ARTICLE
[Link] BY LIZ SWAINE | Staff writer (The Advocate) Feb 28, 2024 It is not a surprise that Shreveport native Coulter McMahen should be the new head of the Louisiana Automobile Dealers Association based in Baton Rouge. When he was in 6th grade, his neighbors in his south Shreveport neighborhood cul-de-sac included Fred Moffett (Moffett Mazda), Jerry Montgomery (Chevyland), Ken Shapen (Rountree Ford) and Alan Yokem (Yokem Toyota). The surprising thing would have been if he had been anything else. A dealership was also responsible for McMahen's early spending money. "My first job in high school was at Chevyland. I did everything from clean cars, I was a porter, I worked on the sales lot and in parts, whatever Mr. Montgomery told me to do." Now, McMahen is working hand-in-hand with 282 of Louisiana's new car and large truck dealerships in making sure that state lawmakers understand the importance of the 33,600 jobs they create and the $733 million in state sales taxes they and the other dealerships in Louisiana pay annually. Those numbers are just the tip of the economic story that includes the money spent in payroll, the total revenue generated by new car sales, state and federal income taxes paid, inventory taxes, property taxes paid to cities and parishes, charitable contributions within the dealerships' communities and more. McMahen may be a "car guy" by early association, but his work career, up until his hiring at LADA, was as an attorney who once clerked for Western District Chief Judge Maury Hicks. He believes the skills he honed in that job will be helpful in his new role advocating for new car and large truck dealers. "I was in commercial litigation and that was no different. I was trying to persuade the judge and jury that I was right, and now I'll be trying to persuade the Legislature that I'm right. It's really just advocacy, which I like doing." McMahen will have ample opportunity for that advocacy. LADA will be one of the entities at the fore of a lawsuit brought against the state Motor Vehicle Commission by Tesla, a suit that will be back in front of judges on April 2 when oral arguments are heard at Louisiana's 5th Circuit Court of Appeals in New Orleans. "They (Tesla) want to sell directly to the consumer," McMahen said."It's important to send a message of why the franchise model works. "These are dealers here day in and day out. You buy a car, something's wrong with that car and you bring it in for warranty work. You need a part for your car, it's there. You can hold them (the dealers) accountable. It's our position and the right position that the franchise model is the best thing for the consumer." The Louisiana lawsuit is one of a number of similar suits filed by Tesla nationwide. On the subject of EVs, McMahen said LADA is working with their dealerships in encouraging manufacturers to relax mandates on the number of certain types of vehicles the dealerships must stock. Dealerships must pay to "floorplan" all vehicles on their lots and the expense includes both the cost of the vehicle and interest paid to the manufacturer. McMahen says the volume mandates for EVs hurts the dealerships, especially when there is little demand for the vehicles. "It's not a one-size-fits-all approach," McMahen said. "What may sell in Shreveport doesn't sell in New Iberia. You have sugarcane and rice farmers, and they aren't interested in EV trucks, so we were against the mandates." "What's not right is to say you have to carry this number of vehicles and the floorplan on the vehicles and the interest on the vehicle that is just sitting on the lot, and you can't get rid of it. I think you're seeing some of the manufacturers are reassessing their position on EV's, not being as aggressive as they were." On the subject of the extreme shortages of all types of vehicles seen during and directly post-COVID, McMahen said they have lessened, chips are more plentiful, and inventories are stabilizing. Though McMahen and LADA will be reaching out to the Legislature and governor during the current session, he is looking ahead to the state's next fiscal session and a possible push to eliminate the state income tax. "When that tax session does come, we will have to be on the lookout for certain things because 'we may eliminate this, but we have to offset it somewhere else." That 'somewhere else,' McMahen worries, could affect LADA members. LADA members are comprised of Ford, GM, Chevrolet, Toyota, Volkswagen, heavy truck dealerships and more, which led to perhaps one of the most prickly of all challenges for the new president and CEO; which make and model vehicle should he own? In this one regard, McMahen said he lucked out. "Our board helped me out there. Whoever our chairman of the board is that specific year, that's what you drive." This year LADA welcomed the first female chairman of the board in its 87-year history, Kristie McMath-Hebert, a third-generation owner of Arceneaux Ford in New Iberia. McMahen is enjoying putting miles on his Ford F-150. By the Numbers 282 – New car dealerships in Louisiana. 33,600 – Total jobs created by dealerships. $16.5 billion – Total sales, all dealerships. $773 million – State sales taxes paid. $1.2 billion – Dealership payrolls. 55 – Average number of employees per dealership. $33 million – Inventory tax paid, all dealerships. $18 million – Charitable contributions, all dealerships.
[Link]
BY LIZ SWAINE | Staff writer (The Advocate) Feb 28, 2024
It is not a surprise that Shreveport native Coulter McMahen should be the new head of the Louisiana Automobile Dealers Association based in Baton Rouge.
When he was in 6th grade, his neighbors in his south Shreveport neighborhood cul-de-sac included Fred Moffett (Moffett Mazda), Jerry Montgomery (Chevyland), Ken Shapen (Rountree Ford) and Alan Yokem (Yokem Toyota). The surprising thing would have been if he had been anything else.
A dealership was also responsible for McMahen's early spending money. "My first job in high school was at Chevyland. I did everything from clean cars, I was a porter, I worked on the sales lot and in parts, whatever Mr. Montgomery told me to do."
Now, McMahen is working hand-in-hand with 282 of Louisiana's new car and large truck dealerships in making sure that state lawmakers understand the importance of the 33,600 jobs they create and the $733 million in state sales taxes they and the other dealerships in Louisiana pay annually. Those numbers are just the tip of the economic story that includes the money spent in payroll, the total revenue generated by new car sales, state and federal income taxes paid, inventory taxes, property taxes paid to cities and parishes, charitable contributions within the dealerships' communities and more.
McMahen may be a "car guy" by early association, but his work career, up until his hiring at LADA, was as an attorney who once clerked for Western District Chief Judge Maury Hicks. He believes the skills he honed in that job will be helpful in his new role advocating for new car and large truck dealers. "I was in commercial litigation and that was no different. I was trying to persuade the judge and jury that I was right, and now I'll be trying to persuade the Legislature that I'm right. It's really just advocacy, which I like doing."
McMahen will have ample opportunity for that advocacy. LADA will be one of the entities at the fore of a lawsuit brought against the state Motor Vehicle Commission by Tesla, a suit that will be back in front of judges on April 2 when oral arguments are heard at Louisiana's 5th Circuit Court of Appeals in New Orleans. "They (Tesla) want to sell directly to the consumer," McMahen said."It's important to send a message of why the franchise model works.
"These are dealers here day in and day out. You buy a car, something's wrong with that car and you bring it in for warranty work. You need a part for your car, it's there. You can hold them (the dealers) accountable. It's our position and the right position that the franchise model is the best thing for the consumer." The Louisiana lawsuit is one of a number of similar suits filed by Tesla nationwide.
On the subject of EVs, McMahen said LADA is working with their dealerships in encouraging manufacturers to relax mandates on the number of certain types of vehicles the dealerships must stock. Dealerships must pay to "floorplan" all vehicles on their lots and the expense includes both the cost of the vehicle and interest paid to the manufacturer.
McMahen says the volume mandates for EVs hurts the dealerships, especially when there is little demand for the vehicles. "It's not a one-size-fits-all approach," McMahen said. "What may sell in Shreveport doesn't sell in New Iberia. You have sugarcane and rice farmers, and they aren't interested in EV trucks, so we were against the mandates."
"What's not right is to say you have to carry this number of vehicles and the floorplan on the vehicles and the interest on the vehicle that is just sitting on the lot, and you can't get rid of it. I think you're seeing some of the manufacturers are reassessing their position on EV's, not being as aggressive as they were."
On the subject of the extreme shortages of all types of vehicles seen during and directly post-COVID, McMahen said they have lessened, chips are more plentiful, and inventories are stabilizing.
Though McMahen and LADA will be reaching out to the Legislature and governor during the current session, he is looking ahead to the state's next fiscal session and a possible push to eliminate the state income tax. "When that tax session does come, we will have to be on the lookout for certain things because 'we may eliminate this, but we have to offset it somewhere else." That 'somewhere else,' McMahen worries, could affect LADA members.
LADA members are comprised of Ford, GM, Chevrolet, Toyota, Volkswagen, heavy truck dealerships and more, which led to perhaps one of the most prickly of all challenges for the new president and CEO; which make and model vehicle should he own? In this one regard, McMahen said he lucked out. "Our board helped me out there. Whoever our chairman of the board is that specific year, that's what you drive." This year LADA welcomed the first female chairman of the board in its 87-year history, Kristie McMath-Hebert, a third-generation owner of Arceneaux Ford in New Iberia. McMahen is enjoying putting miles on his Ford F-150.
By the Numbers
282 – New car dealerships in Louisiana.
33,600 – Total jobs created by dealerships.
$16.5 billion – Total sales, all dealerships.
$773 million – State sales taxes paid.
$1.2 billion – Dealership payrolls.
55 – Average number of employees per dealership.
$33 million – Inventory tax paid, all dealerships.
$18 million – Charitable contributions, all dealerships.