Administration Wants Less Distraction In Cars, Urging Automakers to Limit Electronics

Automakers are being urged to limit the number of electronic devices installed in new vehicles as part of the recently released non-binding guidelines issued by the National Highway Traffic Safety Administration (NHTSA). Along with this limitation, the guidelines also ask automakers to ensure that Internet-based applications are disabled when an automobile is in motion. These guidelines come on the heels of a recent study by the NHTSA that found that drivers are most likely to be distracted when text messaging, web browsing and dialing. The Texas Transportation Institute also released a study that found that voice-activated text-messaging devices are equally as distracting as typing on a phone.

Moreover, the guidelines ask carmakers to build electronic devices into vehicles in a way that will not distract drivers, including designing navigation devices so that drivers will not have to take their eyes off the road for more than two seconds to select an option, or for more than 12 seconds to enter an address.

“Distracted driving is unsafe, irresponsible. It can have devastating consequences,” said Transportation Secretary Ray LaHood, who announced the guidelines along with National Highway Traffic Safety Administration Administrator David Strickland.

LaHood and Strickland told reporters during a conference call on April 23^rd when the voluntary guidelines were released that the NHTSA has determined that over 3,000 people were killed in crashes that involved distracted driving in 2011 and more than 387,000 were hurt. Furthermore, a survey this year by the AAA Foundation for Traffic Safety found that almost 35 percent of drivers said that they had recently read text messages or e-mail while driving, and 26 percent said they had sent a text message.

The automakers, through the Auto Alliance trade group, responded with cautious approval, saying the guidelines should be extended to cover hand-held devices so that drivers don’t try to circumvent restrictions on factory-installed electronics.

“Our concern is that limiting built-in systems without simultaneously addressing portable devices could result in drivers choosing not to connect their phones in order to access the functionality they want,” the Alliance said in a statement. “That would be a troubling outcome, given the [National Highway Traffic Safety Administration] finding announced today that visual-manual tasks associated with hand-held phones and other portable devices increase crash risk by three times.”

Platinum Program Managers & Insurance Services is a premier Wholesaler/Managing General Underwriter, providing competitive Workers’ Compensation programs for Auto Dealers, Auto Repair and Body Shops, Transmission Shops, Tire Dealers, RV Dealers, Truck Dealers, Motorcycle Dealers, and a number of other specialty classes of business. Give us call at (866) 428-7443 to find out how we can put together a program for your insureds. 

The post Administration Wants Less Distraction In Cars, Urging Automakers to Limit Electronics appeared first on Platinum Program Managers & Insurance Services.

Retirees, Baby Boomers Make Good Hires for Auto Dealers, Automotive Shops

Businesses are looking to hire retirees in an effort to get experienced, reliable workers. They come with knowledge and in many cases are less expensive to hire as they don’t need healthcare benefits. Retirees who are not yet ready to sit on the beach or golf 24/7 are looking for work but with a flexible schedule. In addition, for many retirees the economy in the last five years has forced them to supplement their income. They’re looking for part-time work – 20 hours a week, for example – that still gives them the freedom to enjoy life but also the extra income they need. It ends up being a win-win for both parties.

In a recent feature in Automotive News, for example, one dealership/shop made the decision some time ago to hire a part-time retiree to work 20 hours per week tracking parts. The retiree ended up training the shop’s two parts managers, mentoring them and helping with different inventory projects. In fact, the retiree worked out so well in his part-time job that today 19% of this dealership’s workforce is made up of individuals ranging in age from their late 50s to their 80s. Retirees handle tasks ranging from service department marketing and shuttling service customers to handling dealer trades and working as dealership ambassadors at events.

Moreover, there are baby boomers not ready to stop working, and looking for a career change after retiring from their current positions. There are opportunities out there. In fact, the AARP releases a yearly list of the best employers for workers over 50, based on recruiting practices, opportunities for training, education and career development, workplace accommodations, alternative work options (such as flexible job scheduling, job sharing and phased retirement), employee health and pension benefits and retiree benefits. Among the list in the past was Volkswagen of America. The automaker has made flextime, compressed work schedules, job sharing, and telecommuting available to both full- and part-time workers, as well as letting some of its employees ease into retirement gradually by working part time first. After they do step aside, many of Volkswagen’s retirees are offered consulting projects, temporary assignments, and part-time jobs.

With the automotive industry in good shape, additional hiring is taking place across the board, which means higher payroll figures (whether part-time or full-time) and increased Workers Compensation needs. Wholesaler/ MGU Platinum Program Managers & Insurance Services works with insurance brokers to find quality insurers for Workers’ Compensation coverage for auto dealerships, auto repair shops, and auto body shops. Give us a call at (866) 428-7443.

Sources: Automotive News, AARP

The post Retirees, Baby Boomers Make Good Hires for Auto Dealers, Automotive Shops appeared first on Platinum Program Managers & Insurance Services.

Showroom Business Has Automakers Hiring, Increasing Plant Production

There’s good news on the automobile front: All three Detroit automakers – General Motors, Chrysler, and Ford Motor Company – are in a hiring mode. The latest development was announced by Ford last month when it said that it was adding 450 jobs and expanding what had been a beleaguered engine plant in Ohio to feed the growing demand for more fuel-efficient cars and SUVs in the American market.

According to the New York Times, Ford plans on spending $200 million to renovate its Cleveland engine plant to produce small, turbocharged engines used in its top-selling models. Ford also plans to centralize production of its two-liter EcoBoost engine — used in popular models like the Fusion sedan and Explorer SUV — at the Cleveland facility by the end of next year. Ford’s announcement follows GM’s plans, which were made public in January, to invest $600 million in its assembly plant in Kansas City, Kansas, one of the company’s oldest factories in the country. And Chrysler is adding a third shift of workers to its Jeep plant in Detroit.

This comeback follows the survival of a financial crisis in which both GM and Chrysler were bailed out by the U.S. Government. And while Ford survived the industry’s financial crisis without government help, the carmaker still had to shed thousands of jobs and close down several factories to reduce costs and bring production more in line with shrinking sales. The comeback is due primarily to consumers’ need to replace aging, gas-guzzling models and low interest rates and more available credit.

“We have the best financing available for our customers ever,” Mike Jackson, the chief executive officer of Fort Lauderdale, Florida-based AutoNation, told a J.D. Power & Associates conference last month in Orlando, Florida. “I go back to ’08 and ’09, and I couldn’t get the Lord above financed.”

“No industry has benefited more from the unfreezing of the credit markets than new and used vehicles,” Tom Webb, chief economist of Manheim Consulting, said in a report in February, according to Bloomberg Businessweek. “Although the immediate goal of Federal Reserve actions was to lower long-term rates and support the mortgage market, it was auto-financing markets that enjoyed the first boosts.”

Now, with the boost in showroom business all three automakers are prompted to increase output at remaining plants. In Ford’s case, the company added about 8,000 salaried and hourly jobs last year, and has said it plans to hire about 2,200 white-collar workers in 2013, according to the Times.

The hiring turnaround bodes well for auto dealerships as well, which will continue to enjoy the uptick in sales. It’s estimated that in 2013 industry-wide sales in the United States will top 15 million vehicles, up significantly from 2009 after sales sank below 11 million. In fact, according to the Wall Street Journal, GM said its sales rose 7.2%, while Ford saw an increase of 9.3% and Chrysler a 4.1% jump. Toyota reported a 4.3% rise in its U.S. sales last month, and Volkswagen AG said its namesake brand rose 2.9%.

Wholesaler/MGU Platinum Program Managers & Insurance Services works with insurance brokers to find quality insurers for Workers’ Compensation coverage for auto dealerships. Platinum provides markets that might otherwise be inaccessible to your agency. Give us a call at (866) 428-7443.

Sources: NY Times, Wall Street Journal, NADA, Bloomberg Businessweek

The post Showroom Business Has Automakers Hiring, Increasing Plant Production appeared first on Platinum Program Managers & Insurance Services.

In December, the Senate passed a House bill that eliminates a federal mandate for new auto dealerships to provide motor vehicle insurance cost booklets to customers. It was signed into law by President Obama in mid-January. According to the Obama Administration, in a 2011 submission to Congress, “a prospective buyer does not need a brochure from the federal government to obtain this information, since insurance agents are trained to provide advice on how model selection affects insurance premiums.” What’s more, the federal government and the Insurance Institute for Highway Safety, which compiles the data, can still make the information available to the public online or by other means.

The common-sense elimination of this mandate is further underscored by the National Highway Traffic Safety Administration (NHTSA), which stated that the book was “rarely used” and “not useful”. Enacted in 1972, the NHTSA up until now was required to produce the booklet, “Relative Collision Insurance Cost Information”, and send it in hard-copy format to auto dealers around the country. Any auto dealer who didn’t make it available to consumers faced penalties of $1,000 per violation.

The National Association of Auto Dealers (NADA) also found in its survey that for 96% of dealers no customer had ever asked to see the information. “This bill removes a regulatory burden from auto dealerships that helps reduce our cost of doing business,” said Bill Underriner, chairman of the NADA and a multi-franchise dealer from Billings, Montana.

Congressman Bill Owens (NY-D), one of the sponsors of the bill, concurs, saying that eliminating this obsolete requirement will cut federal spending and reduce burdens on small businesses.”

The bill, H.R. 5859, also requires the Department of Transportation to reconsider what data should be made available, and how best to do so. “We can do more to streamline government, find efficiencies within existing programs and eliminate regulations that just don’t make sense,” Owens said. “As Congress looks to cut federal spending in the months ahead, I am committed to working across the aisle to do exactly that.”

Wholesaler/MGU Platinum Program Managers & Insurance Services is the direct route for insurance brokers to find quality insurance carriers for Workers’ Compensation coverage for your auto dealerships. Platinum provides markets that might otherwise be inaccessible to your agency.

Sources: NADA, The Hill

The post Dealership: Relative Collision Insurance Cost Information Not Required appeared first on Platinum Program Managers & Insurance Services.

R.L. Polk & Company, a worldwide leader in automotive intelligence and solutions, released figures showing that sales of new autos was a bright spot for U.S. in 2012, and will continue its positive momentum in 2013.

U.S. new car dealers delivered 1.14 million new cars and light trucks in November, up 15% from a year ago. The November seasonally adjusted annual rate (SAAR) was 15.5 million units, the highest SAAR since January 2008. November was the fourth consecutive month of robust results for the U.S. automotive industry, and there is no indication this momentum will ebb in the near future, according to Polk.

What’s more, December sales reached fresh highs, with the Wall Street Journal reporting several auto manufacturers seeing increases: General Motors Co. said its car and light-truck sales rose 4.9% in December, while Ford Motor Co. reported a 1.6% gain and Chrysler Group LLC, a unit of Italy’s Fiat SpA, said its sales jumped 10%, all compared with a year earlier. Toyota’s December sales rose 9% to 194,143 vehicles, and sales of Volkswagen rose 35%, marking the auto maker’s best December in the U.S. since the final month of 1970.

Chrysler said it expects the seasonally adjusted annualized rate of sales in December could hit 15.8 million vehicles, the strongest pace of 2012. According to a forecast from Edmunds.com’s, a car-shopping website, a 9.6% increase is expected in December sales over a year ago. For 2012, the auto industry likely exceeded 14.5 million cars and light trucks, compared with 12.78 million in 2011.

Furthermore, Polk expects new vehicle registrations—a key indicator of auto sales—to climb 6.6% this year to 15.3 million as consumers with more access to loans and leases continue buying.  In fact, the auto industry and auto dealers will keep seeing an upward trend in sales as long as positive macroeconomic factors – low interest rates, improved housing market, improved employment levels, and lower gas prices – continue.

As auto sales growth continues, auto dealerships will rely on more sales, customer service and maintenance staff to serve their customers. That means increased payroll, which will impact their Workers Compensation insurance. At Platinum, we’ve been serving Workers Comp for Auto Dealers, Auto Repair and Body Shops, Transmission Shops, Tire Dealers, RV Dealers, Truck Dealers, Motorcycle Dealers since 2007, and can help you provide a comprehensive program for your clients. Give us a call at (866) 428-7443.

The post Auto Dealer News: U.S. New-Auto Registrations to Grow in 2013 appeared first on Platinum Program Managers & Insurance Services.

Automakers Expect Increased November Sales from Superstorm Sandy

Automakers Expect Increased November Sales from Superstorm Sandy

Superstorm Sandy caused devastation throughout the Eastern Seaboard late October, with businesses and homes ravaged by wind, flood and fire. Also in the mix of the destruction was the amount of damage done to vehicles. The most recent preliminary estimate from the Insurance Services Office, Inc. (ISO), a subsidiary of Verisk Analytics, has 230,000 damaged vehicles being processed and analyzed by insurers. Damage ranges from minor paint scratches from flying debris to those vehicles that were under water for days and rendered total losses.

On the heels of Sandy, a top U.S. sales executive at automaker, Toyota said consumers purchasing new vehicles to replace those lost during the storm will mean strong November U.S. auto sales. According to Jim Lentz, president and chief executive of Toyota Motor Sales USA, on a seasonally adjusted annualized basis, November U.S. sales will be between 14.8 million and 15.2 million new vehicles. Sales will be particularly strong, obviously, in the New York area.

Over at American Honda Motor Company, John Mendel, executive vice president, said he expects November sales at an annualized pace of “right around 15 million.”

In November 2011, the seasonally adjusted annualized sales rate was 13.5 million new vehicles, and last month was 14.3 million, according to TrueCar.com.

Relaxed Policies by East Coast Auction Giant to Help Auto Dealers

In other related Sandy news, auction giant Manheim relaxed its policies at 11 mid-Atlantic and Northeast auction sites in an effort to help auto dealers impacted by Sandy. The company extended the storage time limit on vehicles bought at the sites to 30 days from seven or 14, depending on the site, at no extra cost.

Manheim also provided free flood-damage inspections on dealer-owned vehicles for which auction-conducted condition reports have been purchased. Also, dealers who bought post-sale inspections good for seven or 14 days received a three-day extension at no cost. This gave dealers more time to notify an auction site and engage in arbitration if there was a problem with a vehicle.

Platinum Program Managers & Insurance Services is a Wholesaler/Managing General Underwriter, providing appointed agencies with competitive Workers’ Compensation programs for Auto Dealers, Auto Repair and Body Shops, Transmission Shops, Tire Dealers, RV Dealers, Truck Dealers, and Motorcycle Dealers. Based in Newport Beach, CA, Platinum offers its programs throughout the Western United States, including California, Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, and Utah. Give us a call today - (866) 428-7443

Sources: ISO, Reuters, Automotive News

The post Automakers Expect Increased November Sales from Superstorm Sandy appeared first on Platinum Program Managers & Insurance Services.

California Governor Jerry Brown this past September signed into a law (SB 863) a $17 billion Workers Compensation insurance program that promises to increase benefits for injured employees and cut costs for businesses. The bill, according to the governor’s office, was as a result of workers compensation insurance costs in California skyrocketing in the past two years, rising from $14.8 billion to $19 billion.

The new law contains nearly 50 statutory provisions set to automatically take effect January 1, 2013, over a half-dozen more than will take effect through administrative action first and another 16 that take effect after January 1 and the following year.

The California State Compensation Insurance Fund estimated that SB 863 would cut California’s annual comp costs by $543 million. This estimate was based on $600 million in increased permanent disability benefits, and large discounts resulting from lien fees, independent medical reviews and other bill provisions. The Workers Compensation Insurance Rating Bureau (WCIRB) in its revised analysis said the bill would result in a total annual cost reduction of $880 million for 2013 and $270 million for 2014.

There are detractors of the bill, however, who are skeptical whether the bill will indeed provide savings for employers and workers compensation carriers. They are waiting to see how all the provisions will play out.

What are some of the bill’s provisions?

The new law increases payments by 30% to workers who suffer permanent injuries on the job, while shortening the wait for approval of medical treatment from two years to three months. It also will create an independent review process for medical treatment and billing disputes, fee schedules for home health care, language interpretation and other comp-related services, and fees for current and future lien filings.

The new law also ends coverage for insomnia, sexual dysfunction or mental health issues, unless they are directly related to a workplace injury. These types of claims often lead to litigation.

Wholesaler/MGU Platinum Program Managers & Insurance Services provides competitive Workers’ Compensation programs in California and other states through its brokers for Auto Dealers, Auto Repair and Body Shops, Transmission Shops, Tire Dealers, RV Dealers, Truck Dealers, Motorcycle Dealers, and a number of other specialty classes of business. These classes include: apartment complexes, bakeries, grocery stores, hotels, machine shops, restaurants, retailers, among others.

The post California New Workers Compensation Program Takes Effect January 2013 appeared first on Platinum Program Managers & Insurance Services.

Automakers Banking On Hybrids Being Sold at Car Dealerships

When you drive around in California, whether on a freeway or on side streets, the likelihood of seeing a Prius or other fuel-efficient car pulling up to you or behind you is great. Or, when you walk into a car dealership today, you’re bound to have a choice of hybrids from the various carmakers. This will now become increasingly more commonplace, not only in California but throughout the country. That’s what automakers are hoping for. Toyota recently announced that will it roll out 21 new or redesigned gasoline-electric powered vehicles by the end of 2015.

In fact, Toyota is predicting that its sales of hybrid models worldwide will likely top one million this year and every year through 2015. And while it realizes that further costs have to take place to spur sales at auto dealerships and increase profitability, it does have confidence in its hybrid strategy.

“Profits from conventional [gas] powered cars are still higher, so we need to reduce hybrid costs more in order to promote their diffusion,” Takeshi Uchiyamada, Toyota’s vice chairman and R&D head, said at a news conference in September.

The Japanese automaker has high hopes for its “plug-in” hybrid, which can be refueled either at the gas pump or by plugging in to a standard electrical outlet. Cumulative sales of its Prius PHV, which debuted earlier this year, reached 15,600 in August, including 8,400 in Japan, 6,100 in the U.S. and 1,100 in Europe, according to the Wall Street Journal.

Ford also is amping up its all-new 2013 Fusion hybrid powertrains. Consumers looking at the new midsize sedan can choose from five powertrains, but the Dearborn-based automaker expects at least 15% of them to drive off with the gas-electric hybrid or Energi plug-in models.

As your auto dealer customers stock up for 2013, including adding a selection of hybrid vehicles to their inventory, be sure they have also secured the right car dealership insurance. This includes Workers Compensation, which has become quite costly with rates on average increasing six percent across the U.S. In some states, such as California, this increase is even higher, with recent legislation having passed to reform the state-run system.

At Platinum, we have access to several top-rated Worker Comp carriers to provide you with insurance for your auto dealership clients. Give us call at (866) 428-7443.

Sources: NADA, WSJ

The post Automakers Banking On Hybrids Being Sold at Car Dealerships appeared first on Platinum Program Managers & Insurance Services.

California Auto Dealer Insurance: New Fuel Economy Standards

Will we be seeing more fuel-efficient cars and trucks on California auto dealer lots and on the roads over the next 13 years? That’s the hope of President Obama’s administration, as it gave the final green light on August 28^th to nearly double the efficiency of the nation’s cars and trucks throughout 2017-2025 to a fleet-wide average of 54.5 miles per gallon.

The fuel economy rules, which garnered the support of 13 major automakers last summer, including Detroit’s Big Three, will cost the industry an estimated $157.3 billion to add fuel-saving technologies to meet the 2017-2025 rules. It is also estimated that by 2025, the price of a truck will rise $2,059 on average; the price of a car will rise $1,726.

The new rules also provide automakers with credits for building hybrid light trucks and adding fuel-saving features that the government didn’t take into account in prior years.

Additionally, the rule includes a mid-term review process to evaluate how the program is working.

The Bottom Line

Cars will have to average between 55.3 and 56.2 mpg, while light trucks will have to average between 39.3 and 40.3 mpg in 2025, a four percent average annual increase. So, for example, by 2025, a small SUV such as the Ford Escape would have to average 47.5 mpg; a minivan like the Toyota Sienna, 39.2 mpg; a midsize sedan like the Ford Fusion, 54.9 mpg; and a compact car like the Honda Fit, 61.1 mpg.

If you take into account real-world driving, the actual average will be around 40 miles per gallon in 2025.

Predictions

The National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA) say the new rules will spur widespread adoption of vehicle advances, including eight-speed transmissions and higher-efficiency gearboxes. They predict that hybrids, plug-in electric vehicles and fully electric vehicles may rise from less than 3 percent of all sales today to 26 percent to 49 percent of all sales by 2025.

The new rules, according to the EPA and NHTSA, will also save Americans $24.5 billion over time because they won’t have to fuel up as often. But because it will be cheaper to drive, Americans will drive more and get into more crashes and traffic jams. The government estimates the rules will add $39.5 billion in congestion, accidents and noise costs. However, the agencies declined to forecast the impact of the regulation on vehicle sales, arguing there are too many variables.

Impact to California Auto Dealers

Auto dealers have expressed alarm about the rules, however, saying they will have to sell more expensive vehicles to consumers. Bill Underriner, chairman of the National Automobile Dealers Association, cited administration data that the regulations would hike prices by nearly $3,000 over 2011.

“This increase shuts almost 7 million people out of the new car market entirely and prevents many millions more from being able to afford new vehicles that meet their needs,” he said. “If this rule suppresses new vehicle sales, achieving the nation’s greenhouse gas and energy security goals will be needlessly delayed.”

Wholesaler/MGU Platinum Program Managers & Insurance Services provides appointed agencies with competitive Workers’ Compensation programs for California Auto Dealers, California Auto Repair and Body Shops, California Transmission Shops, Tire Dealers, RV Dealers, Truck Dealers, Motorcycle Dealers, and a number of other specialty classes of business.

Sources: Detroit News and NADA

The post California Auto Dealer Insurance: New Fuel Economy Standards appeared first on Platinum Program Managers & Insurance Services.

Workers Compensation is a major cost for auto dealers and finding the right program is

key to a dealers’ bottom line. What’s more, helping to stem injuries and losses is critical to keeping Workers Comp premiums under control. One way to do this, of course, isthrough improved workplace safety. Following are a few issues to review with your auto dealer clients to make sure they have proper systems in place:

• Hiring and Introductory Training:Have current job descriptions that clearly outline the responsibilities and functions of each position. Once an employee is hired, have a quality new employee orientation program that incorporates training on applicable safety issues.  A well-organized and well-conducted orientation enables the dealership’s management to let new employees that they take on-the-job safety very seriously.
  

• Injury Prevention: Be sure thesafety program is properly implemented and follow it.  Without management’s endorsement and support, the program will be ineffective. For example, if the safety committee has implemented quarterly scheduled meetings, management should make sure this is enforced and that every member attends. Post the meeting minutes for employees to learn about safety activities at the facility.

• Injury Management: Although most facilities are good about reporting accidents, many fail to actively manage an injury. One simple way of doing this is for the dealership to demonstrate its concern and empathy, which will go along way in showing the injured employee that management is supportive of his/her wellbeing and getting back to work. Most managers know their people well– their natural concern should translate into ongoing contact with the injured employee, as well as appropriate support and information for his or her family. When it comes to medical care, selecting the right medical provider is critical. Also, the dealership should continue to serve as liaison with both with the treating physician and the insurer’s designated claims representative.

Wholesaler/Managing General Underwriter Platinum Program Managers & Insurance Services provides appointed agencies with competitive Workers Compensation programs for Auto Dealers, Auto Repair and Body Shops, Transmission Shops, Tire Dealers, RV Dealers, Truck Dealers, Motorcycle Dealers, and a number of other specialty classes of business. Give us call (866) 428-7443 to discuss how we can help you secure a Workers Comp program for your clients.

The post Getting A Grip On Workers Comp through Safety appeared first on Platinum Program Managers & Insurance Services.