Ofﬁcial Quarterly Magazine of the Maryland Automobile Dealers Association
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inGear TABLE OF CONTENTS
MARYLAND AUTO DEALERS ASSOCIATION’S MAGAZINE
Q1 SPRING 2018
COVER STORY DEPARTMENTS
16 JP Bishop, 4 Chairman’s Message
Bob Bell BY MARC COHEN
MADA 2018 TIME 5 President’s Message
Dealer of the Year
Nominee BY PETER KITZMILLER
BY DEREK RAYMENT 15 MADA PAC Contributors
FEATURES BY IG STAFF
7 2018 Legislative
30 Advertiser Resource Index
Q 1 S P R I N G 2 0 1 8 InGear • 3
BY IG STAFF
9 Motor Trend
MADA proud to present
another successful show
BY TODD TRAUB
14 Tax Solutions
Reporting rules for large
BY JOHN COMUNALE
23 MADA Happenings
MADA Annual Membership
Meeting & Legislative Reception
BY IG STAFF
28 MADA Foundation
BY IG STAFF
29 Supreme Court Finds Service
Advisors to Be Exempt from
BY MARK J. SWERDLIN
IMAGES ON COVER AND THIS PAGE OF JP BISHOP BY DAVID SINCLAIR
MADA 2018 BOARD OF DIRECTORS
The Association had another successful Legislative Session CHAIRMAN OF THE BOARD
in 2018 working diligently to pass HB1104 which restricts Marc Cohen
what data dealers are allowed to share with automobile
manufacturers. This legislation defines a dealer “data management Priority 1 Automotive Group
system” and makes the manufacturer liable if there is unlawful
disclosure of consumer data by a manufacturer breach. Maryland is one IMMEDIATE PAST CHAIRMAN
of very few states to enact consumer data protections for dealers. MADA JP Bishop
fought to defeat SB529/HB434 which would have required automobile
manufacturers to give written notice to a customer having maintenance Bob Bell Automotive
done by someone other than the dealer, or using aftermarket parts does
not void the warranty. In addition to being unnecessary, the notice MEMBERS OF THE BOARD
required by the bill was incomplete and misleading - aftermarket parts
can void the warranty if they cause other damage to the vehicle. Matt Aiello JBA Chevrolet Mitsubishi
Conrad R. Aschenbach King Buick GMC, Inc.
2018 is an election year in Maryland and the Association needs to Daniel Jobe
be heavily involved in the process. I encourage everyone to contribute Danny Sauro Capitol Cadillac Buick GMC
to the MADA Political Action Committee. We need everyone to Marisa Schockley Tischer Nissan Acura
participate. We have had a strong record of legislative sessions over the Sam Weaver Schockley Honda
past 10 years and the MADA PAC has been an important tool in making Chevy Chase Acura
sure our voice is heard in Annapolis.
MARYLAND AUTOMOBILE DEALERS ASSOCIATION STAFF
In addition to our efforts in Annapolis, the Dealer Advisory Panel is
going into its 4th year working with MVA to address dealer issues and PRESIDENT J. Peter Kitzmiller
concerns. MDOT MVA through a grant from NHTSA, launched a pilot [email protected]
program making Maryland the first state to provide vehicle owners and
lessees with recall safety notices and information with their registration DIRECTOR OF OPERATIONS Ethel Biensach
renewal notices. [email protected]
I want to thank our association sponsors and the dealer body for their DIRECTOR OF DEALER SERVICES Albert Scrimger
support, and a special thank you to the MADA staff. They are working [email protected]
on your behalf every day and their efforts are greatly appreciated.
DIRECTOR OF GOVERNMENT & INDUSTRY AFFAIRS Travis Martz
Sincerely, [email protected]
Marc Cohen MEMBERSHIP/PAC COORDINATOR Charlotte Rutkowski
Chairman, Maryland Automobile Dealers Association [email protected]
DIRECTOR OF COMMUNICATIONS Michael Kitzmiller
WHO WE ARE:
Maryland Automobile Dealers Association (MADA) is a statewide
association of new car and truck dealers managed by a Board of
Directors, which consists of members representing districts throughout
the State. Individuals representing companies that provide products
and services to this industry are eligible and encouraged to join MADA
as associate members. MADA is an afﬁliate of the National Automobile
MADA was founded in 1910 as a non-proﬁt trade association for the
purpose of: “facilitating the exchange of ideas among its members; to
encourage sound business policies; to foster constructive motor vehicle
legislation; to discourage destructive motor vehicle legislation, and to
promote conﬁdence, respect and good fellowship among all who are
directly or indirectly engaged in the motor vehicle industry.”
For information about membership and/or questions, comments or
concerns, please contact:
Maryland Automobile Dealers Association
7 State Circle, Suite 301
Annapolis, Maryland 21401
Email: [email protected]
Ofﬁce: (410) 269-1710 or (301) 261-1717
FAX: (410 269-1549
SMS: (410) 269-1710
4 • InGear M A R Y L A N D A U T O M O B I L E D E A L E R S A S S O C I A T I O N M A G A Z I N E Q 1 S P R I N G 2 0 1 8
The Ofﬁcial Magazine of the Maryland The 2018 Session of the Maryland General Assembly concluded in
Automobile Dealers Association April and the Association continued its legislative success with another
solid year. MADA passed new legislation (HB1104) that restricts what data dealers
InGear is owned by the Maryland Automobile are required to share with automobile manufacturers. The issues surrounding who owns
Dealers Association and is publisher quarterly and has access to dealership customer data will be critical in the coming years. Dealer
in the form of three editions of InGear and one management system providers and manufacturers need to understand that Dealers own
and are responsible for their customer’s data – HB1104 is just the first step in addressing
annual membership directory by Matthews these issues. MADA, along with The Alliance of Automobile Manufacturers was able
Publishing Group. For additional copies, to to defeat SB529/HB434 which would have required automobile manufacturers to give
order reprints of individual articles or to become written notice to a customer that maintenance can be done by someone other than the
a subscriber to InGear, or to offer story ideas, dealer, and that the use of aftermarket parts does not void the warranty.
please contact Jennifer Matthews-Drake at
Maryland became the first state in the country to implement a vehicle recall safety
[email protected]. notice program. In April, MVA announced the launch of the pilot program that will
provide life-saving recall messages to Maryland vehicle owners. Maryland was also the
PUBLISHER only state in the nation to receive a grant from NHTSA, which totaled $222,300 to assist
Jennifer Matthews-Drake with the pilot program and set an example for other states.
www.matthewspublishing.com I would like to thank the dealers who serve on the MADA Board of Directors. The
time they give and the expertise they provide are greatly appreciated. On behalf of myself
EXECUTIVE EDITOR and the Association staff we hope you are having a safe and prosperous summer.
Peter Kitzmiller, President, Maryland Automobile Association,
PRODUCTION EDITOR [email protected]
C. Waynette Traub
Jennifer Barnett Reed
Maryland Automobile Dealers Association
and Matthews Publishing Group have
partnered to bring you three editions
of InGear, the magazine, plus one
edition of MADA’s Annual Membership
Directory to you as a membership beneﬁt
and membership recruitment tool.
Additionally, it is our intent to educate our
members, business associates, elected
ofﬁcials and regulatory agents on the
issues that matter most to automobile
dealers throughout Maryland.
Q 1 S P R I N G 2 0 1 8 InGear • 5
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MADA Passes Consumer Protection Data Bill Paid Sick Leave
MADA worked with auto consumer advocates to pass Despite Governor Hogan veto, the Maryland General
new legislation (HB1104) that restricts what data dealers Assembly overrode it during the 2018 Legislative Session.
are allowed to share with automobile manufacturers. MADA has consulted with numerous dealers on the
Under the new law, manufacturers may only require their proper implementation and held seminars on this topic
franchised dealers to provide information pertaining to: alone. Fortunately, most dealers provide 40 hours or
more of “Paid Time Off ” after an employee has been
1. Sale completions employed for at least a year. Being able to use vacation
2. Warranty claims days, disability and floating holidays as “paid sick
3. Safety recalls and leave” eases the burden. There is still the administrative
4. Validation of incentive payments headache of tracking how much paid time off has been
Dealers may provide any other data to a manufacturer accrued and used.
with written consent separate from the franchise
agreement. Dealers do not have an obligation to Maryland Vehicle Recall Safety Notice Pilot
provide customer data to any manufacturer other than Program
the manufacturer that produced and warrants the
customer’s vehicle. This legislation defines a dealer “data In April, Maryland Department of Transportation
management system” and makes the manufacturer liable (MDOT) Deputy Secretary Jim Ports joined MDOT
if there is unlawful disclosure of consumer data by a Motor Vehicle Administration (MDOT MVA)
manufacturer breach. Maryland is one of very few states Administrator Christine Nizer to announce the launch
to enact consumer data protections for dealers. of the first vehicle recall safety pilot program in the
nation, which will provide life-saving recall messages to
MADA Defeats SB529/HB434 Maryland vehicle owners and lessees on their MDOT
MVA renewal notices.
MADA, along with The Alliance of Automobile
Manufacturers was able to defeat legislation which Maryland was also the only state in the nation to
would have required automobile manufacturers to give receive a grant from NHTSA, which totaled $222,300, for
written notice to a customer having maintenance done by the pilot program. This pilot program alerts Marylanders
someone other than the dealer, or using aftermarket parts to recalls on their vehicles, “we are proud to set an
does not void the warranty. The bill was unnecessary example for other states through this common sense
(Federal Law - The Magnuson-Moss Warranty Act - deals program that will help inform Marylanders about vehicle
with the issue and has been in effect for more than 40 safety recalls and encourage recipients to take appropriate
years). action to remedy the issue,” said Governor Larry Hogan.
In addition to being unnecessary, the notice required As of April 2018, MDOT MVA will provide important
by the bill was incomplete and misleading - aftermarket safety recall information on both the mailed and
parts can void the warranty if they cause other damage to electronic registration renewal notices. An open recall
the vehicle. This legislation was put in by the Aftermarket will not affect the ability of a customer to renew their
Parts Association and was supported by AAA. MADA vehicle registration. “We hope our customers take
is anticipating that we will see this legislation next year. advantage of this information and take the necessary
We would like to again thank the Alliance of Automobile steps to address any safety issues impacting their
Manufacturers and General Motors for their efforts in registered vehicle,” said MDOT MVA Administrator
defeating this legislation. Christine Nizer.
Q 1 S P R I N G 2 0 1 8 InGear • 7
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MADA proud to present another
successful show of automobiles
BY TODD TRAUB
If you were anywhere near the Baltimore American International Auto Show CONTINUED
held in January — as well as concepts,
Convention Center in early February, you historic displays and appearances by
celebrity sports figures.
might have picked up a strong whiff of new-
“The show reinvents itself every year with the
car smell mingling with the scents of crab latest vehicles and technology on display,” said Steve
Freeman, who leads the team that produces the show
cakes and salt water. for MADA.
The annual Motor Trend International Auto Show, Freeman is vice president and general manager
presented by the Maryland Automobile Dealers of automotive events for Ten: A Discovery
Association (MADA), rolled into town Feb. 8-11. The Communications Company. The company is the
event, the largest annual public show in Baltimore, result of a joint venture bringing together Discovery’s
showcases a plethora of new makes and models from automotive Velocity channel with Ten: The Enthusiast
approximately 25-27 manufacturers representing Network’s portfolio that includes social and live events
around 350 Maryland dealers displaying 500-plus like the Motor Trend auto shows.
The rides range from the conventional to the exotic,
with the latest releases on hand — following the North
Q 1 S P R I N G 2 0 1 8 InGear • 9
Motor Trend currently holds 19 shows Series Tribute car whose body took Sollis well as ogle high end “supercars.” And
around the nation and Baltimore’s next Janus, of Crofton, Maryland, two years to while the big boys and girls are checking
event is scheduled for Feb. 7-10 in 2019. hand shape. out the big boy and girl rides, kids get to
drive mini-cars on a test track.
“[The shows are] somewhat similar More traditional carmakers like
city to city,” Freeman said, “with feature Chrysler, Ford, General Motors, Honda, John Miller, owner of Miller Brothers
vehicles unique to each — car clubs that Hyundai, Nissan and Toyota are also Chevrolet and Cadillac Inc., based in
display unique collections of vehicles represented. Ellicott City, is Chairman of the Maryland
or local exotic dealers having different Automobile Dealers Association Auto
vehicles to show in different cities.” Visitors can test drive new models and Show Committee.
see some that are still in development as
Highlights of the Baltimore show,
Freeman said, are the more than 500 trucks,
cars, SUVs and luxury vehicles, including the
latest from BMW, Mercedes-Benz, Audi and
more. There are more than 35 vehicles to test
drive (including Fiat Chrysler Automobiles,
Toyota and Chevy vehicles) and more than
35 exotics — including high-end, luxury,
duPont Registry rides — on display.
Among the exotics at Baltimore this
year was the powerful and angular
Lamborghini Aventador — an Italian
sports car boasting a V-12 engine, a
top MPH of 218 and a price exceeding
$400,000 — and a silver Shelby CSX 5500
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1 0 • InGear M A R Y L A N D A U T O M O B I L E D E A L E R S A S S O C I A T I O N M A G A Z I N E Q 1 S P R I N G 2 0 1 8
The 2018 show featured over 35 vehicles
offering the opportunity for attendees to take
test drives around the city
“The shows are all about the vehicles granddaddy of them all is the biennial the latest models and technology and get
on the show floor — from daily drivers to Paris Motor Show, begun by industry a glimpse of the future, manufacturers
$350,000-plus supercars,” Miller said. pioneer Albert de Dion in 1900 and still could make major announcements and
one of the most important auto shows in car fans could see the process of creation
Miller’s father and uncle obtained a the world. from drawing board to finished vehicle.
Chevy franchise in 1928, which makes
this year the dealership’s 90th anniversary. Of course it wasn’t long before America In that regard, not much has changed.
Miller has been involved with the developed its own style of car-craziness “Our goal is to work with MADA
business since 1973 and said events like and began to hold auto shows of its own, to produce a high quality event that
the MADA Auto Show help dealers by with the first in New York in 1890, and introduces potential vehicle purchasers to
giving potential buyers a chance to see a other major cities soon followed suit. all the new products in the marketplace,”
variety of products in a “one-stop shop” Freeman said of the Baltimore event.
environment. Freeman estimated there are currently
65 auto shows across the nation. CONTINUED
“All brands represented are striving for
consideration,” Miller said. Attendees to the early shows could see
Miller wasn’t quite ready to give a sneak
preview of events planned for next year’s
“We’re working through that very
soon,” he said.
Auto shows developed with the rise
of the automobile in the late 1800s. The
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Q 1 S P R I N G 2 0 1 8 InGear • 1 1
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It also means, very specifically, that
advertising in InGear is not only a great
business decision. IT WORKS! You may not
get direct feedback depending on the details in
your ad, but you are most definitely being seen
by those who possess the purchasing power to
incorporate your products and services into
conducting their business.
PLUS: Starting now each edition of InGear
will distribute a digital version a week or so
following the printed edition before mailed. This digital edition
will feature nifty sound effects and live links to advertisers’
websites. It will be featured on MADA’s and MPG’s websites,
MPG’s Facebook page and MPG’s LinkedIn and Twitter accounts.
It’ll also be individually emailed to each member of MADA. We
will shout from the rooftops that you are a valued advertiser
worthy of consideration by our readers!
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“They always enjoy the exotic cars, hi-lux cars that are aspirational
and to see their favorites in a no-pressure atmosphere.”
– John Miller, Miller Brothers Chevrolet and Cadillac Inc.
Miller said the Baltimore show serves to the test drive lineup included Chevy People from across the state
create buzz and excitement for the spring Cruze, Malibu, Bolt EV, Equinox, attended and enjoyed the
season during the “cold gray days of winter.” Traverse, Colorado, Silverado and 2018 Baltimore Motor Trend
Camaro; Chrysler Pacifica and 300; International Auto Show
Baltimore is an ideal location, Miller Dodge Challenger, Charger and Durango; which ran from Feb. 8-11.
said, because of its facilities and central Fiat 500, 500X, and 124 Spider; Jeep As usual, the show offered a wide
location in the small state of Maryland, Cherokee, Compass and Grand Cherokee; range of vehicles and popular
with access to the Baltimore-Washington Dodge Ram 1500; and Toyota Camry, manufacturers. At the show, visitors
D.C. corridor. C-HR, RAV4 and Tacoma. could test drive nearly 40 different
models, see some car models still
Miller and Freeman said the shows The duPont Registry Live exhibit and in development, and check out 500
differ somewhat from city to city the EuroStar Auto Gallery and Auto new vehicles.
depending on space requirements, local Showcase featured exclusive, high-end
population, manufacturer participation cars from McLaren, Rolls Royce and Highlights of this year’s show
and budgets. Freeman said some regions Porsche, among others. include the return of displays from
may have a preference for certain vehicles Mercedes, which didn’t participate
more unique to that area, and local car “They always enjoy the exotic cars, last year; a chance to see Ford’s
clubs or local exotic dealers may also hi-lux cars that are aspirational and latest pickup, the 2019 Edge ST;
bring something unique to the table that to see their favorites in a no-pressure and plenty of luxury cars to gawk at.
gives a show some individuality. atmosphere,” Miller said of the show- Dupont Registry, Prestige Auto, and
goers. Euro Motorcars provided displays
Challenges to putting on a good show of exotics which included McLaren,
can include weather and tight move-in, Visitors could also check out modified Lamborghini, Jaguar, and many
move-out schedules as well as negotiating and classic autos at the the Live Wire others.
contracts with the venues and vendors. Media Custom Car Showcase and
compare notes with the builders. The Ford racing
But ultimately it’s about the cars and simulator was back
people who love them. Miller said the show tries to tie in again, and just as
with charitable causes, benefiting things popular as years
New models seen on the Baltimore like the Shock Trauma Center at the past. Patrons lined
show floor this year included the Motor University of Maryland, and he and up around the block
Trend SUV of the Year (the 2018 Honda Freeman stressed the family aspect. Kids waiting to take
CRV) and the Motor Trend Truck of the under 12 get in free and can also get advantage of the
Year (the 2018 Ford F-150). behind the wheel on the Citgo Kids Test multiple test drives. The
Track. show even offered a test
All attendees received a free, one-year track for kids to race battery
subscription to Motor Trend with each “It’s a fun family event with even a test powered mini-cars.
online ticket order or box oﬃce purchase, drive for kids,” Freeman said.
sponsored by MADA. Q 1 S P R I N G 2 0 1 8 InGear • 1 3
With the technology, array of
Experts from the manufacturers impressive vehicles, celebrities and
were on hand to provide information more, one doesn’t necessarily have to
to show-goers without the pressure of be a gearhead to enjoy the Motor Trend
a sales situation. People could inspect International shows, Freeman said. A
the cars inside and out and learn about little car love goes a long way and there is
the technology finding its way to even plenty of entertainment to go around.
the basic models, things like collision
avoidance and lane keep assistance “Our goal is to work with MADA to
programs. produce another high-quality event that
introduces potential vehicle purchasers to
The Motor Trend International Auto all the new products in the marketplace,”
Show offers test drives through Baltimore Freeman said.
for certain selected vehicles. This year
1 4 • InGear M A R Y L A N D A U T O M O B I L E D E A L E R S A S S O C I A T I O N M A G A Z I N E Q 1 S P R I N G 2 0 1 8
REPORTING RULES FOR 2018 MADAPAC
LARGE CASH TRANSACTIONS CONTRIBUTORS
BY JOHN COMUNALE, CPA GOVERNORS CLUB
GUEST WRITER Criswell Automotive
YOU’VE HEARD THE SAYING: who have infiltrated the automotive
industry. Their investigations have focused Jones Junction, Inc.
“CASH IS KING” AND THE on a variety of potential infractions, King Automotive Group
including tax evasion, employment tax Priority 1 Automotive Group
GOVERNMENT KNOWS IT. fraud, money laundering conspiracies and
violations of the Bank Secrecy Act. Sheehy Auto Stores
To help detect money-laundering schemes Williams Family Automotive
and other illegal activities, the IRS has Your tax advisor can provide more
implemented a system for reporting large information and guidance on compliance LT. GOVERNORS CLUB
cash transactions. No one is accusing auto with cash reporting rules.
dealers of any wrongdoing with this system, Bayside Toyota Chevrolet Buick Geo
but businesses are asking for trouble if they Federal Investigation of One Car Dealer Bill Kidd’s Timonium Toyota-Volvo
don’t comply with the rules. A Connecticut car dealer pleaded guilty to
federal currency reporting violations in two The Frederick Motor Company
Specifically, auto dealerships are required incidents. Thompson Automotive
to file Form 8300, Report of Cash Payments Details of the case: The FBI and IRS
Over $10,000 Received in a Trade or conducted an undercover operation, which SENATE CLUB
Business, with the IRS within 15 days of targeted a preowned car dealership. In the
receiving more than $10,000 in a single cash first incident, a law enforcement oﬃcer, Antwerpen Automotive Group
transaction. Form 8300 also must be filed if posing as a drug traﬃcker, purchased Freightliner of Harrisburg (Transteck)
the total for two or more related transactions a vehicle for $30,540 in cash. During
exceeds $10,000. negotiations, the undercover oﬃcer revealed Volvo Cars Annapolis
the money was from drug proceeds and he
The cash reporting requirements may also didn’t want his name on paperwork. The HOUSE CLUB
apply to cashier’s checks, traveler’s checks, dealer agreed to sell the vehicle and put
bank drafts and money orders with a face the paperwork in the name of the buyer’s Baltimore Truck Center, Inc.
value of $10,000 or less. Personal checks girlfriend. IRS Form 8300 was filed, but the Beltway International, LLC
are not considered cash, regardless of the purchaser was falsely identified.
amount. In the second incident, a customer Boyle Buick GMC Truck
purchased a car for $18,000. After making East West Lincoln
In addition, your dealership must give a a $1,000 cash down payment, the customer Honda of Annapolis
written statement to each person named on a wanted to pay the rest in cash. The dealer Plaza Ford, Inc.
required Form 8300 on or before January 31 refused because he didn’t want to file Form Wilkins Automotive
of the year after the calendar year in which 8300. Instead, he took $9,000 cash and Win Kelly
the cash is received. told the customer to return with a $9,000
cashier’s check. To learn more about how
Filing for Less than $10,000 The U.S. Attorney’s oﬃce noted that the you may become a PAC
prosecution should serve as a warning to contributor to help further
is Voluntary business owners who willfully ignore IRS our collective legislative
reporting requirements and knowingly agenda, please contact
Form 8300 can voluntarily be filed if a accept payment in drug money.
cash transaction is less than $10,000 but Michael Kitzmiller at
appears to be suspicious. The form asks for John Comunale is, CPA is senior vice [email protected].
the identity of the individual from whom
cash was received, including name, address, president with Councilor, Buchanan & Q 1 S P R I N G 2 0 1 8 InGear • 1 5
tax identification number and the document
used to verify the person, such as a driver’s Mitchell, P.C. and serves as chair of CBM’s
Automotive Industry Dealership Services. He
Failure to comply with the law can result in
severe civil and criminal penalties. may be reached at [email protected].
The IRS has coordinated its efforts with the
Department of Justice to prosecute criminals
1 6 • InGear M A R Y L A N D A U T O M O B I L E D E A L E R S A S S O C I A T I O N M A G A Z I N E Q 1 S P R I N G 2 0 1 8
2018 MARYLAND TIME DEALER
OF THE YEAR NOMINEE
BY DEREK RAYMENT
Earlier this year, the Maryland Maryland. He then earned a Bachelor of
Arts in Economics from the University of
Automobile Dealers Association Maryland in 1987. He then received a J.D.
with honors, from the University of Baltimore
named JP Bishop (JP) of the Bob Bell School of Law in 2004, graduating Magna
Automotive Group its TIME Dealer
of the Year nominee. The dealership As the dealer for all of the Bob Bell
has been around since the late 1970s, and is franchises, which includes Bob Bell Ford/
no stranger to recognition. In 2001, Bob Bell Hyundai in Glen Burnie, Bob Bell Chevrolet
himself was the TIME Dealer of the year of Bel Air, Bob Bell Chevrolet of Baltimore
nominee for Maryland and was selected as and Bob Bell Nissan/Kia in Essex, JP looks
one of the finalists. for great people to run the stores. “We
operate our franchises in four separate
“I feel proud and humbled,” says JP, facilities around Baltimore, and we give our
president of Bob Bell. “Mr. Bell was a TIME General Managers the authority to take care
Dealer of the Year finalist in 2001 and having of our customers and satisfy their needs,”
the honor of being on that same stage as well, explains JP.
was unbelievably great.”
Bob Bell Automotive Group
WHO IS JP, WHAT DOES demonstrates personalized customer care
that keeps buyers coming back over and
BOB BELL STAND FOR over again. Their dealership locations
Bob Bell started the organization close maintain large selections of new and used
models, and is known throughout the
to 40 years ago with JP taking over after his
passing in 2011. Now the dealer operator, CONTINUED
JP’s credentials and experience rests in
Economics and Law. He’s a 1982 graduate of
Thomas S. Wootton High School in Rockville,
PHOTOGRAPHY BY DAVID SINCLAIR Q 1 S P R I N G 2 0 1 8 InGear • 1 7
greater Baltimore area. The Bob Bell team “The recession created an PHILANTHROPY
works to make the car-buying experience
pleasant; a no-pressure transaction that acceleration beyond its Bird and JP also recognize the need
helps the customer get the transportation for social and community responsibility,
they need at a price that fits their budget. traditional rate due to the engaging his business in various nonprofit
Even after the customer has purchased efforts.
a vehicle, Bob Bell is ready to provide nearly 40 percent drop in
superior service for years to come with “[Our business] participates in many
their highly trained technicians and parts new vehicle sales in 2008-09. charitable and nonprofit areas,” Bishops
departments. says. “The largest partnership we
In the last couple of years, currently have is with The Red Devils, an
Bob Bell also recognizes that the organization that helps Maryland families
present-day car buyer is someone who however, average age is battling breast cancer.”
often knows more about the car they want
to buy than the average salesperson. They returning to a more traditional The Red Devils began in 2002 and have
do their research and want an experience invested close to $3 million to help fund
that appreciates that fact. rate of increase.” – Mark Seng, treatment and support for more than
5,500 breast cancer families. Donations
PERSONAL director of global automotive to the program help with transportation,
support and medical services and
While many people enter the car aftermarket practice treatment-related therapies. Every
business as salespeople, JP entered by October, the Bob Bell dealerships donate a
a different route. “I married Bird Bell into the car business. However, in 1992 portion of every vehicle sold and serviced
in 1989 and was working for AT&T an opportunity came up working directly to The Red Devils. In 2017, the donation
after graduate school,” Bishop explains. with and learning from Mr. Bell… and we exceeded $41,000.
“Initially, I had no intention of getting took it.”
“We also donate to Harundale Soccer,
As an owner of Bob Bell Ford, Bird Leadership Through Athletics as well as
Bell (Bishop), oversees and manages the
Group’s public relations and philanthropy
efforts. Bird and JP have been married for
28 years and have three children, Emily
(26), Matthew (24) and Wesley (7).
Welcome to Dealership NOWWthheWereheWnOeythriroeWreeteurashexskecephFerarevo&enfripcoiIaecperdnoeisondcvnhegeertoisrrvopp.mnelrp'saotetchsrce'aahssvl—esoes.nd.tlooinlhleaurartfn.odr idno-sllator.re
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1 8 • InGear M A R Y L A N D A U T O M O B I L E D E A L E R S A S S O C I A T I O N M A G A Z I N E Q 1 S P R I N G 2 0 1 8
Nicolette Jones sitting with JP Bishop
the There Goes My Hero Foundation,” JP “They have been there roughly 40 years Maryland dealerships on a variety of
continues. and are a family-owned dealership,” issues, says JP’s knowledge of the industry
he said. “They’re very involved in the has always been impressive.
Peter Kitzmiller, president of Maryland community and they play a big role in the
Automobile Dealers Association, believes local economy.” “I have known him the entire time
it’s the community work that sets Bob Bell
apart from others. Kitzmiller, who helps represent CONTINUED
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I have been president of the Maryland knows the industry inside and out. On VIEWS ON THE INDUSTRY
Automobile Dealers Association. He’s winning the award, Kitzmiller says it’s a
been very hands-on as an operator and he big deal. The industry is fiercely competitive with
understands the issues that are presented many highs and lows. Kitzmiller says the
to the industry,” he explains. “As a former “It’s one of the most prestigious awards recession gripped the nation 10 years ago
chairman, he did a great job and we took in our industry because they’re nominated was a dark time for the automobile business,
care of a lot together.” and voted on by their peers. His father- but since then, there has been consistent
in-law, Bob Bell, won the same award growth.
Kitzmiller points to JP’s time as in the early 2000s, so he is carrying on
chairman of the Maryland Automobile the tradition and has kept the business “It was about as close as you could get to
Dealers Association’s board, saying he thriving,” Kitzmiller says. a depression,” he says. “Ever since then we
have had steady growth each year with the
LET US DO THE exception of last year, which was only down
slightly. The average age of a car is still fairly
Heavy Lifting old, so the demand for new vehicles is there.
It’s a very competitive business.”
Our experience team leverages
their expertise of the auto industry Coupled with the opportunities presented
to handle the issues that keep by good demand for new cars is the
you up at night--giving you peace changing landscape of how vehicles are sold.
of mind so you can focus on Prospective customers have a multitude
our day-to-day business. Strong of options when shopping for a vehicle.
While the internet and online resources
STRATEGY, PLANNING, ANALYSIS have changed the way customers buy cars
and MANAGEMENT are all part and has created more competition between
of the formula for success in an dealerships and other online sources, JP still
ever-changing industry. Don’t be likes the dealership franchise system.
weighted down with undue anxiety.
Contact our dealership
services group today! “The franchise system will continue to
thrive and evolve,” says Bishop. “There will
be continued consolidation as the single
point dealers retire. Large public companies
will continue to buy other large groups but
will quietly shed dealership locations that
don’t fit their business model. Privately
owned dealership groups will continue to
Daniel P. Thompson, CPA Jay A. Goldman, CPA
[email protected] [email protected]
Robert J. Murphy, CPA/ABV, CVA
2 0 • InGear M A R Y L A N D A U T O M O B I L E D E A L E R S A S S O C I A T I O N M A G A Z I N E Q 1 S P R I N G 2 0 1 8
do well for as long as their internal talent is and facility programs force dealers to act made possible because there are enough
motivated to grow.” in ways that not only harm the franchise dealers who have to hit their high sales
system, but undermine the value of the objectives that it forces them to sublet their
Growing talent and hiring qualified brands we represent.” rights to outside vendors.”
workers is a diﬃcult task for any
business. The automotive industry “On top of those challenges, there “Our job as franchise dealers is to provide
is competing for the same talent are other forces that are attacking the excellent service to our customers. At the end
as manufacturing and technology franchise system by dipping their toes in of the day, Bob Bell will be there to take care
companies. As a result, automobile car sales,” he continued. of our customer’s problems, not Walmart or
dealerships are focused on attracting, Amazon or Google.”
developing and retaining young (and “Recently, Walmart has said it wants to
old) talent. sell new cars,” says JP. “How is that possible CONTINUED
when they don’t have dealer licenses? It’s
Bob Bell’s human resources manager
Susan Andrews says the dealership New name
takes an internal approach. “It can be
challenging, but you have to grow your Steadfast commitment to the
own,” says Andrews. “For our service auto industry
departments, [We] use trade school
students and entry level technicians and As you may have recently seen or heard, we renamed our dealer
put them through an extensive training services business.
process. They are paired up with a
lead technician and grow from a quick Wells Fargo Auto reflects our commitment to helping both dealers
lane technician to a fully-certified line and consumers succeed financially. And, we feel our new name
technician.” positions us to better support the ever-changing auto industry for
the next century and beyond.
While finding qualified workers is
one issue, JP believes there are still We’re working hard to provide you with greater convenience,
opportunities and hurdles facing dealers. connectivity, and innovation — at every touchpoint. Our mission: to
continually improve the experience for you, and for our customers.
“Every industry faces constant
challenges because everything changes
all the time. Mastering technology and
a dealer’s online presence is a great
opportunity to achieve superior results
in any market. I also know that there are
threats against the franchise system,”
he explains. “Manufacturer stair steps
“They have been there You’ll be hearing more from us throughout the year with updates
roughly 40 years and are a about new enhancements and programs that show how much we
family-owned dealership,” appreciate your business — and are committed to your success.
he said. “They’re very
involved in the community We’re here — when you need us.
and they play a big role in We encourage you reach out to us if you have any questions or we
the local economy.” can be of service.
For indirect auto financing, please contact Stephanie Mach
at 443-799-2467. For commercial services, please contact
Tony Cellinese at 410-443-3055.
– Peter Kitzmiller, Wells Fargo Auto is a division of Wells Fargo Bank, N.A. Member FDIC and Equal Credit Opportunity
president, Maryland Lender. © 2018 Wells Fargo Bank, N.A. All rights reserved. 4279979-001 3/18
Association Q 1 S P R I N G 2 0 1 8 InGear • 2 1
(Left to Right) JP Bishop, Wes Laney, Sarah Hayes, Rick Bolewski, Mandy Wilde, Jeff Glascoe, Christin Green, Jim Black, Christian Perry
What sets Bob Bell [Automotive Group] apart is that we are motivated by pride:
Pride in doing a great job, pride in helping our customers get the transportation they
need to pursue their dreams, and the pride of continuing Bob Bell’s legacy.” – JP Bishop
HISTORY and FUTURE 1979, and didn’t stop there. Bob purchased the age of 78.
Legum Chevrolet/Nissan of Essex in 1989, “We are extremely proud of what Mr.
While Bob Bell passed away in 2011, and Team Chevrolet of Bel Air in 1990.
his legacy continues. The Baltimore Today the Bob Bell Automotive Group, Bell built,” JP continued. “Mr. Bell always
Sun detailed some of Mr. Bell’s life in has more than 400 employees and sells said that there are five basic motivators;
his obituary: He served with the Army more than 8,000 vehicles a year. love, hate, fear, money and pride. I can
Corps of Engineers during the Korean assure you that at the foundation of the
War and earned degrees in business and Bob Bell was known throughout the Bob Bell Automotive Group are people
architecture. After working for the Ford region for his television commercial motivated by pride. Pride in doing a great
Motor Company, Bob partnered with appearances. He was best known for his job, pride in helping our customers get the
Tom Lynch and went into business selling iconic piano playing while wearing a pink transportation they need to pursue their
Fords in Laurel, Maryland. He set out on tuxedo. He worked every day of his adult dreams, and the pride of continuing Bob
his own when he opened Bob Bell Ford in life until his passing due to leukemia at Bell’s legacy.”
2 2 • InGear M A R Y L A N D A U T O M O B I L E D E A L E R S A S S O C I A T I O N M A G A Z I N E Q 1 S P R I N G 2 0 1 8
MADA hosted its Annual Membership Meeting Automotive for providing several former students
with successful career opportunities. Following the
and Legislative Reception on Jan. 16 in historic acceptance speech, President Peter Kitzmiller stated,
“the Maryland Teacher of the Year award presentation
downtown Annapolis. We were pleased to have is the best in the country, and for 16 years MADA has
many members attend and had good representation been a proud partner and supporter of the Maryland
from members of the Legislative body. Teacher of the Year.”
Once again, MADA served as a presenting sponsor MADA also congratulated member, JP Bishop, of Bob
of the Teacher of the Year program and has awarded Bell Automotive, who will represent Maryland as our
the gift of a brand new car to the winning teacher, 2018 TIME Dealer of the Year Nominee at the 2018
this year a 2018 Mini Cooper. The 2017-2018 winner NADA/ATD Convention & Expo.
Josh Carroll, a STEM teacher from Anne Arundel
County’s South River High School, was chosen from CONTINUED
seven finalists across the state. MADA Chairman Marc
Cohen, attended a gala event honoring Mr. Carroll
and presented him with his new vehicle. Besides his
contributions in the classroom, Carroll is the school’s
head cross country coach and an assistant coach for
track and field. He also serves on several committees
for the Maryland Public Secondary Schools Athletic
Association. Josh described the new car as truly life
changing, giving him an opportunity to pay off student
loans with funds he was saving for a new vehicle. He
thanked the dealers for their positive impact on the
community, specifically Bob Bell and Antwerpen
Q 1 S P R I N G 2 0 1 8 InGear • 2 3
(L-R) Peter Kitzmiller, MADA; JP Bishop; Bob Bell Automotive Group; Marc Cohen, MADA
Chairman, Priority 1 Automotive Group
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2 4 • InGear M A R Y L A N D A U T O M O B I L E D E A L E R S A S S O C I A T I O N M A G A Z I N E Q 1 S P R I N G 2 0 1 8
The Digital Edition
InGear is now available in digital format, complete with nifty sound effects and
live links to advertisers’ websites. MADA features and archives each digital edition
on its website starting now. And MPG features the same on its website, Facebook
page, LinkedIn account and via Twitter. This is a value-added service we provide our
readers and advertisers at no additional charge. Increase your marketing reach by
inGearadvertising in InGear—You’ll be so happy that you did!
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2 6 • InGear M A R Y L A N D A U T O M O B I L E D E A L E R S A S S O C I A T I O N M A G A Z I N E Q 1 S P R I N G 2 0 1 8
We’re proud to help.
At Enterprise, we believe in taking care of people, on and off the lot.
Enterprise is proud to support the Maryland Automotive Dealers Association.
Pick-up subject to geographic and other restrictions. ©2018 Enterprise Rent-A-Car. I05345 6.18
Q 1 S P R I N G 2 0 1 8 InGear • 2 7
to Future Dealership
MADAF’s mission is to provide educational benefits
to those wishing career opportunities in the Maryland
automobile industry. MADAF will fund such benefits
through charity events and memorial opportunities in
the name and memory of Maryland automobile industry
leaders and pioneers. Foundation Chairman,
Sam Weaver, has been instrumental in growing
awareness and setting up the annual Foundation
Gala, which honors past industry leaders by
inducting them into the Foundation Hall of Fame.
Since our founding in 2010, we raised well over
$300,000 for the Foundation, an amount which far,
far exceeded our initial expectations. Foundation
funds benefit our educational scholarship program.
Our Scholarship Program
The Foundation began awarding academic
scholarships for the 2012-2013 academic year and
has continued on the path.
Currently, any student who will be
enrolled in the 2016-2017 academic
year at a community college, a four-
year university, or a non-degree post-
secondary technical training program
with the intent to work in a Maryland
new car dealership is eligible to apply.
Please download the application packet
for further information and to apply for a
2 8 • InGear M A R Y L A N D A U T O M O B I L E D E A L E R S A S S O C I A T I O N M A G A Z I N E Q 1 S P R I N G 2 0 1 8
SUPREME COURT FINDS
OVERTIMEESEXRVEICME APDVTISOFRRS TOOMBE
BY MARK J. SWERDLIN
On April 2, 2018, the U.S. Supreme case, but the U.S. Court of Appeals for the
Court issued its decision in Encino CONTRIBUTING WRITER Ninth Circuit reversed, deferring to the
Motorcars, LLC v. Navarro, holding that DOL’s new regulation. In 2016, the Supreme
auto service advisors are exempt from the responsibilities include “meeting customers; Court reversed the Ninth Circuit’s ruling,
requirement to pay overtime under the Fair listening to their concerns about their cars; finding that the regulation was procedurally
Labor Standards Act. suggesting repair and maintenance services; defective and directing the Ninth Circuit to
selling new accessories or replacement parts; reconsider the service advisor exemption
The Supreme Court held that service recording service orders; following up with issue without reference to the regulation.
advisors, who are “employees at car customers as the services are performed (for The Ninth Circuit, on remand, once again
dealerships who consult with customers instance, if new problems are discovered); found service advisors to be non-exempt.
about their servicing needs and sell them and explaining the repair and maintenance This decision has now been reversed by the
servicing solutions,” fall under the FLSA work when customers return for their Supreme Court.
exemption applicable to “any salesman, vehicles.” Accordingly, the Supreme Court
partsman, or mechanic primarily engaged in stated, the service advisors are “salesm[e] Note that this decision does not change
selling or servicing automobiles, trucks, or n...primarily engaged in...servicing the law in the Fourth Circuit, which is the
farm implements.” automobiles” and therefore subject to the federal court of appeals with jurisdiction
overtime exemption. over Maryland, as well as Virginia, West
The Supreme Court first found that Virginia and the Carolinas. In the 2004
service advisors are clearly “salesmen” This case had a long history. For decades, case of Walton v. Greenbrier Ford, Inc.,
within the ordinary meaning of the term, the Department of Labor held that service the Fourth Circuit determined that service
as they “sell [customers] services for their advisors were exempt. In 2011, however, advisors were exempt.
vehicles.” It further found that service the DOL abruptly reversed its position
advisors are also “integral to the servicing and issued a regulation stating that service Mark J. Swerdlin is a partner with Shawe &
process.” Specifically, they are “primarily advisors were not exempt. In reliance
engaged in...servicing automobiles” as their upon that regulation, employees at Encino Rosenthal and may be reached at swerdlin@
Motorcars sued for back overtime pay.
The federal district court dismissed the shawe.com.
Q 1 S P R I N G 2 0 1 8 InGear • 2 9
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Dealers Association (MADA)
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Zurich Inside front cover
This edition of InGear was made possible
with the support of these corporate
advertisers, all MADA members in good
standing. They support our industry by
enabling Maryland Automobile Dealers
Association to provide this publication to
its members, prospective members, elected
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