Pub. 2 Issue 1

4 5 www.glancda.org SPRING 2014 GLANCDA BOARD OF DIRECTORS 7 24 714 West Olympic Blvd., Suite 601 Los Angeles, CA 90015 [O] 213-748-0240 | [F] 213-748-0242 PRESIDENT: Ian Thomas Thomas Acura VICE PRESIDENT: Pete Smith Bob Smith Toyota TREASURER/SECRETARY: Fritz Hitchcock Hitchcock Automotive Resources IMMEDIATE PAST PRESIDENT: David Ellis David Ellis Chrysler Jeep Glendale Dodge, LLC FIAT of Glendale EXECUTIVE DIRECTOR: Bob Smith DIRECTORS: Bert Boeckmann Peter Hoffman Tom Hoffman Fritz Hitchcock Darryl Holter Tim Smith Michael Sullivan John Symes Howard Tenenbaum ©2014GreaterLosAngelesNewCarDealersAssociation |ThenewsLINKGroup,LLC.All rights reserved. LosAngelesDealer ispublished three timeseachyearbyThenewsLINK Group,LLC for theGLANCDAand is theofficialpublication for thisassociation.The information contained in thispublication is intended toprovidegeneral information for reviewand consideration.The contentsdonot constitute legaladviceand shouldnotbe reliedonas such. 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Originally founded in 1907, the Greater Los Angeles New Car Dealers Association provides valuable educational and philanthropic ben - efits to the Los Angeles Community. The Association believes that involvement with local charitable organizations makes a positive difference for everyone involved 5 | Executive Director’s Message By Bob Smith 7 | NADA Director’s Update By Marcy H. Magurie 9 | California’s New Limited Liability Company Act By Nancy C. Ferruzzo, Ferruzzo & Ferruzzo LLP 12 | An Interview with Mike Sullivan of LAcarGuy 14 | After the OSHA Inspection By Sam Celly, Celly Services, Inc. 18 | 2014 Dealer Day – A Review of the Bills 20 | Safety Recalls By Mark Carpelli, Chairman, Regulatory Affairs Committee 24 | The DMVdesk Paradigm 26 | Los Angeles Auto Outlook 31 | 10 Reasons to Love a Health Savings Account 33 | Tesla and Its Business Model By Susan E. Morgan, The newsLINK Group, LLC Executive Director’s MESSAGE Bob Smith GREATER LOS ANGELES NEW CAR DEALERS ASSOCIATION A s we have moved into the second quarter of 2014, we hope the automobile business is prosperous for all our dealer members. Sales data from the First Quarter suggests that the recovery from 2008 continues strong and steady. Dealers are beginning to replace part time employees, with additional full time employees to keep up with the continued demand. The challenge that tight margins in new car sales continues to push dealers into new and different ways to strategically build and maintain their sales personnel and process. The industry as a whole is moving in a good direction. It is crucial that we all continue to work to- gether to protect our industry from the forces that would like to make growth more challenging than it needs to be. On April 9th, 2014, a group of Los Angeles area dealers, along with dealers from throughout the state, descended on the capitol in Sacramento to meet with elected official in the Senate and the As- sembly. The three areas that were prioritized to discuss were, advertising reform, protection of data in customers automobiles, and the sale of vehicles subject to recall. Each of these issues are very im- portant in the daily operations of our dealer members. The meetings provide us a great opportunity to remind our elected leaders of the major contributions automobile dealers make to the economy on both a local and state level. In California, the state and local governments receive almost $3000 a car that is sold by dealers. Dealers in California employee an average of just over one hundred employ- ees per dealership. Automobile dealers in California collectively gave over Forty Million Dollars to Charities for the year 2013. Auto Dealers recognize that there are always two sides to the issues our elected officials have to consider. We appreciate the dealers who have taken time out of their busy schedules to have our interests heard and better understood. There are almost 280 New Car Dealers in Los Angeles County and we need everyone's participation in the work of our association to keep our industry moving forward in a business friendly climate. We have some very exciting events coming up including some dealer education seminars, and our annual business luncheon on June 17th at the Sheraton Universal hotel. We look forward to see- ing many of you at these upcoming events, and continuing to expand the benefits of membership in GLANCDA for each of you and your employees!  Kind regards, Bob Smith Moving Forward