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Dealers’ Choice<br />

SPRING <strong>2011</strong><br />

Volume 51, Issue 1<br />

OFFICIAL PUBLICATION OF THE TEXAS AUTOMOBILE<br />

O<br />

DEALERS ER<br />

ASSOCIATION<br />

<strong>2011</strong><br />

<strong>TADA</strong><br />

Legend<br />

Ernesto Ancira, Jr.


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Dealers’ Choice<br />

OFFICIAL PUBLICATION OF THE TEXAS AUTOMOBILE DEALERS ASSOCIATION<br />

The Dealers’ Choice is a publication of Newsletters<br />

Ink and is the official publication of Texas<br />

Automobile Dealers Association. The Dealers’<br />

Choice is published 4 times per year by <strong>Media</strong><br />

<strong>Communication</strong>s <strong>Group</strong>, Inc. The statements and<br />

opinions expressed herein are those of the individual<br />

authors and do not necessarily represent the views<br />

of Dealers’ Choice, or its publisher <strong>Media</strong> <strong>Communication</strong>s<br />

<strong>Group</strong>, Inc. Any legal advice should be<br />

regarded as general information. It is strongly recommended<br />

that one contact an attorney for counsel<br />

regarding specific circumstances. Likewise, the<br />

appearance of advertisers does not constitute an<br />

endorsement of the products or services featured<br />

by <strong>Media</strong> <strong>Communication</strong>s <strong>Group</strong>, Inc.<br />

22<br />

Donna Norton, Managing Editor<br />

19<br />

29<br />

About the cover: <strong>TADA</strong> Legend Ernesto<br />

Ancira.<br />

7 <strong>2011</strong> <strong>TADA</strong> Leadership<br />

8 <strong>2011</strong> <strong>TADA</strong> Board of Directors<br />

11 <strong>TADA</strong> Regions and Districts<br />

15 <strong>TADA</strong>’s Legend — Ernesto Ancira, Jr.<br />

19 By The Numbers: Tax Win for Dealers: IRS’s Position on UNICAP Doesn’t Stick<br />

22 Counselor’s Corner: Avoiding Common Employee Handbook Mistakes<br />

25 Advertising Opportunity<br />

26 Texas Celebration — <strong>2011</strong> NADA Convention<br />

29 Avoiding Unlawful Employment Practices in Your Dealership<br />

33 TIME and Goodyear Honor Grapevine Dealer<br />

35 <strong>2011</strong> <strong>TADA</strong> Chairman’s Workshops<br />

36 “Bedrock” of McKinney<br />

37 Brandon Tomes “Goes Over the Edge” to Raise Money for Special Olympics of Texas!<br />

26<br />

4


<strong>2011</strong> <strong>TADA</strong> LEADERSHIP<br />

Stacey Gillman Wimbish<br />

Chairman-Elect<br />

Stephen Cavender<br />

Chairman<br />

<strong>2011</strong> <strong>TADA</strong> EXECUTIVE COMMITTEE<br />

David Alderson<br />

Immediate Past Chairman<br />

Rick Cavender <br />

Southwest<br />

Mark Daniels <br />

Northeast<br />

Milton S. Greeson, Jr. <br />

South<br />

Larry Hall <br />

West<br />

Bryan Hardeman <br />

Central<br />

David S. Houston <br />

East<br />

Steve Prather <br />

Southeast<br />

David Schoemaker <br />

North<br />

John Zwiacher <br />

Northwest<br />

Brian Bruckner<br />

Texas Truck Dealers Chairman<br />

Bill Wolters<br />

President<br />

Karen Phillips<br />

Executive Vice President<br />

General Counsel<br />

<strong>2011</strong> SPRING 7


<strong>2011</strong> <strong>TADA</strong> BOARD OF DIRECTORS<br />

April Ancira<br />

Southwest<br />

District 26<br />

David L. Brinson<br />

Central<br />

District 7<br />

Brent Brown<br />

Northwest<br />

District 28<br />

Donnie Buckalew<br />

Southeast<br />

District 33<br />

Mike Calvert<br />

Southeast<br />

District 6<br />

Joe Chastang<br />

At-Large<br />

Kirk A. Clark<br />

South<br />

District 27<br />

Kim Danley<br />

East<br />

District 12<br />

Mike Dunnahoo<br />

West<br />

District 25<br />

Tom Durant<br />

At-Large<br />

Charlie Gilchrist<br />

North<br />

District 22<br />

Sean F. Gunn<br />

Southwest<br />

District 24<br />

Nancy Harper<br />

Central<br />

District 14<br />

Randy Hiley<br />

North<br />

District 35<br />

Jon Hill<br />

Southwest<br />

District 19<br />

Paul S. Kane<br />

Southwest<br />

District 21<br />

Craig W. Kinsel<br />

East<br />

District 4<br />

Bill Kliewer<br />

Central<br />

District 13<br />

Tim Light<br />

Central<br />

District 11<br />

Marvin Marcell<br />

Southeast<br />

District 15<br />

Charles Martin<br />

Northeast<br />

District 8<br />

Erik Maund<br />

At-Large<br />

Robin T. Mercer<br />

East<br />

District 3<br />

Dennis R. Neessen<br />

West<br />

District 32<br />

Phillip Neessen<br />

South<br />

District 20<br />

Tony Pack<br />

North<br />

District 10<br />

Harry Patterson<br />

North<br />

District 23<br />

Doss Rogers<br />

West<br />

District 29<br />

John S. Roley<br />

Northwest<br />

District 30<br />

Joe W. Sandlin Jr.<br />

Northeast<br />

District 1<br />

Craig Sisk<br />

East<br />

District 2<br />

Mike Smith<br />

Southeast<br />

District 5<br />

Jim Snell<br />

Northeast<br />

District 34<br />

Joe Street<br />

Northwest<br />

District 31<br />

Bob Tomes<br />

Northeast<br />

District 9<br />

Cliff Weber<br />

South<br />

District 18<br />

Cary T. Wilson<br />

South<br />

District 17<br />

Scott Wilson<br />

West<br />

District 16<br />

8


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<strong>2011</strong> <strong>TADA</strong> LEADERSHIP<br />

<strong>TADA</strong> REGIONS AND DISTRICTS<br />

Chairman, David Alderson<br />

Chairman Elect, Stephen Cavender<br />

Immediate Past Chairman, Jim Janke<br />

Texas Truck Dealers Chairman, Duane Kyrish<br />

SOUTHWEST<br />

Vice Chairman, Rick Cavender<br />

District Directors<br />

19 Jon Hill 21 Paul S. Kane<br />

24 Sean F. Gunn 26 April Ancira<br />

NORTHWEST<br />

Vice Chairman, John Zwiacher<br />

District Directors<br />

28 Brent Brown 30 John S. Roley<br />

31 Joe Street<br />

EAST<br />

Vice Chairman, David S. Houston<br />

District Directors<br />

2 Craig Sisk 3 Robin T. Mercer<br />

4 Craig W. Kinsel 7 David L. Brinson<br />

NORTH<br />

Vice Chairman, David Schoemaker<br />

District Directors<br />

10 Tony Pack 22 Charlie Gilchrist<br />

23 Harry Patterson 34 Jim Snell<br />

SOUTH<br />

Vice Chairman, Milton S. Greeson, Jr.<br />

District Directors<br />

17 Cary T. Wilson 18 Cliff Weber III<br />

20 Phillip Neessen 27 Kirk A. Clark<br />

CENTRAL<br />

Vice Chairman, Bryan Hardeman<br />

District Directors<br />

11 Tim Light 12 Kimberly Danley<br />

13 Bill Kliewer 14 Nancy Harper<br />

Directors At-Large<br />

Joe Chastang<br />

Tom Durant<br />

Erik Maund<br />

Rusty Rush<br />

WEST<br />

Vice Chairman, Larry Hau<br />

District Directors<br />

16 Scott T. Wilson 25 Mike Dunnahoo<br />

29 Doss Rogers 32 Dennis R. Neessen<br />

NORTHEAST<br />

Vice Chairman, Mark Daniels<br />

District Directors<br />

1 Joe W. Sandlin, Jr. 8 Charles Martin<br />

9 Bob Tomes 35 Randy Hiley<br />

SOUTHEAST<br />

Vice Chairman, Steve Prather<br />

District Directors<br />

5 Mike Smith 6 Mike Calvert<br />

15 Marvin Marcell 33 Donnie Buckalew<br />

10


<strong>TADA</strong> Regions and Districts<br />

CENTRAL REGION • Vice Chairman Bryan Hardeman, Austin<br />

Director, District #11<br />

Tim Light, Bryan 1-01-09 12-31-11<br />

Area Directors<br />

John Allen, College Station<br />

Don Hewlett, Georgetown<br />

Don Ross Hewlett, Georgetown<br />

Allan G. Miller, Rockdale<br />

Director, District #12<br />

Kimberly Danley, Cleburne 1-01-11 12-31-13<br />

Area Directors<br />

Darrel Danley, Cleburne<br />

Wayne Gloff, Clifton<br />

Van Griffith, Granbury<br />

Ken Nichols, Cleburne<br />

Director, District #13<br />

Bill Kliewer, Killeen 1-01-11 12-31-13<br />

Area Directors<br />

Harry Adams, Temple<br />

Jerry E. Miller, Temple<br />

Director, District #14<br />

Nancy Harper, Austin 1-01-11 12-31-13<br />

Area Directors<br />

James Bagan, Austin<br />

Bill Henline, Austin<br />

Brad Elliott, Austin<br />

Director At-Large<br />

Erik Maund, Austin 1-01-11 12-31-13<br />

EAST REGION • Vice Chairman David S. Houston, Longview<br />

Director, District #2<br />

Craig Sisk, Longview 1-01-09 12-31-11<br />

Area Director<br />

John W. Cooke, Carthage<br />

Director, District #3<br />

Robin T. Mercer, Lufkin 1-01-10 12-31-12<br />

Area Directors<br />

Brian Bounds, Livingston<br />

Roger C. Mercer, Lufkin<br />

Dan H. Fussell, San Augustine<br />

Director, District #4<br />

Craig W. Kinsel, Beaumont 1-01-11 12-31-13<br />

Area Directors<br />

Robert E. Allison, Jr., Jasper<br />

Bill Bracken, Liberty<br />

J. Drew Donalson, Silsbee<br />

Director, District #7<br />

David L. Brinson, Corsicana 1-01-11 12-31-13<br />

Area Directors<br />

Wylie Musser, Terrell<br />

Alex Harrill, Mabank<br />

NORTH REGION • Vice Chairman David Schoemaker, Irving<br />

Director, District #10<br />

Tony Pack, N. Richland Hills 1-01-09 12-31-11<br />

Director, District #22<br />

Charlie Gilchrist, Weatherford 1-01-09 12-31-11<br />

Area Directors<br />

Jack L. Powell, Mineral Wells<br />

Jerry Durant, Weatherford<br />

Director, District #34<br />

Jim Snell, Dallas 1-01-11 12-31-13<br />

Area Directors<br />

Jerry Griffin, Dallas<br />

Clark Richardson, Irving<br />

Director At-Large<br />

Tom Durant, Grapevine 1-01-11 12-31-13<br />

Director, District #23<br />

Harry Patterson, Wichita Falls 1-01-10 12-31-12<br />

Area Directors<br />

Charles D. Brown, Gainesville<br />

Larry Slack, Bowie<br />

<strong>2011</strong> SPRING 11


<strong>TADA</strong> Regions and Districts<br />

NORTHEAST REGION • Vice Chairman Mark Daniels, McKinney<br />

Director, District #1<br />

Joe W. Sandlin, Jr., Mt. Pleasant 1-01-10 12-31-12<br />

Area Directors<br />

Gerald G. Bawcum, Paris<br />

Director, District #8<br />

Charles Martin, Carrollton 1-01-08 12-31-10<br />

Area Directors<br />

James Wood, Denton<br />

Charles L. Fairbanks, Jr., DeSoto<br />

Director, District #9<br />

Bob Tomes, McKinney 1-01-10 12-31-12<br />

Area Directors<br />

Bob Utter, Sherman<br />

Matt Johnson, Whitesboro<br />

Director, District #35<br />

Randy Hiley, Mesquite 1-01-08 12-31-10<br />

NORTHWEST REGION • Vice Chairman John Zwiacher, Lubbock<br />

Director, District #28<br />

Brent Brown, Lubbock 1-01-10 12-31-12<br />

Area Directors<br />

Frank P. Brown, Lubbock<br />

Director, District #30<br />

John S. Roley, Littlefield 1-01-11 12-31-13<br />

Area Directors<br />

Robert E. Hall, Jayton<br />

Director, District #31<br />

Joe Street, Amarillo 1-01-10 12-31-12<br />

Area Directors<br />

Daniel Bradley, Amarillo<br />

Director At-Large<br />

Rusty Rush, San Antonio 1-01-09 12-31-11<br />

SOUTHEAST REGION • Vice Chairman Steve Prather, Houston<br />

Director, District #5<br />

Mike Smith, Houston 1-01-10 12-31-12<br />

Area Directors<br />

Brian Kelledy, Baytown<br />

W.C. Smith, III, Pasadena<br />

Director, District #6<br />

Mike Calvert, Houston 1-01-09 12-31-11<br />

Area Directors<br />

Jack Kendall, Houston<br />

Arlene G. Catania, Manvel<br />

Director, District #33<br />

Donnie Buckalew, Conroe 1-01-09 12-31-11<br />

Area Directors<br />

Roger Elswick, Baytown<br />

George A. DeMontrond, III, Conroe<br />

James Masten, Houston<br />

Director At-Large<br />

Joe Chastang, Houston 1-01-09 12-31-11<br />

Director, District #15<br />

Marvin Marcell, Houston 1-01-10 12-31-12<br />

Area Directors<br />

Chris Gillman, Rosenberg<br />

Jeffrey L. Haas, Houston<br />

Kevin McGinnis, Houston<br />

Steven Wolf, Houston<br />

12


<strong>TADA</strong> Regions and Districts<br />

SOUTH REGION • Vice Chairman Milton S. Greeson, Jr., Victoria<br />

Director, District #17<br />

Cary T. Wilson, Alvin 1-01-10 12-31-12<br />

Area Directors<br />

Mitchell M. Dale, Dickinson<br />

Rick Davis, El Campo<br />

Director, District #18<br />

Cliff Weber, III, Cuero 1-01-11 12-31-11<br />

Area Directors<br />

Milton A. Killebrew, Victoria<br />

Robert C. Von Deran, Jr., El Campo<br />

Mike Weber, Cuero<br />

Director, District #20<br />

Phillip Neessen, Kingsville 5-01-11 12-31-14<br />

Area Directors<br />

Bob Crow, Corpus Christi<br />

Pete Ganis, Alice<br />

T.H. Gardner, Aransas Port<br />

Director, District #27<br />

Kirk A. Clark, McAllen 1-01-09 12-31-11<br />

Area Directors<br />

Luke Fruia, Jr., Brownsville<br />

Roland F. Smith, McAllen<br />

SOUTHWEST REGION • Vice Chairman Rick Cavender, San Antonio<br />

Director, District #19<br />

Jon Hill, Brenham 1-01-10 12-31-12<br />

Area Directors<br />

W. P. Clark, Jr., Lockhart<br />

Jeffry Michelson, Lockhart<br />

Director, District #21<br />

Paul S. Kane, San Antonio 1-01-11 12-31-13<br />

Area Directors<br />

Dan Ramirez, Rio Grande City<br />

Director, District #24<br />

Sean F. Gunn, San Antonio 1-01-09 12-31-11<br />

Area Directors<br />

Dwight A. Koepp, LaVernia<br />

William B. Cavender, Jr., San Antonio<br />

Hunter Hale, San Antonio<br />

Rob Sabom, San Antonio<br />

Gus Henderson, San Antoio<br />

Director, District #26<br />

April Ancira, San Antonio 1-01-10 12-31-12<br />

Area Directors<br />

Christie L. Kahlig, New Braunfels<br />

Robert M. Cavender, San Antonio<br />

David Kemp, Schertz<br />

WEST REGION • Vice Chairman Larry Hall, Abilene<br />

Director, District #16<br />

Scott T. Wilson, Boerne 1-01-11 12-31-13<br />

Area Directors<br />

Lee Hoffpauir, Lampasas<br />

Trey Ratliff, Llano<br />

Gregory Bruner, Stephenville<br />

Director, District #25<br />

Mike Dunnahoo, Abilene 1-01-11 12-31-13<br />

Area Directors<br />

Mark Hanner, Baird<br />

Ray Lubke, Brady<br />

Director, District #29<br />

Doss Rogers, Midland 1-01-09 12-31-11<br />

Area Directors<br />

Sandra Wheeler Evans, Stanton<br />

James E. Wheeler, Stanton<br />

Director, District #32<br />

Dennis R. Neessen, El Paso 1-01-11 12-31-13<br />

Area Directors<br />

Steve Fox, El Paso<br />

Clay Lowenfield, El Paso<br />

<strong>2011</strong> SPRING 13


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Given the opportunity to be a franchised<br />

dealer at an early age, he learned<br />

the business from the ground up, depending<br />

upon mentors in the industry, his own<br />

hard work, intellect and initiative to create<br />

one of the most outstanding dealer groups<br />

in the country. One of the hallmarks of<br />

the organization is the impressive team<br />

of dealership operators and key managers<br />

developed by Ernesto Ancira, Jr. over the<br />

39 years in which he has owned Texas new<br />

car dealerships.<br />

<strong>TADA</strong> Legend<br />

Ernesto Ancira, Jr.<br />

Texas and <strong>TADA</strong> stand on the shoulders of the men and women whose<br />

hard work, talent and sacrifice rise above all others in our industry.<br />

The <strong>TADA</strong> Legend Award for <strong>2011</strong> goes to one of those individuals.<br />

The success of Ernesto Ancira, Jr., is<br />

exceeded only by those to whom he<br />

has given the opportunity to realize<br />

their own dreams.<br />

He never seeks the limelight or acclaim,<br />

but is there for every worthwhile project<br />

or cause that requires his influence and<br />

leadership. He is the person who so many<br />

look to for advice and counsel, on issues<br />

as diverse as public service, politics, business,<br />

civic leadership and philanthropy.<br />

Few Texans are as accomplished as Ernesto<br />

Ancira, Jr., but he always deflects<br />

the credit to someone other than himself.<br />

Ernesto Ancira, Jr. philosophy regarding<br />

his employees is best stated by him “I<br />

have some really great people working<br />

with me. My most valued business asset is<br />

the personnel. We feel a strong loyalty to<br />

each other. We come to work to improve<br />

the quality of our lives. We work as a family<br />

and a team. When we discuss goals and<br />

make plans, that is the vision: to improve<br />

the quality of life for everyone here. And<br />

that helps us pass that feeling on to our<br />

customers.”<br />

Ernesto Ancira, Jr.’s contribution to<br />

professional organizations, philanthropic<br />

causes and community service encompass<br />

countless hours and diligent effort. He says<br />

the number is irrelevant to what his involvement<br />

is all about. “You can let greed<br />

overcome you, but I have always felt that<br />

it’s about making everyone’s life better; at<br />

least, that is what gives me satisfaction”<br />

says Ancira, Jr.<br />

Much of Ancira, Jr.’s success is due to<br />

his personal integrity and trustworthiness.<br />

Much of it embodied in an experience that<br />

occurred when he became a dealer in 1972.<br />

When asked for an example of something<br />

that inspired him and helped shape his<br />

life, Ernesto responded, “The thing that<br />

has had the biggest impact happened<br />

after I got that first franchise. The existing<br />

dealership had opened in 1924 and a<br />

new location really had to be built. After<br />

searching, I found the perfect location, but<br />

the property was much more that I could<br />

afford at 40 acres. I asked the owner to<br />

sell me a piece of it. He wanted to keep<br />

the property intact. I was amazed and,<br />

at first, unbelieving when the owner told<br />

me the property was mine and I could pay<br />

him when I could. He made the deal with<br />

<strong>2011</strong> SPRING 15


A humble man who has accomplished so much, yet has<br />

provided even more for those in his realm, with whom he<br />

has shared his intellect, his time and his talent. A true <strong>TADA</strong><br />

Legend Ernesto Ancira, Jr<br />

a handshake. Later, a gentleman came to me offering to buy the<br />

property. I told him that I didn’t really own it. He told me he had<br />

gone to the previous owner and offered him $800,000 more than<br />

the original asking price and was told that the property belonged<br />

to me and I was the man to see. Again, I was amazed. He had<br />

shaken my hand and it was a deal. There were really people like<br />

this, who stay to their word and were willing to help people out.<br />

He will always be one of my heroes. I wouldn’t be here today if<br />

it hadn’t been for his help. The experience changed me. I wanted<br />

and still want, to be like that guy.”<br />

An Olympian, having competed for Mexico in the half mile<br />

in the 1968 Olympics in Mexico City, a jet pilot who trains as<br />

intently as any commercial pilot, one of the leading automobile<br />

dealers in America and the consummate community servant,<br />

Ernesto Ancira, Jr. is more proud of his family than any of his<br />

other extraordinary accomplishments. He and his wife Robin<br />

have two talented daughters, Ashley and April. Ernesto beams<br />

proudly when discussing his family. A true industry leader, Ernesto<br />

Ancira, Jr. is a Past Chairman of the Board of <strong>TADA</strong> and<br />

daughter April has followed him on the <strong>TADA</strong> Board of Directors<br />

and is already a leader in San Antonio community service and<br />

charitable organizations.<br />

A humble man who has accomplished so much, yet has<br />

provided even more for those in his realm, with whom he has<br />

shared his intellect, his time and his talent. A true <strong>TADA</strong> Legend<br />

Ernesto Ancira, Jr. <br />

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16


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BY THE NUMBERS<br />

Tax Win for<br />

Dealers:<br />

IRS’s Position on UNICAP Doesn’t Stick<br />

BY TONY SISCO, CPA<br />

This article is the opinion of the author and is not endorsed by <strong>TADA</strong>.<br />

A dealer may wish to seek their own accounting company.<br />

common expenses and add them to inventory<br />

at year-end, and that would have<br />

significantly increased taxable income<br />

for every dealership in the United States.<br />

Many taxpayers never followed the<br />

proposed methodology in computing<br />

UNICAP because it was complex and they<br />

strongly disagreed with the IRS, according<br />

to Wiggins.<br />

Background on UNICAP<br />

Over the course of many years, the IRS<br />

has been investigating the various issues<br />

surrounding auto dealer UNICAP, which<br />

it believed represented the highest noncompliance<br />

risk in the industry.<br />

During a 2006 dealership audit by the<br />

IRS, an auditor determined that the method<br />

used to calculate capitalized costs was<br />

invalid. The auditor requested national<br />

IRS involvement and subsequently issued<br />

a TAM (Technical Advice Memorandum)<br />

to the taxpayer summarizing the position<br />

the service would take on the audit. The<br />

TAM effectively agreed with the auditor.<br />

The position taken by the TAM invalidated<br />

use of the simplified retail method<br />

for the dealership. It also required a<br />

substantially higher capitalization of expenses<br />

for the dealership.<br />

After a number of delays, the IRS made a favorable decision on<br />

how the uniform capitalization rules under IRC Section 263A<br />

(UNICAP) should be applied to auto dealers.<br />

On November 9, 2010, the agency<br />

issued two safe harbor accounting<br />

elections dealers can use so they don’t<br />

have to capitalize certain costs related to<br />

carrying and storing inventory.<br />

“This new revenue procedure is a huge<br />

relief because it significantly limits the<br />

application of earlier guidance from the<br />

IRS, which could have cost car dealers<br />

thousands of dollars in additional taxes,”<br />

says Dave Wiggins, a dealership principal<br />

with LarsonAllen.<br />

“This is an excellent first step towards<br />

bringing logic back to the taxation of<br />

dealerships. The UNICAP position the<br />

IRS was asserting just didn’t make sense,”<br />

he says.<br />

The IRS’s former position would have<br />

required dealers to take large amounts of<br />

UNICAP is the term that was generally<br />

adopted within the industry to describe<br />

inventory costs required to be capitalized<br />

by IRC Sec. 263A. This section generally<br />

requires taxpayers, including automobile<br />

dealerships, to add certain costs to inventory.<br />

These costs are not the normal costs<br />

that you would think of for inventory, as<br />

determined for GAAP purposes, or as<br />

generally were defined as IRC Section 471<br />

costs. The 2007 TAM issued by the IRS<br />

was an unexpected position that threatened<br />

to add thousands or even hundreds of<br />

thousands of costs to inventory; effectively<br />

resulting in significantly higher taxable<br />

income for most dealerships.<br />

How the safe harbor<br />

elections work<br />

Revenue Procedure 2010-44 makes<br />

two safe harbor elections available. The<br />

first option allows a dealership to treat<br />

its entire sales facility as a “retail sales<br />

<strong>2011</strong> SPRING 19


The two new safe harbors will not end uniform capitalization, but<br />

they should reduce the risk of major audit adjustments resulting<br />

from differences between dealer and IRS calculations.<br />

facility.” The 2007 TAM guidance required many dealerships<br />

to be treated as dual-function facilities and required a portion of<br />

the operating costs of the facility to be added to inventory, which<br />

delayed deductions and increased taxes. As a qualifying retail<br />

sales facility, these costs are fully deductible. Storage facilities<br />

that are separate from the main dealership do not qualify for this<br />

safe harbor, and operating costs related to those facilities must<br />

still be capitalized.<br />

The second safe harbor allows a dealership to be treated as<br />

a reseller without production activities. The TAM guidance<br />

forced dealers to treat many inventory reconditioning activities<br />

as production activities, which not only required more direct<br />

cost capitalization but also limited the availability of simplified<br />

calculation methods.<br />

These UNICAP rulings will apply to the following types of<br />

retail dealerships: new and used automobile, light, medium, and<br />

heavy duty truck, boat, RV, motorcycle, farm implement, and<br />

construction equipment dealers.<br />

Next steps<br />

In order to adopt the safe harbors all dealership taxpayers with<br />

average sales exceeding $10 million for the past three years will<br />

need to file a form 3115 – Change in Accounting Method. This<br />

is an automatic change in accounting method, therefore there is<br />

no cost for filing, and it can be included with the taxpayer’s tax<br />

return. It is our recommendation that all dealerships meeting<br />

the above sales threshold, that are subject to UNICAP, file this<br />

change in accounting method for calendar year 2010 tax returns.<br />

If any 2010 returns fail to include this filing, it can still be included<br />

on an “automatic basis” for <strong>2011</strong><br />

The two new safe harbors will not end uniform capitalization,<br />

but they should reduce the risk of major audit adjustments resulting<br />

from differences between dealer and IRS calculations. <br />

Tony Sisco is a manager of Accounting and Tax Services with LarsonAllen<br />

CPA’s, Consultants, and Advisors in Dallas. For help tailoring a plan that<br />

results in tax advantages for you, your family, or business, please contact<br />

Tony at 972-644-3167 or asisco@larsonallen.com.<br />

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20


COUNSELOR’S CORNER<br />

Avoiding Common<br />

Employee Handbook<br />

Mistakes<br />

BY STEPHEN J. ROPPOLO AND JOSEPH W. GAGNON, FISHER & PHILLIPS LLP, HOUSTON, TX<br />

This article is the opinion of the author and is not endorsed by <strong>TADA</strong>.<br />

A dealer may wish to seek their own legal counsel.<br />

Many retail automobile dealers have resisted employee<br />

handbooks over the years. Usually the resistance is based in a<br />

misguided perception that the handbook will be viewed by a court<br />

to be an “employment contract.”<br />

Some dealers want to maintain as<br />

much flexibility as possible in their<br />

dealings with their employees, and<br />

they feel that handbooks might “lock them<br />

in” to a set of procedures that they can<br />

never change.<br />

These fears are generally unfounded,<br />

and they certainly do not outweigh the<br />

significant advantages of a well-tailored<br />

employee handbook. A handbook can be<br />

a good employee relations tool and communications<br />

piece, allowing the dealer<br />

to acquaint new employees with the<br />

dealership and the benefits it provides.<br />

In addition, it is an excellent way to alert<br />

employees to what the dealer expects of<br />

them in terms of conduct and job performance.<br />

This makes it much easier to<br />

prevail at an unemployment compensation<br />

hearing or legal proceeding where<br />

the employee claims he was not aware<br />

of the rule he violated. And a properly<br />

drafted handbook helps employers to<br />

avoid discrimination claims by ensuring<br />

that managers will be enforcing work<br />

policies in a consistent manner in all of<br />

the dealership’s departments.<br />

While it is true that under certain<br />

circumstances a handbook could be held<br />

to be a binding “contract” between the<br />

employer and the employee, in Texas it<br />

is a rather simple matter to draft a handbook<br />

to avoid that result. Disclaimers<br />

in the document reminding employees<br />

that they remain “at-will” employees and<br />

that the handbook does not constitute a<br />

contract of employment can eliminate<br />

this concern.<br />

There are a number of ways to go<br />

about adopting a handbook. Some software<br />

companies market handbook “kits”<br />

which allow a dealer to put together a<br />

handbook policy by policy. Unfortunately,<br />

the policies in some of these kits tend<br />

to read like a union contract and focus<br />

on explaining the employees’ “rights”<br />

rather than on protecting the dealer from<br />

employee claims and lawsuits. Some kits<br />

leave out critical policies such as drug and<br />

alcohol, arbitration, conflict of interest,<br />

internet use and social networking policies.<br />

Because of this, a dealer is well-advised<br />

to have an experienced employment<br />

law attorney – knowledgeable about the<br />

problems in the retail automotive business<br />

– review any employee handbook<br />

before it is implemented to ensure that the<br />

policies are properly drafted to comply<br />

with state and federal law, that they give<br />

the dealer as much flexibility as possible<br />

in carrying out their business, and that<br />

they provide the maximum protection<br />

from employment contract and discrimination<br />

claims.<br />

“PITFALLS” TO AVOID IN<br />

DRAFTING AN EMPLOYEE<br />

HANDBOOK<br />

A properly drafted employee handbook<br />

can protect a dealer from many employment<br />

problems. However, if the handbook<br />

is not properly drafted or does not reflect<br />

the dealership’s current practices, the<br />

handbook can do more harm than good.<br />

22


Among the problems dealers can run into when preparing<br />

a handbook:<br />

• Making the handbook too comprehensive in an effort to cover<br />

every possible situation and operational problem. Generally,<br />

a handbook should cover only employment benefits and employment<br />

policies.<br />

• Blurring the line between a handbook for employees and a<br />

policy manual for managers. A policy manual should not<br />

simply reiterate what is already in the handbook. Rather, it<br />

should only contain specific instructions to managers for<br />

handling matters such as interviewing, reference checks, drug<br />

testing, investigating harassment complaints, conducting<br />

evaluations and counseling, etc. Unlike the handbook, which<br />

is distributed to everyone, a policy manual should be treated<br />

as a confidential document and not made available to anyone<br />

other than managers.<br />

• Overusing “employment at will” language. Some dealers<br />

erroneously believe that the more times and ways they state<br />

that employees can be fired for no reason at all, the stronger<br />

their “at will” status will be. One clear statement is enough.<br />

A repeated reference to an employer’s right to terminate “anyone<br />

for any reason” simply makes employees nervous and can<br />

encourage mistrust.<br />

• Trying to be too good to employees. While a dealer may want<br />

to provide bereavement pay for a long-term employee who has<br />

been loyal to the company over the years, including this benefit<br />

in the handbook can force the dealer to provide it to a brandnew<br />

employee who claims to have lost a family member. A<br />

dealer is well advised to include only those benefits that it is<br />

willing to give to its worst employee.<br />

• Spelling out specific procedures for handling discipline or discharges.<br />

This leaves the dealer open to lawsuits if a manager<br />

fails to follow the procedure in every case. While dealers may<br />

want managers to follow a specific procedure in disciplinary<br />

cases, it need not be spelled out in the handbook. These kinds<br />

of provisions should be contained in the supervisor’s manual,<br />

and they should make clear that deviations from the policy<br />

may be warranted depending upon the circumstances.<br />

• Adopting another dealer’s handbook. Over the last several<br />

years, a number of states have passed laws designed to protect<br />

employees’ rights. Using a handbook from another state can<br />

cause you to promise to do things you do not need to do under<br />

Texas law. For example, many states require that employers<br />

pay unused vacation pay upon termination. In Texas, the<br />

employer’s policy rules, meaning a dealer is only obligated to<br />

follow its own rules about the payment of vacation pay upon<br />

termination. If a Texas dealer were to blindly use a handbook<br />

from another state where paying vacation pay at termination<br />

is mandatory, the dealer would be locking itself in to more<br />

than the law requires.<br />

• Going into too much detail concerning offenses for which an<br />

employee may be disciplined. Some dealers go out of their way<br />

to show they are fair by listing all of the offenses for which<br />

they will discipline an employee and the exact level of disci-<br />

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<strong>2011</strong> SPRING 23


pline that will be imposed. However, experience shows that<br />

employees are innovative and often do things that the dealer<br />

had not even thought about. The better practice is to make it<br />

clear that any list of violations is illustrative, not all-inclusive.<br />

Also, it is a good idea to explain that a violation of any of the<br />

rules can subject the employee to discipline up to and including<br />

termination.<br />

Failing to keep the handbook current. Many handbooks go<br />

to great lengths to prohibit “gambling” in the workplace, even<br />

though football and basketball pools might be commonplace at<br />

the dealership. Yet they make no reference at all to more current<br />

issues such as “blogging,” social networking, the use of personal<br />

cell phones and the internet at work and whether tattoos or piercings<br />

are permitted. A handbook that does not accurately reflect<br />

a dealer’s current policies and practices or fails to address the<br />

issues a manager is likely to face is confusing for employees and<br />

managers alike.<br />

Stating or implying that the dealer will only discipline or discharge<br />

for “cause” or “just cause” or “misconduct.” While most<br />

conscientious employers do not discipline or discharge except<br />

when they have a good business reason to do so, making such a<br />

statement in a handbook places the legal burden on the employer<br />

to prove that its actions were proper and fair, rather than leaving<br />

the burden on the employee to prove that the dealer’s actions were<br />

illegal or discriminatory.<br />

Failing to get a signed receipt from the employee as evidence<br />

that the employee received a copy of the handbook. Without a<br />

signed receipt in the file, the employee can easily claim that he<br />

never received the handbook and was not even aware of the rule<br />

he violated.<br />

Expecting the employee handbook will solve all of a dealer’s<br />

employee problems. While a handbook is a great first step, it is<br />

only the first step in an effective employee relations program. The<br />

dealer must still ensure that his or her managers are familiar with<br />

the handbook and any other dealership policies, that they apply<br />

the policies in a consistent manner and treat employees fairly.<br />

An employee handbook is an important legal document that<br />

– if drafted properly – can protect a dealer from a number of employee<br />

problems. However, a poorly drafted handbook can wind<br />

up creating more problems than it solves. Adopting a handbook<br />

while avoiding the “pitfalls” outlined above will help Texas dealers<br />

keep employees happy and lawsuits to a minimum. <br />

For more information please contact Steve Roppolo (sroppolo@laborlawyers.<br />

com) or Joe Gagnon (jgagnon@laborlawyers.com) of the Houston office of<br />

Fisher & Phillips LLP, a national labor and employment law firm with offices<br />

in 24 cities across the U.S. Fisher & Phillips lawyers have advised automobile<br />

dealers on labor and employment law issues for decades, providing sound legal<br />

advice based on a thorough understanding of the unique issues facing retail<br />

automotive dealerships. Steve and Joe are members of the firm’s Dealership<br />

Practice <strong>Group</strong> and can be reached at 713-292-0150.<br />

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24


Advertising Opportunity<br />

<strong>TADA</strong> Annual<br />

<strong>2011</strong>-2012 Membership Directory<br />

“The <strong>TADA</strong> Membership Directory is a resource I personally<br />

use regularly to get contact information on fellow Texas dealers,<br />

as well as, <strong>TADA</strong> staff. The Directory is a valuable resource to<br />

keep in your desk for when you need to locate or contact someone<br />

about an issue or just ask a question. Without the companies that<br />

advertise in the Directory, we would not have access to such a<br />

helpful resource.”<br />

— Craig W. Kinsel, Kinsel Motors, Inc., Beaumont, TX<br />

<strong>TADA</strong> DIRECTORY association at the same time.” AD<br />

“I think it is nice to have the directory in your desk and be able<br />

to call any dealer in the state, also a good way to support you<br />

— David Alderson, Alderson Enterprises, LP, Lubbock, TX<br />

“As the owner of a Texas dealer group, we always prefer to do<br />

business with companies that support the Texas Automobile<br />

Dealers Association. By advertising in their annual directory,<br />

it gives our managers a quick reference as to which companies<br />

support our organization. We currently do business with 15<br />

companies that advertised in the 2010 directory and look forward<br />

to increasing that number this year.”<br />

— Mark Daniels, Four Wheels Autogroup, McKinney, TX<br />

Be a part of <strong>TADA</strong>’s Annual Membership<br />

Directory. Have your own full-page, halfpage,<br />

quarter-page, business card listing,<br />

section divider page or even the inside or<br />

outside cover in this publication.<br />

The directory will be a full color book<br />

(8 1/2” x 11”) distributed to every <strong>TADA</strong><br />

member new car and truck dealer across<br />

Texas to be used as a handy reference<br />

guide for at least one full year.<br />

Ads must be received no later than April 15, <strong>2011</strong><br />

Contact the <strong>TADA</strong> office at<br />

communications@tada.org for details.<br />

<strong>2011</strong> SPRING 25


Texas Celebration<br />

<strong>2011</strong> NADA Convention<br />

San Francisco, California<br />

26


Special Thanks to Our Sponsors<br />

<strong>2011</strong> SPRING 27


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Avoiding Unlawful<br />

Employment Practices<br />

in Your Dealership<br />

Recommendations<br />

• Develop an employee handbook and<br />

distribute it to all new and existing employees.<br />

Obtain employees’ sign-off on<br />

having received, read and understood<br />

the handbook.<br />

• Provide an anti-harassment policy<br />

statement and procedures and obtain an<br />

employee acknowledgement that they<br />

have received, read and understood the<br />

statement and procedures.<br />

Employee lawsuits for unlawful employment<br />

practices such as sexual<br />

harassment, racial and other forms<br />

of discrimination increasingly threaten<br />

the financial stability of dealerships large<br />

and small. Today, a significant liability<br />

issue for many dealers is employment<br />

practices liability. This is due to recordhigh<br />

settlement costs and intense media<br />

coverage of monumental lawsuits against<br />

big-name corporations.<br />

Employer discrimination in employment<br />

practices based on race, national<br />

origin, age, disability, religion or gender is<br />

unlawful. Discrimination can occur in the<br />

form of different treatment, harassment<br />

or retaliation.<br />

Harassment can occur in the form of<br />

touching or violating space, lewd or offcolor<br />

jokes and even foul language. It is the<br />

responsibility of the employer to provide<br />

a nondiscriminatory and harassment free<br />

work environment.<br />

Employment Harassment<br />

Issues<br />

Risks<br />

Deficiencies in anti-harassment programs<br />

(or failure to have such programs)<br />

increase your exposure to employment<br />

practices lawsuits and/or your ability to<br />

defend these claims should they occur. Examples<br />

of deficiencies in anti-harassment<br />

programs include:<br />

• Failure to have a formal, written antiharassment<br />

program<br />

• Ignoring or not taking harassment<br />

complaints seriously, or threatening or<br />

terminating complaintants<br />

• Harassment policies with unclear or<br />

insufficient investigation procedures,<br />

or policies that fail to designate anyone<br />

as responsible for accepting claims of<br />

harassment<br />

• Anti-harassment polices and programs that<br />

do not address harassment based on race,<br />

color, religion, national origin, age, disability<br />

and reprisal (harassment may occur on<br />

any basis covered by EEOC statues)<br />

Make sure your harassment program<br />

and procedures include:<br />

• A written complaint procedure with<br />

two or more reporting channels<br />

• Reporting and investigation procedures<br />

• Disciplinary procedures emphasizing<br />

your dealership’s zero-tolerance policy<br />

• Training on dealership policy and<br />

procedures upon hire and periodically<br />

thereafter<br />

Termination Procedures<br />

Many people are employed “at will,”<br />

meaning that state law permits their<br />

employment to be ended at any time.<br />

However, even “at will” employees<br />

are entitled to certain legal protections<br />

against wrongful termination and cannot<br />

be fired for reasons that violate the law<br />

or public policy.<br />

Risks<br />

Wrongful termination involves discharging<br />

an employee in violation of<br />

public policy and can often accompany<br />

any type of alleged harassment or discrimination.<br />

If you don’t follow your<br />

written termination policies or prepare<br />

the appropriate documentation, you could<br />

leave your dealership open to an employment<br />

suit.<br />

Recommendations<br />

• Establish written employment rules<br />

and termination policies. Get an attorney<br />

that specializes in employment<br />

practices to advise you.<br />

• Establish written employee counseling<br />

procedures which alert employees of<br />

performance problems early on and<br />

give them an opportunity to improve.<br />

Train all supervisors on documenting<br />

counseling action.<br />

• Make sure managers who handle<br />

terminations work with your human<br />

<strong>2011</strong> SPRING 29


esources area and are properly trained on how to apply company<br />

termination policies. Explain policies to every employee<br />

and make sure each employee acknowledges receipt of them.<br />

• Investigate each case thoroughly before considering termination.<br />

If the employee has violated a rule, policy or procedure, be<br />

sure to investigate. Termination is not always the appropriate<br />

disciplinary action. Make sure you are consistent in your disciplinary<br />

actions with other employees for the same offenses.<br />

• Document the reasons for termination. Before terminating an<br />

employee, be sure you have a fully documented personnel file<br />

supporting the discharge. Documentation may include poor<br />

performance reviews, disciplinary notices, incident reports,<br />

records of investigations and similar types of documents.<br />

Terminating an employee for poor performance after his or<br />

her most recent performance review indicated the employee<br />

was doing a “great job” can make defending a legal claim<br />

very difficult.<br />

• As noted above, employees are entitled to certain legal protections<br />

against wrongful termination and cannot be fired for<br />

reasons that violate the law or public policy. Allegations of<br />

wrongful discharge are frequently accompanied by alleged<br />

harassment or discrimination.<br />

• Most termination actions are the result of poor performance<br />

and/or violation of established company rules. When evaluating<br />

such cases, consider the following factors before taking<br />

termination action:<br />

Your Plan to Gift<br />

or Sell Requires<br />

Knowledge of Your<br />

Dealership’s<br />

Value.<br />

contact<br />

RICHARD W. NOKES, P.C., CPA<br />

DICK NOKES CONSULTING, LLC<br />

901.767.8584<br />

rwnokes@comcast.net<br />

Checklist for Handling Poor Performance<br />

• Has the employee been told of deficiencies or problem performance<br />

• Have the deficiencies or problems been documented<br />

• Has the employee received necessary training and assistance<br />

• Has the employee been given time and an opportunity to<br />

improve<br />

• Does the employee really know that their continued employment<br />

is at risk<br />

• Have extenuating factors been identified that could explain<br />

poor performance<br />

• Is the employment action contemplated consistent with company<br />

policies and being implemented consistent with similar<br />

occurrences within your dealership<br />

• Is the reason for discharge supported by a fully documented<br />

personnel file Such documentation may include poor performance<br />

reviews, disciplinary notices, incident reports and<br />

records of investigation.<br />

• Consult with legal counsel or your human resources specialist<br />

before taking action to terminate.<br />

Checklist to Address Violation of Work Rules<br />

• Has the alleged violation been fully investigated including<br />

interviewing the affected employee and witnesses If not,<br />

consider suspending the employee until the incident can be<br />

reviewed.<br />

• Have written statements from the employee and witnesses<br />

been taken<br />

• Was the employee aware of the rule that was violated<br />

• Have extenuating factors been identified<br />

• Is contemplated action consistent with handling of similar<br />

occurrences within your dealership<br />

• Is termination the appropriate disciplinary action<br />

• Consult with legal counsel or your human resources specialist<br />

before taking action to terminate.<br />

Handling a Termination<br />

• Complete a review of the employee file and related documentation<br />

before meeting with the employee<br />

• Be calm and professional when meeting with the employee.<br />

Avoid displays of anger or comments that could be construed<br />

as demeaning or disrespectful.<br />

• The meeting with the employee should be brief. Explain<br />

reasons for the termination but avoid a debate of previously<br />

discussed facts. Make it clear the decision is final.<br />

• Consider giving the employee an opportunity to resign.<br />

• Be sure to address the return of equipment or ID cards and<br />

neutralize all systems access.<br />

• Create a written summary of the termination, including factors<br />

leading to termination, management action taken and<br />

any admissions made by the employee during the termination<br />

meeting.<br />

• Contact legal counsel if it appears that a claim of discrimination,<br />

harassment or wrongful discharge may be made. <br />

Randy Dombrowski is an Account Executive for Sentry Insurance – a provider<br />

of property and casualty coverages for the dealership industry. You can reach<br />

Randy at randy.dombrowski@sentry.com with any questions.<br />

30


©<strong>2011</strong> Texas Mutual Insurance Company<br />

BRAD WICKER<br />

Program Administrator<br />

Lone Star Auto Dealers<br />

Purchasing <strong>Group</strong><br />

Ask your agent about the Lone Star Auto Dealers purchasing group, or contact Brad Wicker at (877) 694-2537 or bwicker@nts-online.net.<br />

Dividends are based on performance, and are not guaranteed.


TIME and Goodyear Honor Grapevine Dealer<br />

Tom Durant Wins National Recognition for Community Service and Industry Accomplishments at NADA Convention<br />

Tom Durant, Dealer at<br />

Classic Chevrolet, Ltd.,<br />

a Chevrolet and Hummer<br />

dealership in Grapevine,<br />

Texas, was honored<br />

today for his nomination<br />

for the <strong>2011</strong> TIME Dealer<br />

of the Year award.<br />

Durant was one of a select<br />

group of dealers from<br />

across the country honored<br />

at the 94th annual National<br />

Automobile Dealers Association<br />

(NADA) Convention &<br />

Exposition in San Francisco<br />

today. The announcement of<br />

this year’s Dealer of the Year<br />

and finalists was made by Kim<br />

Kelleher, Publisher of TIME,<br />

and Johann Finkelmeier, Vice<br />

President & General Manager -<br />

Original Equipment N.A. Consumer<br />

Tire, The Goodyear Tire<br />

& Rubber Company, at the formal opening of the convention,<br />

which is attended by more than 15,000 individuals involved in<br />

the automobile industry.<br />

The TIME Dealer of the Year award is one of the automobile<br />

industry’s most prestigious and highly coveted awards for newcar<br />

dealers. Recipients are among the nation’s most successful<br />

auto dealers, but they must also demonstrate a long-standing<br />

commitment to effective community service.<br />

Durant, 61, was chosen to represent the Texas Automobile<br />

Dealers Association in the national competition—one of only<br />

52 automobile dealers, from 17,000 nationwide, nominated for<br />

the 42nd annual award. The award is sponsored by TIME in<br />

association with Goodyear, and in cooperation with NADA. A<br />

panel of faculty members from the Ross School of Business at the<br />

University of Michigan selects one finalist from each of the four<br />

NADA regions and one national Dealer of the Year.<br />

“I brought the small-town way of doing business in the auto<br />

industry to the city,” says Durant, “and I proved that it was<br />

Tom Durant<br />

<strong>2011</strong><br />

<strong>TADA</strong> Winner<br />

TIME MAGAZINE<br />

QUALITY DEALER AWARD<br />

a viable business model in a<br />

large suburban dealership. That<br />

business model identified that a<br />

customer was more than a onetime<br />

profit opportunity, and my<br />

legacy will be that if you treat<br />

people well, and give them a fair<br />

deal, they will come back, and<br />

your store will succeed.”<br />

Durant graduated from<br />

Granbury (TX) High School<br />

in 1968, and from Texas Tech<br />

University, in Lubbock, four<br />

years later. “I started in the<br />

family business during college<br />

when I went to work with my<br />

brother at his Chevy dealership<br />

in Weatherford,” says Durant.<br />

His brother, Jerry, put Durant to<br />

work managing the service side<br />

of the store, but one weekend,<br />

Jerry had to leave town, and,<br />

Durant says, “He asked me to<br />

oversee sales while he was gone.<br />

It was a slow weekend but I<br />

gained my brother’s confidence,<br />

and the next time he needed to<br />

leave town for the weekend I sold 14 cars.” “After that,” says<br />

Durant, “I talked to my dad who was operating the Chevy dealership<br />

in Granbury, Texas, and told him that I wanted to be a<br />

car dealer and didn’t want to work for my brother.” After three<br />

months working for his dad, Durant’s father told him, “It looks<br />

like you can handle it,” and he sold his son the Chevy store. “I<br />

purchased a downtown Fort Worth store in October 1998,” explains<br />

Durant. “I wanted to succeed on my own. That store had<br />

never made a profit, and I rebuilt it to make it profitable. In early<br />

1992, I moved that store to Grapevine, an expanding suburb of<br />

Fort Worth that was still largely undeveloped. I built there the<br />

core of the dealership that I operate today.”<br />

In the area of community service, Durant has a distinguished<br />

record. In 1994-95, the Grapevine Chamber of Commerce named<br />

Durant’s dealership Business of the Year and inducted him into<br />

the Business Hall of Fame in 2002. Durant and his wife, Susan,<br />

the Classic Chevrolet dealership and its employees have long<br />

supported dozens of worthy organizations, including the Police<br />

& Fire Department Association, Diabetes Foundation, Nosh<br />

Farm Project in Grapevine, Make A Wish Foundation, MDA,<br />

<strong>2011</strong> SPRING 33


The Boys Club, Ninos de Mexico, North Texas SNAP (Special<br />

Needs Assistance Partners). In addition to sponsoring local<br />

events such as Grapefest, The Livestock Show, and Main Street<br />

Days in Grapevine, they have also made numerous noteworthy<br />

donations every year since 2005, including $10,000 per year to<br />

the Carroll Education Foundation, $20,000 annually to the Colleyville<br />

Education Foundation, $20,000 per year to Big Brothers,<br />

Big Sisters, and $20,000 per year to GRACE (Grapevine Relief<br />

and Community Exchange). In 2010, Durant challenged his employees<br />

to raise money for Christ’s Haven for Children, pledging<br />

to match whatever they raised. In a few weeks, his employees<br />

raised $90,050, which Durant and his wife matched. That same<br />

year, Classic Chevrolet donated a preowned van worth approximately<br />

$12,000 to the Dallas Fort Worth Humane Society and<br />

$5,000 to the Northwest Metroport Chamber’s needy children’s<br />

fun. In the aftermath of Hurricane Katrina, Classic employees<br />

raised $42,000 in 36 hours, which the Durants matched for a total<br />

gift of $85,300 to The Salvation Army. Says Durant, “Growing<br />

up in a small town teaches you that community is what makes<br />

you successful.”<br />

Nominated for the TIME Dealer of the Year award by Bill<br />

Wolters, President of the Texas Automobile Dealers Association,<br />

Tom Durant and his wife Susan have four children, Hagen,<br />

Bently, Garner and Stormy, and six grandchildren. Durant also<br />

represents Buick, Chrysler, Dodge, Ford, GMC, Jeep and Mazda<br />

at his other dealerships. <br />

REACH YOUR TARGET AUDIENCE<br />

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Find out how targeted advertising can produce<br />

real, measurable results for your organization.<br />

ADVERTISE AND GET RESULTS<br />

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801.746.4003 | don@spectruminkpublishing.com<br />

TEXAS DEALER ACADEMY<br />

“Leadership Development for<br />

Today and Tomorrow”<br />

<strong>TADA</strong> is in the process of organizing a training program for<br />

current and future dealership operators in the state of Texas.<br />

We are looking for any person(s) in the automobile business<br />

– ages 20 to 40 – who are interested in furthering their<br />

education and knowledge of the franchised new car and truck<br />

business in Texas.<br />

We will offer the opportunity for young dealer/managers<br />

to prepare for the future of your business. The Texas Dealer<br />

Academy will provide individuals a chance to meet with their<br />

peers and exchange thoughts and ideas while hearing the latest<br />

information from the professionals – on a local, state-wide<br />

and national level.<br />

TDA Steering Committee<br />

• Tim Crenwelge, Kerrville, TDA Dealer Director<br />

• T. Harper, Austin, TDA Chairman<br />

• John Kliewer, Killeen, TDA Vice-Chairman<br />

• Chris Gillman, Houston<br />

• Chris Late, Austin<br />

• Amy Wilson, Boerne<br />

The first organizational meeting<br />

will be held in Austin in early June.<br />

Details will be available soon. <br />

34


<strong>2011</strong> <strong>TADA</strong><br />

Chairman’s Workshops<br />

<strong>TADA</strong> Chairman of the Board Stephen Cavender and <strong>TADA</strong><br />

Legislative Chairman John Zwiacher travelled the state in<br />

February and March to deliver “The State of the Association<br />

Report” to over 250 Texas dealers.<br />

Cavender, a third generation San Antonio dealer, outlined<br />

the resources and commitment required of <strong>TADA</strong> members to<br />

maintain a unified voice in Austin and Washington, D.C. He<br />

discussed dealer’s rights, the importance of strong relations with<br />

the manufacturers and distributors and the critical role that<br />

political involvement serves in being a franchised dealer. He<br />

further discussed the importance of dealers working together in<br />

their associations and supporting the <strong>TADA</strong> PAC. Cavender<br />

re-affirmed that in his term as Chairman, he would ensure that<br />

<strong>TADA</strong> continued to support dealers in legislative, legal and<br />

regulatory affairs.<br />

Current Legislative Committee leader John Zwiacher outlined<br />

his plans for the current session of the Texas Legislature and the<br />

work of his committee. Chairman Zwiacher presented the issues<br />

being discussed and appealed to dealers to be prepared to work<br />

with <strong>TADA</strong> staff as the session progresses.<br />

<strong>TADA</strong> staff also participated in the six city tour of the state<br />

as Executive Vice President and General Counsel Karen Phillips<br />

discussed current legal and regulatory issues affecting dealers,<br />

VP/CEO of Legislative Affairs Rob Braziel joined John Zwiacher<br />

in the legislative and government relations update and President<br />

Bill Wolters provided an industry overview.<br />

The overall theme of the discussions centered upon the ability<br />

of Texas dealers to respond in a positive way to today’s many<br />

challenges to ensure their success in the coming years. The<br />

elected leaders of <strong>TADA</strong>, headed by dealers such as Stephen<br />

Cavender and John Zwiacher, are already working on behalf of<br />

1260 dealers statewide to further their interests and protect their<br />

rights under state law. <br />

AutoRaptor CRM<br />

<br />

<br />

<br />

<strong>2011</strong> SPRING 35


“Bedrock” of McKinney<br />

Robert B. TomesA recipient of<br />

the Bronze Star for meritorious<br />

service in the Vietnam<br />

War, Bob Tomes is a first generation<br />

dealer whose success in life<br />

and business stems in large part<br />

from his commitment to his community<br />

and a variety of education<br />

related causes in North Central<br />

Texas. Drawing on his Nebraska<br />

beliefs of hard work, honest dealing<br />

and family values, Mr. Tomes<br />

is a “bedrock” of McKinney,<br />

Texas helping the community<br />

grow from a sleepy farm town to<br />

a thriving Dallas suburb.<br />

Mr. Tomes’s contributions to<br />

education are many, including:<br />

The Bob Tomes Ford Lincoln<br />

Mercury scholarship for graduating<br />

seniors of employees; the<br />

Rotary Club’s Academic Excellence<br />

Program; the Texas Built<br />

Ford Tough Annual Scholarship<br />

program for students in Collin<br />

County, Texas; the Bob Tomes<br />

Ford Endowment Fund, Education<br />

Drives the Future Fund<br />

Drive which supports the McKinney<br />

Education Foundation;<br />

and National Future Farmers<br />

of America (FFA) Scholarships<br />

awarded at six area high schools.<br />

Additionally, he is involved with<br />

the Boy Scouts of America and<br />

the Heard Wildlife Museum.<br />

Dedicated to the betterment<br />

and support of both his industry<br />

<br />

<br />

<br />

<br />

and community, Mr. Tomes<br />

has shared his time, talent and<br />

treasure with the United Way<br />

(past Chairman), Volunteers<br />

McKinney, McKinney Policemen<br />

and Firemen Support,<br />

Board of Directors for the<br />

Ford Dealer’s Advertising<br />

Fund, McKinney Chamber of<br />

Commerce (past Chairman of<br />

the Board), McKinney Rotary<br />

Club, Paul Harris Society and<br />

the American Legion (Lifetime<br />

Member).<br />

Professionally, Mr. Tomes<br />

is a member of the National<br />

Automobile Dealers Association,<br />

Texas Automobile<br />

Dealers Association, and<br />

the Dallas New Car Dealers<br />

Association. He has been<br />

recognized by the Ford Motor<br />

Company as a 2010 Salute to<br />

Dealers Nominee, 2010 Partner<br />

in Quality Award, one of<br />

66 Time Quality Dealer of the<br />

Year Award Nominees as well<br />

as other well deserved awards<br />

and recognition.<br />

Northwood University is<br />

proud to present Mr. Bob<br />

Tomes the Dealer Education<br />

Award for his ongoing commitment<br />

to, and support of, higher<br />

education, his community<br />

and the automotive marketing<br />

industry. <br />

visit us at<br />

www.tada.org<br />

36


"TEXAS TRADITIONS"<br />

<strong>TADA</strong> Annual Conference<br />

April 3-4, <strong>2011</strong><br />

The Hyatt Regency Hill<br />

County Resort & Spa<br />

San Antonio, Texas<br />

Wear your boots and jeans and join your fellow dealers at the<br />

Chairman’s Dinner on Sunday for a fun filled evening, featuring<br />

The Rick Cavender Band.<br />

This is the one opportunity for <strong>TADA</strong> to bring all of its member<br />

dealers together for a one day meeting on Monday to share<br />

vital information and have you at the table directing the<br />

Association.<br />

A unified dealer body is critical to the success of <strong>TADA</strong> and<br />

you are essential to that success.<br />

David Hyatt, NADA VP and Chief Public Affairs Officer will<br />

conduct a <strong>Media</strong> Training Network Seminar.<br />

Hear the latest updates from the current Legislative Session.<br />

Please make your plans to join dealers statewide.<br />

Brandon Tomes “Goes Over the Edge” to<br />

Raise Money for Special Olympics of Texas!<br />

Brandon is the son of Barbara<br />

and Bob Tomes of McKinney.<br />

He attended McKinney High School<br />

and was active in Boy Scouts of<br />

America and school government, in<br />

addition to spending his summers working<br />

various jobs at the family dealership.<br />

Brandon attended Southern Methodist<br />

University where he received his BBA in<br />

Business Management and then attended<br />

the NADA Dealer Candidate Academy in<br />

2008-2009. He is now the General Manager<br />

and namesake for the new Subaru<br />

operation in McKinney.<br />

rappelled down the InterContinental Hotel<br />

in Dallas – 15 stories. The adrenaline<br />

rush may have been temporary, but the<br />

positive impact this had on the lives of<br />

36,000 Special Olympics Texas athletes<br />

and people with intellectual disabilities<br />

will last a lifetime!<br />

For every $50 donation, sponsors<br />

were entered into a drawing for the<br />

chance to win a <strong>2011</strong> Subaru Outback.<br />

In addition, for every test drive completed<br />

at Brandon Tomes Subaru, Brandon<br />

donated $25 in that person’s name to this<br />

great cause. <br />

Brandon’s goal was to raise a minimum<br />

of $1000. Once his goal was reached, he<br />

<strong>2011</strong> SPRING 37


<strong>TADA</strong> Advertiser Index<br />

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Accounting<br />

Larson Allen, LLP .....................................................................Page 5<br />

Automobile Training<br />

First Innovations, Inc. ............................................................Page 21<br />

Banking/Finance<br />

Bank of America .......................................................................Page 9<br />

Construction Management<br />

The Ratliff <strong>Group</strong>, LLC .............................................................Page 6<br />

Customer Relationship Management Software<br />

AutoRaptor CRM ....................................................................Page 35<br />

Dealership Buy-Sells<br />

Dick Nokes Consulting, LLC .................................................Page 30<br />

Dealership Valuations<br />

Richard W. Nokes, P.C., CPA, CVA .......................................Page 30<br />

Finance & Insurance Development<br />

First Innovations, Inc. ............................................................Page 21<br />

F&I Training/Products<br />

American Financial & Automotive<br />

Services, Inc. ........................................................Page 31 & Page 39<br />

Foresight Services <strong>Group</strong> .......................................................Page 3<br />

Insurance<br />

American Fidelity Assurance ................................................Page 17<br />

Austin Consulting <strong>Group</strong> ......................................................Page 38<br />

Federated Insurance ..............................................................Page 23<br />

Sentry Insurance ....................................................................Page 14<br />

The Midlands Companies .....................................................Page 20<br />

Texas Mutual Insurance Co. .................................................Page 32<br />

Texas Auto Dealers Self<br />

Insurers <strong>Group</strong> .......................................................................Page 20<br />

Zurich American Insurance Company .................................Page 28<br />

Labor/Employment Attorneys<br />

Fisher & Phillips LLP ............................................................. Page 40<br />

New/Used Car Advertising<br />

AutoTrader.com ......................................................................Page 24<br />

Sales Training<br />

Foresight Services <strong>Group</strong> .......................................................Page 3<br />

Service Contract<br />

First Innovations, Inc. ............................................................Page 21<br />

Transportation/Internet<br />

ShipCarsNow. ........................................................................Page 18<br />

Uniforms & Facility Services<br />

UniFirst ....................................................................................Page 27<br />

Utility Consultant<br />

APPI ...........................................................................................Page 2<br />

Warranty Management<br />

Automotive Warranty Network, Inc. ...................................Page 16<br />

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38


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