3rd Quarter 2018, Volume 62, Issue 3orange countyTHE OFFICIAL PUBLICATION OF THE ORANGE COUNTY AUTOMOBILE DEALERS ASSOCIATIONPAGE 8www.ocada.orgPAGE 12OCADA Annual Meeting October 5PAGE 14OCADA-PAC Supports Dealer-Friendly CandidatesCapitalize On Your Auto ShowServing the Dealer Industry for Over 35 YearsAttorneys at Ferruzzo & Ferruzzo, LLP have represented new vehicle dealerships, collectively for over 160 years - auto dealership related! Buy-Sell Agreements: Tom Ferruzzo - 35 years, Jim Barone - 31 years, Litigation: Jim Ferruzzo - 35 years, Greg Ferruzzo - 23 years, Succession Planning: Jim Leese - 22 years auto, 37 years total, Real Estate Transactions: Gordon Scholte - 16 years auto, 35 years total.Transactions for DealershipsA Limited Liability Partnership, including Professional Corporations 949.608.6900 | ferruzzo.com FERRUZZO & FERRUZZOLLP ATTORNEYS AT LAW | Our Practice Is Rooted In Strong Relationships Negotiating and Drafting Buy-Sell Agreements Estate Planning for Dealers Negotiation of Computer Software, & Hardware agreements Negotiating Capital Loan and Lender Agreements Real Estate Acquisitions and Financing Relocations Negotiation of Executive Compensation Negotiating Government Loans and Incentive Agreements Agreements and Buy-Ins Dealings with ManufacturersLitigation Support Protests before the New Motor Vehicle Board Litigation in all State and Federal Courts Customer Dispute Resolution including lemon law claims Represented Dealerships in seven of the Arbitrations in Hearings Before DMV, AQMD, RWQC, OSHA, California regarding the GM BankruptcyBUSINESS LAW | LITIGATION | ESTATE PLANNING | REAL ESTATE | TAX | EMPLOYMENT PRACTICESOC DEALER is a Publication of the Orange County Automobile Dealers Association3737 Birch St., Suite 220 • Newport Beach, CA 92660www.ocada.orgPhone: 949-428-5050 • Fax: 949-428-5054CONTENTSorange county6 President’s Message8 Capitalize On Your Auto Show11 Thank Your Customers With Auto Show Tickets for Free12 Annual Meeting at the Auto Show14 Supporting Dealer Friendly Candidates to Represent OC in Sacramento18 Capitalize On The Next Generation of Skilled Employees19 OC’s Auto Tech Colleges20 How to Keep Your Digital Vendors in Check22 Engage with SoCal’s Commercial Buyers24 Nearly $90,000 In Scholarships Awarded to OC Auto Students26 Metrics That Matter for Best Dealership Performance28 Ask Alison: Smaller Waistlines, Add to Your Bottom Line30 Meet Your NADA Leadership Team: Andy Koblenz31 Welcome To Our New Associate MembersCALENDAROF EVENTSorange countyBOARD OF DIRECTORS PRESIDENT Ben BonfoeyNorm Reeves Acura Mission ViejoVICE PRESIDENTDavid SimpsonSimpson Buick GMCSimpson Cadillac of Buena ParkSimpson Chevrolet of Garden GroveSimpson Chevrolet of Irvine TREASURERScott WadeDavid Wilson’s Villa FordAUTO SHOW CHAIRMANK.C. HeidlerTom’s Truck CenterDIRECTORSMiles BrandonCapistrano VolkswagenCapistrano MazdaJared HardinHardin Buick GMCBrad MuggNorm Reeves Honda Superstore IrvineFrank MurphyMiller Toyota of AnaheimJohn OhLexus of WestminsterEXECUTIVEDIRECTOR/SECRETARYJohn SackrisonINTERESTING OC AUTO FACT4Oct 5, 2018 OCADA Annual Meeting at the Auto Show Anaheim Convention CenterOct 4-7, 2018 Orange County International Auto Show Anaheim Convention CenterOct 21-24, 2018 CNCDA Convention Maui, HINov 7, 2018 Digital Marketing Seminar Presented by David KainDec 5, 2018 CNCDA New Laws Seminar Anaheim©2018 Orange County Automobile Dealers Association. All rights reserved. OC Dealer is published four times each year by OCADA and is the official publication for the association. The information contained in this publication is intended to provide general information for review and consideration. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your specific circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the OCADA, its board of directors, or employees. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. OC Dealer is a collective work and as such, some articles are submitted by authors that are independent of OCADA. While OC Dealer encourages a first print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission from OCADA. For further information, please contact OCADA.75% OF AUTO SHOW ATTENDEES PLAN TO PURCHASE IN THE NEXT 12 MONTHS!CPA’S6President’sMessageBen BonfoeyNorm Reeves Acura of Mission Viejo he November elections are rapidly approaching and Orange County has become a key battleground for control of Congress with four long held Republican seats now considered to be in jeopardy. While the makeup of Congress is of great interest, the amount of resources being funneled into Orange County by the Democratic National Committee (DNC) will also significantly impact our state and city level races. Being in the crosshairs of the DNC will require us all to step up and do our part to make sure we can continue to have as many dealer-friendly, pro-business elected officials in Orange County. I know we have all experienced the difference it can make when you have the right people in these powerful positions and what can happen if the wrong people wield this power.So what can we do?First, if you have not done so already, join the 75% of OCADA members, and contribute to the OCADA Political Action Committee (PAC). 100% of contributions will go directly to support dealer-friendly candidates running for state and local offices. If you have already contributed to the OCADA-PAC please consider joining the Chairman’s Club for only $500 more so you can make an even bigger impact.Second, watch for an email inviting you to participate in the OCADA-PAC check delivery meeting for the state level candidate in your district and mark your calendar to attend. Half of life is showing up and this is a great way to let them know they are important to you and our industry. If you can’t make it to the meeting please consider sending a check to show your support.Finally, we each need to consider stepping up the political contributions we make directly to candidates who will represent us. We all have much at risk and there is a saying in politics – “If you are not at the table, you are on the menu”. Let’s all do our best to not be on the menu!If You Are Not at the Table, You Are On the Menu“Watch for an email inviting you to participate in the OCADA-PAC check delivery meeting for the state level candidate in your district and mark your calendar to attend.”T$2.75 DESIGNATSIGNATSIGNED AREASHIGHER© 2018 SFVNlatimes.comWEDNESDAY,DAY,DAMARCH 28,2018WASHINGTON —TheTrumpadministration’splan to ask everyone inAmericaAmerica whether they areU.S. citizensas part of the2020 census couldcostCali-fornia billions of dollars andaseat in Congress, state offi-offoffcials warn.Whether CaliforniaCalifCalifandother states with big urbanururareas that face similar ef-fects can do anythingaboutthe change remains to beseen. They arerushing tocourttochallengethe ad-ministration’s authoritytotack ontothe survey aques-tion that hasn’t been testedin decades.CaliforniaCalifCalifAtty.Gen. Xa-viervier Becerra warned thattheaddition of the question“couldtranslate into severalmillion people not beingbeingcounted.” LegalLegLeg scholars saysayCalifornia and its allies faceatough fight.The decision to addasin-gle question on the census,whwhichthe administrationannounced lateMondayynight, may seem an obscurematter, but it could give theTrump administration an-other levertoshiftphifhifowererand federal resources awayayfrom blue states toward redones, muchashappenedwithwith the recent tax lawwlalachangesangang that disproportion-ately favofafa redvoters in Re-publican regions.The move wasmet withStateStateStatsues toblblockcensuschangechangechangTrump administrationaddition of citizenshipquestion will lead toundeundercountand hurtCaliforniaCalifCalif,critics say.sasaBy Evan Halper[S[Seeee Census,Census, A10A10]]Anaheimremovedbusbenches near Disneyland inresponsetocomplaintsabouthomelesspeoplesleeping on themand loiter-ing nearbynearnear .bybyThen OrangeCountyypushedhundreds out of anencampmentalongtheSanta Ana River trail. Offi-OffOffcialshavealso vowedtore-move the tent city that hastaken root at the Santa AnaAnaCivicCenter.But as the countyandsome of its citiestakestepsto push out homeless peo-ple, the problem of wherethey should go remains un-solved. And it became abun-dantly clear Tuesday thatfinding places willingtohostnewhomeless shelters is go-ing to be ahugepoliticalchallenge.allenge.allengMore than 1,000peopleconvergedon the OrangeCounty BoardofSupervi-sors meeting to protest aaplan to relocatethose re-movedfrodfrodf mthe river en-campment to temporaryyshelters in Irvine, Hunting-tonBeach and LagunanaNiguel.The large protest con-cluded with a4-0 vote toscrapwhat had been thecenter of an ambitious plan,leavingleavingleathe affluenaffluenafftcountytyat SquareOne as it faces aRESIDENTSof Irvine, HuntingHuntingtonton BeachBeach andand LaLagugunana NiNiguguelel protestprotest outoutsideside anan OrangOrangeCeCountountyByBoardoard ofof SupervisorSupervisorsmsmeeeetitingng TuesdaTuesday.y.TuesdaTuesdaTuesdaTuesdaIrfan Khan Los Angeles TimesPLANPLPL FORRSHELTERSHELSHEL SDROPPEDDRDRAFAFTERPROTPRPR ESTBy AnhDo,CindyCarcamoand Joseph Serna[S[Seeee HomelHomeless,ess, A1A11]1]A11]A1A11]A1Foryears,Democratshavehahadreamed of turning OrangeCounty,the birthplace of RichardNixon, blue.Or at least some shade of purple.The county— once sucha GOPstrongholdthat RonaldReagandubbed it the place where“all thegood Republicansgotodie” —ischangingdemographicallyand,therefore, politically.icallyicallyGrowing Latino and Asian popu-lations havehahaplaced whites in the mi-nority. HillaryClinton in 2016 becamethe first Democraticpresidentialcan-didatetowin theresince the GreatDepression. Andthe party is hopingto flip several Republican-held con-gressional districts thatvoted forClinton.Still, OrangeCOrangOrangountyprovedagainover the last fewweeks that its con-servativesideisaliveand well, espe-cially when it comes to illegal immi-gration.OnTuesday,tuesdayuesday he Board of Su-pervisors added apowerful voice to agrowing backlash againstagagCalifornia’spro-immigrant policies when it votedto fight the state’sso-called sanctu-arylarar aws.In doing so, the county has becomean epicenter of the resistance to theanti-Trump movement that hasdominated left-leaninleflefgCaliforifif nianiapolitics since the president took of-ofoffice. The stanceagainst efforts to pro-tect peopleinthis countryillegallylycomes ageneration afteafaf rOrangeCountybecame the birthplace of Pro-position187,the divisive1994ballotO.C’s conservativava vetitiside is alivealiali and wellCounty is centerof‘sanctuarystatetata ’defianceFOEFOESOSOFSBSB 5454 cheercheer afafterterafterafafterafOrangOrangeCeCountountysysupervisorupervisorsvsvoteote toto fightght thethe stastate’ste’s so-cso-calledalled sanctuarysanctuary lalawswslawslalawsla..Irfan Khan Los Angeles Times[See Sanctuary, A11]A1A1By CindyCarcamo,HaileyBranson-Pottsand Alene TchekmedyianWASHINGTON— TheU.S. and South Koreahavereached an agreement inprinciple to amend adec-ade-old free-trade pact thatPresidentTrump used tocall “horrible” and a“disas-ter” —his firstsuchdeal andavictory, albeitamodestone, for his toughenedap-proachtoAmerica’secono-mic partners.Under the deal, SouthKoreaagreedtolimit itssteelexports to the U.S. andmade concessions on autoimports. In return, the U.S.agreed to exemptSouthKo-reafroafroaf m the 25% tariff onsteelthatTrumpan-nounced this month.The deal removesamajororpoint of frictionbetween thetwoallies at amomentwhenthey’repreparing for nego-tiations with NorthKoreaeaabout its nuclear program.Relations between the U.S.andSouth Korea havehavehabeenstrainedatseveral points inthe last year as Trump hasrailed against an $18-billiontrade deficitdeficitdefand denouncedthe U.S.-Korea Free TradeAgAgreement, known as Ko-rus.Trump has called Korusa“horrible” agreement that“destroyed” U.S. industry. Ayeyear ago, he threatened toterminatethe wholeagree-Modest?Trump?His firsttradedeal isBy Christi Parsons[S[Seeee TraTrade,de, A8]A8]State steps into investigatepolice killingAs protestsmountin Sacramento,California’slifornia’slifDepart-ment of Justice willoversee the city’spolice inquiry into theshooting of StephonClark. CALIFORNIA, B1Facebook CEOmaytmaytmaestifyThree congressionalcommittees havehavehainvitedinvitedinMarkZucker-berg to speak aboutthe social network’shandlingofuserdata. BUSINESS, C1Weather: Sunny.L.A. Basin: 78/56. B6YIWU,China — You— You— Y ’llfind Easter one floor up fromthe fidget spinners, aroundthe corner from the sax-playing Santas, past the “Ilove Croatia” shot glassesand iPhone-shaped ash-trays, and across from thestatuettesofJamaican mensmoking marijuana.There, Yang Wei, 30,maintains achild’sbed-room-sized worldofEasterwowonders.She sits amidshelves overfloerfloerf wing withstuffed rabbits, plastic eggswithwith glued-on bunny ears,and countless fuzzychicks,like nonedible marshmallowPePeeps.eps. MoMostst ofof itit isis boundbound forforthe U.S.,delivered by thecrate-load.“We h“We h“Wave toy designerswho go to the U.S. or Europeto do research,” said Yang,manager of the JiangsuTaizhou CityWenyWenyW haoHand-icraftPicraftPicrafroductFactory.“Then they come backandcome up with toys thatwillsuit the markemarkemar t.”Chances are, if you’ve ex-perienced Easter in any form—a gift basket, astorefrontdisplay—you’veseenanaproduct that, at some point,passedthrough the Interna-tionalTrade CityinYiwu, aacityof1.5 million peopleabout 160miles south ofofShanghai. It’s the largestwholesalemarket intheEaster bunny translateanslateansla stomoneyYiwu,China,isthe birthplace of manysmanysman pring holidaytholidaytholida rinketsBy Jonathan Kaiman“I THINKEaster is forJesus, likehow Christmas isfoforSrSanta,”anta,” sasaysys YaYangng WeWeiaiaththerer stallstall inin YiYiwu,wu,Yiwu,YiYiwu,YiChina.China.Matjaz Tancic ForThe Times[S[Seeee ChinChina,a, A4]A4]Anaheimrmrmremovedbdbdbusbencbencbenches nearnearnear Disneyland inininresponsetocomplaintsntsntsaboutabouthomelhomelhomelesspeoplpeoplpeopleslesleeping ononon thethethemandndnd loiloiteteter-r-r-ing nearbybybybybynear .bybyThen OrangeCountyyypushesheshedhdhdhundredsedseds outout ofof anencampmentalongalongthethetheSanta Ana Riverer trail. Offi-OffOffcialcialcialshavaveaealsolsolso vowedtdtore-e-move thethethe tetetent cicicitytyty thatthatthat hastakenen rootot atat thethe Santa AnaAnaCiviCiviCivicCenenter.But as thethethe countuntyandsome ofofof itsits citiecitieststakakakestetepstoto pushsh outoutout homelhomelessessess peo-PLPLANPLPL FOFORRRRSHELTERSHELSHELSHEL SDROPPEDDRDRAFAFTERPRPROTPRPR ESTBy AnhDo,o,CindyCarcamoarcamoand Joseph SernaForyears,DemDemocratsocratshahavehahadreamedeamed ofof turning OrangeCeCounty,thethe birbirbirthplace of RicharhardNixon, blue.Or atatat leastleast somesome shadeshade ofof purple.The cocountunty— once sucuchahaha GOPstrongholongholdtdthat RonaldRdReageaganandubbeded itit thethe place where“e“allall thegood Republicansgsgotododie” —ischangingingdemographicallyand,and,thethetherefore,e, politpoliticallyically.icallyicallyGrowinging LaLatinotino and Asian popu-popu-latlationsionsions hahavevevehavehavehavevehavehavehavehavehavehaplaceded whitwhiteses in thethethe mi-nority. HiHillararyClinton in 2016 becamethethe first Democraticpresidentialcan-an-didatetowinin therthertheresesesince thethe GrGreattDeprpresession.on.on. Andthe parpartyty isis hopingto flip seveveveralral Republican-held con-gressionalessional distrdistrictsicts thathatvtvototed forrClintntnton.Still,Still, OrangeCOrangOrangountntyprovedadagainovovovererer thethe last fewweeks that its cocon-servativativesidideisaliveand well, espe-e-e-cially when it comesmes to illegal immi-grationation.O.OnTuesdayuesday,t,tuesdayuesdayuesdayuesday he BoBoard of Su-pepervrvisors adadded apapapowerful voice toto aaagrowing backlashpro-immigo-immigrantrant policiesto fight the state’ararylar awaws.In doing so, thean epicepicepicenterer of theanti-Trump modominatdominated left-leanint-leaninleflefpolitics sincesince thethefice. The stastanceagatectctct peoplpeopleintnthiscomes ageneratiCountybybecame theposition1n187,t,theO.C’s consconservativavavavavavava vetititiside isisis alialialivevealialialialialialiali and weweweCounCounty is cecenterof‘sanctsanctuaruarystatatetata ’d[S[SBy CindyCarcamo,HaileyBraransnson-Pon-Pottsottsand Alene TchekmedyianOrange County,we’ve got you covered.Reach Orange County auto buyers where they live with theLos Angeles Times and Times OC in print and online.Advertise now! Call Wendy Hultgren at 626-364-5459LAT18-AS006CAPITALIZE ON YOUROCT 4-7, 2018SEND E-TICKETS TO YOUR CUSTOMERS FOR FREE!PROVIDE FREE TICKETS TO YOUR EMPLOYEES & THEIR FAMILIESBRING YOUR MANUFACTURER TO THE AUTO SHOW!PLEASE CALL OCADA AT 949-428-5050 FOR MORE INFO ABOUT THESE OPPORTUNITIES88Email tickets directly to your customers for free. Last year, dealer customers downloaded more than 26,000 tickets with a value of more than $5,000 per participating dealer. Don’t miss this opportunity to thank your customers and invite them to see your latest products at this year’s show!All OC dealership employees are invited to bring their family to the Auto Show for FREE. This is a great way to thank your team for their hard work and keep them excited about being a part of this great industry.Bring your manufacturer reps to the OCADA Annual Meeting on Friday, October 5th. This is a great opportunity to see the show first hand, check out the competition and make sure your manufacturer is making the most of this opportunity.96MAKE THE MOSTOF THIS GREAT EVENTAND ALL IT HAS TO OFFER!Next >