Issue... - Michigan Automobile Dealers Association by wuyunyi

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									                                                        The Official Publication of Michigan Automobile Dealers Association




                                                                                                    Volume XIV, No. 5 • November 2001


      In This                                                   MICHIGAN’S DEALERS ATTEND
 Issue...
 Michigan’s Dealers Attend
                                                                “DEALER DAY AT THE CAPITOL”
 “Dealer Day At The Capitol” ............1
                                                                   Papers were shuffled and there were micro-discussions being held at each
 Northwood Presents Perry                                     table tackling issues affecting the auto industry. Michigan’s new car and truck
 With Golden Plate .............................3             dealers were gearing up to take their concerns directly to the state’s decision-
 MADPAC Honor Roll 2001.................4
                                                              makers during the annual “Dealer Day at the Capitol” event held October 2 at
                                                              the Radisson Hotel in downtown Lansing.
 “Under The Dome” ...........................5                     Nearly 60 new car and truck dealers descended on the
                                                                                                                                “Personal
 Legal Defense Fund Makes
                                                              Capitol to drive home the industry’s legislative agenda.
 First Contribution .............................6            This important event allows dealers to personally share relationships
                                                              their views on issues impacting Michigan’s auto industry help us under-
 ACTS Updates Airbag Brochure .......6                        with their state legislators.                                    stand your
 When A Reservist Is Called                                        This year, “Dealer Day” was hosted by the Auto              issues and
 To Duty .................................................7   Dealers of Michigan LLC. The event is designed to               allow us to
                                                              involve all dealers in the important work of advancing the act on them,”
 Service Contract Usage Hits
                                                              legislative priorities of the franchised new car and truck       says State
 Industry High ......................................8
                                                              dealer in Michigan.
                                                                                                                            Representative
 Congratulations ...................................8              Speaker       of     the    Michigan      House      of
                                                                                                                            Gilda Jacobs.
                                                              Representatives Rick Johnson (R-LeRoy) kicked off
 In Memoriam.......................................8
                                                              “Dealer Day” by reviewing the current issues of the fall session and asking deal-
                                                              ers to take a more proactive role in state government.
                                                                                                         “Term limits have completely
                                                                                                      changed the way work is done in the
                                                                                                      Capitol,” said Johnson. “It is critical
                                                                                                      dealers develop a working relationship
                                                                                                      with their legislators. Mail a letter, send
                                                                                                      them an email or give them a call.
                                                                                                      Putting a face with a name will make
                                                                                                      your issue better received.”
                                                                                                         Democratic          Floor     Leader
                                                                                                      Representative Gilda Jacobs (D-
                                                                                                      Huntington Woods) noted it has not been
                                                                                                      politics as usual since September 11.
                                                                                                         “The legislative vibe has changed,”
                                                                                                      she said. “We need to re-prioritize here
MADA First Vice President Michael Savoie, President LaVal Perry, Second Vice                          in Lansing and keep Michigan in good
President Tom Thelen, and Executive Vice President A. Barry McGuire take a                            economic standing.”
moment for the camera before heading to the Capitol.                                                                   (continued on page 2)
MICHIGAN AUTOMOBILE
DEALERS ASSOCIATION


      MADA
                                      MICHIGAN’S DEALERS ATTEND
                                     (continued from page 1)
EXECUTIVE OFFICERS
                                          Jacobs asked for more dealer input to help keep the state’s economic engine
         LAVAL PERRY                 running smoothly.
        President, Saginaw                “Let your legislators know your thoughts on issues such as the elimination
                                     of the Oldsmobile product line. Personal relationships help us understand your
       MICHAEL SAVOIE
      1st Vice President, Troy       issues and allow us to act on them.”
                                          Dealer Day participants were introduced to the senator who has helped draft
          TOM THELEN                 the majority of the auto and dealer industry-related legislation in the past year.
    2nd Vice President, Bay City     Senate Majority Floor Leader Joanne Emmons (R-Big Rapids) has been, and
                                     continues to be, sympathetic to dealer issues.
           JOE IDING
        Treasurer, Lansing                “The auto industry is what makes Michigan,” notes Emmons. “And dealer-
                                     ships are what Michigan’s economy stands on.”
      A. BARRY McGUIRE                    She sponsored Senate Resolution 108,
     Executive Vice President,       along with 16 other Senators, in support of        “The auto industry is
          East Lansing               U.S. Congressman David Camp’s federal what makes Michigan,
                                     legislation, H.R. 2374, to provide favorable       and dealerships are
                                     tax treatment of the Oldsmobile transition pay-       what Michigan’s
                                     ments.
                                                                                       economy stands on,”
                                          “Dealers should not be penalized for a
                                                                                          says State Senator
                                     decision they had nothing to do with and the
                                     federal government should not benefit from it         Joanne Emmons.
                                     either.”
                                          The Oldsmobile line elimination was one of three priority issues discussed
                                     during “Dealer Day.” Dealers also sought support for state legislation to
                                     increase documentation fees and incorporate into statute the current use tax
       Mailing Address:              treatment of non-demonstrator usage of dealer inventory.
          P.O. Box 2525
East Lansing, Michigan 48826-2525        Director of Legislative Affairs for the ADM LLC Peter Kuhnmuench
                                     briefed participants on the three issues and provided tips on how to secure sup-
            Toll Free:               port and sponsorship. Lobbyist consultant Pat Laughlin, a partner at
          (800) 292-1923                                                            Governmental          Consultant
                                                                                    Services, Inc. (GCSI) reviewed
              FAX:                                                                  the political environment the auto
         (517) 351-3120                                                             industry faces in Lansing.
     email: mada@voyager.net
                                                                                          “The job of an Association
                                                                                    is to provide a stable political and
    MADA BULLETIN                                                                   economic base for business,” said
                                                                                    Laughlin. “With term limits that job
       Executive Editor                                                             has become much more difficult.”
        Dennis R. Schwartz                                                                He echoed the words of
      Associate Vice President                                                      many of the day’s speakers by
                                                                                    stating that “Grassroots efforts
              Editor                                                                are more important than ever
         Jennifer Quimby
                                                                                    before.”
Director of Communication Services   Senator Bill Bullard (R-Highland) (l), ADM
                                     LLC Director of Legislative Affairs Pete
                                                                                         According to Laughlin,
             Printer                 Kuhnmuench (m), and GCSI’s Kurt Berryman       there are three things a dealer
    Lansing Printing Company         (r) discuss the ADM LLC’s use tax bill.        member can give to the
                                     Bullard is sponsoring the bill.


2       Volume XIV, No. 5 • November 2001
                       “DEALER DAY AT THE CAPITOL”
Association and the industry - - time, treasure, and         Senate Majority Floor Leader
talent.                                                      Joanne Emmons praises deal-
                                                             ers for being the economic
    “Participate in events such as ‘Dealer Day’;
                                                             foundation of Michigan.
donate to your PAC’s; and use your voice to make
your presence known in Lansing.”
     Laughlin summed up the purpose and
importance of “Dealer Day at the Capitol,” “Dealers
need to make both their Representatives and
Senators aware that they are the life blood of the
state of Michigan.”
    For more information on the ADM LLC’s
legislative priorities or if you would like to
become involved with the ADM LLC, please
contact Peter Kuhnmuench, director of legisla-
tive affairs, at 517-492-AUTO or via email at
autodealersofmi@voyager.net.

                                                                                        Dealers had the opportunity to discuss
                                                                                        their concerns with Michigan’s Legislative
                                                                                        leadership.




                                                                              ”
Attendees discuss the legislative priorities during “Dealer Day at the Capitol.



             NORTHWOOD PRESENTS PRESIDENT PERRY WITH
             GOLDEN PLATE
    During the October 5th Michigan Automobile Dealers Association
  (MADA) Board of Directors meeting in Midland, Northwood University’s
  Director of Curriculum Support Warren Mault presented MADA
  President LaVal Perry with a prestigious award in the form of a golden
  plate.
    Began in 1966, the Banquet of the Golden Plate Award expresses the
  warmth and gratitude of Northwood University to the donors whose gen-
  erosity helps its programs to flourish.
    The Golden Plate is given to donors who have contributed $2,500 or
  more during the year. The annual presentation of the award is made dur-
  ing the MADA fall Board of Directors meeting to recognize MADA’s                      Warren Mault (r), director of curriculum
  financial commitment to Northwood University.                                         support, presents MADA President LaVal
                                                                                        Perry (l) with Northwood University’s
                                                                                        Golden Plate Award.


                                                                                  Volume XIV, No. 5 • November 2001             3
MADPAC                   IS YOUR NAME HERE?
     The Michigan Automobile Dealers Political Action             The following is a list of this year’s Honor Roll
Committee (MADPAC) would like to express its heartfelt        donors. Does your name appear here? If you don’t see
gratitude to the dealers and associate members who gener-     your name listed, ask yourself why you didn’t contribute to
ously donated to MADPAC in 2001.                              an organization whose primary purpose is to protect you
     These funds are used to help garner support and lobby    and your dealership.
Michigan’s legislators on issues critical to the continued        If you have any questions regarding MADPAC or
survival of the dealer industry. Without these funds, it is   would like to make a donation, please contact Joe Falzon,
incredibly difficult for your Association to fight on your    MADPAC Co-Chair at 517-625-5600 or Jim Mowry,
behalf.                                                       MADPAC Co-Chair, at 231-723-2541.

                           MADPAC HONOR ROLL 2001
                                                   P L A T I N U M
MATTHEW S. BERGER            DOUGLAS KOOL                     RICHARD GARBER JR.           JOHN TAPPER
JAMES CAUSLEY, JR.           RUSSELL H. MILNE                 MAX H. GRAFF JR.             KIM THOMPSON
PAT CURTIS                   JOE SERRA                        KEVIN HAUSCH                 BUFF WHELAN
RICHARD FORTON               RALPH SHAHEEN                    RICHARD HUVAERE              JAMES WILSON
                                                        G O L D
CLIFF ANSCHUETZ              A.BARRY & HOLLY MCGUIRE          DONN GOODMAN                 BILL SNETHKAMP, JR.
WENDELL BARRON               RICHARD MEALEY                   KURT HEIDEBREICHT            LOUIS STANFORD
GREG BELL                    WALTER MINER                     MARK HOGLE                   ROY THIES
OTTO BELOVICH                LEONARD NADOLSKI                 JOSEPH IDING                 GARY TRIMARCO
JOHN BOOKWALTER              DANIEL PATZSCHKE                 ROB KELLER                   JOHN UNDERWOOD
JOHN F. BORGMAN              LAVAL PERRY                      DAVID KNAPP                  DEREK WATSON
GARRY CLIFT                  DAVE PETERSON                    DAVE KRING                   RICHARD WATSON
JIM EPOLITO                  STEVE RAMSBY                     RALPH MAHALAK                MARK WAYNE
JOHN FLIKKEMA II             MICHAEL SAVOIE                   WILLIAM MARSH                MICHAEL D. YOUNG
HENRY FRACALOSSI             GEORGE SHARPE                    GEORGE MATICK                TONY YOUNG
JOSEPH GADALETO              BRUCE SIMMS                                                   HAROLD ZEIGLER, JR.
                                                       S I L V E R
J. DEAN ARBOUR               GARY LABADIE                     DARRIN EATON                 KATHERINE OLEJNIK
JOHN BARTKOWIAK              JOHN KIRBY                       DALE EDWARDS                 LEROY ORMSBEE
ED BOSCH                     PETER KUHNMUENCH                 CAROL ELDRIDGE               LAWRENCE PARKER
JOHN BRAGANINI               PATRICK LACEY                    JEFF ELHART                  BRIAN PARR
DAVID BURNHAM                STUART LASSEN                    WAYNE ELHART                 DANIEL PFEIFFER
TIM CARON                    PATRICK L. LAUGHLIN              JOE FALZON                   STEVEN PRESSER
ROBERT CARR                  ERIC LEUTHEUSER                  PATRICK FLANNERY             JAMES REVAS III
ED CASTELLANI                ROBERT LOFTUS                    RAYMOND FORESMAN             DONALD RYPMA
JON CASWELL                  TIMOTHY LUKE                     WILLIAM FOX                  SUSAN SAMUEL
WILLIAM CHICHESTER           WESLEY LUTZ                      ROBERT FRAHM                 ANTHONY SAVONA
JOHN CISNE                   WILLIAM MARTIN                   DONALD GOOLEY                BRADLEY SCHEER
JOHN DECKER                  ROBERT MAXEY                     DAVID GRAVES                 MIKE SEELYE
LESTER DEEN                  DANIEL MCCORMICK                 TOM HALLAM                   PATRICK SEELYE
MICHAEL DELEHANTY            ROGER MCINTOSH                   ROBERT HARDY                 ROBERT SHUMAN
ROBERT DENOOYER              DONALD MILOSCH                   RON HODGES                   EDWARD SIEMANS
TODD DENOOYER                ROSS MOODY                       CHARLES HOLTON               JAMES SLINGERLAND JR.
WILLIAM DENOOYER             PATRICK MORAN                    JOHN JAMESON                 RALPH THAYER, JR.
GERALD DIETERMAN             GARY MOSS                        JERRY JANESKI                DONALD TUBBS
WALTER DOUGLAS               JAMES MOWRY                      WILLIE JOHNSON               CALVIN VERSENDAAL
JOHN DOYLE                   JAMES MUIR                       JAMES KANARY                 ANTHONY VIVIANO
ERIC DREISBACH               MARK NIELSEN                     THOMAS KUSSURELIS            THOMAS WAGAR
JULIUS DUTHLER               WILLIAM O’HARA                                                GORDON WHITE
                                                       B R O N Z E
BRUCE ANSCHUETZ              TED E. KRUTTLIN                  JOHN DEMMER                  THOMAS SHANKIE
MATTHEW ARBOUR               TED KRUTTLIN JR.                 DAVID DIXON                  JAMES SHEPHERD
COLLEEN ARBOUR               JOSEPH LACLAIR                   WILLIAM GAVIN                JAMES SISSON
CHARLES BARRETT              PHILIP LASCO                     FREDRICK GEORGE              LOUIS A. SMITH
THOMAS BARRETT               MICHAEL LYNCH                    VICTOR E. GEORGE             SANDRA TELLIER
MICHAEL BEATTIE              DAVID MCCORMICK                  VICTOR L. GEORGE             THOMAS THELEN
REVERDAY BENCHLEY            JOHN C. McCOY, JR.               GEORGE M. GORNO              MICHAEL URKA
MIKE BENMARK                 SCOTT MEYERS                     TED GRABENHORST              LARRY VER HAGE
RICHARD BOYD                 GALE PARR                        MAX H. GRAFF SR.             NORMAN VER HAGE
STEVEN BROWN                 FRED J. POE                      FREDERICK GUTHRIE            GEORGE VOLLMAN
BRYAN BETTEN                 ANTHONY PRZYBYLA, JR.            TOM HARRIS                   HARRY VOICE
DEAN BURGER                  MAX RAATZ                        PAUL HODGES                  JIM WALDRON
ROBERT CHAN                  LARRY RICHARDSON                 ROBERT JABLONSKI             WAYNE WEDDING
MICHAEL CURRY                STEVE ROGERS                     KENNETH JOHNSON              DAVID E. WILLIAMS
ERIC CURTIS                  PETER SCHANSKI                   ALLAN KINNEY                 LEE WITT
HAROLD DAHLBERG              RICHARD SCHANSKI                 TIMOTHY KOOL                 THOMAS WRIGHT
CHARLES DALGLEISH, JR.       GERRARD SCHMID                   JERRY KOOP                   ROBERT YATES
GEORGE DAVIDSON              DAN SHAHEEN                      DENNIS KRUTTLIN



 4       Volume XIV, No. 5 • November 2001
Auto Dealers of Michigan LLC
                               “Under The Dome”
                           By Peter Kuhnmuench, Director of Legislative Affairs
     The Auto Dealers of Michigan, LLC (ADM LLC) is pursuing a full legislative agenda following the
successful completion of Dealer Day at the Capitol. High on the priority list is passage of federal legislation
to provide favorable tax treatment of the transitional assistance payments made by General Motors to
Oldsmobile dealers. This legislation, H.R. 2374, as introduced by Congressman David Camp (R-Midland)
provides a deferral on the gain attributable to the transitional assistance payments made by GM to dealers for
the loss of the Oldsmobile product line.
    In the State Legislature, resolutions were introduced by Senator Joanne Emmons (R-Big Rapids) and
Representative Andrew Raczkowski (R-Farmington Hills) asking the United States Congress to support H.R.
2374. Michigan Senate Resolution 108 has been approved by the State Senate and forwarded on to President
George W. Bush, the Speaker of the U.S. House of Representatives and the members of the Michigan congres-
sional delegation. Michigan House Resolution No. 192 awaits action in the State House Commerce Committee.
     Legislation was drafted and sponsors have been secured in both the State House of Representatives and
Senate to lift the $40.00 cap on the documentation fee authorized under the Motor Vehicle Sales Finance Act.
Senator Mat Dunaskiss (R-Lake Orion) and Representative Marc Shulman (R-West Bloomfield) have agreed
to sponsor the effort. Additional co-sponsors were sought during this year’s Dealer Day at the Capitol held on
October 2. Formal introduction is expected after development of a specific legislative strategy with both spon-
sors.
     Another issue, introduced by Senator Bill Bullard (R-Highland), to incorporate into statute the current use
tax treatment on demonstrators in excess of the exempt vehicles currently authorized in law. The current tax
treatment was established in 1969. This legislation (S.B. 678) would also extend the same use tax treatment to
used vehicles, which are utilized by a dealership for non-exempt purposes. Negotiations are ongoing with the
Department of Treasury over specific language and the documentation requirements necessary to establish a
vehicles exempt status.
     Senator Loren Bennett (R-Canton) introduced a bill (S.B. 453) authorizing licensed dealers to register and
plate vehicles on-site at the dealership. Following discussions with industry representatives at the July 18 Dealer
Advisory Committee Meeting, the ADM LLC tentatively supports the concept of the bill subject to the results
of a pilot program testing its feasibility. The pilot program will be conducted over the next six months and the
results to be released in late spring 2002.
    Senate Bill No. 453 was the product of extensive negotiation between the ADM LLC, the Department of
State, Senator Bennett and other interested parties. The legislation would consolidate and simplify the steps nec-
essary to attach and foreclose on a garage keeper’s lien and provide additional time for a dealer/garage keeper
to process a foreclosure. The bill also authorizes a “reasonable storage fee” rather than a maximum fee of
$10.00 per day and increases the maximum lien amount on certain lower valued vehicles. The ADM LLC sup-
ports the proposed changes, which awaits action before the Senate Committee on Economic Development,
International Trade and Regulatory Affairs.
    For more information, please contact Director of Legislative Affairs Pete Kuhnmuench at 517-492-AUTO
or via email at autodealersofmi@voyager.net.




                                                                      Volume XIV, No. 5 • November 2001               5
               LEGAL DEFENSE FUND MAKES FIRST
                       CONTRIBUTION
     Last year, the Michigan Automobile Dealers
Association (MADA) established its Legal Defense
Fund to aid dealers in protecting their franchises from
threats such as multi-tiered pricing and excessive intru-
sion by manufacturer’s into the management of inde-
pendent dealerships.
     The first contribution from the MADA Legal
Defense Fund was made to Jim Applegate of Applegate
Chevrolet, Flint.
     Applegate Chevrolet is currently embroiled in a
relocation case in Genesee County. The case was lost,
but an appeal has been filed. By lending financial sup-
port through the MADA Legal Defense Fund, your
Association is attempting to enforce a key provision of
Michigan’s Motor Vehicle Dealer Franchise Act (i.e. rel-
evant market area) intended for the protection and gen-
eral benefit of all dealers. In so doing, MADA is recog-
nizing the seriousness of the Applegate case and the
potential harm created by the decision of the Trial Court.
     MADA will continue to keep its members updated
on this case.
                                                               President LaVal Perry makes the first MADA Legal Defense
                                                               Fund donation to Jim Applegate of Applegate Chevrolet, Flint.




              ACTS UPDATES AIRBAG BROCHURE
               The Automotive Coalition for Traffic                 The initial shipment of brochures is free of
          Safety (ACTS) has updated its widely popular         charge with additional copies costing $0.15 per
          “What You Need To Know About Airbags”                copy.
          brochure.                                                 ACTS educates the general public and tar-
               The brochure outlines what consumers can        geted audiences about technology-related safety
          expect from the airbag system in their vehicles in   issues and provides safety-related services to its
          a user-friendly manner. It also discusses airbag     members. ACTS publicizes and stimulates inter-
          injuries and the continued importance of contin-     est in new safety technologies.
          ual seat belt usage.                                      To order any of the educational materials,
               In addition, ACTS offers a brochure on the      please visit the ACTS website at
          prevention of rollover crashes and injuries as       www.actsinc.org.
          well as a video on emergency procedures for
          airbag equipped vehicles.




 6      Volume XIV, No. 5 • November 2001
 WHAT ARE YOUR RESPONSIBILITIES WHEN A
     RESERVIST IS CALLED TO DUTY?
                                              By Allen Anderson
                                       Smith & Johnson, Attorneys, P.C.


     It continues to be widely reported that as many as       employer can not require the use of accrued paid time,
50,000 reservists may be activated for duty in the com-       most likely, it would be required if the employee request-
ing months. Presently, it is estimated approximately          ed it and such accrued benefits were available for use
15,000 military reservists have been called for active        due to military activation.
duty.                                                              Paid military time-off would be required to the same
     Given pending and anticipated circumstances, and         extent as paid time off for other traditional types of
in recognition that many such military reservists are         leaves of absence; continued health care is allowed to
most likely presently employed, employers need be             continue for not less than 18 months. Employees are
aware of their legal requirements and responsibilities        entitled to continue fringe benefits on the same parity as
during these tumultuous times.                                other employees respecting employer provided leaves of
     There are several state and federal statutory enact-     absence. For example, time served in a uniformed serv-
ments governing the multitude of scenarios. Using only        ice constitutes service with the employer for pension
those laws, which apply only to private and non-public        purposes and benefits.
employers, here is a general outline of YOUR responsi-             Depending on the circumstances and time frames,
bilities to employees who are in the military reserves.       and subject to reporting notices and notification,
     In the state of Michigan, statute MCLA 32.271 et.        employees coming back from military leave are required
seq., pertains to all employers, and mandates an employ-      to be reinstated, unless circumstances have changed so
ee must be provided a leave of absence for applicable         much as to make re-employment an undue hardship.
military service respecting the state or federal govern-      The burden of proof for undue hardship is on the
ment.                                                         employer.
     In addition, MCLA 32.273 requires reinstatement to            For certain periods of time, up to one year, the
the former position without a reduction in status or pay,     employee may only be terminated for just cause regard-
provided, generally, that reinstatement is requested with-    less of a standard “at-will” employment policy.
in 15 days following release or rejection.                         Another federal law, The Soldier and
     The federal Uniformed Services Employment and            Sailor’s Civil Relief Act, affords protec-
Reemployment Rights Act of 1994 (USERRA), 38                  tion against court actions, reductions in
USC 4301 et. seq., applies to all private employers           interest rates on outstanding indebted-
regardless of the number of employees. It replaced for-       ness and provides various
mer federal legislation known as the Veterans                 opportunities for leases to
Reemployment Rights Act.                                      be terminated.
     USERRA supercedes any other federal or state law              The above general summary
less beneficial than coverage it provides for military per-   is not intended to be given or provid-
sonnel. On the other hand, however, it can be superced-       ed as legal advice, but as an overview
ed where a state law provides more generous or benefi-        on a topic of current events. It is for
cial coverage.                                                basic informational purposes only.
     Leaves of absence from employment is required for        Consultation with competent legal
up to five years of service. There is no distinction          counsel licensed to practice in the
between voluntary and involuntary service. Timely             appropriate jurisdiction before taking
notice of leave request is required depending on the cir-     any action of a material basis on the
cumstances. Advance notice will not be required which         information provided is imperative.
is prevented by military necessity. While the military        You may obtain additional information
leave of absence is not required to be paid leave and an      at www. esgr.org.




                                                                         Volume XIV, No. 5 • November 2001             7
                        SERVICE CONTRACT USAGE
                           HITS INDUSTRY HIGH
     The number of new vehicle purchasers opting for                “Spending at the dealership increases with each suc-
extended warranty coverage has reached an industry high        cessive year of ownership,” he says. “Including the time
according to a recent study released by J.D. Power and         beyond the base warranty, often because service contract
Associates.                                                    customers tend to put more miles on their vehicles.”
     According to the New Vehicle Service Contract                  Customers who buy vehicles with more comprehen-
Report, 28 percent of new car and truck owners bought          sive warranty coverage tend to purchase fewer service con-
service contracts in 2001. It is a seven percent increase      tracts. Kia’s standard warranty, for example, went from
from 1996. The average price of a service contract on a        three years/36,000 miles to five years/60,000 miles with
new car or truck increased to $1,178, which is up $81 from     an extra drive train coverage increasing to ten
last year.                                                     years/100,000 miles.
     “The increased number of service contracts being sold          “Richer manufacturer warranties affect service
is great news for dealerships,” said J.D. Power’s Dan          contract penetration rates,” notes Lawlor. “For many cus-
Lawlor. “These contracts often serve as a continuing           tomers, the purchase of a service contract is added insur-
source of revenue.”                                            ance for when their manufacturer’s warranty expires.
     Lawlor explains during the first three years of owner-    When the manufacturer’s warranty lasts longer, consumers
ship, when they are relying on their base warranties, serv-    aren’t as inclined to purchase added service contract cov-
ice contract buyers spend an average of $50 more per year      erage.”
on maintenance than do non-service contract buyers.




     Congratulations                                             Automobile Dealers Charitable Foundation. In addition,
                                                                 Tarik Daoud of Al Long Ford in Warren was inducted
                                                                 to the National Automobile Dealers Charitable
                                                                 Foundation’s Inner Circle.

                                                                 Hagen Ford of Bay City is proud to announce the grad-
                                                                 uation of David Foco from the National Auto-mobile
                                                                 Dealers Association’s (NADA) Dealer Candidate
                                                                 Academy. The NADA General Dealership Management
          Tarik Daoud                       Albert Serra         program is an intensive 12-month apprenticeship course
                                                                 in dealership management. This specialized training
     MADA extends its heartiest congratulations to Helen
                                                                 curriculum is designed to prepare key management per-
     Daoud of Al Long Ford in Warren and Albert Serra of
                                                                 sonnel to operate a new car or truck dealership.
     the Serra Automotive Group in Grand Blanc who have
     recently become Ambassadors for the National



                                      IN MEMORIAM…
         It is with great sadness that MADA informs the membership of the passing of Nanette Weldon of D & H
     Mack and Kenworth in Dearborn. She was 66. An avid golfer and tennis player, Nanette’s true joy came from
     her family. Nanette is survived by her husband of 24 years, Winfred, and their eight children.

                                                           v

 8       Volume XIV, No. 5 • November 2001

								
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