In response to a request by Tesla Motors to the Motor Vehicle Administration (MVA) for a waiver of certain aspects of the Maryland Dealer Licensing Law.  The principal counsel to the MVA stated in writing that the current Tesla business model does not comply with Maryland law and that MVA has no authority to grant a waiver of any dealer licensing requirement. 

MADA's position on this issue has been clear-anyone wishing to sell vehicles in Maryland must comply with all manufacturer and dealer licensing requirements. 

Maryland law limits the retail sale of motor vehicles to licensed dealers, sets business location requirements for those dealers, and altogether prohibits manufacturers from selling new vehicles directly to retail buyers.  Md. Code Ann., Transp. II ("TA") §§ 15-302(a), 15-304, 15-305(f).  Individuals licensed as dealers must have a fixed business location, where vehicle sales are the only or principal business, with an automotive repair facility on site or at a "reasonably convenient location" to service the vehicles it sells.  TA § 15-304(a).  New vehicle dealers must also have a franchise agreement with a manufacturer TA § 15-305(b). 

Tesla has had licensing issues in other states, including Virginia, and MADA will closely follow the issue to ensure that all dealer and manufacturer licensing laws are being followed. 

Join your fellow members at the Greenbrier Resort June 23-26 for our 2013 Summer Convention with the Virginia Auto Dealers Association.  Registration materials were provided by email and regular mail, but if you need a registration form, please contact Katie Jones at MADA.

Guest Accommodations will be $259 per night plus resort fees & taxes.Call 1-855-277-6035 to make your reservations today. Be sure to tell them you are with the MADA Convention to secure the guaranteed room rate.   Rooms are going fast.  We also suggest that you make a dinner reservation for Monday, June 24.  Dinner will be on your own that evening and the hotel restaurants will be busy. 

 MVA Prior Use Disclosure Form

Recently, the MVA created a disclosure form that specifically identifies the prior use categories listed in Maryland Regulations that must be disclosed when selling a car to a customer.  This MVA form was developed in response to various inquiries about how and when to properly make the disclosure.  Please be aware that this form is NOT mandatory.  The MVA created the form for dealer use, but it does not require the dealer to include this form in each deal jacket nor does the MVA expect the dealer to send the form to the MVA for record keeping.  However, the disclosure of vehicle prior use is a mandatory element of every vehicle sales transaction, and it must be done in a conspicuous manner so that the customer is made aware.  Please call the Association to discuss use of the MVA Form.

Electric Vehicle Tax Credit

During the 2013 Maryland Legislative Session the tax credit for electric vehicle purchases was extended until July 1, 2014.  Any buyer purchasing a qualifying electric vehicle is entitled to an excise tax credit based on the size of the battery used in the vehicle:  4.0 - 10.0 Kilowatt-hours = $600, 10.1 - 15.0 Kilowatt-hours = $700, 15.0 or greater = $1,000.  Buyers of these vehicles before July 1, 2013 enactment of this law may apply for an excise tax refund.  MVA will have a refund form available before the July 1 deadline.  

 NLRB Poster Not Necessary

A recent federal court decision has thrown out the 2011 mandate of the National Labor Relations Board (NLRB) that all employers must post notices in the workplace, notices that many employers believed were outside the statutory authority of the NLRB.  Employers are no longer required to post these posters. 

We have all seen the footage and heard stories of the devastation left after last week's massive tornado in Oklahoma.  Area dealerships and their employees have suffered innumerable losses and their need for assistance is great.  If you would like to help, please consider the following:

The Metropolitan Oklahoma City Auto Dealers Association (MADA) has its own charity called the Car Dealers Care Foundation (CDCF.)  It exists to help dealership employees that have experienced extreme hardships.  Contributions from CDCF will help affected people in this order:

• Dealership employees: As of last Friday, at least 58 employees were affected with a total loss or significant loss from the tornadoes.
• Dealership employees' extended families who are affected

How and when CDCF will help:

• MADA staff is managing the application and check distribution process
• The CDCF is helping individuals with total loss and significant loss with an initial $1,500 check to assist them in paying rent, etc.

Checks started going out yesterday, hand delivered.   At this rate of need CDCF will run out of money.

Checks can be sent to:

Car Dealers Care Foundation

Attention:  Tornado Relief

1710 North Broadway Avenue

Oklahoma City, OK 73103

Thank you for your consideration.  Please say a prayer for all of the families affected.

We thank the following dealerships who have contributed to the Association's Political Action Committee. To those dealers listed below, MADA offers a big "Thank You!" If your name is not on the list, MNCTDA/PAC Chairman, Stuart Brooks of Bob Bell Automotive Group urges you to get on board today! Your financial contribution allows us to support those Maryland legislators who have put our interests first and who have supported our industry in the past. We must have a presence in Annapolis, but unfortunately that costs money.

If you would like to send in your contribution today, please download the contribution form and return it today.  You may provide a corporate check payable to MNCTDA/PAC and send it to RSM McGladrey, 100 International Dr., Suite 1400, Baltimore, MD 21202. If you have any questions, please contact Charlotte Rutkowski at the Association office, 800.526.7423.

GOVERNORS CLUB

Bob Bell Automotive Group

Chevy Chase Acura Nissan

Criswell Automotive

Ideal Buick GMC Hyundai

Ken Dixon Automotive

Priority One Automotive

Thompson Automotive Group

Williams Family Automotive

LT. GOVERNORS CLUB

Freightliner of Hagerstown

SENATE CLUB

Adams Chrysler Dodge Ram

Baltimore Freightliner

Bayside Toyota

Beltway International Companies

Boyle Buick, Inc.

Hagerstown Honda Kia

Hoffman Automotive

Honda of Annapolis

Kia of Waldorf

Plaza Ford, Inc.

R & H Motor Cars, Ltd.

The Frederick Motor Company

Toyota Scion of Waldorf

HOUSE CLUB

Academy Ford Sales

Baltimore Mack Trucks

Bill Baisey Automotive

Crouse Ford Sales

East West Lincoln

Euro Motorcars

Francis Scott Key Lincoln Mercury

Hickory International, Inc.

Honda of Bowie

West End Service, Inc.

Wilkins Automotive

How to Prepare Now for the Coming 50% Drop in R.O.s 

Date/Time: Thursday, June 6 at 1pm  

Presenter:Steve Kwiatkowski 

Cost: $149.00 per participant

Your service business volume is an amalgam of many factors and contributors.  Certainly the number of vehicles your dealership sells is a prime factor and showroom sales are on the rise.

However, the real maintenance driver...the oil change interval... is becoming longer and longer causing fewer visits from your best customers.  Synthetic oils and overall vehicle quality are resulting in the lengthening of the oil change service interval and many are expected to recommend a new interval of 10,000 miles.

Great for the customer!  Not so great for your service volume!

Attend this Webinar and get concrete ideas on how you can react now, ahead of the impending drop in service ROs, to help offset these losses.   You will learn:

• How and why authoritative studies are predicting a 50% drop in service RO volume
• The factors that are beyond your control and how to absorb the shock
• The factors that you can control and in the process re-shape your service mix and profitability
• How to address staffing issues in response to all the above
• Why some managers will fail to adjust and suffer the consequences