GNYADA May 2018 Newsletter

Federal Court Blocks Delay to Fines Increase

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A federal appeals court in New York blocked an attempt by the Trump administration to delay a scheduled increase in penalties for failure to meet U.S. fuel economy targets. Since the mid-1970’s, manufacturers have been fined $55 for each MPG by which they fall short of the annual Corporate Average Fuel Economy targets set by National Highway Traffic Safety Administration (NHTSA). The fines are multiplied by the number of vehicles sold in a

given model year. This ruling overturned a July 2017 NHTSA decision to indefinitely delay a rule that would have more than doubled the fines. Several states and environmental groups sued the Trump administration over the delay. Amy Spitalnick, a spokeswoman for New York Attorney General Eric Schneiderman, said in an email, “The fuel efficiency standards penalty rule even if they can complete a purchase online. Most significantly, a staggering 89% of consumers want to sign the final sales document at the dealership! The important takeaway is that “dealerships, despite disruptive technological changes, [remain] central to car buying”, according to Autotrader Senior Analyst Michelle Krebs. “Dealers cannot ignore that customer preferences change, and that preference is now to have “a a legal obligation but also a financial incentive to keep workers safe and the workplace hazard free. It sounds simple but it requires a concerted effort by everyone in the dealership, especially management, which is a key factor to success. Train, monitor, support and enforce safe work practices. Implement consistent safety pro- cedures. Look to keep both frequency and n n Steps to take n

is a common sense measure that would protect consumers’ pocket- books while reducing the carbon emissions that harm our health and drive climate change,” Earlier this month, NHTSA proposed canceling the steeper penalties. Spitalnick said New York will take action to block that rule if and when NHTSA finalizes it.

17 Buyers Prefer to Close the Deal at Dealerships

transparent, self-directed, personalized, no-pressure shopping experience measured in minutes, not hours – a process they can start online and finish at the dealership.” Krebs is confident that, despite changes to the buying process, dealerships remain essential. GNYADA thanks MediaPost for providing this article.

According to a Cox Automotive study, while consumers want to begin the buying process online, they still

prefer taking a test drive and completing the purchase at a dealership.

This study, which interviewed 2,550 shoppers, found that dealerships with digital retailing have a competitive edge. 83% of consumers said they want to complete one or more steps of the buying process online, but most of those still want dealership assistance

18 Improved Safety Can Lower Insurance Premiums

Workers’ Compensation (WC) premi- ums are affected by industry, classifi- cation codes, and losses incurred. The best place to start taking control of your premium is with your “Experience Modification Factor” or MOD. Employers with less frequent claims than average will show a credit MOD (reducing premium) and those with more frequent claims than the industry average will have a debit MOD (increasing premium). This means dealerships have not only

severity of claims down. Frequency matters more than severity when determining the MOD. Numerous small claims will drive up costs. If your dealership is renewing your WC policy in 2018, reach out to Michael Conway, of the GNYADA Insurance Brokerage, and see how Michael and his staff can improve upon your WC policy. Michael can be reached at 718.746.8100 or mconway@gnyada.com .

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

The Newsletter • May 2018 11