Monday, September 16, 2013

Ford F150s Buzzing through Paris? Maybe...

     When I returned from a mother-daughter trip to Europe this month, I was pleased to see an article in the New York Times proclaiming that the Ford F150 pickup truck remains the top selling vehicle in the United States. The Times' Sunday Magazine, which was devoted to pop culture, lists the F150 as a country's most popular ride.
    
     The popularity does not transcend to Europe. In the eight days I was in France and Hungry, I did not see the first place F150. Sure there were plenty of Ford Focuses -- and lots of new C-max hybrids but no Ford pickups. For decades Europeans have preferred those smaller and more gas efficient cars and trucks. And it's no wonder, gas prices hovering between $9 and $10 a gallon. One could only imagine what would happen here if we're forced to lay out that much money at the gas pump. Major elections has hinged on gas prices. Not that long ago, in the days of rationing and OPEC bullying, there were long lines, fist fights and protests. But to Europeans those hefty prices have been a way of life for decades. And they have adjusted their lifestyle so a big chunk of their income is not going to global gas companies.
    
     The parking lot at the main train station in Amsterdam is a multilayered structure filled with thousands of bikes whose owners have hopped aboard a high-speed train to get to their destination. In Italy, priority parking spaces are reserved for electric cars. When I was jogging in Paris, I saw a large motorcade of heads of state arriving at a city building for reception. Not a black, tinted window Suburban in sight. These dignitaries were escorted by motorcycles and their vehicles of choice was the modest Citroen.
    
     Even the large oil-producing countries, such as Norway, don't give their drivers a break. A gallon of gas there goes for $9.97 and the oil profits are earmarked for free college tuition for Norway students and for improvement to its infrastructure. Even with those high gas prices, Norway is ranked the second happiest country in the world, according to a recent report by Columbia University's Earth Institute. By contract, United States, with its great wealth and comparably low taxes and gas prices, was ranked 16th.
    
     We are making strides here with more gas efficient cars and trucks. Ford his rolled out it's electric Focus which costs the equivalent of 1 gallon of gas per 100 miles. The C-Max Hybrid and the Hybrid Fusion each average 43 miles per gallon. And the ever popular Ford pickup? With the eco-boost engine it now gets 21 miles per gallon, with better towing and torque features.
    
     During my 20 year tenure at Sunrise Ford, I have also noticed the difference. In the mid-1990s we were selling five trucks for every car sold. Now we sell twice as many cars a month as F150s. 20 years ago, Expeditions were a top seller. Now we sell less than a handful a month.
    
     Still, it has taken a long time for Americans -- and the US automobile industry -- to come to grips that we need to curtail our use of fuel. The "drill baby drill" sentiment is still strong -- even though the oil drilled in the United States will be exported globally to the highest bidder and will do nothing to bring gas prices down here. Politician still try to use gas prices as a reason to elect them or conversely not to elect their opponent. And, of course, the F150 truck is still an American icon.
    
     But I am optimistic that the American public is becoming more attuned to the need to conserve our fossil fuels. Few now debate whether climate change is real and more are now saying what can be done about it. Government regulation, hopefully, will force industries and power companies to clean up their mess. And as a car dealer, I am glad that the feds have forced car makers to make more fuel efficient vehicles.
    
     Will we ever change to be more like the Europeans -- with their tiny cars, extensive network of high-speed trains, jammed subways and urban bike paths?    I doubt it.    As a Ford dealer, I still want the Ford F150 to remain our country's best-selling vehicle. But maybe, just maybe I will live long enough to see it get 50 miles per gallon. That, indeed, would make it very European. Nothing would make me prouder than seeing our Ford pickups buzzing through the streets of Paris.


Wednesday, August 14, 2013

Indian River Emergency

Many of my fellow business owners often gripe about the taxes they pay, the federal and state regulations they must follow and how government should just get out of their way.

I take a different approach. I don't mind paying taxes. Among other things, the money is needed for roads, bridges, fire and police protection, Medicare, Social Security and a safer net for the poor. I want to make sure the drinking water I am drinking, the food I eat and the drugs I must take are safe. And I know a well educated population is needed for a democracy to survive. So for the past two decades as the owner of Sunrise Ford, I have dutifully signed substantial checks to the IRS, State of Florida, St. Lucie County and the City of Fort Pierce. But this year I am fed up with the Feds, the state and the South Florida Water Management District. They cannot come up with a game plan - and successfully implement it - To protect the Indian River Lagoon and the Caloosahatchee estuary.

For years, billions and billions of gallons of polluted water from Lake Okeechobee have been flowing into the two estuaries, ruining our waterways, while the politicians and bureaucrats keep making excuses on why nothing can be done.

Not my jurisdiction, says Florida Gov. Rick Scott. We don't have the money, say the Republican members of Congress. Worse yet, the state this year approved a 30 year lease to Big Sugar to continue to farm the land that should be used to restore the Everglades, which would naturally filter the water from Lake Okeechobee. And big Sugar, which has enjoyed the perfectly drained land and federal price support for decades, says the plan to restore the Everglades will never work.

Finally, this week the South Florida Water Management may be able to take the first step, albeit a small one, to begin cleaning up the Indian River Lagoon. The board voted to support the Army Corps of Engineers' proposal to divert 65 billion gallons of polluted lake Okeechobee water from St. Lucie and Caloosahatchee estuaries to property south of the lake.

But there is a hitch but it's hard for me to fathom. If the water management board supports the proposal on Thursday, it's still must go through public reviews, final report from the Corps, another review from state and federal agencies and then sent to Congress for the consideration. The reviews, reports and other bureaucratic red tape can take as much as 255 days. If the proposal is not sent to Congress by the end of the year, it will be put on hold for seven more years.

Why this is coming up in the 11th hour is beyond me. If this proposal is not put on a fast track, embattled estuary is doomed to another seven years of severe pollution, causing the seagrasses to continue to disappear, fish and wildlife to die at alarming rates, and the health advisories forbidding contact with the water to be a permanent fixture on the Treasure Coast. The 65 billion gallons that will be diverted are just a small percentage of the 469 billion gallons that are sent to the estuaries, but this is a start.

These horrific conditions are nothing new so there is no excuse for the foot dragging. Gov. Scott, Congressman Patrick Murphy, and State Representative Larry Lee should join State Sen. Joe Negron in trying to untangle the current bureaucratic mess and not only get this current proposal implemented, but the funding for a long-term solution on the books.

Part of Sunrise Ford's success is its location in South Florida with its unique Lagoon that  attracts tourists and new residents every year. There is no disputing the Indian River fuels economic growth for a myriad of businesses, which all pay taxes. Unlike some of my Tea Party friends, who would just as soon do away with most taxes in much of the government, I know government action is needed to clean up the mess in the Indian River. Since I took over Sunrise Ford in 1994, the company has paid millions in federal taxes, generates about $130,000 a month in state taxes and sent at least $20,000 to the South Florida Water Management District. I will gladly continue to pay these taxes --- But all I want now is the government agencies who have received these large sums to do what is right for the Indian River and do it right now.


Wednesday, July 3, 2013

Battling Cancer & Big Health Insurance Companies

As a cancer survivor and a business owner, I thought the affordable healthcare act could be both a blessing and a burden. When I was diagnosed with breast cancer in 2010 and faced costly treatments, one of my big worries was losing my health insurance and having a pre-existing condition that would not be covered under a new plan.

Indeed, Blue Cross Blue Shield did increase Sunrise Ford's premiums at what I felt were exorbitant rates. The company forced me to put additional employees on the plan, even though they could not afford the premiums. I had undergone a double mastectomy, completed 8 very toxic chemotherapy sessions and was sitting outside of Good Samaritan Hospital in West Palm Beach waiting for one of 32 radiation treatments when I had to once again haggle With Blue Cross Blue Shield over rate increases.

I was fully aware that my treatments were not only painful---but also very expensive. So I knew our group health plan would suffer, right along with me. At Sunrise Ford, employees pay for half of the cost of the premium for themselves and/or their family. The company pays the rest.

So the good news with Obamacare was that I could not be dropped from Blue Cross Blue Shield because of my expensive Cancer treatments, nor could I be prevented from using a different company because of a pre-existing condition. What I wasn't sure of is what effect Obamacare would have on my company since Sunrise Ford has more than 50 full-time employees, requiring me provide health insurance.

Since I already provide coverage, I figured it would not make that much difference. But a recent story in Scripps newspaper had me perplexed. Other business owners said they would try to avoid providing insurance by cutting employees hours. The owner of a Vero Beach insurance company said he would rather pay the $2,000 per employee fine rather than offer health insurance.

Too me health insurance is now a necessity. Healthcare costs are now so high it is hard to imagine being able to pay out-of-pocket for a chronic illness, a life-threatening disease or even a few days in the hospital. Healthcare has now taken a toll on our economy from the high cost of Medicare to the prices of providing care to the uninsured. Indeed, the inability to pay in medical bills is the leading cause for bankruptcies in United States.

Right now at Sunrise Ford we have a variety of plans that range from $442 a month for a single employee to as much as $2,246 for the "Cadillac" coverage of a family.

Under Obamacare, I would continue to provide coverage and would be required to provide limited subsidies to lower wage earners. The law says that an employee can't pay more than 9.6% of his or her income for healthcare. So a Sunrise Ford employee earning $20,000 dollars a year would pay a maximum of $1,920 a year. Sunrise Ford would pick up the rest of the tab. A basic insurance plan of $400 a month would cost a total of $4,800 per year. Sunrise would have to pay $2,880 not much more than the $2,000 penalty insurance company owner and Vero Beach was willing to pay. And it's certainly much less than Sunrise Ford is paying now to subsidize those with more expensive plans.

Furthermore, insurance companies now are limited in how much they can hike their rates. And as an employer I can see how much Blue Cross Blue Shield pays each year in expenses and compare that with what Sunrise Ford pays in premiums---which I learned this summer was a great bargaining tool.

Instead of charging a double-digit rate hike as they first proposed, I was able to get them to reduce the rate by 6%. I know it will be years until we know all of the ramifications of Obamacare. But for now I am not that worried. In fact, I can feel nothing but relief that Blue Cross Blue Shield can no longer drop me whenever it wants.


Wednesday, June 19, 2013

Bringing new business to Fort Pierce, and the passing of Mr Ronald Shultz of Shultz Chevrolet

We at Sunrise Ford are pleased to again offer our Quick Lane service on Saturdays, Beginning July 6.

Minor repairs and maintenance work can be done on all makes and models during our Saturday hours, from 8 a.m. to 2 p.m.

The Quick Lane service will be provided in the dealership's service drive.

Several months ago, we closed our Quick Lane facility just north of Sunrise Ford in anticipation of putting another franchise in the building. Plans for the renovation of the Quick Lane and construction of a new showroom have stalled, however, because of some red tape involving the state's franchise laws. We do plan on going through with those plans in the near future.

In the meantime, we have done a major renovation of the Sunrise Ford's service drive and added the necessary staff to provide quick lube service and other maintenance work in the dealership. If you haven't been to the service department in a while, please stop by and see our sleek new service drive. I know many of you have been disappointed that we have not been open for service on Saturday so I am glad to be able to provide that convenience again.

Our sales department is also open on Saturdays from 9 a.m. to 5 p.m. So when you come in for that Saturday oil change, please feel free to browse through our inventory. Ford Motor Co. is offering some huge rebates or 0 percent financing on many models. There are also some great deals on our Fusion hybrids and Escapes.

Sunrise Ford has been an institution on the Treasure Coast for more that 80 years, and one of the few family owned franchises in the area. On a sad note, we are so sorry about the loss of another dealer whose family has been a fixture in St. Lucie County for decades. Ronnie Shultz, president of Shultz Chevrolet, recently died. Our condolences to his parents, Bill and Louise, his wife Nancy, brothers, children and grandchildren. Ronnie was an example to all of us what a reputable, ethical and caring dealer should be. He was an asset to the community, quietly giving to many causes and charities and helping many in need. Ronnie will be missed by all in the car business, as well as so many of his friends in St. Lucie County.

Monday, May 13, 2013

NatGeo Channels "Fish Tank Kings" & Sunrise Ford team up to build an aquatic masterpiece.


A 1970 vintage Volkswagen bus that was purchased by Sunrise Ford and transformed into a saltwater aquarium will be featured on the National Geographic Channel's “Fish Tank Kings” show on June 1.

Sunrise Ford general manager Mike Wetzel said the VW bus that now showcases coral and fish from the Indian River Lagoon will eventually be installed in a VW dealership. Wetzel came up with the idea after watching the nationally televised show, which showcases aquariums in unique settings. He thought the VW/aquarium would be perfect for VW franchise along the treasure coast.

“It will be something that will draw people into a showroom just to see it,” he said. A beach style motif for a showroom will be the perfect setting for VW bus.

Wetzel track to the 1970 minibus on the Internet and purchased it from a private seller in July 2012. The paint was primer black and the minibus had no ignition key. Needing extensive repairs, the VW barely made the trip to Fort Pierce. When it arrived at Sunrise Ford, bodyshop mechanic Jimmy Catrambone started an extensive restoration. The experts at living color aquariums, located in Fort Lauderdale, also went to work designing  800 plus gallon tank that would be installed behind the front seat all the way to the rear of the vehicle. After months of work, the project was unveiled in January in the showroom at Sunrise Ford.

The tank was filled with colorful coral and a myriad of fish, including juvenile pompano, cobia, lookdowns and stingrays, all indigenous to the Indian River Lagoon or the Atlantic Ocean off the treasure coast.

“We wanted something that would celebrate the wonderful fish and plant life St. Lucie County,” Wetzel said.

After all, St. Lucie County has been a mecca for both anglers and surfers for decades. The VW minibus with a staple at the North Beach jetties in the 1960s and 1970s. “That nostalgic feel would be a perfect fit for VW dealership,” he said.

Dozens of customers and Sunrise Ford employees were on hand when National Geographic filming crews, as well as Living Color Aquarium staffers, unveiled tank. “It was over-the-top,” Wetzel said. “It turned out much better than I imagined.”

The tank was then emptied so that the National Geographic show would be the official “reveal”. Fish Tank Kings will air at 9:00 pm on June 1. The aquarium will then be filled again in July and stocked with an array of fish and coral.

As the owner of Sunrise Ford, I hope that many of our customers and friends will stop in to see this spectacular aquarium. Feel free to sit in the bus and have your picture taken with the beautiful coral and colorful fish in the background. The bus will be at Sunrise Ford until it is relocated to its new home in the VW dealership.



Friday, April 5, 2013

Are you subsidizing the insurance companies? Yes you are.


When the state of Florida ran into financial trouble four years ago, legislators decided to hit up residents who needed new vehicle tags, registrations and drivers licenses to help make up the shortfall.

As a car dealer, I heard Buyers complain daily about their new tag fees, which increased 35%, costing $250 and up. Now the state has some money to spare, State Sen. Joe Negron, R-Stuart has proposed reducing those fees. Negron has recommended that the state make up the loss of income from those fees by eliminating a 30-year-old tax break to insurance companies doing business in Florida.

This very expensive and little known tax break enables those insurance companies to claim tax credits equal to 15% of the payroll of their Florida employees. That amounts almost $220,000,000 in corporate welfare to the insurance industry each year. Meanwhile, Florida residents, many of whom are struggling financially, are subsidizing an industry that now has its well-heeled lobbyists crying foul. 

Those incentives are needed to entice insurance companies to do business in the state, they say. Actually Florida is the only one of two states in the country who offer the controversial tax break. Arkansas is the only other state that allows the extravagant tax subsidy.

If the tax subsidy is removed, the costs will be passed onto the insurance customers, claim the lobbyist. Not necessarily so. Underwriting payroll costs and the cost of premiums are two separate issues, which will be reviewed by the office of insurance regulation, Negron counters.

It is refreshing to see a senior legislator stand up to an industry that knows its way around the state Capitol in Tallahassee. Even more appealing is seeing the state legislator looking out for the little guy, who probably didn't know he was subsidizing insurance companies. 

If you're thinking about buying a car truck anytime soon, keep a close eye on Negron's bill. If it passes it could save you hundreds of dollars. And if you have a few extra minutes, give Negron's fellow legislators a call and let them know how you feel. State Representative Larry Lee, of St. Lucie County, can be reached at 850-717-5084, and representatives Gail Harrell, from Martin County, can be reached at 805-717-5083. I'm sure they would love to hear from you.