Illinois Automobile Dealers Association Newsletter
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2012 IADA OFFICERS


Chairman
Jim Lombardi
Lombardi Chev Buick
Wilmington

Vice Chairman
Gary Knight
Carmack Car Capitol
Danville

Treasurer
Mike Mangold
Mangold Ford
Eureka

Secretary
Dave Taylor
Taylor Chrysler Dodge, Inc.
Bourbonnais

President
Peter Sander
IADA
Springfield


IADA Staff Contacts:
Ph# 1-800-252-8944

Pete Sander
President
Ext. 103

Larry Doll
Legal
Ext. 105

Mark Harting
Administrative Services
Ext. 110

Mike Healey
Member Services
Ext. 107 

Joe McMahon
Legislative
Ext. 113
     

 

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June 12, 2012    Vol 2012, Issue 7

 

  FEDERATED INSURANCE IS NEW RECOMMENDED SERVICE PROVIDER  
 

IADA is proud to announce Federated Insurance as the recommended service provider of property & liability insurance, worker’s compensation, financial protection services, and group health insurance to all IADA members.

As the association-preferred insurance carrier, Federated Insurance can help you take the smartest, most cost-effective approach to protecting your dealership. Federated’s field staff are specialists in the auto industry and they are committed to excellence when it comes to serving your needs.

Federated Insurance began in 1904 and understands the insurance needs of auto dealerships.  Each local marketing representative will do a thorough job of analyzing your needs to provide a tailored insurance program for your individual business.

Recommended by over 400 trade associations throughout the United States, Federated understands the true nature of association relationships and has the financial strength to serve IADA members now and in the future.  Federated’s team of extensively trained marketing representatives, claims representatives, loss control representatives, and other support staff provide true value for your insurance dollar.

We are confident this is an excellent program for our members and serves as another
positive accomplishment as we continue to improve and meet the ever-changing needs of our membership.

We encourage you to think “association” first and make the time for the Federated staff and your local Federated Insurance marketing representative to assist you with your commercial insurance and risk management needs.

ASSOCIATION MEMBERS CAN NOW ACCESS FEDERATED’S RISK MANAGEMENT RESOURCE CENTER

Beginning June 1, 2012, IADA members will have access to Federated’s newly developed Risk Management Resource Center, a one-stop source for business owners’ loss control needs. Members can simply call Federated’s Client Contact Center at 1-888-333-4949 and request risk management support. From there, they will be “warm transferred” to the Risk Management Resource Center (RMRC).

Available Monday – Friday, 7:00 a.m. to 5:00 p.m. (Central Time), the RMRC offers immediate access to risk management expertise without having to schedule or wait for an in-person visit.

The RMRC will be staffed by experienced risk consultants specialized in providing support via remote consultation. These highly-trained individuals are available to help members:

  • Proactively address loss control issues identified during conversations with Federated marketers, specifically following their annual Risk Control ReviewsSM
  • Access and best utilize Federated’s Shield NetworkSM, an online risk management resource library
  • Obtain risk management brochures, presentation support materials, safety DVDs, and other loss control tools

Members may also receive a call from the Risk Management Resource Center following their Risk Control Reviews to discuss the loss control goals they’ve set and get the ball rolling.

Federated Insurance is excited to launch the RMRC as a value-added benefit for IADA members. Leveraging technology and “live voice” expertise, the RMRC is poised to help dealer’s better control their insurance costs and keep their businesses safe.

 

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  LEGISLATIVE LEADERS MEET IN CHICAGO  
  The Governor and four legislative leaders met in Chicago to discuss pension reforms. The lawmakers left the meeting divided over what approach to take. They were close to agreement last week, but that was derailed shortly before the end of the legislative session. The biggest dispute is over whether to make downstate and suburban Chicago schools take over the cost of employee pensions. Illinois pays those expenses now.

Illinois officials will spend the next two weeks gathering financial information from the state’s more than 800 school districts to get a better idea of how shifting pension costs away from the state would affect those districts.

 

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  DISTRACTED DRIVING  
  The U.S. Transportation Department is stepping up efforts to crack down on distracted driving, unveiling $2.4 million in federal support for pilot projects in California and Delaware. Transportation Secretary Ray LaHood offered a strategy to address a "distraction epidemic." He outlined steps to pass more laws, address technology, and crack down on texting, according to The Detroit News. But LaHood said he will not call for a ban on hands-free calling unless research shows it makes sense. LaHood urged carmakers to avoid adding unnecessary technologies to distract drivers. "Distracted driving is an epidemic. While we've made progress in the past three years by raising awareness about this risky behavior, the simple fact is people are continuing to be killed and injured – and we can put an end to it," LaHood said.

LaHood wants the remaining 11 states to ban texting behind the wheel. He also wants the auto industry to adopt guidelines for technology to reduce potential for distraction. The government is providing California and Delaware with $2.4 million of support for pilot programs that will examine whether increased police enforcement coupled with news media coverage can significantly reduce distracted driving. Read more about the Transportation Department’s crack down on distracted driving here.  Source: AIADA
 

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  U.S. DOT CLARIFIES 'HOURS OF SERVICE' RULES FOR 'DRIVEAWAY-TOWAWAY' OPERATIONS  
  The Federal Motor Carrier Safety Administration, a division of the U.S. Department of Transportation, stated today that drivers of passenger commercial motor vehicles, such as buses and RVs, in driveaway-towaway operation, including dealership drivers, may comply with the property-carrying hours-of-service (HOS) rules versus those applicable to passenger carrying vehicles.

Driveaway-towaway operations involve empty or unladen motor vehicles with one or more sets of wheels on the surface of a roadway being transported: (1) between vehicle manufacturer facilities; (2) between a vehicle manufacturer and a dealership or purchaser; (3) between a dealership, or other entity selling or leasing the vehicle, and a purchaser or lessee; (4) to a motor carrier's terminal or repair facility for the repair of disabling damage (as defined in § 390.5) following a crash; or (5) to a motor carrier’s terminal or repair facility for repairs associated with the failure of a vehicle component or system; or (6) by means of a saddle-mount or tow-bar. Clearly, dealerships engage in driveaway-towaway operations from time to time.

Dealerships operating commercial motor vehicles in interstate commerce generally are private motor carriers for purposes of compliance with the Federal Motor Carrier Safety Regulations (FMCSRs). The HOS restrictions found in the FMCSRs set strict maximum limits for driving and on-duty time. Unless an exemption applies, drivers operating commercial motor vehicles on behalf of dealerships must keep accurate duty status logs showing compliance with HOS limits. Drivers exempt from the HOS requirements include, under limited conditions, certain:

1.  Driver-salespersons who do not drive more than 40 hours during seven consecutive days. This exemption potentially may apply to parts drivers.
2.  Drivers operating within a 100 air-mile radius of their normal work reporting location. This exemption potentially may apply to technicians and other dealership drivers.
3.  Drivers exempt from CDL requirements.
 
For more information or questions, contact
regulatoryaffairs@nada.org or (703) 821-7040. 
Source: NADA-ATD Regulatory Affairs
 

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  FTC ACTION AGAINST DEALER FOR FAILURE TO SAFEGUARD CUSTOMERS' PERSONAL INFORMATION  
 

The Federal Trade Commission (FTC) recently charged 2 small businesses, a motor vehicle dealer and a debt collection agency, with violating (1) the FTC Privacy Rule, (2) the FTC Safeguards Rule, and (3) the Uniform Deceptive Acts and Practices Act (UDAP) when those businesses exposed their customers’ personal information.  The personal information was disclosed when the businesses permitted peer-to-peer (P2P) file-sharing software to be installed on their computer systems.

The FTC complaint against a Georgia Toyota motor vehicle dealer alleged that the dealer allowed P2P software to be installed on its computer network, which led to sensitive consumer information being uploaded to the P2P network.  Complicating matters, the dealer’s privacy stated that it restricted access to nonpublic personal information about its consumers only to employees who needed the information to provide products and services to the consumers and that it maintained safeguards to protect the information in compliance with federal regulations. However, the names, addresses, Social Security Numbers, dates of birth, and driver’s license numbers of 95,000 of its customers were made available to the P2P network.

The FTC complaint alleged that the dealer did not adopt a policy to prevent unauthorized disclosure of sensitive personal information. The FTC further alleged that the dealer failed to prevent, detect, and investigate unauthorized access to personal information on its network, failed to train its employees, and failed to take reasonable measures to respond to unauthorized access to personal information.

The dealer reached a settlement agreement with the FTC that bars the dealer from misrepresenting the “privacy, security, confidentiality, and integrity of personal information collected from consumers” and from violating the Safeguards Rule and the Privacy Rule.  The settlement agreement also requires the dealer to establish and maintain a comprehensive information security program and undergo data security audits once every 2 years for the next 20 years.

The FTC complaint against the debt collection agency alleged that one of its employees installed P2P software on company computers, which caused sensitive personal information on its computer network to be made public. The FTC alleged that the debt collection agency failed to implement reasonable security measures to safeguard the person information on its computer network.
Some takeaways from the recent FTC enforcement actions are:

• If you grant access to your computer network to another entity, such as your manufacturer, your bank, or vendors, you need to be very careful that you do not store sensitive personal information on your network.
• Once a computer file has been shared on a P2P network, it cannot be “un-shared”. Shared files cannot be permanently removed from the P2P network, even after they are deleted from the original computer source.
• If you permit P2P file-sharing, you should review what information is available on your computer network and who has access to that network, both inside and outside your dealership.

Information about the FTC’s recent enforcement activities can be found on the FTC website at:
http://www.ftc.gov/opa/2012/06/epn-franklin.shtm.

General information about peer-to-peer file-sharing can be found on the FTC website at:
http://onguardonline.gov/articles/0016-p2p-file-sharing-risks; and http://business.ftc.gov/documents/bus46-peer-peer-file-sharing-guide-business.

 

 

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  UPCOMING DEALER'SEDGE WEBINAR  
 

Jodi Kippe, Retail Dealer Group Crowe Horwath LLP, will be presenting live on Thursday, June 14th at 12pm CST.
Topic: How to Identify and Stop Internal Theft in the Dealership

Failing to be alert for employee schemes to embezzle or otherwise steal from the dealership can be not only costly - It's embarrassing! Find out what to look for…

Internal theft in the dealership environment is even more troublesome than in other businesses of the same size. Auto dealerships handle a lot of money - Your profit margins may be narrow, but the volume of funds that funnel through the typical car dealership offer up an attractive target for otherwise valuable and thought-to-be trusted employees.

Dealers are almost always surprised when what was thought to be a trusted employee is discovered with their hands in the till. It's time to take the blinders off!

Simple diligence and control systems have proven to be very effective in keeping these opportunities to a minimum.

Join us for this Webinar where the professionals at industry accounting firm Crowe Horwath reveal easy-to-install observation and control systems to keep your profits safe from dishonest employees.
Register here: Save with IADA

 

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