August 2013 Newsletter

Dear Ford MDA Members and Sponsors,

I want to thank all the dealers, their families, and corporate supporters for making our inaugural Membership Meeting and Conference a great success in Miami Beach, FL. We had over 100 registered participants for the event. We had an opportunity to fellowship with dealers, Ford Division, and Ford Motor Credit Company as well. We gained valuable insight from our members during our Board and Membership Meetings. Further, members were given a brief survey to fill out in order to help us plan for the upcoming year.

Mr. Ken Czubay, Vice President, U.S. Marketing, Sales and Service, Ford Motor Company led our Town Hall discussion. Members were very engaged and asked critical questions concerning the minority membership body. Our vendors supported our conference with timely workshops. The workshop material will help dealers control cost and increase profitability. Due to the limited time we had for workshops, we hope to continue bringing you valuable information via Webinars and Conference Calls.

Having our conference in conjunction with NAMAD gave us a chance to have face-to-face discussions with NAMAD’s leadership and keep them informed on our initiatives. Further, by partnering with NAMAD, members have an opportunity to visit with other manufacturers and learn what is going on within their companies and what other opportunities may exist for minority dealers.

Again, thank you for your loyal support, the board and I look forward to serving you going forward.

Sincerely,
Eddie B. Corley, Jr.
Chairman, Ford MDA

Ford MDA Board of Directors for 2013

OFFICERS

Chairman
Eddie B. Corley, Jr.,
Albuquerque Lincoln Volvo
Secretary
Michael Martin,
Vision Ford Lincoln
Treasurer
Fernando Varela,
All Star Ford

BOARD MEMBERS
Mark Douglas, Avis Ford
Gus Palmar, Superior Ford Lincoln
Jose Pozos, Wichita Falls Ford Lincoln
Nathaniel Sutton, Sutton Ford Superstore

DEALER COUNCIL
Randy Henderson, Henderson Family Ford

EXECUTIVE DIRECTORS
Dr. AV Fleming
Osvaldo Garcia, Jr.

Recap of Ford MDA’s 1st Annual Conference

Thanks again for supporting Ford MDA’s 1st Annual Conference held in conjunction with the NAMAD’s Annual Membership Conference. We had an opportunity to visit with old friends and meet new ones.

We conducted an open door Board of Directors meeting and gave our members an update on membership as well as our current financial status. We elected new board members and a new chairman, whose terms will begin in January of 2014.

Our reception was top shelf; we had our friends from Ford Motor Company & Ford Credit, along with our event sponsors. We were also happy to have the minority marketing agencies of record for both African American and Latino markets (UniWorld Group and Zubi Advertising).

Mr. Dave Mondragon’s Friday morning minority marketing presentation was very informative and upbeat. The highlight of his presentation was the need to target and engage in minority communities, regardless of the product you are selling.

Our Town Hall Meeting was very informative and there was plenty of time for Q&A for the Ford executives. Our members asked very good questions to Messers Cuzbay, Kuhn and Mondragon. There was even time for one-on-ones with the presenters.

The sponsors’ workshops were very informative and on point. ADP presented a new service product using the technologies of the iPad and products offered by ADP enhancing the opportunities in the service lane. American Financial’s presentation by Mosaic Identity Services is outlined in this newsletter. With all the new regulations and compliance concerns for a dealership, it’s important to stay very close to the subject matter.

In closing, NAMAD has announced it will be returning to the Fontainebleau in July 2014, this venue worked for Ford MDA, did it work for you? We provided a survey to our members in Miami, and if you did not complete it, please contact the Ford MDA office because one of the questions asked was whether or not you would like to have the 2014 Ford MDA conference back in Miami with NAMAD.

Ford Credit

Succession Planning

At the NAMAD meeting Succession Planning was a top priority for many Dealers. Here are a few tips on Succession Planning sponsored by SCORE. Unfortunately, the reality is, succession planning is not an exact science. There simply isn’t one approach that’s right for every situation. However, many business owners will focus on the following five steps.

1. Choose Your Successor
It’s difficult to choose a successor for your own job. And, you don’t wake up one morning knowing that a particular manager or family member will be suited to picking up where you leave off. Rather, this is an intensive effort that calls for an examination of all employees, who potentially have skill and ability to lead the company.

2. Develop a Formal Training Plan for Your Successor
To develop a successful training program for your successor, identify the critical functions of the company. Then, it’s a good idea to have your successor work in each of these areas.

3. Establish a Timetable
Set up a training timetable and a timetable for shifting control of the company. If succession is to be successful, you, your successor and your management team need to know who is in charge of what and when.

4. Prepare Yourself for Retirement
It’s also important to outline a plan for your transition from officer and operations manager for the company.

5. Install Your Successor
You owe it to your company’s future and to yourself to install your successor in your lifetime. Once that’s accomplished, you need to be prepared to let your successor carry out the role for which he or she has been trained. Ultimately, your successor’s success or failure is up to him or her.

Consumer Experience
The Consumer Experience Program is a great way to improve your dealership’s sales performance through improved customer satisfaction. All dealers are encouraged to participate in this exciting program. As a reminder, Ford Credit’s Minority Dealer Support funds may be leveraged to assist with the cost. If interested, please contact your Ford Credit BDM to design a marketing program that will generate funds for this exciting initiative.

Communicate and Promote FMCC Capital Programs
Ford Credit exists to meet the finance requirements of automotive dealers. They understand the unique needs of dealers and have developed a full array of financing plans and programs designed to fully accommodate those needs. Contact your Ford Credit BDM for details.

Paul Trulock
Manager, Ford & Lincoln Brand
Ford Motor Credit Company
Minority Dealer Relations

ADP – Kathy Gilbert

American Financial – James Ganther, Esquire

Our friends at American Financial teamed up with Mosaic Identity Services, who presented one of the Ford MDA workshops. Below is an outline of the very informative presentation:

Compliance Management System Scope
Policy Deployment & Verification

Paperless, web-based means of deploying Dealership’s policy documents.
Accessed concluded Dealership-branded web portal

Policy Templates

Employee Handbook
F&I Policy

Sales Policy

Safeguards Rule Policy (Information Security Program)
Red Flags Rule Policy (Identity Theft Prevention Program)

Social Media Policy

Online Compliance Training
Dealership-branded compliance portal
Covers the laws and regulations that most impact dealership operations

Generic Product Knowledge

GAP
Vehicle Service Contracts (5 modules)

Dealership-Specific Product Knowledge

Online training modules written for specific products Dealership sells

Environmental, Health & Safety

Asbestos Control
Bloodborne Pathogens
DOT Hazmat
Driver Training
Emergency Response
Eye Safety
General Safety
Hazard Communication
Hazmat for Hazwaste
Lift Safety

Environmental, Health & Safety Site-Specific Policy Development

Hazard Communication
Emergency Response
Fire Prevention
Bloodborne Pathogen
Respiratory Policy

Click SDS

Online Safety Data Sheet library
Prints Dealership’s chemical inventory list

Click ‘n’ Ship

Click the product to be shipped and method of shipment; system provides what is needed to complete the necessary paperwork and package the hazmat

Online Parts Truck Manifest

Creates the manifests required when transporting hazmat

Third-Party Compliance Reviews

Annual third-party remote compliance reviews
Deal jacket scan and upload to secure ftp site
90-point compliance audit
Review of sample of recorded transactions (if applicable)
Red Flags Rule (ITPP) review and Annual Report
Safeguards Rule (ISP) review
Written report
Recap meeting with Dealership personnel via webinar

Option: Fully-Managed Identity Recovery
Scope of service

Restoration of a victim’s identity to its pre-event status performed by professional identity recovery advocates rather than by the victim. It is accomplished by the victim filling out and providing to the recovery advocate a limited power of attorney, which authorizes the recovery advocate to act on the victim’s behalf. Although the victim must cooperate with the process for it to be successful, the heavy lifting is done by professionals, not the victim.

No limit to the number of restorations
No exclusions
No deductibles
Money-back guarantee: if recovery is unsuccessful, all customer funds refunded (requires Dealership participation)

Three-Year Stay-Fixed guarantee: If a victim’s identity is stolen and recovered, and stolen again within three years, another recovery will be performed for free even if the victim is no longer paying for the service (unlimited recoveries apply during period of paid subscription)

Family Coverage

Dealer customer
Customer’s spouse or domestic partner
All dependents under the age of 25 sharing the same permanent address as the customer

All IRS dependents of the customer (regardless of age) who either share the same permanent address as the customer, or are in an assisted living facility, skilled nursing home or hospice, or have been deceased for twelve months or less.

For more information contact :
James S. Ganther, Esquire
813-221-2700
jganther@mosaic-idservices.com

CrossCheck – Charles Dortch III

Capture More Sales with a Future Deposit Service

Offer your customers payment flexibility with a Future Deposit service from CrossCheck. As part of their C.A.R.S Remote Deposit Capture Solution, Future Deposit gives your dealership the ability to provide your customers extra time to pay. With no credit check needed and no credit card fees, customers appreciate the flexibility of being able to pay with 2-4 checks but spread the deposits out until pay day! You’ll make the sale knowing the checks are guaranteed.

When used with C.A.R.S. Remote Deposit Capture, the funds are electronically processed and automatically deposited into your account according to the schedule you and your customer agree upon. Checks can be processed anytime from your desktop, eliminating trips to the bank.

For more information on putting a Future Deposit service to work for your business, contact Ford MDA Program Representative, Charles Dortch III, Vice President of Sales, CrossCheck, Inc. (707) 665-2100, ext. 2500 or cell: (707) 483-9439, charlesd@cross-check.com. Visit our web site at www.cross-check.com.

DealerTrack – Ernest Lattimer

If you are interested in any of the above, you can also reach me at (410) 977-2515 or email me at ernest.lattimer@dealertrack.com.

UHY UPDATE – Dan Patterson

Health Care Reform Update

Early in July, in an unexpected announcement, the White House administration announced that it will delay the employer mandate fees until 2015. This means those large employers who are still scrambling to implement an affordable and acceptable health care plan will have an extra year of reprieve before the non-deductible penalties take effect; originally scheduled for January 1, 2014.

One of the key provisions in the Patient Protection and Affordable Care Act (PPACA) requires employers with 50 or more full-time equivalent employees to offer an affordable and acceptable health care plan or face significant penalties. Those penalties can be up to $2,000 per full-time employee, per year, or the lessor of $3,000 per year for those employees receiving federal subsidies through the exchange program.

The administration has cited difficulties in the implementation and reporting of this complex provision as the primary reason behind the announcement of the delay.

While the employer responsibility fees have been delayed, there are many provisions of this act that are still proceeding as planned. By October 1, 2013, employers must distribute the Notice of Exchange to all employees. This Notice provides a general explanation of the new health insurance exchange that is being created for individuals to purchase their own health insurance coverage. The federal exchange is expected to be up and running before the end of 2013, which will allow taxpayers to comply with the “individual mandate” that requires them to maintain health insurance coverage or be subject to an individual tax penalty that will be assessed on their 2014 Form 1040 – Personal Income Tax Return.

For assistance with the implementation and preparation of the many provisions of PPACA, please contact your UHY LLP professional in Farmington Hills (248) 355-1040 or Sterling Heights (586) 254-1040, or visit us on the Web at www.uhy-us.com.

Recognizing our Members – Mr. Fred J. Salinas

“The car business has been good to me and this is my way of giving back to a great state
university “, said Fred J. Salinas owner of Friendly Ford of Crosby.

Fred established a Scholarship in his name at the University of Kansas, his alma mater. The Fred J. Salinas Family scholarship will be awarded annually starting in the Fall of 2014 for a Hispanic student from his hometown of Garden City, Kansas.

Fred’s son Austin is also a University of Kansas graduate and is a Next Gen working in his father’s store.

A Word from the Executive Director

Greetings Ford MDA Members and Supporters,

I am pleased to report that the minority portfolio is alive and well. As a matter of fact, in 2013 the minority dealer portfolio is outperforming the majority dealer portfolio. This is an attest to your persistent fortitude to curtail cost and increase profits. Even though many dealers are making money, by no means are dealers resting on their laurels. Dealers are continuing to increase profits year over year. One tool that we have at our disposal is the 20 group format. Most of the minority dealers are in 20 groups. The dealers in 20 groups know that when the group takes on an area to improve in, the group is usually successful.

If you are not in a 20 group, we have a couple of slots available in our Ford MDA (FD04) 20 Group. The group has been together for many years and profit levels for the group continue to rise. You will find that the majority of dealers in the group have overcome many, if not the biggest challenges most dealers face today. If you are interested in becoming part of the 20 group, please contact the Ford MDA office to see if the group is right for you. However, please hurry because there is only limited space and new members must be approved by the group. Further, entry into the 20 group is on a first come, first serve basis.

The board through its communication committee is also looking at ways we can deliver quality webinars to the membership body. Please read your emails that will be coming from the Ford MDA office which will have a schedule of webinars for you to participate in.

Again, congratulations on your store’s ever increasing profitability picture.

Best Regards,
Dr. A.V. Fleming
Executive Director

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