December 2014 Newsletter


The retail automobile industry continues to lead the country back in its recovery. The latest SAAR (Seasonally Adjusted Annual Rate) is again over 17 million. Further, consumer confidence is on the rise around the United States. For the year 2015, all indications point to another robust year. Your association will be leading the way with our partners to provide you with the best services and member benefits for your dealership.

During the fourth quarter, the Ford MDA Board met with Ford Motor Company and Ford Motor Credit Company senior management executives to discuss our shared objectives and goals. I am happy to report that we are making considerable progress in meeting our objectives. There are three areas of service we want to assist our members with in 2015. The areas are: 1) General Manager training; 2) Office/ST training; and 3) Internet training. Thanks to the many dealers that participated in our surveys sent out from the Ford MDA office; this gave us the necessary information needed to carry out our objectives. Further, the three initiatives are a great start with providing our members the tools that will increase their market share and profit. We will continue sending information out on the availability of these initiatives. Please feel free to contact the Ford MDA office to find out more about our program if you decide to participate.

As you probably know by now, Mr. Dave Kelleher, Director Market Representation Ford and Lincoln in the U.S., is retiring from Ford Motor Company effective December 31, 2014. Dave has been a staunch supporter of our organization. Dave was very instrumental with helping us merge the two previous minority line groups with Ford. Dave also made sure that we were able to elevate any of our issues to Ford’s senior management that required senior management approval. Dave will be truly missed as he leaves us and start on another chapter in his professional career. We welcome Mr. Kevin Cour, who will be taking on Mr. Kelleher’s responsibility. Mr. Cour was appointed Director, U.S. Retail Network and Consumer Experience Development effective January 1, 2015, reporting to Mr. John Felice, Vice President, U.S. Marketing, Sales and Service. According to Mr. Felice, Kevin will have an expanded Market Representation role to develop an innovative U.S. retail distribution and consumer experience strategy designed to accomplish the Ford and Lincoln Business Plan objectives, and that is aligned with the global MS&S distribution strategy. Kevin was previously Director, Lincoln Sales & Service. We look forward to working with Mr. Cour and the rest of the Ford team in 2015.

Best Wishes,

Fernando Varela

Ford MDA Board of Directors for 2014


Fernando H. Varela – Chairman
All Star Ford, Palestine, TX

Fred J. Salinas – Secretary &
National Dealer Council Representative
Friendly Ford of Crosby, Crosby, TX

Randy Henderson – Treasurer
Henderson Family Ford, Webster, NY

Board Members

Joe Chastang
Chastang Ford, Houston, TX

Stacey Corley
Ed Corley Ford, Grants, NM

Mark Douglas
Avis Ford, Southfield, MI

Adrian Fargeat Jr.
Super Ford, West Covina, CA

Ray Fregia Jr.
Courtesy Ford Lincoln, Danville, IL

Sil Gonzales
Gresham Ford, Gresham, OR


Executive Assistant
Dee Suber

Executive Director
Dr. AV Fleming

Osvaldo Garcia, Jr.

Ford Motor Credit Company

Ford Credit exists to meet the finance requirements of automotive dealers. They understand the unique needs of dealers and have developed a full array of financing plans and programs designed to fully accommodate those needs. Providing Ford Credit a full spread of business gives you an advantage over the competition. Contact your Ford Credit BDM for details.

Paul Trulock

Manager, Ford & Lincoln Brand
Ford Motor Credit Company
office: 313-337-3432
cell: 313-673-8028
email: [email protected]

Dealer Performance Report – Available Now!


Are you getting this great tool from Send us a note if you are not receiving your DPR!

Ford MDA & Ford Motor Company created the Dealer Performance Report, which is similar to a Cross Sell Report. This report was designed to help you analyze your market and sell more vehicles. This is available to you “Free of Charge”. Please take advantage of this good report.

How to Access the Report: Dealer Principal have access to the reports via and will need to follow the steps listed to download the reports.

  1. Dealer should log into FMCDealer from the main URL
  2. The user should click the Management Reports navigation link under the Sales tab
  3. The user selects Minority Dealer Reports link from the Management Report.


Please contact the Ford MDA Staff if you have questions regarding this valuable tool. Thanks!

CDK Global – Kathy Gilbert

cdkWho is CDK Global?

We were previously ADP Dealer Services. We spun off on October 1, 2014 into a publicly traded company, trading on the Nasdaq as “CDK”. We are the same company, comprised of the same people – with the same expertise, scale and reliability.

Our Five Brand Pillars:

Make It Easier
Drive simplicity through every aspect of our business to improve our clients’ experience.

Value Partnership
Work side-by-side with our clients to help them get the job done.

Drive Innovation
Always look for new and smarter solutions.

Be Comprehensive
Deliver our capabilities globally with a local touch.

Be Insightful
Deliver actionable insights that improve our clients’ business performance.

Every action we take aligns with these ideas and CDK Global will continue to be a strong supporter of Ford MDA and our dealers.

Join us as we drive the industry Faster Forward.

Kathy Gilbert
Director of Sales & Business Development

CDK Global, LLC
1950 Hassell Road
Hoffman Estates, IL 60169
(847) 485-4390 Office
(847) 839-2614 Fax
[email protected]

DealerTrack – Ernest Lattimer

3MerrChristmato all ForMDMembers!!!

If you plan on attending NADA, please stop by the Dealertrack booth. DT will be hosting their party Saturday evening. We would like to extend an open invitation to all Ford MDA members.

Ernest Lattimer
Industry Relationship Senior Manager
DealerTrack Technologies
1111 Marcus Avenue
Lake Success, NY 11042
(516) 547-2242

UHY – Dan Patterson


The Social Security Administration (SSA) recently issued a cost-of-living adjustment for the Social Security taxable wage limit. For tax year 2015, the maximum amount of earnings subject to the Social Security tax will increase to $118,500 ($1,500 increase from 2014). The employee and employer tax rate will remain unchanged at 6.2%. Due to the increase in the wage limit, the maximum Social Security tax payable by an employee will be $7,347 ($93 increase from 2014).


The Internal Revenue Service (IRS) also issued a cost-of-living adjustment regarding dollar limitations for pension plans and other retirement-related items for the 2015 tax year. The increase in the 2015 limitations results from an increase in the cost-of-living index. Significant increases are as follows:

  • The 401(k), 403(b), and most 457 plan contribution limits increased to $18,000 ($500 increase from 2014)
  • The 401(k), 403(b), and most 457 plan catch-up contribution limits for those aged 50 and over increased to $6,000 ($500 increase from 2014)
  • The defined contribution limit increased to $53,000 ($1,000 increase from 2014)
  • The annual compensation limit increased to $265,000 ($5,000 increase from 2014)
  • The highly compensated employee threshold increased to $120,000 ($5,000 increase from 2014)

Some of the significant benefit plan limitations that remain unchanged include the defined benefit limitation and limit on annual contributions to an individual retirement arrangement (IRA).

For more information please contact your local UHY representative or contact Dan Patterson of the UHY Auto Dealer Consulting Group at [email protected].

Freedom Brokerage Agency, LLC


As a business owner you can create a “Captive” (property and casualty insurance company) to provide coverage primarily for a parent company. Think of it as a mini Allstate or Nationwide – that a business owner sets up to insure his/her own company. In many cases the owner of the parent company is also the owner of the captive. However, the captive may be set up and owned directly by the operating company, another person, entity or trust. The captive insurance company must act as a legitimate business entity and must remain in compliance with all insurance regulatory provisions and Internal Revenue Service requirements.

Why set up a “Captive”

First, a captive is a valuable tool that allows businesses to more effectively manage business risk. Captives are often set up to insure “enterprise risk”. Enterprise risk is loosely defined as – the broad array of risks to which business is exposed but for which it is typically not insured, often because such insurance is not available or it is too expensive. It is different from the typical commercial coverage (worker’s compensation, general liability or auto coverage). Enterprise risk can include: loss of a business license, adverse financial impact of regulatory or legislative changes, loss of a key vendor or major client, loss of a franchise license or lease, environmental losses, regulatory inspection failure and the list goes on and on. Read more..

Kerrigan Advisors

The Blue Sky Report

Kerrigan Advisors is pleased to kick off the holiday season with The Blue Sky Report™. The report linked below covers the buy/sell activity and blue sky multiples through October 2014. We hope you find it informative.

Kerrigan Advisors is also excited to announce the formation of our private equity and family offices advisory practice. This practice, led by Ryan Kerrigan, provides strategic investment advice to outside capital seeking to invest in auto retail. Kerrigan Advisors is uniquely qualified to provide this service given the team’s extensive experience in auto retail, investment banking, commercial lending and private equity.

We hope to see you in the New Year in San Francisco. Erin Kerrigan will be speaking at the JD Power Summit on January 22nd and NADA workshops on January 23rd and 24th. In the meantime, the team at Kerrigan Advisors wishes you a very Happy Holiday and all of the best in 2015!

Download the report by clicking on the image below. Or CLICK HERE

Leasing – Bill Miller

Do you remember when the same customers came back to the dealership every 2 or 3 years and traded for a new car or truck and they left happy? You were happy to get this one of a kind trade in and salespeople on the showroom had someone to call on the car? The gross profit was huge and life was easy?

That today it is called Leasing!! My name is Bill Miller and I have been training and consulting with dealers creating a Lease Portfolio that generates income consistently when times are good and when times have been not so good.

What will Leasing do for a New Car Dealer? Leasing will generate a more loyal customer. Leasing will generate more income. It will stabilize a sales floor. Lastly, Sell more cars and trucks today and tomorrow.

First, Leasing generates a Loyal Customer Base. I have a new car franchise dealer in Indiana that has customers that have gotten 3 lease vehicles in the past 4 years from the dealer because, market conditions on the product have created a call to the customer offering an upgrade for a similar payment the customer in currently paying. How can a customer be upset with that kind of call? My Dad is one of those customers. My Dad would not think of getting a car from another dealer. He’s Happy!! This client is running at 83% Lease Renewal currently. A dealer cannot produce that kind of Loyalty on a 72 or 84 month retail finance contract. Read more…

A Word from the Executive Director

Greetings, Members and Supporters

The minority dealers had another great year. In 2014, minority dealers will have an average Dealer profit over $1 million dollars for the second consecutive year. Further, at Ford Motor Company, minority dealers as a group are outperforming the majority dealers. The retail automobile sector is gaining a lot of outside attention as other investors are starting to purchase dealerships. The most notable new “player” in the retail automotive industry is Berkshire Hathaway, lead by Mr. Warren Buffet. Berkshire Hathaway plans to buy Van Tuyl Group, the fifth largest auto dealership firm in the U.S. With blue sky in dealerships creeping up to an all-time high, where does this leave the small entrepreneur that wants to get into the business? With the continued growth of large dealership groups, will this action have an effect on dealers that own only one single point?

According to the Kerrigan Blue Sky report, which is published quarterly by the Kerrigan Advisors, purchasing activity of retail automobile dealerships, will continue to be soaring in 2015. Further, Ford is by far the most sought after franchise among the major domestics. Buyers are eager to acquire Ford Franchises and are increasingly willing to pay higher premiums–in many cases on record earnings. The blue sky is truly a dilemma for the buyer and the seller. The seller wants to sell while the market is at a premium. The Buyer needs to come up with the cash that will cover the blue sky.

Keeping up our minority dealer count will be a challenge in 2015. Selling one’s dealership for the maximum amount is good business. Therefore, minority entrepreneurs must have the resources available to pay the minority dealer the price that the market will bear. History has showed us that it is easier for us to keep a minority dealership in the minority portfolio than to purchase other dealerships. Ethnic minority dealerships are important to the retail automobile industry and the greater society as well. Diversity is here to stay, and it is making our country a better place to live and do business. If you are a minority dealer and you are interested in selling your dealership, please don’t hesitate to call our Ford MDA office so that we can match you up with a minority candidate that has the financial wherewithal to purchase your dealership. By minority dealers selling to other minorities, we will continue the legacy of keeping minority dealers in this great industry.


AV Fleming
Executive Director