. If a headlines screams, “We finance everyone!” but much smaller font next to it states, "with excellent cred- it”, this is a violation. Too-Small Disclaimers/Footnotes: Use of any font smaller than 10-point is deceptive. Using too-small “fine print” can automatically mean the main text is also deceptive, since the fine print often alters its meaning. Dealer Rebates: Per FTC guidance, ads featuring rebate amounts must accurately disclose information, such as the terms and conditions to receive it. The FTC has deemed it deceptive for a dealership to advertise that the dealership provides rebates. This is important to keep in mind with regard to New York State’s ZEV Rebate Program; a dealer ad should not make it seem as though a ZEV rebate offer apparent that a stolen identity had been used to purchase the vehicle. The dealership filed a police report and an insurance claim. The vehicle was eventually located at a southern U.S. port in early 2017, where it was impounded before it could be shipped overseas. After a subsequent investi- gation, it appears that this culprit has also defrauded other dealerships in New Jersey and Pennsylvania. The frightening aspect of this type of

Watch Out For This Sophisticated Fraud Scam

scam is how hard it was to detect; in this case, the identification and the supporting documents all appeared legitimate, even by the lender. Given this, extreme vigilance and communi- cation among dealerships is recom- mended. Dealers are advised to review any bulletins or reports about vehicle thefts where a stolen identity was used. Be sure to note the names and other identification points used in those fraudulent transactions in case someone tries to use the same stolen identity at your dealership.

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

The Newsletter • March 2017 7

New Maserati/Fiat/Alfa Romeo Dealer Agreements Stir Controversy

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In a recent opinion article featured on nyslant.com , Manhattan Borough President Gale Brewer stated her position that New York State – and New York City in particular – must welcome the testing of self-driving technology and autonomous vehicles on its streets. The primary reason why New York’s roads are currently ineligible for such tests is because it is the only state that legally requires drivers to have at least one hand on the wheel while the vehicle is in motion. Brewer believes In December, 2016, FCA issued pro- posed new Dealer Agreements to its Maserati, FIAT and Alfa Romeo deal- ers. The proposed agreements are vir- tually identical for each of the brands, and contain new provisions which are extremely onerous. Thanks to provisions in New York's Franchise Law, dealers in this state may be able to push back against these proposed new agreements. Dealers can protest any modification to their franchise which is adverse and substantially alters the rights, obligations, investment or returns on investment of the dealer. Any such protest must be made within 120 days of receipt of notice of the proposed modification. Some of the provisions of the pro- posed agreements are as follows: Sales of Through Non-Dealers – The manufacturer would have the right to sell and distribute its products

that this safe-driving law, nearly five decades old, is now ironically pre- venting the testing of potentially life- saving traffic safety technology. She further adds that the uniqueness of New York City’s streets — packed with pedestrians, cars, buses, bicy- cles, sanitation vehicles, and more — make it especially important for self- driving and vehicle autonomy tests to take place here. She asks, how will driverless systems ultimately learn how to navigate these conditions unless we do so? through any channel of distribution, including entities that are not author- ized dealers. Dealer’s Obligations – The pro- posed Agreement requires dealers to establish and maintain exclusive brand facilities. Management of Dealership – The proposed Agreement states that the Dealer Principal “shall devote full time efforts to [the brand’s] opera- tions, including his or her physical presence at the approved location and facility during normal operating hours, and active, substantial and continuing personal participation in the management of dealer’s Maserati operations.” Parts and Accessories Inventory – The Agreement states that the manu- facturer is permitted to set parts inventory levels for the dealer. Motor Vehicle Addendum – The

Motor Vehicle Addendum addresses all current product offerings in the United States. However, any future electric vehicles or hybrid electric vehicles are excluded from the list of available vehicles. Software License, Data Exchange and Electronic Commerce Agreement – Dealers would be required to grant the manufacturer (and its vendors) full and unfettered access to dealership DMS systems. Maserati, FIAT and Alfa Romeo deal- ers in receipt of the proposed new Dealer Agreement should review all provisions and determine which may adversely impact their franchise. Dealers who wish to take advantage of their right to protest are advised to contact motor vehicle legal counsel. The Association thanks Richard Sox, Esq. at Bass Sox Mercer for provid- ing this article.

11 Steering toward Embracing Autonomy Manhattan Borough President challenges “one-hand-on-the-wheel” requirement

In a likeminded effort to get New York State up-to-speed with modern driving technology, some state legis- lators are pushing to change the “one- hand-on-the-wheel” requirement. With driverless technology a key theme of the upcoming New York International Auto Show, the Association will be watching closely as this conversation unfolds, and will keep members informed about devel- opments.

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

The Newsletter • March 2017

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IN REMEMBERANCE

Irwin Garsten Remembered 12

starting out as a salesman, he eventually bought a stake in Brauser Motors in Riverhead – the business that would grow into Apple Honda – in the mid 1950’s. As one of the most prominent business owners on the North Fork, Irwin became highly active in community organizations, including the Boy Scouts of America, Central Suffolk Hospital, Peconic Bay Medical Center Foundation, and the Eastern Suffolk School of Music. He was also a board member of the NYS Small Business Administration. In addition to serving as GNYADA Chairman from 2000 to 2001, Irwin was a longtime member of the Association's Executive Committee, serving on the Auto Show and

Government Relations Committees, among others. In 2006, he was GNYADA’s nominee for the prestigious Magazine Quality Dealer Award. Irwin leaves behind his wife of nearly 45 years, Flora; his children, Andrew, Carol, Bradley, Patricia, Mary, and William; eight grandchildren and one great-grandchild. A big fan of the arts, Irwin could often be found enjoying opera with Flora at the Metropolitan Opera in NYC. Irwin and Flora enjoyed traveling all over the world. He always had a smile and a good word to give others. On behalf of the Board of Directors, fellow GNYADA members, and staff, the Association expresses its deepest condolences to the Garsten family.

Irwin Garsten, Dealer Principal of Apple Honda in Riverhead and former GNYADA Chairman of the Board, passed away on February 7, 2017, at his home in Florida, following a heart attack. He was 86 years old. Irwin spent more than six decades in the automobile business. After

13 Helen M. Marshall, Former Queens Borough President, Passes Away at 87

she staunchly advocated for job training programs in the region. As Borough President, she was an active supporter of GNYADA's Center for Automotive Education and Training, which was built during her time in office. Ms. Marshall was the keynote speaker at Lincoln Tech Whitestone's inaugural graduation ceremony in 2006, and she regularly visited the Center on many subsequent occasions. In her four terms as Borough President, Ms. Marshall had many achievements, including successfully funding library projects in Queens as well as creating the Queens General Assembly, to encourage cross-cultural dialogues between ethnic groups. Prior to her term as Borough President, she served on the New York City Council for ten years, as well as in the State Assembly for eight. Ms. Marshall's survivors include her sister and two children. GNYADA extends its condolences to the Marshall family, for their loss.

Ms. Marshall with Association President Mark Schienberg at Lincoln Technical Institute’s 2006 graduation ceremony.

GNYADA was saddened to learn about the passing of former Queens Borough President Helen M. Marshall on March 4 at age 87, at her home in Palm Desert, CA. Ms. Marshall, who served as Borough President from 2002 to 2013, was notably the first African-American elected to that office. As a Queens community activist,

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

The Newsletter • March 2017 9

Window-Tint Law Not So Clear 14

would further hamper dealers and confuse consumers, and will keep members updated on the bill’s status. Medical exemptions: Since it first went into effect, the tint law has exempted vehicles that have been tinted to accommodate certain medical conditions that cause photo- sensitivity to light. These exempting light-sensitivity conditions include porphyria, xeroderma pigmentosa and severe drug photo-sensitivity. GNYADA has a two-piece tint meter available for members to purchase at a specially discounted price. To order the Tint-Chek PRO, call 718.746.5900.

These rules only apply to passen- ger cars (not trucks, limos, or unmarked police cars). If a vehicle fails inspection due to illegal tinting, the consumer must address the issue by the expiration date on the inspection sticker. Rear windshields are currently exempt from the new standard, provided there are outside rear- view mirrors on both sides of the vehicle; although, a bill was intro- duced in this Legislative Session that would remove rear windows from the exemption list, requiring inspection stations to test them as well. GNYADA opposes this, as it

Now that window tint testing is part of annual vehicle inspection require- ments — a change stemming from concerns over police officer safety — dealers are adjusting to how this impacts their customers and their repair work. Per the standard, window tinting can- not go above 30%, below 6” from the top of the windshield, or on any part of the side windows. Additionally, a two-piece tint meter is now required in order to test windows that don’t roll down. Other important highlights of the regulations are as follows: Vehicle inspection stations are required to test and fail a vehicle if its windshield or side windows are tinted darker than 30%. n

n

n

n

DMV created a YouTube video that explains the new regulations and reviews some testing procedures. To watch the video, go to dmv.ny.gov/registration/tinted-windows and click the YouTube link.

Federal Law Addressing Negative Customer Reviews

15

The Consumer Review Fairness Act is a new federal law that went into effect on March 14, 2017 that auto- matically voids any “gag clause” that is included in a customer form con- tract (i.e. one which customers don’t have the opportunity to negotiate, such as a sales contract) and also pro- hibits businesses from offering con- tracts that contain gag clauses. A gag clause prevents customers from writing a public review of the level of service, the satisfaction of the goods, etc. from a business such as a new car dealer. This new law protects customers’ rights to give a dealership a negative review, on an outlet such

ers may be impressed with how you’ve handled the situation. Dealers are advised to review their customer form contracts to ensure that they do not contain gag clauses. GNYADA will update members as soon as compliance guidelines and

as yelp.com or the dealership’s social media page, as long as the review is not defamatory. Steps dealers can take: Dealers are advised to encourage cus- tomers to post reviews about their positive experiences with your dealer- ship. In addition, dealers need to pay attention to negative reviews. Keep in mind that if you receive a negative review, this can be used to garner positive attention by respond- ing with an apology about the experi- ence that led to it and offering to address the issue. Even if you can’t “convert” the negative reviewer, oth-

penalty amounts associated with the Consumer Review Fairness Act are made available.

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

The Newsletter • March 2017

10

16 And the Winner Is… New York’s Elite Auto Tech Students Compete for a Shot at the Nationals

the country, as well as an array of tools from Snap-on. The duo, and their instructor Michael O’Hara, will go on to represent the Association as “Team Greater New York” in the National Automotive Technology Competition, taking place at the Jacob Javits Center, on April 18 and 19, during the New York International Auto Show. Team Greater New York will be train- ing for the Nationals at Buzz Chew Chevrolet Cadillac in Southampton, NY under the tutelage of 2013 New York Champ and former top-five National finisher, Michael Rutkoski. GNYADA congratulates John and Evan on their well-deserved win, and wishes them the best of luck in the nationals. To view photos from the New York Auto Tech competition, visit the com- petition’s Facebook page: www.face- book.com/NYAutoTechCompetition/ and before administrative agencies such as the EEOC, the NYS Division of Human Rights, and the NYC Commission on Human Rights. She has litigated matters concerning employment discrimination, whistle- blowing, contracts, and non-compete and nondisclosure agreements. In her role with GNYADA, Ms. Mercer will provide legal support for the Association’s business needs and be a resource for the Dealer Services team.

In February, the 2017 New York Automotive Technology Competition Finals took place at the Center for Automotive Education & Training. With more than $200,000 in scholar- ships and prizes on the line for the top finishers, students were put through a timed gauntlet of on-car challenges where they had to diag-

nose and repair vehicle issues, and properly log the repairs on the RO. This year’s New York champs are: John DeLuca and Evan Wagner from H. B. Ward Technical Center in Riverhead, Long Island. John and Evan received scholarships from GNYADA and post-secondary auto- motive training programs throughout as In-House General Counsel. Ms. Mercer comes to the Association after several years of practice at law firms, including GNYADA’s former lobbying firm Wilson Elser Moskowitz Edelman & Dicker. At Wilson Elser, she represented busi- nesses, restaurants, school districts, and residential associations in various matters including employment law, directors’ and officers’ liability, and general litigation matters. Ms. Mercer has represented clients in federal court, New York State court,

Mercer Joins GNYADA’s In-House Legal Team

17

The Association has hired attorney Julie L. Mercer, a graduate of Georgetown University Law Center,

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

The Newsletter • March 2017 11

EMPLOYMENT CORNER

NADA’s “Dealership Workforce Study” Open through April 28 Participants receive two complimentary reports 18 The National Automobile Dealers Association (NADA) Dealership Workforce Study provides the industry’s only authoritative analysis of employee compensation, retention / turnover, benefits, work schedules and demographics. Dealerships that complete a questionnaire and submit their payroll data will receive two complimentary reports: One report shows the comparison between your dealership’s numbers and those collected from your national and regional peers. The other provides overall analyses of the industry for each U.S. region. Dealers can enroll as individual dealerships or dealer groups using a secure, web-based process that involves completing a survey and uploading their payroll data. The deadline for participating is April 28, 2017. Dealers are encouraged to complete the survey. The data gathered in these reports enables dealers to make informed decisions on pay plans, benefits, work schedules, and more. The greater the level of participation, the more accurate the findings will be. To begin the process, visit nadaworkforcestudy.com. If you have any questions, email WorkforceStudy@nada.org or call 800.557.6232.

GNYADA’s Employment Corner is a free recruiting and job placement service that lists qualified candidates for positions at dealerships. If you have a position to fill, call 718.640.2012 .

FILE #

POSITION

RESIDES IN

OFFICE Biller

Bronx Jamaica

360 361 362 363 364 365 366 367 368 369

Biller/Bookkeeper Bookkeeper/Asst. Office Manager

Forest Hills

Harrison

Bookkeeper/Biller – Part Time

Springfield Gardens

Controller

Fort Lee, NJ West Babylon Whitestone

Controller/Office Manager

Bethpage Baldwin

Receptionist

SALES General Manager

Warwick

371 372 373 374

Sales

Fairfield, CT Hauppauge Far Rockaway

Sales Manager

Sales Manager/F&I Manager

Contact Us: Greater New York Automobile Dealers Association 18-10 Whitestone Expressway l Whitestone, NY, 11357

Dealer Hotline: 800.245.4640 Headquarters: 718.746.5900 email: assistance@gnyada.com DMV-DIRECT: 718.747.0400

GNYADA Insurance Brokerage, LLC: 718.746.8100 New York International Auto Show: 718.746.5300 Center for Automotive Education & Training: 718.640.2000

The information contained in this newsletter may not be relied upon for the avoidance of tax penalties. Readers are urged to discuss any issues raised in this newsletter with their legal and tax professionals.

Printed on FSC certified material. All original material except where noted. © GNYADA 2017

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

The Newsletter • March 2017

12

Press Days: April 12 - 13 I Public Days: April 14 - 23, 2017 Jacob Javits Convention Center

VIP Dealer Discount Tickets

TO ENSURE DELIVERY, ORDERS MUST BE PLACED NO LATER THAN MARCH 10, 2017. Please complete this form and return via email: felecia@autoshowny.com or fax: 718.508.4784 or mail to: New York International Auto Show, 18-10 Whitestone Expressway, Whitestone NY 11357, attention: Felecia Singh.

Shipping

contact name

company

address

Use street address only (no P.O. boxes)

city/state/zip

tel

cell

email

Tickets

29% off

35% off

18% off

The more you buy the more you save!

10-19 $12.00 ea.

20+ $11.00 ea.

1-9 $14.00 ea.

Please send tickets x

= $

shipping

+ 9.00

total $

Payment*

method of payment:

❏ check (payable to GNYADA)

❏ money order

❏ VISA

❏ MASTERCARD

❏ AMEX

card #

exp date

CCV security code

cardholder

signature

(cardholder signature required)

billing address ❏ check if same as above

city/state/zip

tel

cell

email

*ALL ORDERS MUST BE PAID IN FULL PRIOR TO DISTRIBUTION. PERSONAL CHECKS NOT ACCEPTED. **Pricing for shipments within continental U.S.; International orders will be held for pick-up at Will Call on Show site. Please note: Tickets will be refunded if received by the NYIAS office no later than Friday May 19, 2017. Refunds given only on returns of 50 (minimum) or more tickets. There will be a service charge of $4.00 per ticket returned.

Office use only: ❏ confirmation email sent Distribution:

❏ UPS

❏ FedEx

❏ Hand

❏ Will Call - date sent