The biggest challenges for state dealer associations – August 14, 2006

In July, I had an opportunity to speak to the Colorado Dealers Association at its annual meeting in Denver. After updating them on the latest activities of the National Council of Dealer Associations (NCMDA), which has played a role this year in the re-establishment of associations in Georgia, Oklahoma, Nevada, Nebraska and soon Arizona, I provided what I felt was a summary of the pressing issues of the day.
ATVs
Franchise laws must be expanded to include ATVs and off-road vehicles. All need to be registered and subject to fees and state sales tax. There is currently a great deal of cross border activities as buyers take advantage of their ability to avoid payment of sales tax, costing the local dealer and the state. Laws need to require all ATVs and off-road vehicles to be sold only by authorized, full-service dealers. Providing this product as a “shelf item” in a mass merchandiser or sporting goods retailer is not in the interest of the public and certainly not the dealer, who has made a commitment to the safe and responsible retailing of the product in the community.
CHINESE AND OTHER ASIAN PRODUCT
With a large number of new manufacturers entering the market with what seems to be little oversight at the federal level, the state associations will have to be sure that regulations happen at the state level. Currently many laws are being circumvented by the product being imported as “motorized toys.” State statutes need to define just what is a motor vehicle and assure that, in the interest of the public, the product is sold only through state-licensed motorcycle dealerships. All importers must be registered with each state, which is currently not being done by most of the new manufacturers, and the required resources of retail dealers needs to be defined.
RIGHT TO REPAIR LEGISLATION
There are currently two bills being considered in Congress that will, in a purported effort to give consumers greater choice for the maintenance of their vehicles, require that OEM suppliers provide direct access to parts, repair manuals, service bulletins, training and special tools. Hopefully we can look to the MIC to have motorcycles exempted at the federal level, while the state associations do the same at the state level.
DEALER APATHY
This has always been the major dilemma confronting any state association. My message to Colorado and every other state association is that they simply cannot accept the attitudes of the past. We are facing a real crisis that if let to run its course will alter and diminish what we have all worked so long and hard to have. There is no question that we need a lot of support from state legislatures. We need to make clear that we represent all of the franchised dealers in the state. Legislators always look for their constituents on the memberships list. They always respond better when a leading merchant from their town is affected. Just do not accept “no” for an answers, go eyeball to eyeball and explain the issues. Pass the hat and pay for the free loaders’ dues if you have to, but do not allow any petty non-relevant issues reduce your ability to get the needed legislation enacted.
NCMDA NETWORKING
The items alluded to, in addition to full support from the dealers, require that you have professional management for your association. If your state needs help finding such a leader, or if you would like assistance from association leaders who are getting the job done, please call me or Karen Rasmussen at 340-719-8591.
Cheers, Ed.
Ed Lemco has been involved with the powersports industry for more than 30 years. Lemco is currently a member of the National Council of Motorcycle Dealer Associations. psb