Categories
Auto Insurance

Automotive Dealership Compliance: Disaster Scenario

The commotion in your service department sends a shockwave throughout your dealership, and you, the dealer, arrive just in time to witness one of your service techs being handcuffed across the hood of a vehicle in for service.

Your tech has been accused of stealing the checking account number from an old checkbook register in a service customer’s glove compartment, and then draining the customer’s account.

So what are the boundaries of an automotive dealer’s liability because of your rogue employee? Compliance certainly can’t be an issue because your DMS representative and even your garage liability carrier have assured you that with their particular compliance solutions, you are totally compliant.

However, the victim’s attorney, the law firm of Dewey, Cheatum & Howe, later requests a copy of your dealership’s Gramm-Leach-Bliley Safeguards Rule Policy and documentation of total staff training (have your service people been trained?) as required by federal regulations. You contact your trusted DMS and garage liability representatives for their help to furnish the documents, only to discover there are none! When they assured you that you were compliant, it turns out they meant you were only compliant with scans for the Red Flags Rule, OFAC and Do Not Call, or in other words, only a small portion of required automotive dealership compliance.

Although the Safeguards Rule does not provide for identity theft victims to directly recover losses and damages, rest assured the victim’s attorney with use your “willful non-compliance” to force a huge settlement, or use it as the highlight of their opening statement to the jury in litigation against you… and you know how juries just love car dealers. And need we mention the potential for class actions with some regulations?

But it only gets worse. Now the feds are investigating and are looking for what they term, “an atmosphere of compliance”, and they also demand to see the same documentation of compliance performance as requested by the victim’s counsel. So what is your liability with the federal government? The fine is $11,000 per day, retroactive from May 23, 2003!!! In other words, tens of millions if they so choose.

Oh, and in case you didn’t know, there is no such thing as “fine insurance” provided by your garage liability carrier; they’ll represent you, but you’re on your own when it comes to paying the fines and penalties.

Automotive Dealerships – Creating And Maintaining An “Atmosphere Of Compliance”.

So what about the other federal regulations such as the Red Flags Rule, The Do Not Call Act, and the Patriot Act’s OFAC, and FINCEN regulations? They, too, require that dealers have in place a formal written Policy and documentation of formal staff training for each.

And then there are other dealership compliance regulations where the lack of staff training has cost dealers hundreds of millions over just the past few years; Truth In Lending fraud issues, Sexual Harassment, Diversity issues and the Magnuson-Moss Warranty Act. Here are some examples:

– An automotive dealer loses $92 million in a jury verdict because a salesperson said just one thing wrong regarding the Magnuson-Moss’s “warranty of fitness for a particular purpose”.

– A dealer is forced to settle a diversity harassment claim for $400,000.00.

– Several dealers, managers and salespersons across the country served prison terms for fraud and Truth In Lending violations.

– A car dealer settles a sex-and-age discrimination case for over $1.5 million.

In each instance, there was no evidence the automotive dealer was promoting an atmosphere of compliance… specifically, no formal dealership compliance training.

So how can automotive dealers create and maintain an atmosphere of compliance?

1. Appoint a Dealership Program Coordinator to oversee your dealership’s compliance performance.

2. Have in place all required Dealership Compliance Policies signed by employees.

3. Provide all designated staff training at least once a year with documentation available for government inspection or litigation actions. (Note: Simply allowing staff members to read and sign your required dealership Policies IS NOT considered training under these regulations.)

4. Provide all compliance training and required signed Policies as a part of your hiring process complete with documentation.

5. Perform annual compliance inspections and audits annually, once again, with documentation on file.

The Question: “Did the dealer do everything within reason to prevent this violation from occurring, and if so, where is the proof?”

Virtually all automotive dealership compliance fines, penalties, litigation or arbitration decisions revolve around this single question.

In fact, any attorney worth their pinstripes will tell you that the only true dealership compliance litigation defense is to be able to provide documentation of compliance performance – again, specifically, staff training.

Lawmakers understand that you, the dealer, can’t possibly watch every move each of your employees make while conducting business, but they do give you the opportunity to perform dealership compliance elements in order to mitigate liability, or even in some instances, to benefit from safe harbor status.

Therefore, in the eyes of the law, any dealer that chooses to ignore required compliance performance has no respect for the consequences, and generally, the juries and the feds use that opportunity to pile it on.

There is only one way to get the “compliance monkey” off your back? Take care of it right now!

Categories
Auto Products

All-new Ford Focus Comes with 4 Variants

(FMI) officially launched the latest generation of the medium sedan All-new Ford Focus at IIMS 2012. There are 4 variants are offered with two petrol engine variants of 1600 cc and 2,000 cc. The price starts from Rp 324.9 million to Rp 369 million to the hatchback and sedan models. Competitors Toyota Altis and Honda Civic is more confident through its features are now more attractive.

Full, 5-door Focus 1.6L Trend PowerShift 6-speed AT for sale Rp. 324.9 million, 4-door Focus 1.6L Trend PowerShift 6-speed AT Rp. 338.5 million, Focus Sport 5-Door 2.0L 6-speed PowerShift AT Rp. 349 million, and the Focus Titanium 4-Door 2.0L 6-speed PowerShift AT Rp. 369 million. “The new Focus represents the strength and excellence of the One Ford global strategy to serve customers in the country. We have gone further in every aspect to deliver quality, fuel efficiency, safety and smart technology that exceeds our customers’ expectations

Ford Focus is a leading feature that provides connectivity SYNC hands-free in-car voice activated. This system connects virtually every type of cell phone or digital media player into their Focus via Bluetooth and USB connections respectively. Motorists can make a call or play his favorite music at any time via voice commands and controls on the steering wheel without taking eyes off the road and hands remain on the wheel.

Another excellent feature is the Active Park Assist, a system with just the push of a button, the driver’s all-new Focus can parallel park with ease, without using hands. Active City Stop, ie suppression system in low-speed collisions by monitoring the road ahead, and brake automatically if the sensor detects a car in front stopped suddenly.

All-new Focus presents a DOHC 2.0-liter four-cylinder engine that produces 170 PS power and 200 Nm of torque. This engine produces power nearly 20% larger than the previous 2.0-liter Focus engine and result in increased fuel savings of over 10%. Provided in the form of second Powertrain Duratec Ti-VCT engine 1.6-liter that produces 125PS and 159Nm of torque with fuel economy is outstanding.

Categories
Auto Modification

Chevrolet Trailblazer, New Challengers 7-seater SUV

After Captiva, General Motors Indonesia (GMI) variant adds Chevrolet Trailblazer SUV to launch in the Indonesian market. There are two variants on offer turbodiesel engines, the 2.5-liter and 2.8-liter LT LTZ with the price of each Rp 360.6 million and Rp 578.8 million. 7-passenger capacity, Trailblazer SUV Large segment is positioned above and Captiva.

Fully imported from Thailand, the results of the development of GM Brazil car is claimed to be a vehicle that is able to transform a dynamic lifestyle and urban families. Bongsor SUV is called qualified driving in off-road terrain, big city traffic and accelerates comfortably on the freeway. This is the answer Chevrolet SUV on the market that is booming in Southeast Asia, especially Indonesia.

“It is an honor for us to be able to deliver world-class sport utility vehicle market in Indonesia continues to grow positively. All-New Chevrolet Trailblazer is our answer to meet the needs of consumers who are critical of the meaning of an SUV tough and elegant,

Despite not speaking a sales target, Marcos optimistic acceptable Trailblazer positive in the Indonesian market. With an impressive exterior shape manly and masculine, powerful engine, as well as cutting-edge features, Trailblazer SUV is believed to be able to attract the lovers in the country. “Chevrolet Trailblazer in Indonesia indicate a strong commitment to fill a niche market Chevrolet sport utility vehicle continues to increase,” he added.

For version 2.5 LT, Chevrolet gives the 4×2 system can be invited to wander in urban life. Duramax turbo-diesel engine offers 150 PS power and 350 Nm of torque great. Power is channeled to the 5-speed manual transmission. While the highest type 2.8 LTZ 4×4 drive system is equipped with abundant power and torque, the 180 PS and 470 Nm with 6-speed automatic transmission.

The dimensions are a length of 4878 mm, width 2132 mm, height 1831 mm (2.5L LT) and 1847 mm (2.8L LTZ). Control and stability is aided with a wheelbase of 2845 mm, wheelbase 1570 mm (2.5L LT) and 1588 mm (2.8L LTZ). Trailblazer has a minimum ground clearance of 241 mm (2.5L LT) with 16-inch alloy wheels and 231 mm (2.8L LTZ) with 18-inch alloy wheels.

Safety features include ABS with EBD buried up airbags for driver and front passenger. Especially for variants 2.8 LTZ, plus Electronic Stability Control (ESC), Hydraulic Brake Assist, Traction Control, Dynamic Rear Brake Proportioning, Panic Brake Assist, Limited Slip Positraction, Hill Start Assist and Hill Descent Control. Additionally for the first time in its class, Chevrolet offered ventilated disc brakes on all four wheels.

Categories
Auto Service

Custom Fitted Car Covers – For the Best Exterior Protection

Car covers that are custom fitted – now that’s a thing that you may have never considered. But that is definitely one thing that you should consider. Why? We will get to that later. But first let’s see what we mean by car covers that are custom fitted.

A custom fitted car cover is the one that fits your car as per its measurements, one that has pockets for your side mirrors and stays on the body of your car and is not blown off by wind or rain. Now isn’t that something worth a few bucks? But don’t just think that the benefits of a custom fitted cover ends there. Such a cover can give your car lot of protections.

o Custom fitted covers generally have four layers. These layers are bound to protect your car from moisture, road salt, acid rain, hail and sleet.

o A car parked outside without a cover can be very easily scarred by flying debris, dust and dirt. A custom fitted cover can guarantee better protection for your car’s body against the dust on the roads. Don’t let your car age in looks even before it is due.

o How many times have you had to shoo off the pigeon from depositing special debris on the body of your car? How many times have you had to shoo off the squirrel from concentrating on your car’s door? Or the crickets that enjoy the underneath of your car? Well, a custom fitted car cover is heavy duty, so whatever the elements of nature may want to do to your car, they will have to be happy with the car cover. There is no way that they can penetrate the cover.

 

o UV rays do not just harm your screen. Harmful sun rays harm your car’s body, its wax cover and its shine. Let the car cover take the toll of the sun’s assault while your car takes its much deserved break underneath it. Protect your car from the sun, use a custom fitted cover.

o Protect your car from getting banged by someone opening the doors of the car parked next to yours! Protect it from the impact a skateboarder running off balance might have on your car. Use a custom fitted cover and you will rest assured.

o Every time that you leave your car unattended your car draws unwanted attention form people. Some may just be hovering around and eyeing your car while other might be in the lurk of some cash that you may have left in your car, some other valuable like a cell phone may or your invaluable music system. A car cover can protect your car from such unwanted attention and give you the much needed peace of mind.

Custom fitted car covers are made for specific models like BMW, Honda and Ford, etc. So it is never like you have to use the cover made with the specifications of a different make. While shopping fro custom fitted car covers, look for ones with more layers for better durability and with side pockets for complete protection.