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Dealers’ ChoiceSUMMER 2010Volume 50, Issue 2OFFICIAL PUBLICATION OF THE TEXAS AUTOMOBILEDEALERS ASSOCIATIONDavid BrinsonRick CavenderKirk ClarkTom DurantCraig Kinsel Bill Kliewerer Tim LightDennis NeessenTony PackMike SmithBob Tomes

Dealers’ ChoiceOFFICIAL PUBLICATION OF THE TEXAS AUTOMOBILE DEALERS ASSOCIATIONThe Dealers’ Choice is a publication of NewslettersInk and is the official publication of TexasAutomobile Dealers Association. The Dealers’Choice is published 4 times per year by MediaCommunications Group, Inc. The statements andopinions expressed herein are those of the individualauthors and do not necessarily represent the viewsof Dealers’ Choice, or its publisher Media CommunicationsGroup, Inc. Any legal advice should beregarded as general information. It is strongly recommendedthat one contact an attorney for counselregarding specific circumstances. Likewise, theappearance of advertisers does not constitute anendorsement of the products or services featuredby Media Communications Group, Inc.Donna Norton, Managing Editor201526About the cover: Spotlight on TADA BoardMembers6 2010 TADA Leadership9 Spotlight On TADA Board Members15 Texas Dealers Wage Battle on Financial Regulation Bill in Washington17 2010 TADA Key Director17 In Memoriam18 Dealers Descend on Children’s Home20 2010 TADA Annual Conference22 2010 Time Dealer of the Year26 “This Will Be Our Finest Moment”28 Focus for Today’s Market: Cash and Inventory Management29 Texas Auto Dealer Receives Grassroots Advocacy Award30 American Truck Dealers33 All the Benefits, None of the Worry224

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2010 TADA LEADERSHIPStephen CavenderChairman-ElectDavid AldersonChairman2010 TADA EXECUTIVE COMMITTEEJim JankeImmediate Past Chairman Mary Rose Cardenas South Rick Cavender Southwest Tim Crenwelge West Mark Daniels Northeast Bryan Hardeman Central David S. Houston East Steve Prather Southeast David Schoemaker NorthBill WoltersPresident John Zwiacher NorthwestDuane KyrishTexas Truck Dealers ChairmanKaren PhillipsExecutive Vice PresidentGeneral Counsel6

2010 TADA BOARD OF DIRECTORSApril AnciraSouthwestDistrict 26David L. BrinsonCentralDistrict 12Brent BrownNorthwestDistrict 28Brian Bruckner, Jr.At-LargeDonnie BuckalewSoutheastDistrict 33Mike CalvertSoutheastDistrict 6Joe ChastangAt-LargeKirk A. ClarkSouthDistrict 27Diane ConnellWestDistrict 16Bob CrowSouthDistrict 20Tom DurantAt-LargeCharlie GilchristNorthDistrict 22Milton S. Greeson, Jr.SouthDistrict 18Sean GunnSouthwestDistrict 24Larry HallWestDistrict 25Nancy HarperCentralDistrict 14Donald R. HerringNortheastDistrict 8Jon HillSouthwestDistrict 19Paul S. KaneSouthwestDistrict 21Craig W. KinselEastDistrict 4Bill KliewerCentralDistrict 13Tim LightCentralDistrict 11Marvin MarcellSoutheastDistrict 15Erik MaundAt-LargeRobin MercerEastDistrict 3Sonny MorganNorthDistrict 34Dennis NeessenWestDistrict 32Tony PackNorthDistrict 10Harry PattersonNorthDistrict 23Andrea Gibbs PickensEastDistrict 7Doss RogersWestDistrict 29John S. RoleyNorthwestDistrict 30Joe W. Sandlin Jr.NortheastDistrict 1Craig SiskEastDistrict 2Mike SmithSoutheastDistrict 5Jim SnellNortheastDistrict 35Joe StreetNorthwestDistrict 31Bob TomesNortheastDistrict 9Cary T. WilsonSouthDistrict 172010 SUMMER 7

2010 TADA LEADERSHIPTADA REGIONS AND DISTRICTSChairman, David AldersonChairman Elect, Stephen CavenderImmediate Past Chairman, Jim JankeTexas Truck Dealers Chairman, Duane Kyrish SOUTHWESTVice Chairman, Rick CavenderDistrict Directors19 Jon Hill 21 Paul S. Kane24 Sean F. Gunn 26 April Ancira NORTHWESTVice Chairman, John ZwiacherDistrict Directors28 Brent Brown 30 John S. Roley31 Joe Street EASTVice Chairman, David S. HoustonDistrict Directors2 Craig Sisk 3 Robin T. Mercer4 Craig W. Kinsel 7 Andrea Gibbs Pickens NORTHVice Chairman, David SchoemakerDistrict Directors10 Tony Pack 22 Charlie Gilchrist23 Harry Patterson 34 Sonny Morgan SOUTHVice Chairman, Mary Rose CardenasDistrict Directors17 Cary T. Wilson 18 Milton S. Greeson, Jr.20 Bob Crow 27 Kirk A. Clark CENTRALVice Chairman, Bryan HardemanDistrict Directors11 Tim Light 12 David L. Brinson13 Bill Kliewer 14 Nancy HarperDirectors At-LargeBrian M. BrucknerTom DurantJoe ChastangErik Maund WESTVice Chairman, Tim CrenwelgeDistrict Directors16 Diane Connell 25 Larry Hall29 Doss Rogers 32 Dennis R. Neessen NORTHEASTVice Chairman, Mark DanielsDistrict Directors1 Joe W. Sandlin, Jr. 8 Don Herring, Sr.9 Bob Tomes 35 Jim Snell SOUTHEASTVice Chairman, Steve PratherDistrict Directors5 Mike Smith 6 Mike Calvert15 Marvin Marcell 33 Donnie Buckalew8

on TADA Board MembersRick CavenderCavender AudiSan AntonioRick Cavender, Vice Chairman, Southwest RegionThe Cavender family of San Antonio has been in the auto business since 1939. Rick Cavender, a third-generationauto dealer is President of Cavender Audi and Vice President of the Cavender Auto Family which also includesCavender Toyota and Cavender Certified Used Vehicles in Selma.After graduating from the University of Texas at Austin in 1980, Rick began his career at Cavender Oldsmobileworking alongside his father and grandfather serving in a variety of positions. From 1992 until 2009, Rick servedas retailer for Saturn of San Antonio.Rick has had a very active community involvement. He has served the Boards of Mission Road DevelopmentalCenter, the San Antonio Sports Foundation, San Antonio Youth Literacy, and the San Antonio Golf Association, theLone Star Chapter for Cystic Fibrosis, the San Antonio 100 Club, the Bexar County Arts Fund, and Christian SeniorServices. He is past president of the San Antonio Auto Dealer Association, City Year San Antonio and the RotaryClub of San Antonio.Rick currently serves on the Advisory Board for City Year San Antonio and on the Board of Trustees for theUnited Way of Bexar County and he is a current member of the Cancer Therapy and Research Center Cabinet andBoard of Directors.In 2007, the United Way of San Antonio recognized Rick with the “Volunteer of the Year” Award in the IndividualService category. In 2008, the Texas Automobile Dealers Association awarded him with the “Key Dealer Award”which is given annually to a Texas franchised dealer for outstanding service to community.Rick also finds time to lead the Rick Cavender Band. This 6 piece variety band typically performs over 50 nightsa year for galas, conventions and weddings. Rick and his band have opened and performed with artists such asAlabama, Alan Jackson, George Strait, Willie Nelson, Larry Gatlin, Glen Campbell, used as the official campaignsong for the United Way of San Antonio in 2005. In 2008, San Antonio Magazine readers rated Rick and his groupas the “Best Band in San Antonio.”Craig W. KinselKinsel Ford Lincoln MercuryMazdaKinsel Toyota/Kinsel ScionBeaumontCraig Kinsel, TADA Director, East Region, District 4Craig Kinsel’s family has been in the automobile business since 1922. Inspired, by his great-grandfather,grandfather and father, he now has three dealership locations for Ford, Lincoln, Mercury, Mazda, Toyota, Scionemploying 150 people.Craig was born in Beaumont, TX. He attended the University of Texas and South Texas College of Law.Currently Craig serves in the following community capacities: Advisory Director of Beaumont Chamber of Commerce;Gulf States Toyota Dealer Advertising Advisory Board; District 4 Director, Texas Automobile Dealers Boardof Directors; All Saints Episcopal School Building and Planning Committee; Texas Automobile Dealers LegislativeBoard; Knights of the Neches.Membership in TADA has “provided all positive learning experiences, protection for dealers rights and industryinformation,” said Craig. He also believes the organization helps protect the industry. “It’s a good idea to join TADAand interact with other dealers.”Craig’s interest outside of the dealership include hunting, bicycling and salt water aquariums. He also participatesin triathlons.2010 SUMMER 9

on TADA Board MembersTom DurantClassic ChevroletGrapevineTom Durant, TADA Director, At-LargeTom Durant now has eight dealership locations, selling Chevrolet, Hummer, Buick, GMC, Ford, Chrysler, Dodge,Jeep, and Mazda and employs a total of 905 people. He originally got into the automobile business because hisfather Julian Durant acquired a small Chevrolet dealership in Granbury Texas in 1960.“After buying the Granbury dealership from my father, I purchased a struggling downtown Fort Worth dealershipand named it Classic Chevrolet. Thereafter, I relocated Classic Chevrolet to an empty stretch of highway NorthEast of Fort Worth in a small town named Grapevine at a time when there had been little growth and development,”explains Tom.Since then the town has grown to a major suburban city, and Classic Chevrolet has grown to be the top sellingChevrolet dealership in the United States. “This has given me confidence that if I work hard, and do honest business,I can succeed even when others are failing.”Tom was born in Rustin, Louisana. He received a Bachelor’s degree in Business from Texas Tech University in 1972.Tom expressed gratitude for his affiliation with TADA:, ” Without the protection that that the TADA has securedfor franchised auto dealers, the industry would be controlled by manufacturer owned dealerships and national bigbox store conglomerates”.“Because of my membership in TADA my stores are able to stay current with the ever changing matrix ofState and Federal regulations. TADA effectively manages outside threats to the family-owned auto dealer suchas excessive regulation, predatory litigation, and manufacturer discrimination. This leaves me free to do what Ienjoy: selling cars and trucks,” Tom said.David BrinsonBrinson FordLincoln MercuryCorsicanaDavid Brinson, TADA Director, Central Region, District 12Selling cars inspired David Brinson to buy his own dealership. He now has Ford Lincoln Mercury in 2 locations--Corsicana and Athens, Texas. Currently the dealerships employ 80-90 people.“I got into the business as a salesperson thinking it would be short term job and found out that I loved it. I decidedthen that I wanted to get my own store before I was 30 years old. I bought out the Lincoln Mercury store in 2002and bought a second Ford Lincoln Mercury store in 2004,” David explained.“Having the knowledge that TADA can provide being just a phone call or email away has been a life saver. Thegoldmine of knowledge that Karen Phillips has and her patience in working through complicated matters is a truetestament to the importance of having an organization like TADA, and we all should support it,” said David.“We must all realize the importance of giving back to the organizations and the people who can carry our message.TADA is the Dealer’s voice. I wish I had been more active in the past” he added.The best advice to dealers according to David is, “Control your expenses!!! You never know what is coming nextbut you can survive if you keep your cash up and your expenses down.”In addition to the dealership, David enjoys collecting wine, jumping out of airplanes, and spending time onhis ranch.10

on TADA Board MembersTim LightTom Light ChevroletBryanTim Light, TADA Director, Central Region, District 11“I have grown up in the dealership and started working at age 13 and have worked in all departments along theway!” explained Tim Light who now has a Chevrolet dealership employing 75 people of his own.“My dad, Tom Light, started in the car business in 1947 in Port Arthur and worked there through the 1960’s. In1970 we moved to Bryan, Texas where my dad worked as GM for Corbusier Chevrolet. In 1972, my dad becamea partner and the dealer operator, In 1989 , he sent me over to run another family dealership, Tom Light MotorCompany, in Madisonville, Texas,” said Tim.According to Tim, “this experience taught me the value of managing your cash flow. This store was run ona very limited budget so we had to watch where our cash was tied up, either in used cars, warranty claims orincentives. It was an eye opening experience.”“Our membership in TADA has been an invaluable experience. Some of my fondest memories are attending TADAevents with my dad! Using the resources of TADA has helped our dealership in various ways, commented Tim.“The twenty-group has helped us with all aspects of our business from profitability to customer satisfaction.The legal department has helped us navigate through a minefield of legal issues that affect all new vehicle dealers.”“The legislative department has been stalwarts in helping carry the dealers voice through all the different levelsof both state and federal governments. Without TADA the strength of the Texas new vehicle dealers would notbe where we are today!, Tim exclaimed.“I think it should be every dealer’s duty to serve on the TADA board at least once! It is a rewarding experiencefor me as a dealer to be a small part of the process and to see how hard the TADA staff and executive committeework for the dealers” Tim concluded.Mike SmithRussell & Smith Ford/Honda/MazdaHoustonMike Smith, TADA Director, Southeast Region, District 5Taking a risk and moving to a new town to buy a dealership after four years of college turned out to be a gooddecision for Mike Smith, owner of Ford/Honda/Mazda in Beaumont. The two locations employ 259 people.Mike’s grandfather was a Chevrolet/Buick dealer in Yorktown in 1917. He was born in Houston and attendedthe University of Texas.The numerous community and civic organizations that Mike has served have given him a lot of satisfaction. Heis currently the President of the Board for Bo’s Place in Houston.Mike has enjoyed his association with TADA,”It is extremely satisfying working side by side with other dealerson issues that directly affect our industry.” Offering advice to auto dealers just starting out, Mike said, “surroundyourself with the best people you can find and treat them like family.”Besides the dealership, Mike’s favorite interests include bird hunting, traveling and spending time with familyand friends.2010 SUMMER 11

on TADA Board MembersKirk ClarkCharles Clark Chevrolet Co.McAllenKirk Clark, TADA Director, South Region, District 27This September marks the 77th anniversary of the Charles Clark Chevrolet Company founded by owner KirkClark’s grandfather.Kirk’s youngest son Daniel, a 19-year-old college freshman, will start working for the dealership this summer.“I enjoyed working with my father for over 21 years”, said Kirk. By the luck of birth, I ended up in the automobilebusiness. I had my first job in the dealership at the age of 10. I count my blessings every day that I have hadthe opportunities in the automobile business that I have had and to have had the good fortune to work with thewonderful associates that I get to work with every day. I love my customers, too.In addition to 40 years of managing the dealership, Kirk has also been a painter and sculptor for 54 years. Hiswork is currently on display at the international Museum of Art and Science, McAllen, Texas, a Smithsonian- affiliatedmuseum.Kirk has also shown art work in Mexico, Texas, Chicago, Illinois, Taos, New Mexico, Rome and Italy. A 100 %of his art sale proceeds are donated to local churches and charities.Painting, sculpting, and printmaking are Kirk’s main avocations, but he also has a black belt in Aikido. Kirk haspublished one book and is in the process of writing 3 new books, including one about the automobile business.Kirk serves on the South Texas College, Scholar’s Advisory Council, the Good Samaritan Services advisory board,is an Eucharistic Lay minister in the Episcopal Church, 48 years, and serves as Sr. Warden of Trinity EpiscopalChurch, Pharr, Texas.Kirk is on the board of TADA, and on the board of the local, Chevrolet marketing group. He has also owned aHonda dealership since 1993.Dennis NeessenRudolph ChevroletEl PasoDennis Neessen, TADA Director, West Region, District 32Dennis Neessen worked for his father’s dealership and became a dealer in 1978. He sells Chevrolet, Honda,Mazda and also has Rudolph Body and Paint and a used car store. These businesses employ 266 people.At 25, Dennis became a spokesperson on TV and radio for Rudolph Chevrolet.”Having everyone know who youare brings responsibility of acting accordingly”, he noted.Dennis was born in Webster, Iowa and attended the University of Texas El Paso. He currently served on UTEPCollege Board of Education - Rotary of El Paso - TADA - St. Mark’s United Methodist Church Administrative Board.Being a member of TADA has been very helpful according to Dennis,”it has helped us through good and badtimes, especially this last year and a half.”“Our dealership represents major investments in fixed assets and more importantly the TADA people are our life lineto protect those assets and jobs of our employees who come to work every day as well as their families,” Dennis said.Dennis’ other interests outside the dealership include photography, boating, snow skiing, horses, hunting andhis grandchildren.12

on TADA Board MembersBill KliewerPatriot Buick GMCKilleenBill Kliewer, TADA Director, Central Region, District 13Bill Kliewer currently sells Buick and GMC at his dealership in Killeen, Texas with 65 employees.“Our familygot involved in the automobile business in 1991, when we purchased our current dealership out of forclosure fromGMAC. At the time, it was a Pontiac Buick Dealership. In 1995, we moved to the expressway and our currentlocation, and in 1996 we purchased the GMC dealership in Killeen” said Bill.Born in Weatherford, Oklahoma, Bill attended school at the University of Oklahoma, and Nicholls State Universitywhere he received a Bachelor’s degree. While in the military, he attended George Washington University,The College of William and Mary, and the University of Central Texas, (now Texas A&M University Central Texas)where he received a Master’s degree.Bill has recently been inspired in his career by “watching my son evolve as a leader and future dealer whileattending the NADA Dealer Academy and putting in place things he learned during the most trying times in ourindustry (2009).”In addition to serving on the TADA board, Bill currently serves on the board of the Killeen Industrial Foundation.In the past, he served on the Killeen ISD School Board, Killeen Economic Development Corporation Board, Chairmanof the greater Killeen Chamber of Commerce. He was also President of the Central Texas Fort Hood Chapter of theAssociation of the United States Army, and Sr. Warden of St. Christopher’s Episcopal Church.Bill feels that his participation in TADA has been a very positive experience. “TADA has been a tremendousresource for us as a family who is new to the car business. Through TADA, we learned the business and metmany great dealer friends. We believe in this industry and the association has been instrumental in helping usgrow,” he said.Other business interests for Bill include a Regional Independent Insurance Agency which specializes in DesigningProperty and Casualty, and employee benefit programs for middle market Businesses.I also enjoy spending time at my lake house and flying and coaching my children, and other kids at the ClementsBoys and Girls Club, he added.Tony PackFive Star FordNorth Richland HillsTony Pack, TADA Director, North Region, District 10The Five Star Ford of North Richland Hills with Tony Pack is one of five locations with 600 employees. Tonystarted in the industry by working at Lee Jarmon Ford of Carrollton where his father Sam Pack was a partner.Tony attended Thomas Jefferson College – Texas Tech University. He worked part-time for the Carrollton dealershipfor 1980-1989.Inspired by helping people in all walks of life, Tony belongs to the Chamber of Commerce of NE Chamber andserves on the Foundation of Excellence for Birdsville School District.The best piece of advice Tony has for other dealers is to listen! Tony serves on the TADA board and believesthat because of the changing environment, it is important to be involved in local, state, and federal issues thatimpact business. He said the effect that TADA membership has on the industry is to provide a voice for education.Tony said his major interests outside the dealership are church and family. He is also a big Dallas Cowboy fan.2010 SUMMER 13

on TADA Board MembersBob TomesBob Tomes Ford LincolnMercuryMcKinneyBob Tomes, TADA Director, Northeast Region, District 9Bob Tomes started in the automobile business in 1972 after serving in Viet Nam. He now has two adjacentdealerships on State Highway 75, selling Ford, Lincoln, Mercury and Subaru, employing 128 associates. Bob’s wife,Barbara is his business partner who handles the PR activities.Bob has been inspired in business by “understanding of the “people” side of the business that has brought homethe real idea that we are in a very vital and exciting business.” He also noted that the business ”has a rich historyand an even more exciting future as transportation will continue to evolve, but continue to be the way Americansgo to work and to leisure activities in their daily lives.”The legal support from TADA is what Bob has appreciated most. The TADA legal staff has worked tirelesslyto provide support for the franchised dealers of Texas.“The TADA has the strongest franchise laws to protect the dealers of any state organization in North America.TADA Profit Groups have timely information and problem solving activity with other Texas dealers, said Bob.According to Bob, “Recent bankruptcies of GM and Chrysler have shown how important it is to have strongsupportive franchise laws for the dealer organization. This continues to help “ALL” franchised dealerships in thestate of Texas.”Bob’s advice to other dealers is to ”maintain good relations with your franchise manufacturer but always rememberthat the TADA has the strongest laws to protect and support every dealer in the state.”Currently Bob serves on the Texas Health Resources-Presbyterian Hospital Board of Trustees and Capital OneAutomotive Board. His interests outside the dealership include traveling with his wife Barbara, and trekking,camping, hunting and fishing.SEND US YOUR STORY!TADA is very proud of the service each of our members provides to theircommunity, the automotive industry, and to the state of Texas.Let us know if you have a story to share with other members of theAssociation, the public, and policy makers.To be included in a future Dealers’ Choice issue, please send your informationand photos to Donna Norton at dnorton@tada.org or call 512-476-2686.14

Rob BrazielTADA ChiefExecutive Officer,Legislative AffairsTexasDealers Wage Battleon Financial Regulation Bill in WashingtonTADA, working in conjunction withNADA, made an all out lobbying effortthroughout April and May to removefranchised dealers from the oversight of anew federal regulatory entity over financingoperations. The financial regulation bill, S.3217, being considered by the United StatesSenate at the time provided for the creationof a Bureau of Consumer Financial Protection(BCFP) which would be given virtuallyunlimited power to regulate and rewrite therules on most financial products, includingdealer-assisted financing.Recognizing that a new federal government bureaucracycould only interfere with a sound auto finance model at thefranchised dealer level which provides convenience, competition,and decreases the cost of credit to consumers, SenatorSam Brownback (R-KS) lead the charge to remove franchiseddealers and their dealer assisted financing from coverage underthe BCFP. The Brownback amendment sought to match thelanguage in the House companion bill which excluded franchiseddealers.In late April, TADA Chairman David Alderson, NADADirector Carroll Smith, TADA’s Bill Wolters and Rob Braziel,and Lee Chapman of the NCDA of Greater TarrantCounty, went to Washington to personally lobby SenatorsCornyn and Hutchison to support the Brownback amendment.They were also joined by over 100 dealers representing40 other states.The TADA group visited directly with Senator Cornyn andSenator Hutchison’s office about the importance of removingfranchised dealers and their dealer-assisted financing from theoversight of the new Bureau of Consumer Financial Protection.Since the banks and finance companies that underwriteand service auto loans would be covered by the BCFP, TADAargued that additional regulation of dealers engaged in dealerassistedfinancing would be costly and unnecessary. In addition,Texas dealers are already heavily regulated by the FTC,Federal Reserve, and the Texas Office of the Consumer CreditCommissioner, and nothing in the Brownback amendmentwould have changed that regulatory oversight.TADA also made the case that financialreform should focus on what led to thefinancial collapse in 2008. Auto loans didnot contribute to the collapse and pose nosystemic risk to the financial system. If anything,dealers and their customers had beenthe victims of the financial crisis and the lackof credit brought on by lending and financialtransactions in other areas.The lobby team in Washington was extremelyencouraged by the response fromboth Texas Senators who agreed that fran-chised dealers should not be covered. Both pledged to do all theycould to remove franchised dealers from the bill.At the same time, the Obama Administration was making everyeffort to keep franchised dealers under the BCFP by defeatingthe Brownback amendment. These efforts included presidentialstatements and personal calls from the President to members ofthe Senate. The Administration also enlisted the military tocharge that dealers, including franchised dealers, were a threat tomilitary readiness by their dealings with those in uniform. Therewere outrageous charges, and the Administration deliberatelycontinued to fail to make the distinction between independentbuy-here pay-here dealers, who would be covered by the BCFP,and franchised dealers with dealer assisted financing who wouldbe excluded by the Brownback amendment.The Administration and their allies in the Senate were successfulin preventing a direct Senate vote on the Brownbackamendment, but the Senate did successfully vote to instructthe Senate conferees on the bill to accept the House positionof excluding franchised automobile dealers and their dealerassisted financing from new federal regulatory oversight.The vote was 60-30 in the Senate, with Senators Cornyn andHutchison voting to support the TADA/NADA position. Thebill now moves to conference where the House/Senate confereeswill make the final decision on the issue. A final resolutionis expected by the July 4 recess, and TADA will continue thefight to preserve and protect dealer-assisted financing fromregulatory strictures which could decrease convenience andcompetition and ultimately harm the same consumers theAdministration thinks they are protecting. 2010 SUMMER 15

The power of the right people beside youIn these uncertain economic times it's more important thanever that you have a trusted advisor by your side. One whohas been working with and understands the needs of theautomotive industry in Texas.All the Planning in the World Can NeverPrepare You for the UnexpectedFrom expansion to recession, Lane Gorman Trubitt, L.L.P.has been a trusted leader helping dealerships in the LoneStar State weather economic climates for almost 60 years.LGT - the power of the right people beside you.www.lgt-cpa.comDallas, TX 75204 Toll Free 877.231.7500 Fax 214.871.0011Auto TeamAmericaOur attorneys can help you steer throughthe labor laws affecting the car business. Since 1943,we have been the labor lawyers of choice for automobiledealers. Fisher & Phillips is dedicated to helping the membersof the Texas Automobile Dealers Association with their laborand employment legal matters. We’re driven to help you succeed.Fisher & Phillips LLPattorneys at lawSolutions at Work ®Representing employers nationally in labor,employment, civil rights, employee benefits,and immigration mattersDallasThanksgiving Tower1601 Elm StreetSuite 4343Dallas, Texas 75201phone (214) 220-9100fax (214) 220-9122HoustonTwo Allen Center1200 Smith StreetSuite 620Houston, Texas 77002phone (713) 292-0150fax (713) 292-0151www.laborlawyers.comAtlanta • Charlotte • Chicago • ColumbiaDallas • Denver • Fort Lauderdale • Houston • IrvineKansas City • Las Vegas • Louisville • New JerseyNew Orleans • Orlando • Philadelphia • Phoenix • Portland, MEPortland, OR • San Diego • San Francisco • Tampa16

2010 TADA Key DirectorEach year at our annual conference, we honor TADA’s most outstanding leader.The member of the TADA Board of Directors who most exemplifies the qualitiesof leadership, commitment and devotion to their fellow dealers that standsabove all others.The award is the Key Director and isthe only TADA honor that is kepta secret until the moment that it ispresented.This year’s TADA Key Director is a Pirate...and has been his entire life. The sonof small town Texas dealer who enjoyedthe simple country life as a youth, but whohad a burning desire to be a franchisedcar dealer and do it better than it had everbeen done.His family and his community instilledin him a compelling sense of right andwrong. Which as local legend has it,was exemplified by the night that he anda friend spent the night in the trunk of acar at his father’s dealership to catch thethieves who were stealing hubcaps.As a young man, he gained dealershipexperience working for and learning thebusiness from his father. At the sametime, he gained the attributes of leader-Tom Durantship, team building and dedication on thefootball field as a Granbury Pirate. Hewas an all State football player on a teamthat went 25-2 over a two year period andwas a state championship finalist, themost outstanding teams in the history ofGranbury High School. Our Key Directorearned a football scholarship to TexasTech University, where he pre-datedanother notable pirate.Returning to the dealership after college,our winner proved his mettle as adealer in only a few months.His father handed him the keys to thedealership when he was 22 years old, makinghim one of the youngest franchiseddealers in America.Over the next thirty years, our outstandingleader built an organizationsecond to none. Growing the business to8 dealerships in 6 Texas cities, includingthe original family dealership in his hometown.He has even added a Florida dealershipto his ever growing dealer group.Our Award Winner is known as one ofthe country’s top breeders of thoroughbredhorses, the consummate community servantand the number one selling Chevroletdealer in the United States.A man who has truly taken his organizationto a level seldom seen in ourindustry, and your TADA Key Directorfor 2010...Mr. Tom Durant. In Memoriam:TADA would like to express our regret over the passing of the following individuals from this earthand of the loss we have experienced in their passing.Bill McDavid ....................................AledoThomas Demarest ..........................ArlingtonAnna W. Vandergriff .......................ArlingtonJoseph Keating...............................BaytownMaurice Tipton, Jr. .........................BrownsvilleBurke Warren Lewis .......................CantonMarion Jack Nelson .......................CreedmoorRoy Eddins ......................................DallasDaisy Frank Wight ..........................DallasRuth Parnell ....................................El PasoLeonard Von Dohlen III ..................GoliadTom Peacock ..................................HoustonWilliam Byrd Cavender ..................San Antonio2010 SUMMER 17

Dealers Descend onChildren’s Home social media — continued on page 18Gerald Miller and a child from Lee and BeulahMoor Home.On July 17, participating dealers willdonate $100 to the home for every carsold. KFOX Channel 14 is producing theannoucnements.Members of the El Paso New Car Dealers Association at the Lee and Beulah Moor Children’s HomeMembers of the El Paso New Car Dealers Association gathered at the Lee andBeulah Moor Children’s Home for the production of a television PSA aboutthe association’s upcoming sell-a-thon that will benefit the children’s home.The Lee and Beulah Children’s Homewas chosen for this year’s new car sell-athonin recognition of its long commitmentto helping children and families inthe El Paso region. Gerald Miller is the General Manager at El PasoHonda, El Paso, Texas.Employers should develop,communicate, and enforce clearlydefined policies that address drivingdistractions while operating acompany vehicle. Your local Federatedrepresentative can help! Call today.The FEDERATED Insurance CompaniesHome Office: 121 East Park Square,Owatonna, MN 55060(507) 455-5200 ● www.federatedinsurance.com* National Highway Traffic Safety Administration Report,“What Do Traffic Crashes Cost” Total Cost to Employersby State and Industry,” 1998-200018

20April 11-12, 2010 • Cowboys & Culture • Fort Worth, Texas

Mark Daniels: Texas Nominee – TIME Magazine Dealer of the YearPaul Evert, Customer Development Manager, Goodyear BillWolters, President TADA Mark Daniels, Dealer, Four Wheels AutoGroup Karen Phillips, Executive Vice President & General Counsel,TADA Alisa Beeli, Account Manager, TIME22

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ORDER YOURS TODAYTADA Annual2010 Membership DirectoryOrder Additional Copies at $250 each (tax included)TADA DIRECTORY ADThe directory contains important “All About TADA” leadership details,individual dealer members contact information, as well as numerousautomotive industry related services and suppliersSubmit to TADA: info@tada.orgor fax 512-322-05612010 SUMMER 25

Toyota of Boerne“This Will Be Our FinestMoment”Are these Toyota’s darkest days? Vic Vaughan of Toyota of Boerne thinks notBY DAN MILLER / PHOTOS BY PAUL S. HOWELL“Toyota dealers are the best in America,”said Vaughan, dealer principal of thesuburban San Antonio dealership, duringthe heart of the sticking accelerator pedalfix. “If we all do what I think we will do,we will come out ahead. This will be ourfinest moment.”How did Vaughan respond to thechallenge? His first step was to increasestaffing to ensure the repair could be completedwithin 45 minutes. So, for example,Vaughan went with a full-service crew sixdays a week. He also enlisted the help offamily members. His wife Cheri and sonBlake greeted customers as they arrived inthe service drive. And his daughter Brittanyarranged a two-week leave of absencefrom her job to bolster the cashier desk.“If we had tried to get through this withour normal staffing, it would have been atsunami,” he said. “Everyone stepped upto the challenge.”Thanks to the extra help, Toyota ofBoerne’s customers got their vehiclesfixed…and a whole lot more. After aprompt and warm greeting in the servicedrive, customers were escorted to the servicelounge where they could indulge indonuts for breakfast, sandwiches cateredby a local deli for lunch and big baskets ofchips, granola bars, popcorn and homemadecookies in between.delivered a “show and tell” demonstrationwith an actual accelerator pedal kit.Balloons and a “Customer Appreciation”banner contributed to the open andupbeat mood. Two big screen TVs offeredentertainment, a fireplace helped offset theTexas winter chill and free wireless WIFIhelped keep customers connected.Vaughan says most people took advantageof the amenities and simply waitedfor their vehicle to be repaired. But thosewho had places to go were offered a freecourtesy car or free shuttle rides to nearbydestinations, including the local movietheater. Vaughan took that one step furtherand handed out free passes to thetheater for use during or after the repair.“If people didn’t believe in Toyota before,they do now,” he said. “This wasn’tabout an accelerator pedal. This was abouta car that’s driven by someone’s lovedones. We had to do the right thing.” Movie Tickets – Toyota of Boerne Dealer Principal VicVaughan offered many amenities to customers whocame in for recall repairs, including complimentarytickets and shuttle rides to the local theater.In addition to food and drink, dealershippersonnel were on hand to answerquestions. For example, Service DirectorJay Henderson introduced himself to customersand, if they wanted to know more,Hospitality – Cheri Vaughan, wife of Dealer Principal Vic Vaughan, serves freshly baked cookies to a customerwhile he waits for his vehicle to be repaired. Large glass windows provide a clear view of the service bayswhile work is being performed on vehicles.26

InsuranceRisk ManagementWe can help you get covered.Zurich HelpPoint is here when you need more than just insurance.For more than 85 years, Zurich has remained committed to developinginnovative solutions that provide the coverage your company needsand peace of mind you deserve. With the stable financial position ofZurich in North America*, our insurance products – such as Unicover ® ,one of the most extensive lines of automotive business coverageavailable – are frequently recognized by national automotive organizationsand associations. And so is our reputation for delivering when it matters,with one-day response times to all claims inquiries and onsite assistancefor most major losses within 48 hours. This all helps explain why 80 percentof our customers renewed their automotive insurance policies in 2008.Visit www.zurichna.com/zdu to see how we can help you.Here to help your world.Call Spencer Steere800-622-2660Regional Sales ManagerInsurance coverages and non-insurance products and services are underwritten and provided by member companies of Zurich in North America, including Universal Underwriters Insurance Companyand Universal Underwriters Service Corporation. Certain coverages, products and services are not available in all states. *For information about the ratings and financialinformation of Zurich American Insurance Company, access the ratings section on www.zurichna.com.© 2010 Zurich American Insurance Company10-1623 TXADA DC Mag ad.indd 1 5/12/10 10:51:37 AM

Focus for Today’s Market:Cash andInventoryManagementBY CHIP MAHER, NADA-ATD 20 GROUP CONSULTANTWatch your Cash!Many dealers are not here today because they ran out ofcash. Even profitable dealers got caught off guard withoutenough cash to sustain the downturn. The lack of workingcapital or even failing to meet the manufacturer’s “workingcapital guidelines” can be a serious concern for yourstore. Review and manage your receivables and cash on aregular basis to find frozen capital and root out ineffectiveprocesses. If your customer receivables are above guide (nomore than 50 percent of parts, service and body shop sales)or if there is a substantial amount of aging, it is obviousthat the processes you have in place are not working. Itdoesn’t make a difference how much gross you hold, if youcannot effectively manage and collect the cash generatedby your operations.Manage your Inventory!As the new- and used-vehicle markets have become moreefficient, downward pressure on margins has made turninginventory more important than ever. “Gross per unit” is notthe standard it once was. Now, total gross and turns are keyto profitability. To turn inventory efficiently, you need tohave the right mix (days’ supply to market) acquired at theright price (cost to market) and then priced right (price tomarket). When all three of these components are optimized,you will generate more total gross, turn inventory faster andincrease profitability. 28

Texas Auto Dealer ReceivesGrassroots Advocacy AwardThe American International Automobile Dealers Association(AIADA) today honored Bryan, Texas dealer Paul Atkinsonwith its Dealers Making an Impact Grassroots AdvocacyAward during AIADA’s 4th Annual International Auto IndustrySummit in Washington, DC. As a Toyota dealer, chairman ofthe Toyota National Dealer Council, and member of AIADA’sgrassroots initiative – the Legislative Action Network – the awardrecognizes Atkinson’s dedication to advocating the organization’smission to members of Congress.“Paul Atkinson has been at the forefront of dealer advocacyefforts on Capitol Hill over the past year, and I can think ofno one more deserving of this award. He’s worked tirelessly inrecent months to provide the dealer perspective to the mediaand Congress. AIADA is dependent on dealers like him to takeour message first-hand to their elected officials,” said AIADAPresident Cody Lusk.Atkinson has been a member of AIADA since 2000 and hasbeen deeply involved in dealer advocacy efforts both regionallyand nationally. He currently serves as chairman of the ToyotaNational Dealer Council, as well as president of the ToyotaDealer Advertising Council for Gulf States Toyota. In Februaryand March, he helped lead a contingency of Toyota dealers whotraveled to Capitol Hill to advocate on behalf their brand, dealerships,and employees.Atkinson is the Dealer and General Manager of AtkinsonToyota Scion in Bryan, Texas and Atkinson Toyota Madisonville.His dealerships have received the Toyota President’s Award for10 consecutive years, as well as the Toyota Financial Circle ofExcellence Award in 2009. A former minister, Atkinson remainsactive in his local church, as well as several other communityservice efforts, including the Boys and Girls Club, Habitat forHumanity, the President’s Development Council at HardingUniversity, and the Houston Livestock Show and Rodeo.AIADA’s Grassroots Advocacy Award is presented by itsLegislative Action Network to recognize members who haveworked to improve awareness among his or her members ofCongress on issues impacting America’s international automobilefranchises. AIADA seeks to connect auto dealers with thelegislative process, enabling them to stay current on concernsthat affect their businesses. Accept Checkswith ConfidenceWe can customize a program for your specicneeds to help increase sales, reduce overallprocessing fees and eliminate risk and fraud.Products and Services Available:• ACH Check (Electronic Check Guarantee)• Xpress Check (Paper Check Guarantee)• eHold Check (Delayed Payment Option)• Check and A/R Recovery/Collections• PC and Terminal/Imager Solutions• Online Transaction Reporting ToolsFor more information, please contact: Julie Douglas636.724.6110 636.925.9810 julie.douglas@globalpay.com12-1049_TADA_Auto_HalfPage_Ad.indd 12010 SUMMER 291/20/2010 4:49:22 PM

Duane Kyrish2010 TADA TexasTruck DealersChairmanAmerican TruckDealersThe ATD annual convention was held April 22- 26 in Orlando.The No. 1 issue facing the commercial truck industry iscredit availability for dealers and their customers. Dealersare facing critical floorplan and operational credit line issues.Additionally, many customers are struggling to qualify for highdollar equipment purchases under today’s credit standards.Sound familiar?Like many in the U.S. trucking industry, new heavy and mediumduty truck dealers have been hit hard by the recession. Despitethe severe downturn in heavy trucks, the lowest sales volumes inover 40 years, remarkably few dealers have failed. The tone ofthe convention was actually one of guarded optimism. In fact oneof the speakers, Jim Meil chief economist with Eaton Corp, saidthat the outlook for the end of 2010 and into 2011 is good. “Thenumber one economic indicator is truck tonnage and it is up!”The Keynote speaker, Dennis Slagle, CEO of North AmericanTrucks (Volvo and Mack) told dealers to get involved politically.He acknowledged the effectiveness of the auto dealers in thisarena over the last few years.Jack Saum, a Navistar dealer from Baltimore was voted ATDDealer of the Year. The award recognizes excellence in dealershipperformance, industry leadership, civic contributions andcommunity service. The winners were chosen by a panel ofprofessors from Indiana University’s Kelley School of Business.Founded in 1970, the ATD division of the National AutomobileDealers Association is the only organization representingdealers selling new medium- and heavy-duty trucks in the UnitedStates. More than 2,000 members of ATD receive full associationservices from NADA. TADA STAFFTADA Staff members Chuck Price, Elizabeth Gardner, Albert Ploch,Kathy Sims, Donna Norton, Penny Dikeman and Bill Wolters tourAustin and the Capitol grounds via Segway.Segway Nation is a retail tenant located in the TADA headquartersbuilding at 1108 Lavaca, Austin.30

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An important part of an employer’s benefit package is aSection 125 Cafeteria Plan. A Section 125 Cafeteria Plan is agreat asset to any company. It allows your employees to savemoney and increase their benefits, while permitting you tosave on various payroll related taxes. However, the benefitsof a Section 125 Cafeteria Plan can quickly be overshadowedby the maintenance required to keep your plan in compliancewith IRS guidelines.Like many employers,maintaining a qualified Section125 Cafeteria Plan can becomea hassle without the appropriatesupport. That’s why yourmembership in TADA just madeit easier through our relationshipwith American FidelityAssurance Company.American Fidelity is an industryleader with more than 25 yearsof experience in providingSection 125 AdministrativeServices*. With nearly 7,500Section 125 plans nationwide, you can put this expertise towork for your organization.Pop Quiz:Managing a Qualified Section 125 Plan:1. Do you have a written Plan Document readilyavailable?2. Is your Plan Document up-to-date?3. Do you have your Non-DiscriminationWorksheets on file?4. Are all your benefits specifically described inyour Plan Document?If you answered “no” to any of these questions, callAmerican Fidelity today to have a FREE** review ofyour Section 125 Cafeteria Plan.American Fidelity provides the tools necessary to assistin managing a qualified Section 125 Plan, including thefollowing: Assistance with a plan document based on informationfurnished by you, Assistance in the plan maintenance with updates of thelatest compliance information and trends, Annual enrollment and reservice of the plan through yourAmerican Fidelity Representative, Worksheets for the 25% Key Employee and 55%Dependent Daycare Non-Discrimination Tests,Flexible Spending Accounts recordkeeping services, andUniform coverage risk policy for the health flexiblespending account.In addition, their salaried account managers work with youand your employees directly to explain the value of a Section125 Plan. They can enroll your employees in Health FlexibleSpending Accounts, Dependent Daycare ReimbursementAccounts, and provide your organization the informationrequired to properly install a Health Savings Account(HSA). At the end of your enrollment, you will be providedwith updated election forms, enrollment summaries andmuch more to assist you in themanagement of your Section 125program.By working with AmericanFidelity in the set-up andmaintenance of your Section125 Plan, you can enjoy any ofthese great services without thehassle, headache or worry. Theyare here to provide you with thesupport you need every step ofthe process.For information on AmericanFidelity’s Section 125Administrative Services*, contactJohn Hammonds at 1-800-450-3506, ext. 6965 or emailJohn.Hammonds@af-group.com.American Fidelity’s staff will help you establish your planand assist you with the latest regulatory changes and otherrelevant information. They can assist you in the day-to-dayadministration of your Section 125 Plan.*American Fidelity is a Section 125 Plan service provider, but not theSection 125 Plan administrator.** Unless prohibited by law.2010 SUMMER 33

TADA Advertiser IndexSummer 2010 AccountingLane Gorman Trubitt, LLP.....................................................Page 16Automobile TrainingFirst Innovations, Inc. ............................................................Page 19Construction ManagementThe Ratliff Group, LLC .............................................................Page 3Credit Card Processing/Check GuaranteeGlobal Payments, Inc. ............................................................Page 29Dealership Buy-SellsDick Nokes Consulting, LLC .................................................Page 22Dealership ValuationsRichard W. Nokes, P.C., CPA, CVA .......................................Page 22Finance & Insurance DevelopmentFirst Innovations, Inc. ............................................................Page 19F&I Training/ProductsAmerican Financial & AutomotiveServices, Inc. ........................................................Page 31 & Page 35Foresight Services Group .......................................................Page 2InsuranceAmerican Fidelity Assurance ................................................Page 32Federated Insurance ..............................................................Page 18The Midlands Companies .....................................................Page 22Texas Mutual Insurance Co. .................................................Page 34Texas Auto Dealers SelfInsurers Group .......................................................................Page 30Zurich American Insurance Company .................................Page 27Labor/Employment AttorneysFisher & Phillips LLP ..............................................................Page 16Sales TrainingForesight Services Group .......................................................Page 2Service ContractFirst Innovations, Inc. ............................................................Page 19Transportation/InternetShipCarsNow. ........................................................................Page 24Uniforms & Facility ServicesUniFirst ....................................................................................Page 28Utility ConsultantAPPI ...........................................................................................Page 5 34

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Texas Automobile Dealers AssociationP.O. Box 1028Austin, TX 78767-1028PRSRT STDU.S. POSTAGEPAIDSALT LAKE CITY, UTPERMIT NO. 508THIS MAGAZINE IS DESIGNED AND PUBLISHED BY MEDIA COMMUNICATIONS GROUP 1.888.745.4003REACH YOURTARGET AUDIENCEAFFORDABLYAdvertise andget results withDon F. Brown, Project ManagerMedia Communications GroupSpectrum Ink Sales & Marketing813-914-0383| don@spectruminkpublishing.com