Dealers' Choice - Media Communication Group

Dealers’ ChoiceFALL 2010Volume 50, Issue 3OFFICIAL PUBLICATION OF THE TEXAS AUTOMOBILEDEALERS ASSOCIATION

The Key to ProfitabilityChallenge YourOld AssumptionsTrade in your cookie-cutter F&I products for acustom approach. With ForeSight Services Group(FSG), the dealer or its general agent can designexactly the coverage options the dealership wantsto sell, enhancing profitability and customersatisfaction. We offer a comprehensive portfolioof customizable ancillary warranties and servicecontracts to meet the needs of the agent and dealer.Our reinsurance options allow for either the agentor dealer to assume 100% of the underwriting risk,creating a new source of revenue. Every warrantyand service contract is fully insured to protect youand the end customer for the entire term of thecontract.Who We AreWe handle all claims administration so there areno headaches for you. We are a fully licensed andinsured administration company with 15 years ofexperience providing dealers and their agents witharms-length professional claims administration,regulatory compliance, and full risk managementservices. We can design any combination ofcoverage and warranty options, and our claimsadministration includes e-rating, e-contracting,e-remittance, and a dedicated claims web site forcustomers and repair facilities to process claims24/7.Improving DealershipCash FlowsWith FSG, the dealership gains control of itsown fully insured reserves – a powerful cash flowadvantage. Alternatively, we can even form a 100%dealer owned casualty reinsurance company. Eitherway, the money never leaves the dealer’s control andthere are no cleverly written contract details forcingthe dealership to meet quotas in order to continuereceiving F&I profits. In other words, we offer theopposite of what a “Dealer Retro Program” offers.Call us today about our innovative approachesto making dealers and the general agents whorepresent them more successful. Our reference listincludes some of the most recognized and reputabledealerships and dealership groups in the industry.Celebrating15 Years ofQuality ServiceGary Vucekovich, Presidentgaryv@foresightservicesgroup.com972.542.1890foresightservicesgroup.com • bluesteelprotection.com3948 Legacy Drive, Suite 106-382, Plano, TX 75023

TADSIG Announces Return ofDividend to MembersErnesto Ancira, Jr. and Tim AkardThe Texas Automobile Dealer Self InsurersGroup (TADSIG) is proud toannounce that continued strong performanceproduced yet another dividendpayment to member-owners this year. Theannouncement was made on June 7, 2010with a check presentation for $294,192.00representing the dividends to be returnedto members of the group.TADSIG has a successful track recordproviding automobile dealers with workers’compensation protection for over fiveyears in Texas. The group continuesto enjoy a very high renewal rateand exceptional performance as aresult of the efforts of the group’smembers. TADSIG is owned, operatedand governed by dealer-ownerswho have a clear understandingof the challenges of operating anautomobile dealership. TADSIGleverages that knowledge to producesuperior results through forwardleaningworkplace safety programsto prevent accidents and proactiveclaims management to contain unnecessarycosts. TADSIG is aboutproviding workers’ compensation on anat-cost basis to members, reducing eachmember’s total cost of risk and enhancingthe success of member dealerships. Thenet results are real dollars saved and valuecreated for members.Here are some key points toconsider about TADSIG:• Five years of solid financial performancewith results consistently outperformingthe insurance industry• Loss Ratios (undeveloped): 2006- 37%,2008- 19%, 2007- 38%, 2009- 35%• Members have earned decreasingpremiums/increasing dividends for 3consecutive years• Professional loss control preventslosses• Dedicated, proactive claims managementwith on-line reporting• Group is protected against large lossesby Excess InsuranceTo learn more, please contact Tim Akard at 512-636-6465 or tim.akard@bwood.com.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 512-476-2686.2010 FALL ⎢7

While the Scoggi n-Dickey part nership h ad its origi ns i n a grocery store i n Floydada,Texas, the automobile busi ness began i n earnest i n 1929 when Luther Scoggi n and KightDickey purch ased the Ponti ac-Oakland dealership i n Lubbock.Later, the partnership of JohnScoggin and Richard Dickeylead to the creation of the Scoggin-DickeyBuick Company,which operated for 41 years indowntown Lubbock. I laterjoined my father-in-law John Scoggin andRichard Dickey as an owner, and I haveled the company as owner and generalmanager since 1977.It’s always been a family business, andI’m extremely proud that we are now inour third generation of ownership. Veryfew businesses make it to that secondgeneration, and you’re probably lookingin the single digits when it comes tothose which have made it to that thirdgeneration. And a fourth generation isalready in the store with my son DavidZwiacher currently serving as the UsedVehicle Manager.Scoggin-Dickey has represented anumber of nameplates over the years, butthe dealership has always been associatedwith the General Motors family of vehicles.One of the most important decisions madeduring its now over 80 year history wasforced on the dealership by a GeneralMotors strike in 1970. As a result of thestrike, Scoggin-Dickey made a decisionto get into the auto parts business,an entirely new business segment thatcontinues to carry the business today.As dealers know, you haveto be able to weather storms tostay in this. That’s why we haveother fixed operations. When theeconomy gets tight on one endand limits new vehicle sales---whether it’s fuel costs or highinterest rates or slow growth---we have our parts, service andbody shops that keep us goingon the other.Another key successfulmove for Scoggin-Dickeywas a move itself. On Memorial Day 1989,I moved the dealership from its long-timedowntown Lubbock headquarters to Spur327 around the west side of Lubbock.8

There was nothing out there then, but ithas grown by leaps and bound since. Thesecond we opened up on there, we saw animmediate increase in business, and it hasbeen growing ever since. That success hasgiven us the opportunity to employ morethan 160 individuals so they can supporttheir families and the community at large.The reality is that we’ve been veryfortunate in the automobile business andLubbock and the surrounding region havebeen very good to us. That is why it is soimportant to me to give back to the industryand the Texas dealer body by serving on theTADA Executive Committee and as Chairmanof the TADA Legislative Committee.Last SessionAs Texas dealers know, we had a greatsession last year as the Texas Legislaturetook action on a number of TADA priorities,and I want to build on these successesin the next session.Among the accomplishments was theestablishment of the Texas Department ofMotor Vehicles (TxDMV), whose 9 memberboard now oversees the operations ofthe Motor Vehicle Division that licensesand regulates our industry. The new boardwhich includes 3 members from the retailmotor vehicle side has the rule-makingand decision-making authority and oversightresponsibility for our industry. Thiscould not have come at a better time giventhat the current economic environmentfor dealers and our customers requiresan informed, interested, and responsiveregulator and decision maker.The Legislature also passed legislationthat allows dealers to be adequatelycompensated through a “reasonable”documentary fee for their costs in complyingwith the federal, state, and localobligations involved with the handling ofdocuments relating to the sale of a motorvehicle. There were also some adjustmentsmade to the franchise law last session,largely to introduce some economic elementsin decision-making about addingnew line-makes at an existing dealership,making facility improvements, or establishinga new dealership.TADA Legislative CommitteeIn order to accomplish our goals forthe next session, we have put togetheryour TADA Legislative Committee for2010 which is overseeing our preparationsand planning. We approached thisfrom a little different perspective than wehistorically have. In addition to reducingthe size of the committee so that it wouldbe easier to meet and discuss issues asthey occur, we also wanted to have agreat deal more diversity, whether it ismeasured in terms of geography, volume,public/private capital, or domestic/international.The fact is that we are manyvoices that need to act as one. That iswhy I have sought such diverse input.If the members of this committee cancommonly agree on our course of actionand are united, I believe we will makeour case to our elected representativesthat much more effectively.Issues for UpcomingSessionThere will be a few topics this sessionthat will demand and take a great dealof attention in Austin next year. Firstis the budget. Current estimates putthe budget gap for the next bienniumat somewhere between $15-20 billion.With only $9 billion in the rainy dayfund and with the recognition that onlya portion of the fund will be used tosolve our budget issues, there is alreadyactivity on both the tax and spendingside. On the spending side, the Governor,Lieutenant Governor, and Speakerhave already requested state agencies toreduce their spending. In addition, theHouse Ways and Means Committee hasbeen holding hearings looking at the justificationfor various exemptions to the2010 FALL ⎢9

Another of the World War II Navy veterans, Charley Furrer,was also a teenageCoxswain on the USS Fillmore. Charley was the pilot of alanding craft commonly called a Higgins boat and was one ofthe youngest sailors in the US Navy, having joined the service assoon as he was of age. The USS Fillmore (APA-83), a Gilliam-Class attack transport landed cargo and troops throughout theCentral and South Pacific. Charley worked for Bird-Kultgen Fordin Waco for 48 years and was the General Manager for 20 years.The third veteran, Jack Duwe, served on the USS WhitePlains, (CVE-66) a Casablanca–Class escort carrier. Jack wasin aviation ordnance and saw action throughout the South andCentral Pacific, including the battle of the Marianas and LeyteGulf. It was when his group of thirteensmall naval ships repelled the battleshipsand heavy cruisers of the Japanese CenterForce off the island of Samar in thePhilippines, on October 25, 1944, thathe and his ship mates received the UnitPresidential Citation for courage underfire. Known as the Battle of LeyteGulf, his unit Taffy III, fought the lastmajor ship to ship battle in the historyof the United States Navy. Their heroic actions, whichsaw five of their thirteen ships sunk in the battle, protectedthe landing of General Douglas MacArthur’s troops in theirreturn to the Philippine Islands. Jack Duwe is a retired Doctorof Veterinary Medicine. He and his wife Pat have a ranchoutside of Junction and he and a shipmate placed a memorialto their carrier, the USS White Plains in the Nimitz Museum.TADA Vice Chairman Tim Crenwelge and his father Milton,provided the three heroes and their wives a private tour ofthe Museum of the Pacific. Museum executive staff memberspersonally escorted their honored guests with a photographeron hand to record the event. Tim Crenwelge, as mayor of Fredericksburg,was a driving force behind the establishment andrecent expansion of this remarkable museum, which is dedicatedto the courage and service of men like Arnold Holden, CharleyFurrer and Jack Duwe. nIT’S OUR BUSINESS TO PROTECT YOURS ®A Proactive ApproachPreventing losses before they happen is the key to reducing your insurance costs. Federated’srisk management services can help your business manage risk and avoid losses. Call us todayto discuss how Federated can make your business more safe and profitable.Copyright 2009 • Federated Mutual Insurance Company2010 FALL ⎢13

BRIGHTFUTUREAHEADCome to theNADA Convention and Expo!!!This is THE Automotive Industry Event of the Year!!!!Discover why we say there isa Bright Future Ahead!• More Friday Events including 2 full afternoon workshopssessions and a NADA Welcome Reception co-hosted byJ.D. Power and Associates• Dynamic Speaker line-up including former Secretary of StateCondoleezza Rice and hero pilot Capt. Chesley Sullenberger• New Specialty Workshops including Google, J.D. Power andAssociates and our exciting new Social Media Series• Early 3:30 pm closing on Sunday so you can take advantageof one of the Superbowl Parties!Register now at www.nadaconventionandexpo.org

Moving from Clicks and Leads toMARKETING Influence on the InternetBy Chip Perry, President and CEO, AutOtrader.com.To find success in Internet marketing, automobile manufacturersand dealers must transition away from leads and clicksas success measures and learn to understand the Internet asan influencing medium on shoppers.Click-through rates have plummeted since the advent of onlineadvertising, dropping from 30% in 1994 to just .2% in 2008.Considering those numbers, we in the auto industry must rethinkhow we measure on-line brand metrics and advertising influenceamong the 99.8% of viewers who do not click on an ad, whetherit is in the form of a display or an online classified listing.For lower-involvement, lower-cost purchases like books orCD, the click-and-buy model has thrived and revolutionized theeconomy. But for larger items like automobiles or homes, wherethe transactions are much more complex and time consuming, theInternet has not had a strong track record as a transaction service.However, for these larger transactions, the Internet has thrived asan information source, also revolutionizing the economy, but notin the way forecasters predicted in the early years of the Internet.The impact of advertising upon online shoppers goes furtherthan simply clicks and leads, but we tend to measure things –like clicks and leads – that are easy to measure. Shoppers areheavily influenced by online research beyond what clicks ande-mail leads would indicate.The implications of this dynamic in on-line advertising are:• An over exuberant focus on clicks and leads is stifling theability for marketers to influence consumers and drive brandpreference;• Much of the influencing power of the internet is being undermeasured and underutilized;• Marketing organizations need new resources, skills and toolsto fully leverage the power of the internet.According to studies, shoppers exposed to on-line advertisementshave raised awareness of a product and have an increasedpositive opinion of the brand they saw advertised, which leadsto a higher likelihood of purchase. Looking specifically atautomotive advertisements, brand awareness increased 15%for ads placed on non-automotive sites and 25% for ads placedon general automotive sites.These results are critical for auto manufacturers and dealerswho remain focused on click rates and email leads for measuringthe success of an online campaign. Per another recent study,the number of people emailing during the shopping process hasnot grown over the past few years, despite an increase in thenumber of car shoppers using the Internet. Today, about 75%to 80% of car shoppers go online during their shopping process,but the use of email leads has stayed stable – and low – for years.In 2004, only 20% of those online shoppers sent an email leadas a part of their shopping process. In 2008, that number hadonly grown to 22%.This reality differs sharply from dealers’ perception of thesituation. In a 2008 study, dealers said they believed that 17%of their showroom traffic first establishes contact via email andthat an additional 41% call before coming in to the store. Butin surveying consumers, the reality found is that typically only2% of shoppers on dealers’ lots initially contact the showroomvia email first. In addition, it was determined that only 17%of shoppers on the lot called before arriving at the dealer. Thevast majority—81%—simply walked in.Without an effective way to track these walk-in customersand then correlate them back to the Internet, dealers fail tocorrectly identify the sources of their traffic on the lot andmay be making marketing decisions with flawed data. Muchof the power of the Internet is underutilized and a campaign oradvertisement that didn’t result in a lot of clicks may actuallyhave been very effective when measured by different criteria– namely how that on-line ad influenced awareness, purchaseintent or walk-in traffic. n2010 FALL ⎢15

COUNSELOR’S CORNERAvoiding Liability forEmployee Issues inDealership AcquisitionsBy Stephen J. Roppolo and Joseph W. Gagnon, Fisher & Phillips LLP, Houston, TX“This article is the opinion of the author and is not endorsed by TADA.A dealer may wish to seek their own legal counsel.”With economic uncertainty continuing to face the retail automotive industry,many financially stable dealers have had opportunities to expand theirholdings by adding additional franchises.potential liabilities. Many buyers stopthere, but prior to closing, a prudent buyerwill ask the following questions as well:• Are there any pending job offers, particularlyto management-level personnel?• Have employees made internal complaintsof significance, whether pursuantto an “open-door” policy or an alternativedispute resolution program? Arethere any open investigations into allegationsof harassment or discrimination?• What do the dealership’s pay planslook like? Should they be rewritten inorder to avoid untenable compensationarrangements or vague and ambiguouslanguage?• Has the seller issued an employee handbookto its personnel? Is it consistentwith policies that the buyer intends toutilize?• Are there job descriptions setting forththe requirements of each position in theseller’s dealership?• How many employees are on leave, andwhat are their expected return-to-workdates?• Are the seller’s defined benefit pensionplans properly funded? If the seller isself-insured for employee health benefits,or is a non-subscriber under Texas’workers compensation laws, what arethe plans’ outstanding liabilities?• Is there a collective bargaining agreement,perhaps with a union representingservice technicians?• Are there employment contracts withany current or former employees? Whatabout non-compete agreements or otherrestrictive covenants? Are any formeremployees violating their non-competeobligations?While financing remains tight, industryanalysts report there aredeals to be had, assuming buyerand seller can agree on a price. Withoutquestion, when the economy finally turnsthe corner, dealership acquisitions will beon the rise.Unfortunately, the parties to a dealershipsales transaction often skip over criticaldue diligence steps relating to the acquireddealership’s workforce. Instead oftaking the time to address employee issuespresented in virtually every dealershipacquisition, buyers and sellers often raceto closing or become distracted by otheracquisition issues, resulting in unresolvedlegal problems that could have easily beenaddressed prior to sale.These issues are or particular concernto the buyer. Successor employers in anasset purchase often find themselves liablefor employment claims asserted againstthe predecessor employer. Thus, it is vitalto know as much as possible about pendingor threatened discrimination, harassmentor retaliation claims brought or threatenedby employees so that the risk of loss canbe assessed and a value placed on thoseThese are only a few of the seriousemployment-related issues facing a buyer.As you might expect, these issues cannotbe addressed in the hallway outside theconference room thirty minutes before theclosing. Of course, adequate indemnificationlanguage should be included in closingdocuments to avoid being stuck withanother dealer’s legal problems, but it isimportant to remember that many employmentlawsuits seek not only damages andattorney’s fees, but also injunctive reliefor reinstatement. Indemnification agreementsmust be well-drafted to account forthese kinds of circumstances.16

On the other side of the transaction, the seller should rememberthat these issues can affect his interests as well. For one thing,someone needs to mind the store as the closing approaches.Sometimes word gets out that a dealership will change hands.To avoid the “jump-the-ship” syndrome, it is helpful to have validretention agreements in place for key personnel.In addition, parties to a dealership sale should be careful notto trigger liability under the Worker Adjustment and RetrainingNotification Act (also knows as “WARN” or the federal “plantclosing law”). WARN, which applies to businesses with 100 ormore full-time employees, requires that employees suffering a“mass layoff’ or “plant closing” be provide sixty days’ noticebefore the employment loss. Determining whether notice isrequired can be complicated, but if a plant closing or mass layoffresults from the sale, WARN could apply. In many cases, however,WARN is not triggered because the buyer retains most orall of the seller’s employees. nFor more information please contact Steve Roppolo (sroppolo@laborlawyers.com) or Joe Gagnon (jgagnon@laborlawyers.com) of the Houston office ofFisher & Phillips LLP, a national labor and employment law firm with officesin 23 cities across the U.S. Fisher & Phillips lawyers have advised automobiledealers on labor and employment law issues for decades, providing sound legaladvice based on a thorough understanding of the unique issues facing retailautomotive dealerships. Steve and Joe are members of the firm’s DealershipPractice Group and can be reached at 713-292-0150.Catch Some CashTADSIG Returns DividendsCelebrating 5 years in business,TADSIG’s continued growth andsolid performance producesanother dividend payment tomember-owners.TADSIG is your program.Now is the time to get involved,take control of workers’ compensationexpenses and enjoythe benets of ownership.Call Tim Akard... 512-636-6465Dealer owned and operatedwww.tadsig.com800.524.06042010 FALL ⎢17

BY THE NUMBERSTiming Might Be Rightfor Dealers to TransferOwnershipBy Tony SisCO, CpaGift tax overview andchangesThere are also changes to the gift tax,which is imposed when assets are transferredas a result of a gift. Like the estatetax, there are certain exemptions andexclusions to reduce the gift tax, includingthe unlimited marital deduction, theannual exclusion.The “annual exclusion” allows you toannually transfer $13,000 in cash or propertyto as many individuals as you choosewithout incurring any gift tax. This exclusionexpires if not used in a calendar year,thus it is sometimes called the “use it orlose it” exclusion.In addition to the annual exclusion,each person is allowed a $1,000,000lifetime exemption to the gift tax. Thisexemption is currently in effect and isscheduled to remain at the same level in2011 and future years based on currenttax law.It is 2010 and from an estate planningperspective, the perfect storm hasarrived. Dealership franchise valuesand commercial real estate values havedropped significantly, interest rates are athistoric lows, and tax rates will be risingin the future based on government deficitsand the latest budget proposals.“While there is no estate tax in 2010,the estate tax will come roaring back in2011 at pre-Bush tax cut rates,” says CarrineReilly, a tax principal with Larson-Allen. “Now may be the time to transfersome of your dealership wealth to the nextgeneration while values and interest ratesare low, some tax-favored estate planningtechniques are still available, and gift taxrates are reduced.”Estate tax overview andchangesThe estate tax, often called the “deathtax” is a tax imposed on the value of aperson’s assets transferred when they die.Certain exemptions are available to reducethe estate tax; the most popular is the un-limited marital deduction. This deductionallows spouses to transfer “unlimited”amounts to each other during lifetime or atdeath. You can always transfer to a spouse.For transfers to non-spouses, a lifetimeexemption is available to reduce the tax.In 2010 there is no estate tax because thelifetime exemption is equal to the assetstransferred; however this lifetime exemptionis reduced to $1,000,000 in 2011 andthereafter while the top estate tax rate increasesto 55 percent. As noted in the tablebelow, this means in 2011, assets given inexcess of $1,000,000 could be subject tofederal tax at 55 percent of their value!What is significant about the gift taxin 2010 is that the rate is reduced to 35percent and will increase to 55 percentin 2011 if no other legislation is enacted.“We don’t know what future legislationmay bring and how that may impactthe scenario, but with taxes, valuation,and interest rates so low, this is the bestestate transfer opportunity I’ve everseen,” adds Reilly.Ownership transfer optionsIn order to avoid higher estate and gifttaxes in 2011, now may be the perfecttime to transfer some of your dealershipassets. While an outright gift may be verysimple, there are a few key strategies youcan employ to maximize the asset valueyou transfer to the next generation.ESTATE TAXYear Highest possible rate Exemption for non-spousal transfers2010 0% 100%2011 55% $1,000,000GIFT TAXYear Highest possible rate Exemption for non-spousal transfers2010 35% $1,000,0002011 55% $1,000,0002010 FALL ⎢19

Family limited partnershipA common estate planning strategy for transferring dealershipreal estate is the family limited partnership (FLP). Theseare popular because of the advantages they afford in the way ofcreditor protection, discounts on transfer, and the flexibility tokeep the assets in the family while allowing the owner of the assets(typically the general partner) to remain in control.If the dealership real estate is transferred to a FLP, the generalpartner can operate the partnership, execute leases with thedealership on behalf of the partnership, and determine when cashdistributions will be made. Because these powers reside withthe general partner and not the limited partners, a discount invaluing the gift of the limited partnership to the next generationmay be allowed.Dealership corporation optionDepending upon your ownership structure, a dealershipcorporation might make sense. “It’s the same concept as familylimited partnership,” notes Reilly. “Both use lack of marketableand minority discount to depress the value. One is in a partnershipcontext, the other a corporation.”Transferring ownership to generate cash flowIf a dealer only wants to transfer future appreciation to thenext generation and create cash flow from the transfer, a saleof dealership real estate or a portion of the business on the installmentbasis at a discount may be very attractive while bothproperty values and interest rates are low. Additional tax savingsmay be obtained if defective grantor trusts are used to purchasethe property.A final considerationA final succession planning issue for dealers to consider relatesto owning 100 percent of the dealership and being exposed to therisks related to the factory’s franchise ownership requirementsand approval process if something were to happen to you. Mostdealers have spent their life building the dealership and thethought of putting the transfer into the hands of a factory executiveis not a risk most dealers would be willing to take. This is oneof the primary motivating factors for dealers to start the processof creating an estate and succession plan.There are many other planning strategies beyond the FLP andcorporation option that can help reduce values and maximizethe exemptions available. In the current economic environment,many people have focused their energies on surviving this downturn.Thankfully, this economy won’t last forever—but don’t misswhat may be a once in a lifetime opportunity to transfer wealthto your heirs with a minimum of estate tax. n“This article is the opinion of the author and is not endorsed by TADA. A dealermay wish to seek their own legal counsel.”Tony Sisco is a manager of Accounting and Tax Services with LarsonAllen CPA’s,Consultants, and Advisors in Dallas. For help tailoring a plan that results intax advantages for you, your family, or business, please contact Tony at 972-644-3167 or asisco@larsonallen.com.INCREASE YOUR INVENTORY. CLOSE MORE DEALS.BOOST YOUR BOTTOM LINE.“Before we had Trade-In Marketplace, quotes from KBB and other internet sources were hard to overcome because they don’t include detaileddescriptions. Now we have a third party resource that is willing to put their money where their mouth is.If a customer thinks our bid is low, we’ll pull it up on Trade-In Marketplace and see if it’s fair. If we’re low, then we can offer the higherAutoTrader.com bid. We also get lots of exclusive bids through the link on our own website.”Jeff Horn, General Manager-James Wood Motors, Decatur, TXFOR MORE INFORMATION VISIT TIMFORDEALERS.AUTOTRADER.COM20

AMERICAN PATRIOTSThe Mercer’s of LufkinWhen you enter Hangar B4 at the massive LockheedMartin facility in Ft. Worth, you are overwhelmed withthe graceful power of the F-35 Lightning II StealthFighter. Also in Hangar B4 is Taylor Mercer, one of theengineers on the F-35 Project and the son of Texasdealers Robin and Roger Mercer.Taylor Mercer, born and raised in Lufkin, is the thirdgeneration of his family to serve in the defense of hiscountry. His grandfather Colonel Roger Mercer was ahighly decorated WWII Fighter Pilot, his father Roger servedin Viet Nam, and young Roger Taylor Mercer is an engineerfor Lockheed Martin, on the team that is producing the mostsophisticated and lethal jet fighter in military history.Named for another legendary war plane, the P-38 Lightning,the F-35 Lightning II is a stealth multi-role fighter, which isintended to be the world’s premier strike aircraft through 2040.Taylor Mercer continues his family’s 60 year history ofensuring the security of the world through America’s vitalmilitary presence and capability.Another star in the pantheon of U.S. Military heroes is theLockheed Martin plant itself. Followingin the flight line of historic Texas aircraftproduction facilities, such as NorthAmerican Aviation, Consolidated AircraftCorporation, Chance-Vought, GeneralDynamics and Bell Helicopter, Lockheedcarries on the Texas tradition of ensuringour future through the skills of patrioticengineers such as Taylor Mercer.The Mercer family military legacybegan in the air over North Africa in theFall of 1942. Taylor’s grandfather, ColonelRoger N. Mercer, flew a variety of fighteraircraft in the North Africa and EuropeanCampaigns, including the famous P-47Thunderbolt and the P-51 Mustang. Providingcover in his Thunderbolt, with itsarmament of six .50 caliber machine guns and a dive speed inexcess of 500 miles per hour, during the D-Day Invasion, andin continuous action until the war ended. Colonel Mercer’smany combat decorations included the Legion of Merit withOak Leaf Cluster and the Distinguished Flying Cross withBronze Oak Leaf Cluster. Colonel Mercer retired in 1977,after a remarkable Air Force career, that included service inthree wars and over 10,000 hours of flying time in more than40 aircraft. He passed away just last year and his final wish,was that he be buried in Texas, where he learned to fly.Colonel Mercer’s namesake, son Roger, is a veteran of VietNam and the GI Bill paid for his degreefrom Texas Tech University. He sold carsto make ends meet while in college. Hemet his wife Robin in Dallas. He waswith Exxon and Robin had just gottenher master’s degree at the LBJ School ofPublic Affairs at the University of Texasat Austin and had started her career incity management with the City of Dallas.The family wound up in the car businessas newlyweds, buying a little Datsundealership in Lufkin. They didn’t knowwhere Lufkin was and had to look it up.But the Mercer’s found a great communityin which to grow a business and family.Taylor’s mother, Robin, has been adealer in Lufkin for over 25 years, is the22

CEO of Mercer Honda, a member of the Board of Directorsof TADA and a Past Chairman of the Board of the Lufkin/Angelina County Chamber of Commerce.Taylor grew up going to the Nissan dealership on Saturdaysand then when he started school he did his homeworkat the Honda dealership every afternoon. He took his firststeps at a TADA 20 Group Meeting. So, he has always lovedcars, but aviation trumps all! He had a special relationshipwith his grandfather who flew in World War II, Korea andViet Nam – and they spent hours talking about airplanes.His grandfather retired from the Air Force as a Colonel andthen went to work at Flight Safety, so he could continue tofly everyday – which he did until he was 80 years old. Taylorspent many vacations with his grandfather and together theylogged many hours in his grandfather’s plane and in aircraftsimulators at Flight Safety. In fact, when Taylor was about12 years old, he boarded a Continental flight to come homeafter visiting his grandfather and the pilot came out to meetTaylor and the pilot volunteered that Taylor had more hourson the Cessna Citation simulator than he did.completed his MBA specializing in Supply Chain Managementfrom Auburn University in 2008. He joined theLockheed Martin Operations and Leadership DevelopmentProgram (OLDP) in 2009 and is working towards becominga future leader for Lockheed. He is currently in his fourthand final rotation as an Inspection and Quality Supervisor,working on the C-130J production line in Marietta, Georgia.Previous rotations had Taylor working as an IndustrialEngineer and as a Production and Flight Specialist on theF-35 Flight Line in Fort Worth, Texas. In Fort Worth, heled build teams on the flight line and launched, recoveredand marshaled F-35’s for flight test and field operations. Hisnew role in C-130J, will have him supervising 18 Inspectorsin the Mid-Body build positions on the Marietta line. Taylorhopes to find an off program job that allows him to stay in hisleadership role on the production floor or on the flight line.Taylor Mercer is another generation of a dealer familymaking a difference in the world and carrying on the Mercertradition of responsibility and commitment for the good of ourcountry and to the benefit of mankind. nTaylor Mercer, is a 2006 graduate of Vanderbilt University,obtaining his degree in Engineering Science. He alsoYou Are invited to aTEXAS CELEBRATIONAt theSan Francisco Marriott Marquis55 Fourth StreetSan Francisco, CaliforniaSaturday, February 5, 20115-7pmDuring the NADA Convention2010 FALL ⎢23

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

Celebrating Fifty Yearsof Excellence in theCar BusinessToday, the original Chevrolet store inGranbury now known as Classic ChevroletBuick GMC of Granbury, celebratestheir 50th Anniversary. Classic Chevroletin Grapevine has grown to be the largestvolume Chevrolet dealership in thecountry, leading the nation in Chevroletsales for four straight years. Recentlyhonored for this spectacular accomplishmentby executives from General Motors,Tom Durant and his team received theirfourth consecutive trophy as the Nation’s#1 Volume Chevrolet Dealer. “We had tobuild a bigger trophy case,” joked Mr. Durant.And if that was enough recognitionfor our own hometown Chevy Dealer,Classic Chevrolet has just recently beennotified that Tom Durant will be namedas the 2011 Time Magazine Dealer of theYear for the State of Texas. Mr. Durantwill receive this distinguished award atthe NADA Annual Convention in SanFrancisco in February of 2011.The key of Tom Durant’s success issurprisingly simple, “We’re the numberone Chevy dealer in the nation becausewe’re honest and fair. Eighty percent ofour customers are repeat of referral. Wegive them a reason to keep coming back.”The year was 1960, Eisenhower was President, Chubby Checker recorded “TheTwist.” And a young couple, Julian and Opel Durant, together with their twosmall boys, ran their modest business, The Durant Construction Company in theagricultural town of Granbury, Texas.In an effort to make ends meet, theDurant’s also opened a wrecking yardbusiness behind the family home. Fromthat wrecking yard, Julian Durant, a manwith a third grade education, founded TheDurant Automobile Business.Sheer determination led Julian Durantto expand the small automobile business,purchasing a local Chevrolet dealership inGranbury, and renaming it Durant Chevrolet.With his sons Tom and Jerry at hisside, the family business flourished. Thenin 1972, Tom Durant bought the smallGranbury from his father. Sixteen yearslater, Tom purchased another dealershipin downtown Fort Worth, a space formerlyoccupied by Century Chevrolet and in1992, Tom Durant’s visionary instinct thathas led to much of this success, told hometo move the dealership to Grapevine. “Noone was out here but Payton Wright Ford,”remarked Mr. Durant, “Chevrolet told meI could build a 2.9 acre, 20,000 square footfacility. Instead, my wife Susan and I builta 45,000 square foot facility on 11 acres.All seven of Tom and Susan Durant’sGM dealerships share a common slogan,“Relax and Enjoy the Difference,”originally developed for the flagship store,Classic Chevrolet in Grapevine. And thatdistinct difference is evident from themoment a customer enters the dealership.“Our goal from day one has been toremove the confrontation form the salesprocess,” explains Mr. Durant. “We havea laid back, open, relaxed environmentwhere our customers can enjoy the buyinga car again. That’s why our dress code isjeans and boots in the winter and shortsin the summer.Times have changed since the openingof a small Chevy dealership in Granburyfifty years ago, but the honest friendly servicethat customers have come to expecthas never wavered. Congratulations onthe 50th Anniversary of Classic ChevroletBuick GMC in Granbury and continuedsuccess to the Durant Auto Group. n2010 FALL ⎢25

Rod East VolkswagenCelebrates40-Year AnniversaryThe following is an excerpt from the 40th Anniversary Celebration by Gus Henderson, the General Managerat Rod East Volkswagen in San Antonio, Texas.Merriman King - General Manager Sales Operation Southern Region VWOA, BrianBastable - Sales Operations Manager Area 31 VWOA; Rod East, Gus HendersonWe have all come together to honor Rod East and his 40 years as a Volkswagen dealer.It has been my privilege to have worked alongside Rod for 10 of those years.Rod has touched many lives in many different ways. I know that has been the casewith me. I could not have asked for a better mentor - not only in business, but in life.Time and time again, customers tell me stories about their personal experience withRod East. It may be about them, their parents, or even grandparents. Customers tell methat this will be their 15th, no 18th, some even 20th Volkswagen that has been purchasedfrom Rod East over the years. We have customers that travel as far as four hours away, justto get their VW serviced. When Rod is asked about his key to success he always says thefollowing. “I found a job I love to do, at a place that I love to do it, and alongside peopleI love to do it with.” That is Rod East, and that is the reason his list of accomplishmentsas a dealer and as a person runs a mile long. We have the greatest employees and customersa business could ask for. This is all because of the culture Rod started back in 1970,when he first opened these doors as a Volkswagen dealer. Rod takes a personal interest ineach of his employees and every customer he comes in contact with. Rod has given backto his community and to the automobile industry with countless hours of service throughSAADA and TADA, along with many years of work with the Volkswagen Dealer Council.Rod is an active member of Coker United Methodist Church, a devoted family manand husband of 53 years, and just recently celebrated his 80th birthday. To me, Rod Eastepitomizes what it means to be successful in business and in life. n26

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John and Diann ChaseMaking Dreams Come Truefor Texas YouthWhen the media portrays franchisednew car and truck dealers for theircommunity service, they typicallyreference sponsoring a little leaguebaseball team and advertising in thehigh school annual.Those who really know dealers andtheir community involvement, realizethat those statements are truebut that there is a much higher level ofcontribution and volunteer leadershipthat is never mentioned.The fact is that dealers around thecountry and Texas, in particular, are theMayor’s of their towns, Chairmen of theSchool Board, President of the Chamber,head of the Economic Development Boardand just about every other volunteerleadership position that helps their townand its citizens. There are public schoolsnamed for our dealers, wings of hospitals,city parks and sports stadiums. It is thismuch higher level of service to mankindthat is frequently overlooked and dealersnever publicize or bring attention to theirgood works. They keep a low profile andjust do good things for others, withoutcalling attention to themselves.One such extraordinary program is theAutobahn Motorcar Group Youth ScholarshipTour, sponsored by John Chase, Presidentand CEO of the Autobahn MotorcarGroup and his wife Diann in Fort Worth.John and Diann, for 10 years, haveraised funds for scholarships for youngTexans who show their longhorns twice ayear, at the famous Will Rogers MemorialComplex in Fort Worth.In the words of Larry Barker, GeneralManager of the Autobahn MotorcarGroup Youth Scholarship Tour, “Over thelast 10 years, hundreds of devoted youth,seeking excellence, have seized the opportunityand secured a portion of the over$1,000,000 in scholarships made availablethrough the Tour. John and Diann Chasehave held true to their goal, for and thepurpose of, the Autobahn Youth Tour.All young people should be able to receivea college education if they desire one.Because of this commitment, an untoldnumber of youth have been able to realizetheir college dream and look forward to afuture filled with bright promise.Ten years marks a milestone for theAutobahn Youth Tour. From an initial$10,000 for the first year, to over $300,000in 2010, the Tour has experienced phenomenalgrowth in both scholarshipmoney and in the number of exhibitorsand entries.Little, if any, success would have beenenjoyed by the Tour without the parents,grandparents, teachers and mentorsunselfishly sacrificing for the future ofchildren. Countless breeders and sponsorshave joined with Autobahn to ensure thebest possible experience for our exhibitors.There have been many volunteersand staff, too numerous to mention, thathave helped shoulder the work crucial fora robust Autobahn Youth Tour. A myriadof judges from varied disciplines havegraciously lent their expertise and left theshow heralding the Autobahn. This combinationof enlightened adults, leading byexample, has managed to nurture a newgeneration of leaders. Thankfully, thesestalwarts recognized the compelling needfor a program like the Autobahn YouthTour and supported the Tour at every turn.Of course, the Autobahn Youth Tourand its advantages would not be accessibleto our youth without the grace of John andDiann Chase. Their spirit of communityand enduring faith is the bedrock on whichthe Autobahn Youth Tour was built. Thankyou John and Diann for 10 years of wholeheartedbelief in the Tour and the youngpeople it serves.”In addition to the scholarships awardedat the competition, young Texans receiverecognition in other categories, includingcontests for public speaking, original artwork and essay writing.Noted personalities and dignitariesjudge these contests. This year, TADAExecutive Vice President and GeneralCounsel, Karen Phillips was a judge inthe speech competition.Show cattle, exclusively Texas Longhorns,compete in the livestock judging.One of the competitors is TADA’s ownMitchell Dale, who owns Dale Land andCattle as well as McCree Ford in Dickinson.Mitchell shows his prize Texas Longhornsand is a sponsor of the AutobahnSuper Stakes.John and Diann Chase, through theirAutobahn Youth Scholarship Tour, aremaking the dreams of deserving youngstudents come true and reflect the truecharacter of Texas dealers commitmentto serving the greater good of Texas andTexans. n28

TIFTFrancis Knapp, Jr.Lands Trophy MarlinThe 71st Annual event was onceagain highlighted by the outstandingweather and great fishing! All eyes inthe Valley focused on TIFT during thefive days of fun filled activities.Originally instituted to promote theRio Grande Valley as a whole, TIFT hasbecome a family tradition that exemplifiesthe best the Valley has to offer. Withregistration participation increasing annually,and over $100,000 in scholarshipsawarded, it is our sincere intent to continueimproving and growing our eventthrough the help of corporate sponsorsand businesses.The 71st Annual Texas InternationalFishing Tournament is in the bag and itwas an exciting angling adventure. 1222registrants, 466 boats and two days offishing resulted in 41 billfish caught. NineBlue Marlin were caught, one weighed in;22 White Marlin caught, two weighedin; ten Sailfish were caught and threeweighed in. A total of 32 billfish werereleased. But the most exciting offshoreaction was Francis Knapp, Jr.’s 670# BlueMarlin catch aboard the 37’ Bessie Belle!Mr. Knapp’s catch earned him the MostUnusual Fish, Heaviest Blue Marlin , theperptual Heaviest Blue Marlin trophy andfirst place Blue Marlin!TIFT anglers represent an extremelydesirable market group. Most are residentsof the Rio Grande Valley with disposableincome and a genuine enjoyment of outdooractivities. During their five day stayin the Port Isabel - South Padre Islandarea, they have a direct spending effectFrancis Knapp and Bessie Belle team with their670# Blue Marlin landed during the first day offishing at the 71st Texas International FishingTournament!in excess of $1.5 million — not includingtournament expenses. In addition to theactual number of TIFT registrants, thousandsof spectators will also turn out toview weigh-in activities during the twodays of actual fishing. n2010 FALL ⎢29

Are You Having Problems with Turnover?To insure a profitable future, dealers and managersmust face a multitude of issues when it comesto building a staff of reliable and hard workingemployees. A sure “profit killer” is turnover,something every dealership can improve upon.The US Department of Labor has found that it isvery wasteful to hire “short term” employees. Arealistic calculation of the cost of hiring such “shorttermers” includes wasted money and time spent onrecruiting, training,and the salaries paidto those who proveto be non-productive.The impact of theseoften overlooked“costs” increases as one moves up the chain ofcommand. Mistakes made in hiring mid to upperlevel managers can cost a fortune. Studies haveshown that reducing employee turnover at anaverage dealership 10% will yield up to $300,000.00in annual gross profit. That is $300,000.00 you canadd to your bottom line by merely keeping a fewmore employees from leaving.Think about it: How much does it cost you to bringon an employee and how much does it cost if youhave an employee in the door one day and out thedoor in a few weeks? Doing everything possibleto maximize your odds of that person being a longterm and dependable employee can do wonders foryour bottom line.Utilizing proven methods to reduce turnover can,and will, increase your bottom line. The followingare 5 key ideas to keep in mind for your hiringprocess:• Failing to be in compliance with laws asthey pertain to hiring. - Every dealership shouldhave an established and consistent hiring processthat should be followed for all positions. Withoutsuch, you may sooner rather than later be a victimof expensive lawsuits.• In the car business, “smooth talking”applicants are quite common. - Don’t be fooledand believe everything you hear. Look into theirpast. Know where they really worked and why theyreally left those jobs.• Relying on an applicant’s vague explanationsabout their past. - Studies have shown a staggeringamount of applications and resumes are falsifiedor conveniently misleading. Never accept a simpleresume in place of a thorough application.• Too common in the auto industry, midlevel managers who recruit and hire can placetoo much emphasis on having previously workedwith an applicant and “buddy” relationships. - Inthe business world, facts, not friendships shoulddetermine a hiring decision. Final hiring decisionsshould be made by upper management.• Not doing a detailed and consistent preemploymentscreening process of all applicants. – Inother words preventing the hiring of troublemakers,criminals and those looking to steal from you,people looking for an excuse to sue you, and peoplewho can put you in a situation to get you sued.Don ColePresidentDonald ColeVice President/CFOOne way to help improve your turnover and the overall quality of new-hires is to look into whatThe Cole Group is doing for all applicants at over 300 TADA member dealerships. The ColeGroup has been officially endorsed by the Association because of their proven 37 year successin pre-employment screening for the auto industry. Check out their Dealership ScreeningProgram showcased on their website at www.thecolegroup.com30

Customer Relations Training forDealership EmployeesThis month’s article presents tips for providing customer relations training to dealership employees. It is excerpted from A DealerGuide to Customer Relations: Profits, Not Problems (CR1), which is available through NADA University’s Resource Toolbox.A thorough examination of the attitudes and practices inyour dealership is necessary before you can institute aneffective consumer relations program. A comprehensiveconsumer relations program that looks good on paper won’twork unless the underlying reasons for the complaintshave been resolved.• Explain to your employees new laws, regulations, or actionstaken by the manufacturer or government that affect yourbusiness or impact your customers.• Hold informal sessions to discuss the strengths and weaknessesof your customer relations program.• Orient new employees to your program and publicly recognizeemployees who have done an outstanding job with customerrelations.Complaints generally arise from unmet expectations andmisunderstandings. Poor communication is usually theroot of the problem.This article is excerpted from A Dealer Guide to Customer Relations: Profits,Not Problems (CR1), available through NADA University’s Resource Toolbox.Communication starts with you. You must convey to youremployees the dealership’s philosophy—its goals and its codeof ethics. Central to this code is a commitment to serve customersfairly, honestly and courteously. One goal should be that nocustomer will leave your dealership with an unresolved problem.You must train your employees to practice your philosophy.One study found that 54 percent of the customers who reportedcomplaints did not consider the first person they contactedhelpful. Damage done by thoughtless employees is incalculable.“Consumer conscious” employees can do much to ensure thatyou will have satisfied, repeat customers.• Explain your goals, objectives, and customer relations policiesto your employees. Outline this in a letter to all your employeesand discuss it at regular staff meetings.• Explain the whole customer relations picture and the importanceof each employee’s role in it.• Explain how an effective customer relations program will makethe job of each employee easier because there will be fewercomplaints, more satisfied customers, and a better workingenvironment.• Utilize your manufacturer’s training program or professionalseminars to train key personnel in customer psychology andpeople handling.• Integrate role playing in sales and service staff meetings toenable staff to react to trial situations.• Make sure each department understands the policies andprocedures of other dealership departments. Have managerssit in on meetings of other departments.Celebrating 20 years of serving you.Texas Non-Subscriber CoverageNew & Improved MarketMidlands Management of Texas, Inc.TX_NonSubscriber@midman.comPhone: 888.743.2628 • www.midlandsmgt.com2010 FALL ⎢31

Endorsed Supplemental Benefit ProviderGone are the days of having to pay cash atthe point of sale for approved out-of-pockethealth expenses and then waiting to bereimbursed at a later date. Now you can putaway your paper, and pick up our plastic.American Fidelity now offers a Debit Card forHealth Flexible Spending Accounts (FSA) thatgives immediate, convenient access to HealthFSA funds. When you partner with AmericanFidelity for your Section 125 Plan, youremployees can now receive a Debit Card whenthey enroll in a Health FSA.The Debit Card for Health FSA is a great toolfor paying for prescriptions, co-pays, over-thecountermedicines and other common qualifiedmedical expenses. It’s simple, convenient and agreat perk to add to your employee benefitpackage. From voluntary benefits to enrollmentsolutions, American Fidelity can deliver it allwith great customer service.To learn more about what American Fidelitycan do for your organization, contact:John HammondsDistrict Manager1-800-450-3506, ext. 6965John.Hammonds@af-group.comProtecting America's Paychecks ®www.afadvantage.comSB-22892-TADA

For years there’s been a great debate about which is better,paper or plastic. Well now that debate is officially over thanks tothe emergence of the Debit Card for Health Flexible SpendingAccounts (FSAs).Gone are the days of having to pay cash at point-of-sale forapproved out-of-pocket health expenses and then waiting to bereimbursed at a later date. Now you can putaway the paper and pull out the plastic.American Fidelity Assurance Companynow offers a Debit Card for Health FSAsthat gives immediate, convenient access toHealth FSA funds at the point of sale. Whenyou partner with American Fidelity for yourSection 125 Plan, your employees can nowreceive a debit card when they enroll in aHealth Flexible Spending Account.Debit Cards for Health FSAs can be used at:• Health care related facilities which include: hospitals,physician offices, dental offices, vision offices; and,• Merchants participating in the Inventory Information ApprovalSystem (IIAS). This list can be accessed at www.sig-is.com.The Debit Card is a great tool for paying for prescriptions, co-pays,over-the-counter medicines and other common qualified medicalexpenses. It’s simple, convenient and a great perk to add to youremployee benefits package.Partner with American Fidelity and Offer MoreAmerican Fidelity is your one stop shop for all your employeebenefit needs. From voluntary benefits to enrollment solutions, oneprovider can deliver it all with impeccable customer service that isfocused on you.SB-22878(Text&Graphics)-TADAThe Debit Card forHealth FSAs is a greatperk to add to youremployee package.Partnering with American Fidelity gives you an array of employeebenefit options through:• A broad portfolio of supplemental insurance products,• Administrative Services that include Section 125Administrative Services*, Flexible Spending Accounts, andHealth Savings Accounts, and• Enrollment solutions that include individual benefitcounseling, group education meetings, electronic benefitenrollment, and enrollment reviews.As one of the few insurers in America that focuses mainly onworksite marketing, American Fidelity is a provider you can trust todesign a benefits plan that fits your specific needs.A Tradition of ServiceServing more than one million customers in 49 states and 23countries across the globe, their focus is on serving the customerwell by providing excellent products and services. They deliver thisby retaining a sales team that consists of salaried account managerswho are trained to service the customer before, during and after thesale.American Fidelity ensures you have supportevery step of the way. Their extensive marketknowledge allows them to provide you withthe appropriate customized plan options thatwill fit the needs of your organization andyour employees. With more than 45 yearsexperience, they know what it takes to deliveron a promise of top notch customer service.A Trusted PartnerFounded on the principles of fairnessand financial security, American Fidelitycontinues to achieve success as a private, family-owned life andhealth insurance company. Financially strong, it has earned andmaintained some of the highest ratings in the insurance industry.Since 1982, American Fidelity has been rated “A+” (Superior) 1by A.M. Best Company, one of the nation’s leading insurancecompany rating services. This rating, along with an “A” (Excellent) 2rating with TheStreet.com, Inc, has earned it the reputation of atrusted business partner who delivers on its promises.To learn more about partnering with American Fidelity contact:John Hammonds at 1-800-450-3506, ext. 6965 or emailJohn.Hammonds@af-group.com1www.ambest.com, February 21, 2008 (A+ is the 2nd highest ratings out of 16possible ratings.)2TheStreet.com Ratings’ Guide to Life, Health and Annuity Insurers, Winter 2008– 09 (A is the 2nd highest rating out of 16 possible ratings.)* American Fidelity is a Section 125 Plan service provider but not the Section 125Plan Administrator.2010 FALL ⎢33

TADA Advertiser IndexFall 2010©2010 Texas Mutual Insurance CompanyOur 2010 workers’ comp model comes fully loaded at no extra charge.The Lone Star Auto Dealers group discount program lets you joinother auto, truck, boat, RV and motorcycle dealers to drive down yourpremiums. And if you qualify for our health care network, you’ll pocketup to 12 percent in additional savings. These programs, and potentialdividends, give your business real horsepower on the road to success.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 5H e r e fo r T e x a s. H e r e To s Tay.Texas’ leading provider of workers’ compensation insuranceTo learn more about the Lone Star Auto Dealers group discountprogram, ask your agent or contact Brad Wicker at (325) 437-0677.Texas Mutual Insurance Co. has services for non-English speakers available upon request.34

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Texas Automobile Dealers Association1108 Lavaca, Suite #800Austin, TX 78701PRSRT STDU.S. POSTAGEPAIDSALT LAKE CITY, UTPERMIT NO. 508THIS MAGAZINE IS DESIGNED AND PUBLISHED BY MEDIA COMMUNICATIONS GROUP 1.888.745.4003Our attorneys can help you steer through the labor laws affectingthe car business. Since 1943, we have been the labor lawyers of choice forautomobile dealers. Fisher & Phillips is dedicated to helping the membersof the Texas Automobile Dealers Association with their labor andemployment 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 mattersThanksgiving Tower1601 Elm StreetSuite 4343Dallas, Texas 75201phone (214) 220-9100fax (214) 220-9122Two Allen Center1200 Smith StreetSuite 620Houston, Texas 77002phone (713) 292-0150fax (713) 292-0151www.laborlawyers.comAtlanta • Charlotte • Chicago • Columbia • Dallas • Denver • Fort LauderdaleHouston • Irvine • Kansas City • Las Vegas • Louisville • New Jersey • New Orleans • OrlandoPhiladelphia • Phoenix • Portland, ME • Portland, OR • San Diego • San Francisco • Tampa • Washington, DC