By Jared Wyrick President WVADA
On March 11, 2020 the World Health Organization labeled COVID-19 as a global pandemic, forever changing the economic landscape throughout the U.S. and abroad. WVADA understands how this has affected our local communities and more specifically, our franchised dealers.
WVADA and its members worked with the Governor’s office to allow our members the flexibility to proceed accordingly, with business operations, due to the automotive industry being deemed “essential” in the March 16 Executive Order. Governor Justice understands the positive economic impact WVADA members have on our local and state economies. On behalf of WVADA and its members, we appreciate the governor’s office in working with our industry during this unprecedented time.
West Virginia dealerships stepped up, abided by state issued protocols, and utilized innovative methods to selling and servicing their customer’s vehicles. While this current environment seems to be our “new normal,” WVADA will continue to work with state officials to ensure that dealers have the necessary tools to remain competitive.
Furthermore, the WVADA Executive Committee and Board of Directors allocated $15,000 from the Legal Defense Fund to aid dealers with COVID-19 issues from March 23 to May 30. This aid allowed complimentary legal guidance to all dealers in good standing of the Legal Defense Fund. WVADA gave dealers the ability to contact our preferred law firms, Pullin, Fowler, Flanagan, Brown and Poe and Jackson Kelly, to obtain guidance of a general nature regarding the new laws enacted by Congress surrounding the COVID-19 pandemic.
Additionally, the Legal Defense Fund sponsored two webinars hosted by Jackson Kelly: COVID-19 Issues for HR Professionals, and How to Maximize the Forgivable Portion of Your PPP Loan — What We Know Now. Slides and recordings from both webinars can be accessed on WVADA’s COVID-19 resource page at wvcar.com/covid-19-2/. WVADA is committed to providing timely updates as new information and guidance is released, and I strongly encourage dealers to periodically check out our resource page and NADA’s Coronavirus Hub at nada.org/coronavirus/.
Approximately 120 members participated in the webinars and 33 dealers utilized the complimentary legal guidance provided by the Legal Defense Fund. Since the inception of this Fund, WVADA has paid out over $253,000 defending multiple issues affecting West Virginia dealers, with COVID-19 serving as the latest. Funds for the Legal Defense are generated from $1 contributions for each new and used vehicle retailed quarterly.
In addition to aiding dealers during COVID-19, the Legal Defense is also assisting border dealers against the Ohio Department of Taxation regarding the Consumer Activity Tax (CAT), which is an annual privilege tax by gross receipts on business activities. West Virginia dealers are receiving bills from the Ohio Department of Taxation for selling vehicles to Ohioans. To date, the Legal Defense Fund has spent more than $63,000 defending our border dealers against this inequitable CAT.
This fund was created to protect our members and their investments for future legal costs incurred on behalf of the franchised dealers in West Virginia. One dollar per new and used vehicle retailed is a worthwhile contribution that has, and will continue, to defend our members’ interests.
Again, I applaud Governor Justice for working with WVADA and all dealers throughout West Virginia for utilizing safe and innovative measures. WVADA stands ready to continue to represent and serve its franchised dealer members.
Be Well and Stay Safe,
Jared Wyrick
This story appears in 2019-2020 Issue 3 of the WVADA Magazine.
