January 21, 2013
See Good
By Ted Craig
DETROIT – Optimism reigns among auto analysts for the first time in many years.
Speakers at this year’s Society of Automotive Analysts outlook conference all expect new-car sales to top 15 million for the first time since the recession in 2008.
Ellen Hughes-Cromwick, chief economist for Ford Motor Co., said she was excited about auto sales and the entire economy.
“We’re a great bellwether for the health of our economy,” Hughes-Cromwick said.
Higher auto sales reflect a healthier business climate as the number of fleet sales continues rising.
They rose to 3 million in 2012 from a low of 2 million in 2009.
Hughes-Cromwick said that shows the ability of business to obtain financing.
Con sumers are also finding it easier to finance their car purchases, said Bob Schulz, managing director for Standard & Poor’s.
Schulz expects 15.3 million new-car sales in 2012, due in part to the availability of credit.
Schulz said the health of auto credit is reflected in the performance of its assetbacked securities.
There were 138 auto ABS upgrades in 2012 and no downgrades.
Subprime auto ABS grew to $17.5 billion during that time. Schulz, however, said there’s little sign of a bubble in that market.
“We don’t see that as having gotten out of control,” he said.
It is instead a measure of how well auto ABS held up during the downturn when compared with other securities, especially mortgages.
Consumers will need more money to buy new cars in 2013, as incentives should remain low this year, said Jef Schuster, executive director of LMC Automotive.
Schuster predicts 15.1 million new-car sales this year. Many of those will be smaller vehicles.
“The overall trend is downsizing,” he said.
Schuster also expects continued growth in hybrid sales.
However, he said the two
strongest performing categories this year should be premium vehicles and pickup trucks.
Pickups are being boosted by a continued recovery in housing.
Itay Michaeli, vice president of Citi Investment Research and Analysis, said these vehicles remain popular with consumers, as well. Michaeli points to strong prices for used pickups as proof of consumer demand. He said pickups would suffer the same fate as SUV prices if there wasn’t inter-
est beyond businesses.
Michaeli said a resurgence in product releases that starts with the new Chevrolet Silverado means pick-up trucks are poised to outpace the market for the next year.
The overall market should see 15 million sales this year, Michaeli said. He gave the lowest estimate and the least positive take on those sales.
Even at 15 million, he said, that is less than 7 percent of all licensed drivers. Michaeli said those sales remain “recessionary.”
He did say, though, that the potential for even higher sales exists, as the age of scrapped vehicles is moving toward what he called a “sweet spot” for a higher replacement rate.
The analysts did warn of a few potential speed bumps.
The one most cited was the continuing budget battles in Washington, D.C., and the efect that may have on consumer confidence. Schulz also raised the issue of an unexpected supply chain issue, such as the 2011 crisis in Japan.
Photo by Ted Craig
BRIGHT OUTLOOK: Ellen Hughes-Cromwick, Ford Motor Co.’s chief economist, offers her prediction of global auto growth this year. Hughes-Cromwick
market.
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Tech Drives New Ways of Selling
Technology continues changing the way consumers shop for cars and dealers must adapt to those changes.
Nearly 80 percent of newvehicle buyers use the Internet during their shopping process, and nearly one-third consult online ratings/review sites when selecting a dealer, according to the J.D. Power and Associates 2012 U.S. Sales Satisfaction Index.
“For years, new-vehicle buyers have accessed the Internet to research model information, vehicle features, configurations and pricing,” said J.D. Power senior director Chris Sutton. “Now, neutral online ratings/review sites are playing a key role in dealer selection.
Whether the online reviews are positive or negative, they impact buyers’ willingness to visit a dealer.”
The study finds that newvehicle buyers are much more inclined to use a ratings/review site than a social networking site when
selecting a dealer. However, satisfaction with the dealership experience is significantly higher among new-vehicle buyers who use social networking sites than among those who consult ratings/ review sites.
“That’s the power of the network,” Sutton said. “New-vehicle buyers are using the Internet to read the reviews and recommendations of other buyers who have experience with a particular dealer, so it would be prudent for dealers to ensure their customers have had a satisfying experience, given their influence on prospective customers.”
Among new-vehicle buyers, males are significantly more likely than females to consult ratings/review sites, whereas females are significantly more likely to consult social networking sites.
Both genders are equally likely to visit blogs, forums, or social networking sites (7 percent each); however, females post considerably
more positive online statements regarding their dealer experience, compared with males (86 percent indicate comments “mostly positive” vs. 77 percent, respectively).
Some question if used-car shoppers are as thorough in their shopping.
Steve Hall, president of Drivesselect, said they definitely are. Hall’s group focuses on subprime customers.
Hall said there’s less of a place in today’s market for dealers who continue keeping consumers in the dark.
“Consumers aren’t going to put up with the lack of transparency that has occurred in the used-car business,” Hall said.
An informed consumer will prove positive for wellrun dealerships, Hall said. They make the process more efcient, which mean dealers can make up what they lose in margin with additional turn.
It means that dealers need less staf, as well, which makes up for the lower margins.
Illustration by Joe Schlaud
Chain Moves into Georgia
America’s Car-Mart Inc. announced the opening of its 119th dealership.
The dealership is located in Woodstock, Ga. This is the buy-here, payhere chain’s first location in Georgia.
Woodstock is Car-Mart’s 5th new dealership for this fiscal year. The company presently has five new locations secured which will keep it on track for 10 for the full fiscal year.
Finance Company Unveils Website
Westlake Financial Services announced a major update to its DealerCenter (www.dealercenter. net) website.
DealerCenter is operated by Nowcom Corp., Westlake’s sister company under the Hankey Investment Group umbrella.
NEWS BRIEFS
DealerCenter is the business portal that houses Westlake’s proprietary Buy Program software as part of a full-fledged online DMS solution.
CPS Closes Securitization
Consumer Portfolio Services Inc. announced the closing of its fourth term securitization in 2012. The transaction is CPS’s seventh senior subordinate securitization since 2011.
In the transaction, qualified institutional buyers purchased $160 million of asset-backed notes secured by automobile receivables purchased by CPS.
The weighted average efective coupon on the notes is approximately 2.06 percent.
The 2012-D transaction has initial credit enhancement consisting of a cash deposit equal to 1 percent of
MILESTONES
, 90, died Jan. 7. She was the first woman to receive the Pioneer Award from the National Auto Auction Association. She was the wife of Pennsylvania Auto Dealers Exchange founder Jacob B. Hershey, who died Dec. 14. She worked there as title administrator at the auction until she retired. Prior to that, she was a chemist for the York Corp., currently Johnson Controls.
the original receivable pool balance.
The final enhancement level requires accelerated payment of principal on the notes to reach overcollateralization of 11.5 percent of the then-outstanding receivable pool balance.
The transaction utilizes a prefunding structure, in which CPS sold approximately $115 million of receivables today and plans to sell approximately $45 million of additional receivables during January 2013. This further sale is intended to provide CPS with long-term financing for receivables purchased primarily in the month of December.
The transaction also included $10.7
million of receivables originally originated by CPS in 2007 that were recently repurchased from a securitization transaction, which closed in 2007.
The transaction was a private offering of securities.
Manheim Simulcast Now Available for Macs
Manheim Simulcast now allows customers to enter a Simulcast sale on a Mac computer.
This new advancement also gives customers the ability to attend a Simulcast sale on multiple browsers, including Mozilla Firefox, Microsoft Internet Explorer and Apple Safari.
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USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080
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Used Car News is published the first and third Monday of each month. Subscribers: We print advertisements as sent to us by auctions and other advertisers. It is not possible to verify the correctness of listed vehicles in auction ads. Most lists are partial and all lists are subject to last minute changes by auto auctions, so before travelling a long distance for a particular auto auction event, contact the auction by telephone for a fax of vehicles in the sale. Used Car News assumes no guarantees or liabilities concerning the accuracy of any advertisements. All Rights Reserved. Reproduction in any form is prohibited without the written consent of the publisher.
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Myles Mellor
Court Supports Dealer
By Sheila McGrath
A village that blocked a used-car lot from opening on its busiest intersection recently saw the denial overturned by New York’s supreme court.
Ruling that the village board couldn’t deny a permit for the business just because the neighbors didn’t want it, 8th Judicial District Supreme Court Justice James Dillon ordered the Village of Lakewood, N.Y., to issue the permit, and gave the village board until the middle of January to come up with terms for it.
Lakewood is a village of 3,000 residents located on the south end of Chautauqua Lake.
The village board held three meetings this fall to discuss whether Larry Spacciapolli, who operates two auto dealerships in nearby towns, should be given a special-use permit for a new location at 373 East Fairmount Ave.
At a public hearing on Nov. 13, Spacciapolli’s attorney, John Gullo, argued that the village zoning law allows used car dealerships in that zoning district if they get a special use permit.
Gullo said his client would have no problems with any fair and reasonable conditions the village might put on the permit.
“The only thing we ask is that we are treated the same as all the other car dealerships and used car lots located in the same zoning district within the Village of Lakewood,” he said.
“There may be some conditions that may be specific to this particular location and that is fine.”
Spacciapolli was planning to ofer not more than 50 cars on the lot at a time, and projected about 50 sales per month.
But several Lakewood residents got up at the meeting to argue against the plan, saying the intersection was already too busy because of a Wal-Mart located across the highway.
On Nov. 26, when the Lakewood Village Board took up the matter again, Gullo provided board members with a list of 12 restrictions he had drawn up with his client governing the use of the property.
The list covered the placement of entrances to alleviate congestion, an agreement to not put up streamers and banners at the site, and other measures designed to ease the board’s concerns.
“If there might be some other reasonable restrictions the Board of Trustees would like to add, we’d be willing to consider them,” Gullo said.
Continued on page 7
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Auction Sells History
Battle-hardened historic military vehicles and war memorabilia went through a one-day, no-reserve sale in Auburn, Ind., run by RM Auctions America Dec. 8 as the history center continued the fight to pay off the National Military History Museum mortgage.
Some 80 half- and full-track vehicles, command cars, landing craft, tractors and motorcycles, all camouflaged, soiled and wearing their national insignia, were available to bidders from around the globe.
Total sales were $2,976,605 (hammer prices) for the unusual event. Lots ranged from full-size heavy vehicles to military caps, water bottles, a backpack and numerous skirmish-seasoned wool trench coats.
A World War II Daimler-Benz DB10 12-ton Prime Mover, described as one of the “scarcest” of all German military vehicles, sold for $200,000.
A 1940-41 Hanomag armored 3/4-track brought $160,000 and a 1940 Horch 4X4 CrossCountry Personnel Car sold for $150,000.
RM Auctions spokeswoman Amy Christie said a standingroom-only crowd attended the sale in the museum.
Phone and Internet bidding helped drive up prices.
“The sale attracted strong global interest with hundreds of collectors and enthusiasts descending on the National Military History Center in Auburn from across the U.S., with strong interest from Germany, France and Russia in
particular,” Christie said.
Robert Thomas, a veteran who works for the Dean V. Kruse Foundation and who served as a guide and host for the event, said the non-profit National Military History Center plans to expand the scope of the museum to include conflicts from the Revolutionary War to the War on Terror.
“We want to rebuild and include dioramas,” Thomas said. “First we must get rid of our debt.”
Thomas explained that many of the vehicles on display in December will remain on-site and were not for sale.
Among those vehicles was a 1942 Packard Clipper Model 2001 with 282-inch, 125-horsepower V8 engine.
The massive five-ton Studebaker US6 4X6 Cargo and a 1944 Studebaker T24 “weasel” with delicate wooden skis on top for use in northern Europe were others continuing in the museum collection.
Information on the 1942 Mercedes-Benz L3000s Box-Van Truck indicated German troops preferred the Opel Blitz threeton series because they were more reliable.
The “box-van” body was used for everything from laundry, workshop and radio van to command caravan and ambulance.
The van body combined wood and pressed cardboard “as an economy measure.”
Detailed histories of most vehicles gave rundowns on manufacturers, engines and transmissions, weights and measurements and intended purposes.
WAR MACHINE:
CPO Sets Record
Certified sales reached an all-time high of 1,834,652 in 2012, passing the 1.8 million mark for the first time.
Sales were up 5.3 percent from 2011, according to AutoData Corp. Many brands posted double-digit gains.
December certified pre-owned sales were 156,352, up 5.7 percent from the prior month.
Honda, Hyundai, Kia, Maserati, Mazda, Mini, Nissan, Porsche, Subaru and Volkswagen posted their highest annual sales totals. There were 26 selling days in December and 27 in December 2011.
Achieving their highest December CPO sales were Ford/Lincoln/ Mercury, Nissan, Mazda, Mercedes-
Court
Benz, Volkswagen, Mini, Maserati, Hyundai, Kia, Volkswagen, Subaru and Porsche. Kia and Maserati had their best month ever.
Toyota continued its reign as the best selling certified brand.
Toyota dealers sold 330,814 certified units in 2012. That was down slightly from 331,805 in 2011.
Honda came in second with 239,148 CPO units sold in 2012. That was up from 228,506.
Chevrolet was the best-selling domestic brand. Chevrolet dealers sold 197,995 certified units in 2012, up from 190,592 in 2011.
Ford, which included the defunct Mercury brand, saw a major jump in certified sales to 153,103 in 2012 from 114,550 the year before.
– Continued from page 5
But the board turned down Spacciapolli’s request, saying the dealership would cause a distraction to drivers at the already-busy intersection.
“Mostly, it boils down to a safety issue,” said Trustee Susan Drago.
Board trustees also said the proposed lot wasn’t in harmony with the surrounding area, and said numerous residents had told them they didn’t want a used car lot on
the corner.
On Dec. 7, Justice Dillon issued his opinion setting aside the board’s denial and ordering them to produce a special-use permit for the lot.
“If a use is listed as being permitted subject to a special-use permit, there has to be something other than generalized community concern (regarding) the issues that are presented,” the opinion stated.
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Cheaper to Stock up This Year
By Jeffrey Bellant
Tax season should see some changes on the wholesale side this year, as the market adjusts to new factors in 2013.
ADESA’s Tom Kontos, executive vice president, customer strategies, said dealers can expect lower wholesale prices this tax season.
“I think we won’t be quite as strong as we were a year ago in terms of wholesale prices,” he said. “Unless you’re consigning cars, then this will be a good thing for dealers.”
He said there still will be the typical seasonal uptick associated with tax season, but it just won’t be as strong as it was last year.
“When you look at the prices on a year-over-year basis, they will likely be softer,” Kontos said. “But looking at them from a month-overmonth basis, it will build up like it normally does – January will be stronger than December, February will be stronger than January, etc.”
Ryan Durst, vice president
of Lincoln Auto Auction in Waverly, Neb., said tax time has already afected buying habits at the auction.
He sees the price jumping for one segment.
For a while, he said, there had been a downturn in the demand for cheaper cars.
“But now those cars are bringing more,” he said. “However, everything is bringing more.”
Kontos said two things have changed from this time last year.
“No. 1, used-car prices have gotten high compared to new-car prices, so they almost have no place to go but down.
“Over the past couple of years, we’ve had very strong used-car prices overall (apart from tax season).
“Secondly, we believe, from all indications, that we’ll start seeing more oflease volumes this year.”
While some industry sources anticipate that those of-lease volumes will come late in 2013, Kontos is more bullish.
“Some of that increase will
(Ken Shilson is the founder of the National Alliance of Buy-Here, PayHere Dealers.)
With the close of another year, most buy-here, pay-here operators will evaluate last year’s performance by comparing their financial results with the past. They will base their goals and strategy for the next year by looking at financial and operating metrics like unit sales, gross sales revenue (in dollars), the growth in their installment portfolio, and their net income.
Although these represent the standard benchmarks for planning, they omit a very critical element: compliance.
The buy-here, pay-here industry faces some important new legal and regulatory challenges from the newly formed Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), and the Attorney Generals’ ofces in each state.
All of these regulatory authorities will be monitoring consumer com-
come (right away),” he said.
The other factor is the boost in the sale of new cars.
“New-car dealers are taking more cars in trade and their appetite is not quite as strong for additional inventory,” Kontos said. “So the trades are helping dealers meet their inventory needs without necessarily having
plaints to identify regulatory violations and those operators who are violating the rules.
These regulators will investigate consumer complaints and have the authority to levy substantial fines for non-compliance.
During 2012 regulatory activity and monitoring of subprime auto compliance violations increased significantly and more scrutiny in the future should be anticipated.
Overall buy-here, pay-here industry compliance will be judged on how each individual operator complies with the rules and regulations.
To date, I have noticed that operators are taking diferent approaches in complying with these challenges. Some are waiting to see what 2013 will bring.
Others are more proactive in their approach to compliance and a few are ignoring these compliance threats altogether.
In these circumstances, I recommend that all these operators do the following:
tising and websites for statements which could be construed as false or misleading.
tation matches their internal policies and practices.
to get additional cars from the auction.”
The debate in Washington, D.C., over the fiscal clif has caused some hesitancy regarding the strength of the recovery and tax policy, Kontos said.
One outcome of the recent debate in Washington is tax season should remain strong
all important contractual terms to every consumer.
ternal collection, underwriting and compliance policies and procedures in writing and ask employees to sign a written acknowledgment that they have read and understand them.
complaint resolution procedures and protocols.
In 2012, many operators addressed the first four points and appointed a chief compliance ofcer, as required. Written consumer complaint resolution procedures and protocols have not been priorities in the past but need to be in the future. You should have a competent attorney review your disclosures and contract documentation and help you develop a “compliance management system.” This will be money well spent.
I also recommend establishing a welcome calling program shortly after each sale to ascertain whether the consumer had a positive buying experience.
During that call, all consumer complaints should be taken seriously and addressed by the operator at that time.
Consumer complaints are best resolved before they become a
for the next few years, said Bill Neylan of TRS TaxMax. Neylan said the average refund this year should again be $4,611.
Like last year, however, those large returns may face delays. Neylan said the IRS is checking returns more carefully for signs of identity theft.
compliance issue with regulators.
In cases where the consumer is being unreasonable, an operator’s written policies and procedures can be used to evidence how that operator deals with consumer complaints. Upon investigation by a regulatory authority, the documented policies and practices will be considered in those circumstances.
Complaint resolution is important in building a positive bond between operators and their customers.
The old saying “treat others like you would like to be treated” applies here.
Both the consumer and the operator must work together over the life of the deal to be successful.
In 2013, the regulatory authorities procedures.
Collectors must be particularly careful to avoid violations of the Fair Debt Collection Practices Act. This will require more individual knowledge and training.
Although the year ahead is full of legal and regulatory uncertainty, prudent operators should start the year with a proactive approach to compliance.
You can’t control what others do, but each operator must be responsible and accountable for their own actions.
Rating Agency Says Higher Used Prices Boost Leasing
U.S. auto leasing companies are poised to benefit from another generally healthy used vehicle market in 2013, extending some gains realized as a result of robust residual values for leased cars and trucks seen over the last three years. Fitch Ratings expects lessors to continue to report meaningful gains on sales and to manage residual risk, even as the secondary market begins to normalize and used vehicle prices continue to soften from historical highs reached in 2011.
After 2008-2009, when U.S. new vehicle demand collapsed during the financial crisis, used car inventories tightened considerably and prices rose. This provided opportunities for lessors to book gains on resale values as fleet depreciation rates fell.
For U.S. commercial auto fleet lessors, residual risk remains mitigated by the fact that portfolios are predominantly open-end leases, which subjects the lessee to any residual value loss or gain.
However, lessors may be exposed to the lessee for the repayment of any residual losses in times of stress, which efectively converts residual risk to credit risk. To mitigate this risk, commercial fleet lessors have targeted large corporations with strong credit quality or sufciently
set reserves to help limit the probability of losses.
In the case of both truck leasing and daily car rentals, depreciation rates have fallen since 2009 as a result of increased used vehicle prices, better residual values, and longer holding periods. As supply pressures begin to build in the used vehicle market, depreciation rates are likely to return to more normal levels in 2014 and 2015. Vehicle gains are expected to moderate from recent peaks, but are expected to remain strong in 2013 as of-lease vehicle inventories and prices remain in check and as truck buyers continue to avoid the more expensive post-2010 engines.
Mannheim Consulting’s Used Vehicle Value Index increased modestly in the fourth quarter of 2012, due in part to supply disruptions related to Hurricane Sandy. However, the index fell by 1 percent on an annualized basis last year, as used vehicle prices softened modestly from their 2011 peak. Seasonal trends in the Mannheim index last year closely tracked broader U.S. economic indicators, with notable weakness in the second and third quarters, and a rebound late in the year.
Fitch’s Auto Lease Residual Value Loss Index largely mirrored the Mannheim Index in 2012.
SUVs, Trucks Face Recalls
Manufacturers recently issued recalls on small trucks and SUVs, but the biggest recall came from Subuaru.
General Motors is recalling 118,800 model year 2010-2012 Chevrolet Colorado and GMC Canyon vehicles manufactured from Nov. 9, 2009, through Aug. 28, 2012, for failing to comply with the requirements of Federal Motor Vehicle Safety Standard No. 113, “Hood Latch System.”
The hood may be missing the secondary hood latch.
If the primary hood latch is not
engaged, the hood could open unexpectedly. During vehicle operation, this could obstruct the view of the driver and increase the risk of a crash.
General Motors will notify owners and instruct them to inspect their vehicle for the presence of a secondary hood latch. Dealers will replace the hood on any afected vehicles, free of charge.
The recall was expected to begin on Jan. 17.
GM’s number for this campaign is 12319.
Continued on page 12
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Recalls
– Continued from page 10
Creative Bus Sales Inc. is recalling certain model year 2006-2011 Chevrolet and GMC C5500, and Ford E450, and Econoline 350 vehicles equipped with Braun wheelchair lifts.
Over time, or with frequent use, the roll stop latches on the outer barrier of the lifts may become bent or misaligned.
A wheelchair occupant may defeat or ride over the insufciently latched roll stop.
If this occurs when the lift platform is in an elevated position, the wheelchair’s occupant could fall and sustain injury.
American Suzuki is recalling 2,830 model year 2007 XL-7 vehicles originally sold or currently registered in Arizona, California, Nevada, and Texas; and manufactured June 13, 2006, through Dec. 22, 2006.
Some of these vehicles have a condition in which the plastic supply or return port on the fuel pump module may crack, which could cause a fuel leak.
Fuel leakage in the presence of an ignition source may result in a fire.
American Suzuki will notify owners, and dealers will replace the fuel pump module.
And in one of the biggest recalls, Subaru is recalling 633,842 model year 2010 and 2011 Legacy and Outback vehicles, model year 2006
through 2012 Tribeca vehicles sold before January, and model year 2009 through 2012 Forester vehicles sold before January 2012. These vehicles may have been equipped with accessory puddle lights that, when illuminated, brighten the area under the doors of the vehicle.
A short circuit can develop when either the puddle light or connector are exposed to an electrolytic moisture source (such as road spray that has road salt in it) and it penetrates the circuit board of the puddle light or the pins of the puddle light connector(s).
Over time, migration of the moisture into the circuit board and/or into the connector cavity may result in a short circuit of the puddle light system. This may generate heat, which may melt the plastic resulting in smoke or fire.
Subaru will notify owners, and dealers will install an additional fused-harness, free of charge. The recall is expected to begin during February.
Subaru’s recall campaign number is WQE-41.
The recall is large for most mass manufacturers. However, it is especially large for Subaru.
The company set a record in 2012 by selling 336,441 new vehicles, an increase for 26 percent over 2011.
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Tesla Wins in Court
Tesla Motors won dismissal of a lawsuit brought by the Massachusetts State Automobile Dealers Association claiming Tesla was in violation of Massachusetts law by conducting sales within the state.
A Superior Court judge dismissed the case based upon the auto dealers’ lack of standing and failure to state a claim.
Several months ago the judge denied a temporary restraining order and preliminary injunction requested by the Massachusetts State Automobile Dealers Association and in December Tesla Motors was granted a full Class 1 Dealer License by the Town of Natick’s Board of Selectmen.
The Massachusetts State Automobile Dealers Association has also filed a separate lawsuit against the individual Selectmen that make up the Natick Board.
Tesla is pursuing a company owned store and service center model to accelerate the adoption of electric vehicle technology and to interact with consumers in a friendly, open and no-pressure environment.
Tesla’s retail concept demonstrates the benefits of driving electric through informative videos, interactive displays, and a Design Studio where customers can configure their own Tesla Model S on a large touchscreen.
Governor Buys Used SUV
ALBANY, N.Y. (AP) – Here’s a used car salesman most everyone in Albany can feel sorry for.
Gov. Andrew Cuomo, who has hammered out negotiations with legislators, unions, and most recently with the Bufalo Bills, just put an upstate used car dealer through his paces for a 1996 Ford Bronco.
The car advertised on eBay as being in mint condition is for the governor’s daughter who just earned her driver’s license.
The Daily Freeman in Kingston reports Cuomo called, texted and
negotiated with Sawyer Motors owner Bob Siracusano for days over the vehicle estimated to be valued at about $8,745.
Cuomo, a collector of vintage muscle cars including a Corvette, asked about the tires and other aspects of the vehicle.
The Bronco itself has some significance.
It was the last model year for the Ford SUV.
Cuomo’s next negotiation is with the Legislature over a budget worth about $135 billion.
ADESA Boston February 8, 22
508-626-7000
ADESA Charlotte February 7, 21 704-587-7653
ADESA Cincinnati/Dayton February 19 937-746-4000
ADESA Golden Gate February 12, 26 209-839-8000
ADESA Houston February 6, 20 281-580-1800
ADESA Indianapolis February 5, 19 800-925-1210
ADESA Kansas City February 5, 19 816-525-1100
ADESA Lexington February 7 859-263-5163
ADESA New Jersey February 14, 28 908-725-2200
ADESA San Diego February 28 619-661-5565
ADESA Tulsa February 8 918-437-9044
Brasher’s Salt Lake AA February 26 801-322-1234
Columbus Fair AA
February 20, 27 614-497-2000
Manheim Atlanta February 14, 27, 28 404-762-9211
Manheim BaltimoreWashington February 12 410-796-8899
Manheim Dallas February 13, 27 877-860-1651
Manheim Denver February 13 800-822-1177
Manheim Detroit February 7, 21 734-654-7100
Manheim Fredericksburg February 14 540-368-3400
Manheim Milwaukee February 13, 27 262-835-4436
Manheim Minneapolis February 6 763-425-7653
Manheim Nashville February 6, 20 877-386-5004
Manheim Nevada February 15 702-361-1000
Manheim New Jersey February 13, 27 609-298-3400
Manheim New Orleans February 6, 27
985-643-2061
Manheim Orlando
February 5, 12, 19, 26 800-337-8491
Manheim Pennsylvania February 1, 14, 15, 28 800-777-2053
Manheim Phoenix February 7, 14, 21, 28 623-907-7000
Manheim Pittsburgh February 13
724-452-5555
Manheim Riverside February 5, 7, 12, 19, 21 909-689-6000
Manheim Seattle February 6 206-762-1600
Southern AA February 6 860-292-7500
ADESA Boston February 22 508-626-7000
ADESA Golden Gate February 26 209-839-8000
Manheim Atlanta February 27 404-762-9211
Manheim Dallas February 13 877-860-1651
Manheim Milwaukee February 13 262-835-4436
Manheim Orlando February 19 800-337-8491
Manheim Pennsylvania February 14, 28 800-777-2053
Manheim Phoenix February 7 623-907-7000
Manheim Riverside February 7, 21 909-689-6000
Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles. Contact auctions directly for current sale information.
© 2012 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (12-381) 06/12
ADESA Boston February 8 508-626-7000
ADESA Charlotte February 7 704-587-7653
ADESA Golden Gate February 12 209-839-8000
ADESA Houston February 6 281-580-1800
Columbus Fair AA February 27 614-497-2000
Manheim Atlanta February 28 404-762-9211
Manheim Dallas February 13 877-860-1651
Manheim Detroit February 7, 21 734-654-7100
Manheim Fredericksburg February 14 540-368-3400
Manheim Milwaukee February 27 262-835-4436
Subaru Motors Finance
ADESA Boston February 8 508-626-7000
Brasher’s Salt Lake February 26 801-322-1234
Columbus Fair AA February 20 614-497-2000
Manheim Atlanta February 14 404-762-9211
Manheim Denver February 13 800-822-1177
Manheim Detroit February 7, 21 734-654-7100
Manheim Fredericksburg February 14 540-368-3400
Manheim Milwaukee February 13 262-835-4436
Manheim New Jersey February 27 609-298-3400
Manheim Orlando February 12 800-337-8491
Manheim New Jersey February 13 609-298-3400
Manheim Orlando February 5 800-337-8491
Manheim Pennsylvania February 1, 15 800-777-2053
Manheim Pittsburgh February 13 724-452-5555
Manheim Riverside February 12 909-689-6000
Manheim Pennsylvania February 15 800-777-2053
Manheim Pittsburgh February 13 724-452-5555
Manheim Riverside February 19 909-689-6000
Manheim Seattle February 6 206-762-1600
Southern AA February 6 860-292-7500
Mazda Capital Services
TIMES ARE SHIFTING...
who’s ready for what’s next?
Wholesale Prices Finish Strong
Hurricane Sandy helped boost wholesale prices seen during December, with average prices rising by over three percent relative to November.
showed strong monthly gains.
Tom Kontos, ADESA’s executive vice president of industry analysis, said December has been a seasonally stronger month than November and more comparable to January in recent years.
According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class, wholesale used vehicle prices in December averaged $9,849 – up 3.1 percent compared to November and down a modest 0.2 percent relative to December 2011.
Cars, trucks and crossovers all
Prices for used vehicles remarketed by manufacturers rose by 3.2 percent month-over-month in December, and were up 6.9 percent year-over-year, indicating continued good absorption of of-rental program vehicles.
Fleet-lease consignors experienced a 2.8 percent increase in December, resulting in prices being up 2 percent year-over-year.
Dealer consignors saw a 3.5 percent average price increase versus November, leaving prices down 1.7 percent versus December 2011.
For the full year, wholesale prices in 2012 versus 2011 were up 4.9 percent for manufacturers, but down 0.4 percent for fleet-lease consignors, and 1.7 percent for dealers.
The former owner and general manager of the Gettysburg Auto Exchange were sentenced for a scheme to defraud charities who sold vehicles at the auction.
William C. Stake, age 41, of Chambersburg, Pa., the former owner of Gettysburg Auto Exchange was sentenced to 27 months’ imprisonment. David R. Burk, age 65, of Chambersburg, Pa., the former general manager of the auction, was sentenced to 12 months’ imprisonment and two years’ of supervised release.
Both men were ordered to jointly pay $524,694 in restitution.
Stake and Burk were charged in November 2011 with operating and conspiring to operate a scheme to defraud charities who used the Gettysburg Auto Exchange to sell vehicles donated by private individuals for charitable causes.
Gettysburg Auto Exchange agreed to assist non-profit organizations that solicited the public to donate used vehicles to charities.
The charities would then arrange with various used car dealers/
auctions to sell the donated vehicle and to send the proceeds from the sale to the charities, which would then distribute the funds to the particular charitable causes and institutions.
Transportation selling fees were deducted from the proceeds by the auction.
Stake, assisted by Burk, engaged in a scheme to defraud both the charities and the donors of the used vehicles by selling the vehicles and keeping a significant portion of the proceeds of the sale for himself. Stake created fictitious bills of sale indicating that the vehicles had been sold at less than the actual price.
These fictitious bills of sale were then sent to the victim charities as proof that they had received the full sale price of the donated vehicle. As a result, the charities were defrauded of hundreds of thousands of dollars.
Stake pleaded guilty to mail fraud and Burk pleaded guilty to conspiracy to commit mail and wire fraud.
Family Sells, Races Used Cars
HOWELL, Mich. (AP) – Most parents would shudder at the thought of their children driving over 100 mph, racing through turns and jockeying for lane position with other cars.
But if you’re a member of the Conely clan, driving fast is a way of life.
Longtime Brighton Township resident Jack Conely set track records while racing stock cars for about 25 years.
His son, John Conely, raced a few years and then made his name building and maintaining racing engines for McLaren Engines, and later launched his own racing outfit.
Now, the family is watching its third generation put the pedal to the metal while racing at the Waterford Hills Road Racing facility, part of the Oakland County Sportsman’s Road Racing Club.
“Racing is exciting,’’ Katie Conely said. “You have to think about what you’re doing. It’s fun.’’
Katie Conely, 20, and her brother, Sean Conely, 22, both won class championships this season at Waterford Hills in their respective category while driving cars modified for racing.
The season, which ended in October, features three races per weekend.
In addition, Sean Conely fell only
a few points short of being named overall champion among the 100 drivers who race at the 1.5-mile track, which tests drivers with its many curves and turns.
John and Jenny Conely are their parents.
Katie Conely, a Michigan State University engineering student, just completed her first full season of racing. She started racing when she was 18 and said her older brother gave her plenty of driving tips.
“I was able to finish every race I started,’’ she said.
Katie Conely drives a 1984 Honda CR-X. She reaches speeds of up to 90 mph and has spun out a few times but has had no injuries.
Sean Conely, a 2009 Brighton High School graduate, is studying to be a mechanic at Washtenaw Community College.
He began taking his Camaro to the track when he was 16 for opentrack events and began racing when he was 18.
“It was awesome,’’ he said. “I knew I was going to like it.’’
He said he likes the “adrenaline rush’’ of going over 100 mph and trying to get ahead of other cars.
Emotions can run high during races, especially since cars bump and hit each other. Sean Conely recalled how one driver walked over to him after a race and held up his Continued on page 22
Racing
– Continued from page 20
bumper before having a short heated discussion; Sean Conely had run into him while avoiding a crash.
more than willing to help.
When he first began racing, he said, some considered him a “young punk’’ because he was aggressive and doing well, but he felt he was driving safely as well. He said he gradually earned their respect.
Katie and Sean Conely both said they like the racing club because it’s like a family. If there is a problem on the track, drivers are supposed to talk with each other and try to resolve it. If that doesn’t work, the club can get involved.
The two work on their own cars and get them prepared for the racing season.
They work on the cars at their father’s business, Conely Auto Sales, Service and Rent-A-Car in Genoa Township. If they have any questions, John Conely, a mechanic, is
John Conely said he’s proud of his two children and how much they have improved. He enjoys going to the races and has even raced his children at the track.
“I have a great time,’’ he said. “Both Jenny and I enjoy it.’’
Although racing can be dangerous, John Conely said race cars have plenty of advanced safety equipment, including a new device to support the neck.
“Riding a bicycle without a helmet is probably more dangerous than driving these race cars with the safety equipment we have today,’’ he said.
He said both of his children played several sports in high school, and he’s glad to see them using their competitive skills on the track.
“I’m happy for them, they’re so talented,’’ he said.
Lemon Law Site Wins Award
Californialemonlawpros.com, a website providing information on consumer rights, lemon law changes, and car-buying; was honored as one of the best legal websites in the nation in an independent study recently completed by Worldclassmedia.com.
The site specifically provides content from Norman Taylor’s books on
the Lemon Law.
The site, which is operated by the consumer advocacy firm of Norman Taylor and Associates, received a Gold award and ranked among the top ten law firm websites. The study was based on five criteria: design, content, usability, interactivity and the ability to answer consumer’s questions.
Manheim Taps Industry Veteran
PEOPLE IN THE NEWS
Manheim has named Jay Cadigan vice president of industry relations. In this new role, Cadigan will report to Joe George, senior vice president of product development. Cadigan is responsible for building and maintaining strong relations with Manheim’s partners across the industry. He will lead Manheim’s strategic eforts to develop, promote and establish consistent standards, processes and policies that achieve business objectives and further the industry.
Prior to this new role, Cadigan has held a variety of leadership positions within Manheim. For the past six years, he has served as market vice president for Florida and Puerto Rico where he oversaw the day-to-day activities of the 12 locations in that market. From 2003 to 2006, he spent three years in a corporate role as vice president of sales and operations for the General Motors and Avis Budget Group accounts. Before that, Cadigan was general manager of Skyline Auto Exchange (now Manheim NY Metro Skyline) in Fairfield, N.J., a position he held for 11 years.
“Jay is a 36-year-veteran of the automotive industry who has worked not only in the auction business,” George said, “but also as an executive in the leasing and rental car remarketing businesses. His deep and diverse professional and leadership experiences make him the ideal choice to lead our industry relations strategy.” Cadigan is a past president of the National Auto Auction Association (NAAA), and he is currently a member of NAAA’s executive committee and board of directors, serving as executive vice president.
“I’m very excited to join the Product Development team and to be a part of the next evolution of the vehicle remarketing industry – in the U.S. and globally,” Cadigan said. “We have a fantastic opportunity to leverage our digital and in-lane assets to attract more business and to tap into non- traditional sources of sales as we also expand our leadership role in the industry by standardizing condition information, improving the customer experience and readying ourselves for a multi platform future. We expect that Manheim’s enhanced focus on industry relations will have a positive impact on our operations and support the greater good of the remarketing industry as a whole.”
NADA Names New President
The National Automobile Dealers Association has selected Peter K. Welch as its new president.
“I’m excited and honored to be selected as the next NADA president,” said Welch, 59.
Welch has been president and chief executive ofcer of the California New Car Dealers Association (CNCDA) in Sacramento since 2003, and has managed its government afairs ofce, including legal, legislative and regulatory afairs, since 1990. It’s the country’s largest state organization for new-car dealers.
“NADA is a well-run organization. I look forward to following in the tradition of strong leadership at NADA. I’m ready to roll up my sleeves and get started,” Welch said.
The unanimous decision was made at a special meeting of the NADA Board of Directors in Dallas on Tuesday, Jan. 8, following an extensive nationwide search. Welch will become the NADA president ofcially on February 1.
“Peter will be a great leader at NADA,” said Bill Underriner, the NADA Chairman. “He has an impressive track record in California, where every day he faced some of the toughest regulatory and legislative issues in the industry.”
A native of Detroit, Mich., Welch has been married to Cheryl Welch for 32 years. They have three children.
He earned a bachelor’s degree from the University of Michigan; a master’s degree from the University of Durham, England; and a law degree from Loyola Marymount University of Law, Los Angeles. Prior to joining the CNCDA, he was a partner with a Los Angeles law
In connection with the appointment of Welch as NADA president, Underriner also announced the promotion of the following individuals, efective immediately:
Joseph L. Cowden, executive vice president, chief operating ofcer and CFO; Andrew D. Koblenz, executive vice president, legal and regulatory afairs and general counsel; David W. Regan, executive vice president, legislative afairs.
Peter Welch
Jay Cadigan
RETAIL MARKETS
IOWA
Louise Cordes, office manager/sales, Jim Cordes Motors Inc., New London, Iowa:
“My husband Jim (the owner) has been a dealer since 1961. He started as a franchise dealer and the independent store has been around for about 21 years.
“We carry about 50 to 55 cars in inventory. I think we have a little more than last year.
“We get our vehicles from auctions. It’s tough, though. Jim used to go out and buy a whole truckload. Now he has to go out further and has to pick (individual units).
“On an average month, we sell about 15-25, depending on the month. December was not a good month. We sold about 14.
“We sell straight retail. We don’t do buy-here, pay-here.
“I would say the average age of a vehicle here is maybe, 2007 or 2008.
“Mileage is the hard part. On average, our mileage is about 50,000. The problem is, to get that, you have to travel a long way.
“We recondition our ve-
hicles. We have our own guy who does that.
“We work on our own vehicles. Any major mechanical work we (farm out). We don’t do outside work. We used to, but not anymore.
“Mostly we carry domestics. We’ve got some Toyotas here, but very few. My husband’s an old Ford and General Motors (dealer). I’m a Ford girl. We drove trucks on the farm (growing up).
“The inventory is more cars than SUVs or trucks, definitely.
“Our average retail price is around $10,000. Jim does those $9,999 deals.
“The only advertising we do is in two (local) classified magazines. Jim does his own ads.
“We do huge repeat business and a lot of word-ofmouth business.
“We had a couple come in the other day who had bought a Mercury Villager from us five years ago. They live two hours away. Another couple who bought a truck had also purchased from us before. So we get a lot of repeat business.
“We recently sold a 2001 Ford Windstar. It had 75,000 miles. The retail price was probably $5,880.
“January started good. Knock on wood. I don’t want to jinx it. We need more improvement.”
MICHIGAN
Rick Rynberg, owner, Rynberg’s Car Co., Muskegon, Mich.:
“I’ve had my own store for 17 years as of last June. I have one location. I’ve been in the business since 1978.
“On average, I keep 50 to 60 vehicles in inventory.
“We’re selling about 15 to 25 per month.
“I had a really good year last year. We probably ended up selling 20 more cars in 2012 compared to 2011.
“I attribute that to repeat business. We’re doing eight to 12 repeats every month. I have many customers on their fifth and sixth vehicles with us. I have a company that we sold five trucks to this year.
“I have more inventory now than I normally have in the winter. The reason is our reconditioning costs
Compiled by Jeffrey Bellant
are high. But I don’t want to take the big hits to (wholesale them), so I’d rather retail out of the vehicles. Realistically, we should be doing a 60-day turn, but it’s not happening because of the economy.
“We don’t do buy-here, pay-here. We just do conventional, bank or credit union financing. It probably hurts me some (that I don’t do buy-here, pay-here).
“The vehicles are either lease returns or new-car trades. I don’t carry the lower-price cars. I’d love to, but they need so much work.
“Our market is in the $5,000 to $25,000 range.
“The average mileage I have is 60,000 to 125,000. I can put a warranty on them. Cars last longer. Vehicles have up to 300,000 miles – 200,000 is normal on a 10-year-old car. I’ll buy a couple of diesels that might have upwards of 180,000 miles, because they will last longer.
“But the truck market has not slowed down.
“We probably carry 25 percent cars and 75 percent trucks/SUVs, but we’re
known for our trucks and SUVs.
“On about 99 percent of my cars, I put a threemonth, 5,000 mile warranty on them. That covers the powertrain. That’s no cost to the customer. We do a Carfax on all of them.
“I’ve never received a complaint through the Better Business Bureau and we were awarded the state Quality Dealer of the Year award in 2005.
“We give every car I (acquire) a (detail) and an oil change. We don’t have a shop here. We farm that out.
”We advertise in those local (classified) magazines. We also have a website.
“The wholesale prices are strong, because everyone is worried about (the impact) of Hurricane Sandy. I think there are going to be a lot of lease returns this year. That should help the (prices) some.
“I recently sold a 2003 Dodge RAM pickup. It’s my oldest vehicle. To close the deal, I threw in a 12-month, unlimited-mile warranty with the deal. I sold it for $10,900.”
WHOLESALE MARKETS
NEBRASKA
Ryan Durst, vice president, Lincoln Auto Auction, Waverly, Neb.:
“This year will be our 21st year in business.
“We have four lanes and we’re running four lanes.
“Since our sale is on Tuesday (which was on Christmas and New Year’s in 2012) we had to move it to Friday. It afected the volumes but it didn’t afect percentages much. We sold above 60 percent like we normally do.
“More recently, we had more than 325 cars at a recent sale and sold 70 percent.
“Usually our volumes are between 275 and 325. If we get sales percentages in the low 60s, we’re disappointed. The numbers we’re averaging now are similar to this time last year.
“We’re drawing between 200 and 225 dealers in the lanes for our sales. That’s about the same as this time last year.
“Our bidders are coming from all over Nebraska, South Dakota, North Dakota, Colorado, Kansas, Missouri and a few from north-
ern Oklahoma, Illinois and Iowa.
“We’ve been fortunate to hire a couple of people recently that have been visiting dealers, both at new-car stores and independents, that we haven’t been to in a while. They’re coming back. Plus we’ve been getting some new faces, in general.
“People come here because they know we’re going to sell cars. We start at 10 a.m.; we’re done at noon. People know we’re not going to waste time, so they can get back to selling cars.
“Dealer consignment makes up 80 percent of our volume. We’re going after a few fleet accounts to help with the volumes.
“Our average price is about $4,100 to $4,200, which is right in line with last year.
“Obviously, it’s four-wheel drive season, so those are doing well, along with the heavy stuf.
“Also, if you have a midrange to later-model Grand Prix or Dakota or Impala, then dealers will pay to the moon. Those three models are just hot now.”
OREGON
Lisa Larkin, general manager, Brasher’s Northwest Auto Auction, Eugene, Ore.:
“Brasher’s has owned the auction since 1991. It was around for 14 years before that.
“We run four to five lanes a week. We can go up to eight lanes.
“Our volumes are going up a bit. The volumes are lower than we’d like. We’re running between 300 and 350, on average.
“For percentages, we averaged between 60 and 70 percent all last year. It’s dropped a little bit of here in December, obviously. But it’s been picking up again already (in January).
“Volumes have been affected by the lack of repossessions. Also, (lenders) weren’t financing as many cars.
“But we have heard that banks are starting to loan a lot deeper than last year.
“The anticipation for the next year or two is that those numbers should be going up.
“It’s difcult to gauge our
Compiled by Jeffrey Bellant
average turnout of dealers in the lanes because of our recreational vehicle sales. We have RV sales twice a month. So we’re averaging 400 to 450 in the bidder badge count, realizing that during our RV sales that count is up there.
“On the regular car sales, we’ll draw dealers from all over Oregon and from up in Washington. We are online, so we’re seeing folks from the Midwest bidding.
“For our RV sales, we’ll draw bidders from all over the United States and up in Canada. We have buyers in Oregon and Washington, obviously. But we also draw from Texas, California, Colorado and Arizona.
“Car and RV dealers seem to be pretty optimistic about this year. It’s been such a goofy cyclical thing, where one month dealers are happy and doing well and the next they’re wondering what happened. But I think they kind of understand that this has just been an odd period of time. So they’re looking forward to a little more consistency this year and they’re expecting
to see it.
“On average we’ll run 200 to 300 RVs per month. That includes powersports and marine units. The RVs and the marine volumes had slimmed some because of the (change in financing standards). Those are starting to see a shortage of inventory in these items.
“Marine items are boats, mainly. Powersports includes motorcycles, ATVs, jet skis, snowmobiles, etc.
“Prices on motorcycles have been good. But we were running more than 100 once a month, but that’s fallen to about 20, because nobody was financing those for a while.
“We also do some online sales for the General Services Administration. We’re looking to have another one in the spring. The GSA sale usually includes trucks, sedans and SUVs.
“We’re hearing such positive things from all of our bank reps.
“I think by the end of the year we’ll see some of those volumes going up.
“There’s a really positive outlook for 2013.”
COMPILED BY JEFFREY BELLANT
SERVNET ADDS MEMBER
NEW
official opening of their newest auction facility in Florida, Ocala Auto Dealers Exchange, which was recently named ServNet’s 31st auction location.
ServNet has launched its 25th year with the announcement that Ocala Auto Dealers Exchange has been added as the group’s 31st auction location. OADE is owned by Michael Tumminello and Jef Brody, and joins two sister auctions – Sanford Auto Dealers Exchange (SADE) and Cocoa Auto Dealers Exchange (CADE) – as ServNet facilities.
OADE was acquired by the Tumminello/Brody team in the summer of 2012. Formerly Big Sun Auction, the facility was renamed Ocala Auto Dealers Exchange and held its grand opening sale in September. Overseeing operations and administration at OADE as the auction’s general manager is Richard Galway. Galway was most recently the assistant general manager at Sanford Auto Dealers Exchange, where he had been working since 1996.
“We are delighted to welcome Ocala Auto Dealers Exchange to ServNet,” said R. Charles Nichols, ServNet’s president and owner of two ServNet locations.
Tumminello said association with the group has certainly increased the group’s visibility within the industry
Manheim Sale Supports Needy
Manheim Omaha employees supported those in need during the recent holidays, by raising money and other donations.
In November and December, employees collected items for the Open Door Mission, a rescue mission founded in 1954.
The group is committed to breaking the cycle of homelessness and poverty in its communities.
Manheim Omaha employees donated over 450 pounds of gently used clothing items and toys.
In addition, employees donated new toys, “purchased” opportunities to wear jeans to work or
donated cash.
In total, $460 was raised and the location was able to purchase coats, hats, gloves, toys and books to donate to the mission’s Operation Santa drive.
Operation Santa helps to provide a fabulous holiday to more than 6,000 children in the Omaha, Neb., metro area.
Photo Courtesy of ServNet
BEGINNING: Michael Tumminello (center) and Jeff Brody (left) mark the
Chrysler
Import
Acura
BMW
BMW
Honda
Acura
BMW 3-Series 328i 4D Sedan 20500 19600 17900 15125 12725
BMW 7-Series 750Li 4D Sedan 55800 49200 41900 35475 29075
Honda Accord LX 4D Sedan 12200 12550 11250 9400 8075
Hyundai Sonata GLS 4D Sedan 9650 9850 8300 6800 5550
Lexus ES 350 4D Luxury Sedan 23000 22600 20200 16550 14175
Mercedes-Benz E Class E350 4D Luxury Sedan 28600
Mitsubishi
Nissan
Disconnected Jottings From Tony Moorby...
I’ve often said that you can’t legislate for stupidity, but how do you deal with stupid legislators?
Iowa’s Supreme Court recently refused to let a sex discrimination case go further because “allowing the suit
would stretch the definition of gender discrimination,” according to Justice Edward Mansfield.
I don’t get too incensed by much these days (although one who read a draft of this vehemently disagreed), but this whole afair has so much wrong with it that I don’t know where to start.
A dentist, James Knight, fired one of his assistants, Melissa Nelson, for “being too irresistibly attractive.” This after 10 years of employment and he gave her a
measly one month’s salary as severance. A new Scrooge walks among us! So because this leering, lascivious, debauched lecher can’t go to work and respect his colleagues he can fire them. Now, so can anyone
It was she that insisted upon Nelson’s firing. So Mr. Wimp did. Why she suspected a few innocent text messages is a mystery – this guy was no oil painting. His wife must have entered a room to the strains of Wagner’s “Die Valkyrie.”
else in the State of Iowa. This dribbling dentist can gawp through the x-ray screen with not a clean thought in his mind and get away with firing her – I don’t get it.
Apparently she wore her scrubs a little on the tight side. A discreet word to another (female) employee, asking her to loosen up, could have cured that problem about nine and a half years ago. I suspect he enjoyed the titillation of it all until the wife started to suspect something untoward was going on.
By Miles Mellor
The Iowa Supreme Court is made up of seven men. Who knew? Perhaps Chief Justice Mark Cady, his colleagues, Justices David Wiggins, Daryl Hecht, Brent Appel, Thomas Waterman, Edward Mansfield and Bruce Zager should consider getting a broader representation around them. Governor Terry Branstad, who appoints these people from nominations made by a nominating committee, should veto any new ones that aren’t female until balance has been achieved. As the average tenure of Supreme Court Justices here is about eight years it’ll take a while to gestate – but good things are worth waiting for. A harridan amongst all this testosterone strikes me as a very good idea! If it’s OK for the Knight family to have a female boss then it may be good for the state too.
By the looks of news snaps,
Mrs. Nelson who was apparently happily married was, by any measure, attractive but attractiveness should be no deterrent to entering or staying in the workforce. We are all, to a greater or lesser extent, gifted with something to contribute to our lives, be it looks, intellect, love, respect, charity and so on but there’s too much of an accent on the vain and empty things that aren’t so important. Maybe it’s me that’s out of sync, but I like some of the older standards being upheld and today’s legislatures seem to protect ofenders rather than the ofended.
Let’s hope this year brings better things than the end of last. Random shootings are becoming a common occurrence. Whilst I do, in principle, defend the right of decent American citizens to bear arms – one of my closest colleagues is a gun aficionado, admiring shapes, design,
engineering and so on. He’s also an avid hunter and believes in protecting what’s his –a pin-up for the NRA, whom I support wholeheartedly.
But a woman who “collected” guns and was an “enthusiast”, according to accounts, enabled the episode in Newtown, Conn. She knew her son was less than mentally competent; in fact she was threatening to have him committed to institutional education. Yet she made access to an arms cache as easy as falling of a log. To me she ignored all the rules of common sense and the tenets of the NRA and I believe she was as culpable for this crime as her son.
Maybe the New Year should usher in a new “tough love” policy from the law enforcement community without becoming a police state and the judicial side of the house gets some semblance of public decency.
Tony Moorby
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