Pub. 9 2021-2022 Issue 4

Even though it has been about two years since the pandemic shutdown of March 2020, the divide between pre-pandemic life and post-pandemic
life has not closed. The future has very few certainties, but that doesn’t prevent you from making educated guesses. There are specific areas that could
affect the future of your dealership. Those areas are the ones where you should focus your decisions. Here are a few general subjects you should consider to get you started, but everyone’s situation is different. There might be others you should add, too.

The auto industry is starting to undergo a massive switchover from ICE autos to EV autos, and there’s no shortage of people to tell you EVs are going to have a big impact on the industry. What’s less
clear is how that implementation will occur. Many people expect direct retail from manufacturers to expand, but
fewer people ask what customers want and like.

Mike Hernandez (Mike Sr.) established
Camino Real Chevrolet March 16, 1976. He was involved in the day-to-day operations until his passing in 2019 at 83.

atalytic converter thefts present a
growing problem for dealers and their
customers. In 2021, the National Crime
Bureau estimated that more than 52,000
catalytic converters were reported as
stolen, compared with 1,300 in 2018. That’s 40 times as many converters, and it doesn’t include the number of catalytic converters thefts that went unreported. If the repair cost is the size of someone’s deductible, they may not report the theft to the police or the insurance company since they will
have to pay the money either way. Filing a report creates the possibility of increased insurance premiums; not filing
maintains the status quo.

On Jan. 5, 2022, The Washington Post published an op-ed article by Liam Denning entitled “Car Dealership Laws
Aren’t Fit for the Electric Age.” On Jan. 13, 2022, NADA’s president and CEO, Mike Stanton, responded. The following sections contain a summary of the op-ed and Mike Stanton’s response.

We hope our dealership members, elected officials, and automotive industry partners are all thriving here as we navigate the summer months and the current business climate. We are hearing from dealerships throughout Los Angeles County that in spite of industry challenges, new car dealerships continue to prosper. This is happening in spite of inventory shortages, rising interest rates, and concerns of a recession.