Management

Vision is a common topic when it comes to leadership. It’s also one of the aspects of leadership I have struggled with the most. 

TORRANCE, CA – Honda launched a new phase of its Environmental Leadership Program, or Green Dealer Program, to provide independently-owned U.S. Honda/Acura auto retailers and Honda powersports Dealers with new tools to evaluate and reduce energy and water use. The Green Dealer Program shows retailers how to save money while enhancing their environmentally-responsible business operations.

The program, launched in 2012, so far has saved $7.5 million in energy costs across the Honda auto, powersports, marine and power equipment portfolio, the company said. Honda has unveiled a refreshed website with cumulative CO2 reduction data, an updated Green Dealer Guide and new benchmark metrics for evaluation. The guide also provides information for Dealers on data collection, environmental assessment, implementation and results verification.

WESTLAKE VILLAGE, CA – KTM and Husqvarna powersports Dealers are eligible to sell KTM bicycles under a new National Powersports Program launched by KTM Bike Industries North America.

“We are breaking new ground by offering KTM Motorsports Dealers a program that will bring to their showroom a new type of custom demographics, and [will create] a new revenue source,” said Mike Shell, national powersports manager, in an email to Dealernews.

KTM Bike Industries cites a Transworld quote that “70 percent of dirtbike riders own a mountain bike,” and says that this new revenue stream targets 40 million potential North American cyclists. These potential buyers, according to the company, are:

DN listened in on the Polaris second-quarter 2017 financial analyst call, held July 20 with Chairman and CEO Scott Wine and CFO Michael Speetzen. Here are our takeaways on the ORV market, Indian and Slingshot, and improvements the company must make with its Dealer network:

POSITIVE OUTLOOK
“The global powersports industry outlook is improving for the first time in several years.” (Scott Wine)

“It’s the first time in, I don’t know – several years – that we have commented that we feel better about the industry.” (Mike Speetzen)

We are at a point where we’re trying to ship at the same cadence as retail.”

DEALERS: Inventory and RFM
Dealer inventory is down due to RFM [retail flow management] implemented on ATVs and motorcycles, and soon on side-by-sides: “We are at a point where we’re trying to ship at the same cadence as retail. It puts a lot of strain on the manufacturing environment until we go completely live with RFM, but we’ve essentially already put our inventory at the right level, give or take.” (Scott Wine)

MARYSVILLE, WA – Remember when “Schoolhouse Rock” tried to teach you how a bill becomes a law Well, they left out a lot of stuff, like the public participation part (your part). Dealers in Washington state, led by their state association, pooled resources, became politically active and scored a major victory this year.

Washington bill 5338 levels the playing field with Dealers in nearby sales-tax-free jurisdictions. The new law, which goes into effect Aug. 1, makes it a gross misdemeanor for Washington residents to fail to title and register an off-road vehicle within 15 days of a state notice, and imposes penalties up to a $1,000 fine and up to a year in jail for scofflaws. For enforcement purposes, vehicle manufacturers/distributors will be required to submit annually a list of Washington warranty registrations for off-road vehicles bought out of state.

From the Polaris 2016 fourth-quarter and full-year earnings call, held on Jan. 24 with financial analysts: CEO Scott Wine and CFO Michael Speetzen on dealer margins, inventory, prospects for Indian and Slingshot…and politics.

MARGINS
Polaris Chairman and CEO Scott Wine said he anticipated dealer margins in 2017 to increase from 2016 levels. “The warranty cost alone gives you the benefit, but… [the] promo cost is elevated in the first half [of 2017] relative to where we were in the first half of 2016. As we get into the back half [of 2017], two things happen: one, we start to lap the high promo cost, so that stops being a headwind, and then we also start to see volumes improving slightly.

We’re going to have to rely a little bit more on promotions than we have previously.”

In the short-term, as Polaris focuses on quality and safety issues, “we’re going to have to rely a little bit more on promotions than we have previously,” Wine said. “We do believe that’s transitory.”

ALABAMA – Alabama Code Title 8.20

ALASKA – AS45.25.010 to AS 45.25.990

ARIZONA – ARS 28 Ch. 10 Art. 5 4451-4463

ARKANSAS – Arkansas Motor Vehicle Commission Act, Arkansas Code § 23-112.101-107 and 401-806

CALIFORNIA – California Vehicle Code Section 11713-11740

COLORADO – Colorado Powersports Vehicles, Colo. Rev. Stat. 12-6-501-33

CONNECTICUT – Connecticut Gen. Stat. Title 42, Chap. 739, §42-133r to §42-133ee, Conn. Gen. Stat. Title 42, Chap. 743b, §42-179(d)

DELAWARE – Title 6, Ch. 49

FLORIDA – FS 320

GEORGIA – Motor Vehicle Fair Practices Act, GC Title 10, Ch. 1.22

Please refer to Governing Statutes for more information. “Not specified” indicates that an issue is not addressed specifically in the particular statutes. Please send any updates to editors@dealernews.com

ALABAMA – Dealer Agreement or Franchise: The written contract between any new motor vehicle manufacturer and any new motor vehicle dealer which purports to fix the legal rights and liabilities of the parties to such agreement or contract, and pursuant to which the dealer purchases and resells the franchise product or leases or rents the dealership premises.

ALASKA – “Franchise” means a written arrangement for a definite or indefinite period in which a manufacturer, distributor, or motor vehicle wholesaler grants to a motor vehicle dealer a license, sales and service agreement, or contract of any kind to use a trade name, service mark, or related characteristic, and in which there is a community of interest in the wholesale or retail marketing of related motor vehicles or services. The terms and conditions in an agreement between a manufacturer and a new motor vehicle dealer in this state, including a motor vehicle franchise agreement, that are inconsistent with the law of this state do not have any force or effect in this state.

ARIZONA – “Franchise” means a written arrangement for a definite or indefinite period in which a manufacturer, distributor, or motor vehicle wholesaler grants to a motor vehicle dealer a license, sales and service agreement, or contract of any kind to use a trade name, service mark, or related characteristic, and in which there is a community of interest in the wholesale or retail marketing of related motor vehicles or services. The terms and conditions in an agreement between a manufacturer and a new motor vehicle dealer in this state, including a motor vehicle franchise agreement, that are inconsistent with the law of this state do not have any force or effect in this state.

ARKANSAS – “Franchise” means one or more contracts between a franchised dealer as franchisee and either a manufacturer or a distributor, importer, second-stage manufacturer, or converter as franchiser under which:

• (A) The franchisee is granted the right to sell, service, or sell and service new motor vehicles manufactured or distributed by the franchiser;
• (B) The franchisee as an independent business is a component of the franchiser’s distribution system;
• (C) The franchise is substantially associated with the franchiser’s trademark, trade name, or commercial symbol;
• (D) The franchisee’s business is substantially reliant on the franchiser for a continued supply of motor vehicles, parts, or accessories for the conduct of its business; or
• (E) (i) Any right, duty, or obligation granted or imposed by this chapter is affected; (ii) “Franchise” includes a written communication from a franchiser to a franchisee by which a duty is imposed upon the franchisee.

CALIFORNIA – A “franchise” is a written agreement between two or more persons having all of the following conditions:

• (1) A commercial relationship of definite duration or continuing indefinite duration.
• (2) The franchisee is granted the right to offer for sale or lease, or to sell or lease at retail new motor vehicles or new trailers subject to identification pursuant to Sec. 5014.1 manufactured or distributed by the franchisor or the right to perform authorized warranty repairs and service, or the right to perform any combination of these activities.
• (3) The franchisee constitutes a component of the franchisor’s distribution system.
• (4) The operation of the franchisee’s business is substantially associated with the franchisor’s trademark, trade name, advertising, or other commercial symbol designating the franchisor.
• (5) The operation of a portion of the franchisee’s business is substantially reliant on the franchisor for a continued supply of new vehicles, parts, or accessories. Does not include standalone authorized service facilities.

Please refer to Governing Statutes for more information. “Not specified” indicates that an issue is not addressed specifically in the particular statutes. Please send any updates to editors@dealernews.com

ALABAMA – “The compensation that the manufacturer or distributor pays to the new motor vehicle dealer for parts used in warranty or recall related service shall be fair and reasonable and, at the option of the new motor vehicle dealer, may be determined pursuant to subsection E of this section…. A manufacturer or distributor may not recover all or any portion of its costs for compensating a dealer for warranty parts and service, including parts and service associated with vehicle recalls, either by reduction in the amount due the dealer or by separate charge, surcharge, administrative fee or other imposition.”

ALASKA – Not specified

ARIZONA – The new motor vehicle dealer’s retail labor rate “shall be determined by dividing the amount of the dealer’s total labor sales contained in the submitted repair orders by the total number of labor hours that generated those sales. The new motor vehicle dealer’s retail rate for parts shall be a percentage determined by dividing the total sales for parts in the submitted repair orders by the new motor vehicle dealer’s total cost for those parts, minus one, and then multiplied by [100] to produce a percentage. Declared rates are presumed to be fair and reasonable except that a manufacturer or distributor, within [30] days after receiving the new motor vehicle dealer’s submission, may rebut the presumption by reasonably substantiating that the rate or rates are inaccurate or unreasonable compared to other similarly situated same line-make new motor vehicle dealers in the state.

ARKANSAS – Prevailing retail rates, compared to other dealers in the area (Act 1055)

CALIFORNIA – In determining the adequacy and fairness of the compensation, the franchisee’s effective labor rate charged to its various retail customers may be considered together with other relevant criteria.

Please refer to Governing Statutes for more information. “Not specified” indicates that an issue is not addressed specifically in the particular statutes. Please send any updates to editors@dealernews.com

ALABAMA – A performance standard, sales objective, or program for measuring dealership performance that may have a material effect on a dealer, including the dealer’s right to payment under any incentive or reimbursement program, shall be fair, reasonable, equitable, and based on accurate information.

ALASKA – Not specified

ARIZONA – Provides for “fair, reasonable and equitable vehicle allocation.”

ARKANSAS – Not specified

CALIFORNIA – Not specified