Looking To Real Street America For Better News

NEWS FLASH: Reports of America coming apart at the seams in civil strife, as the climate changes life as we know it, while the world erupts in catastrophic fury, and we all helplessly roll toward an economic cliff in driverless vehicles. . .are overrated.

I haven’t seen a time when so many deep breaths are needed for a period that outperforms more than a handful of difficult years during the last century.

We absorb too much drama each day from the stopless 24/7 info and social media cycle of attention grabbing. We see too much posing, strutting, hectoring, fuming, forecasting, one-upping. . . stop me before I overdose on verbs.
One steady, more reliable source on the national condition is the daily grind of American small businesses. We hear often about Main Street versus Wall Street. I certainly prefer the former, where the chauffeured vehicle and bus industries belong, but I like the term Real Street: The practical, everyday avenue of small business that keeps it all together and the nation moving. If you own metal or equipment, make payroll, and run a regulated, taxed, private-sector business, then you never stray far from the core values in life, or just being real.

So let’s take a no-drama cross-section of our industry block on Real Street America and look for some headlines. See if you notice a pattern in the image above.

By The Numbers
American business is mostly about small business:

28.8 million in the U.S. with 56.8 million employees

89% of all businesses have 20 or fewer workers

60% of all jobs created from 2009-2013 came from small businesses

86% of small business owners earn an annual salary of $100,000 or less

55% of all jobs are provided by small businesses

Sources: 2014 U.S. Census/U.S. SBA /Fundera 2017/Intuit 2014

Translation: People working hard to earn a living and brighten their local corners of the world. These business stories qualify as good news.

All appeared on LCTmag.com during a month of two hurricanes, missile threats, Navy ship collisions, political strife, street violence, deficit scares, Hillary’s blame-game tour, and the return of creepy clowns.

They prove no matter what crisis or spectacle arises on any given day, the domestic anchor of Real Street America goes about its business undeterred. It also shows where to look for hope to balance out all the pessimism.

Such daily glimpses point to a working majority of Americans who know how to get along outside of the selfie-political-media complex to pursue more beneficial, lasting goals.

Thanks to Real Street America and the entire small business sector, life is better than we know or can fully appreciate, as the nearby numbers tell. Thank you to so many readers and show attendees in our LCT marketplace for providing a non-stop “accuracy check.” Keep the real news flowing.

Keywords

industry trends   LCT editor   Martin Romjue   media   operator achievements   state of industry   

 

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New Limo Anywhere President Outlines Changes Ahead

DALLAS — Two months into his new post, Limo Anywhere President Sean Arena has been leading the company toward a more responsive and accessible suite of technology products based on new marketplace realities.

With 4,700 operators on its platform garnering a 40% share of the industry software market, Limo Anywhere wields a strong influence on the industry’s technology evolution.

Arena joined Limo Anywhere on July 31 after working as executive director for new business ventures and technology partnerships at Sabre Travel Network, where he served in various roles over 18 years. He brings experience in leadership, product marketing, business development, user experience, and corporate strategy. Former Limo Anywhere President Mark Gentry moved on to new opportunities outside of the company, and remains as temporary consultant when needed. He helped Arena with the transition until Sept. 1.

“The challenges we’re facing are similar to challenges I faced in prior roles at my last company,” Arena said. “There is intense regulatory pressure, complex logistical challenges, a need for more expansive automation, emerging disruptive models, and the need to continuously differentiate. All of these factors resonate with our customers and players within our industry.”
 
Dallas-based Limo Anywhere also has gained a unique market position since it was acquired earlier this year by the Marcou Transportation Group of Waltham, Mass. The transportation conglomerate also bought the Dav El / BostonCoach Chauffeured Transportation Network, the second largest luxury fleet provider in the U.S., and GroundLink, a tech-enabled luxury car service serving corporate clients. [Article here].

Arena outlined Limo Anywhere improvements on three broad fronts for 2018, all positioned to provide more real-time, simplified experiences for operator-clients and their customer-end-users:

1. Streamline the user experience by improving the efficiency of tools and services to increase client satisfaction. A self-service portal, for example, would retrieve invoices, upgrade services, and update their information. Further, the company plans to rollout a new interface that will improve usability for all users of the Limo Anywhere ERP platform. “It is critical for our client base, from new customers to long-time users, to be delighted by a workflow that best fits their [company] persona,” Arena said.
2. Helping operator clients scale their business through the Limo Anywhere platform and overall technology eco-system, allowing for new search and reporting capabilities and accessing data. Added customer relationship management (CRM) functions would provide real-time insights and help operations better reach out to and communicate with their customers. “We will keep looking for how we can help our clients build their business through our network. They are always looking for ways to grow their business, and we want to provide them with the tools and services to grow their business in and outside of their immediate markets.”
3. Expanding Limo Anywhere’s footprint through new partnerships and channel opportunities, and add new APIs and integration points to increase value to the portfolio. These would provide third parties access to its developer platform so they could augment its products with related services.

More specifically, Arena previewed some upgrades and changes to Limo Anywhere services and product lines:

• Before the end of the year, launch L.A. Mobile, a mobile app version of the LA platform for users to make or manage reservations, handle dispatch activities, stay on top of the status of rides, and complete reservations for clients who have credit cards on file, or in cases when a card is presented to the driver. “We recognize the fact that many operator-owners and managers are on road, and there’s a viable use case for tools they need anywhere,” Arena said.
• Release a new passenger mobile app solution for the operators to extend to their customers. Operators can customize the app with their own look and feel and logo.
• Direct integration between the Limo Anywhere platform and the Square payment gateway, which enables credit card processing and payments both on and offline.
• Develop a more customizable booking widget for customers’ web sites to extend “an adaptable search form that can conform stylistically to whatever interface a company uses,” Arena said. This would simplify the booking process for customers.
• Empower operators to more effectively manage their pricing and give them access to tools for reporting and analytics.
• Complete opportunities for Dav El / BostonCoach and Groundlink affiliates to leverage the wider Limo Anywhere platform and tools.

In sum, LA’s complete technology suite aims to serve and connect dispatching, reservations, customer booking, management alerts, payment integration, and in-car driver alerts while leveraging its network to build a broader affiliate base, Arena said. “We are intending to be as holistic and end-to-end as possible for our limo customers.”

Keywords

affiliate networks   BostonCoach   Dav El Chauffeured Transportation   executive changes   GroundLink   Limo Anywhere   limousine software   Mark Gentry   mobile technology   Sean Arena   software   

 

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Uber Car Rams Houston Operator’s SUV

HOUSTON — Operator Matt Assolin now has the perfect “war story” to share when advocating for safer and more equal regulation of transportation network companies like Uber.

At 10:15 a.m. Sept. 25, an allegedly uninsured Uber vehicle rear-ended a 2016 Chevrolet Suburban driven by a chauffeur for Assolin’s company, Nikko’s Worldwide Chauffeured Services of Houston. The crash happened on the Will Clayton Parkway on the property of Houston’s George Bush Intercontinental Airport while the chauffeur was en route to pick up an arriving client.

The chauffeur suffered minor cuts and bruises and was taken to a hospital, along with the Uber driver whose injuries were not immediately known, Assolin told LCT. Neither vehicle was carrying passengers.

The chain-reaction rear end collision happened when a vehicle in front of the Suburban braked suddenly, said Assolin, who first reported the incident on his Facebook page. The chauffeur halted in time, but the Uber driver did not stop his Lincoln MKX that rammed the Suburban at an estimated 45 mph, totaling the SUV, he added.

“He walloped the back of him. I get there and I know two police department guys who said the Uber car had no insurance. Well, what do you know? Isn’t that something we’ve been talking about for years as an industry?”

Authorities were still investigating the exact cause of the collision. The Uber driver reportedly told police at the scene he was not texting or using his smartphone at the time of the accident, Assolin said.

Operators and industry leaders for years have been pointing out the lack of adequate insurance rules and coverage for TNCs when compared to legal, licensed limousine companies and taxicab services.

“There are now so many cars on the road that verified commercial insurance is the only way it should be,” said Assolin, vice president of the Houston Area Livery and Charter Association and vice president of Nikko’s, founded in 1982 by his father Nick Assolin.

The Uber vehicle appeared to be legally registered with a valid airport permit on the windshield. It has an expired city of Houston license, but the state of Texas in May transferred regulation of TNCs from localities to the state. Assolin said official state permit decals for TNCs have not yet been issued, so it is possible for a legal state-registered TNC vehicle to not yet bear a sticker.

Assolin estimates the insurance claim will include medical, workmen’s comp, and the value of the Suburban. He bought the 2016 MY SUV for $53,000. Nikko’s 45-vehicle fleet is covered by Protective Insurance.

The accident follows a bad year for Nikko’s marked by a rash of fleet vehicle accidents in which all but one were the fault of the other driver, and most related to distracted driving, Assolin said. “We’ve probably had 10-15 accidents, which is scary when you think about it. We’ve been T-boned, sideswiped, and rear-ended. I see the rate of accidents going up everywhere. That’s the unfortunate reality. People are glued to phones, not paying attention while driving. It’s really incredible.”

As if a bad accident year weren’t enough, Nikko’s lost its entire headquarter facility last month due to flooding from Hurricane Harvey. The company’s converted suburban ranch house was inundated with four feet of water. Nikko’s had just completed $20,000 in remodeling before the flood.

“We knew we’re in the flood plain because we’ve had water on the property several times over the years,” Assolin said. “We never thought it would get inside the building. We were expecting maybe 18 inches or two feet, not four feet. We’ve had to rip everything down to the studs. I don’t think we’ll move back there.”

The floodwater destroyed the company’s computer and electronics equipment, but fortunately all of its data and records have been stored in the cloud for the last seven years, Assolin said. Nikko’s, which has flood insurance, was able to move its vehicles to higher ground before the storm hit, and a core staff ran operations out of its Austin facility for one week after the storm. The company is now working out of temporary commercial offices in Houston.

“Business is back to normal,” Assolin said. “It’s more of an inconvenience than anything.”

It’s certainly not stopping Assolin. He plans on attending an industry convention in Orlando next month and the LCT-NLA East Show in Atlantic City Nov. 5-7. Amid all the stories about crashes and the flood, if he happens to talk about the need for stronger TNC insurance rules, you’ll know he can back up his point of view.

Keywords

accidents   driver behavior   driver safety   Houston operators   limo crashes   Matt Assolin   Safety & Insurance   Texas operators   TNCs   Uber   

 

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Caio Splices Value-Driven Niche In U.S. Marketplace

In another sign of growing variety in the motorcoach market, Brazil-based Caio has steadily gained a slice of it as the builder marks 10 model years in the U.S.

One distinction for Caio is its lower price range for new 57-passenger buses at $400,000 and up. So far, it has sold about 100 of its motorcoaches to chauffeured and charter transportation operations.

“Caio market segments are charter transportation and limousine companies, colleges and universities; within the charter segment, our target customer would be someone looking to establish a stronger brand presence with a European-style vehicle at far less cost,” said Eugene Hotard, executive vice president of Atlanta-based Alliance Bus Group, the exclusive U.S. distributor for Caio.

Alliance took over the distributorship in 2012, four years after Caio officially entered the U.S. motorcoach market. Alliance sells 1,800 to 2,500 buses and vehicles under multiple brands per year to 15 ground transportation segments. It has locations in Dallas, New Orleans, Orlando, Fla., Carlstadt, N.J., Hudson, N.H., and a sales office in Jackson, Miss. Caio, founded in 1946, builds its buses at a factory in Botucatu, Brazil, about 140 miles northwest of Sao Paulo.

A network of 130 U.S. Freightliner dealerships are equipped to service Caio motorcoaches, which are built with the Freightliner power module that includes the axles, suspension system, engine, transmission, and steering. The diesel engines are DD13 with Allison B500 transmissions and ZF independent suspension and tag axles. I-Steer passive steering allows for a 53-foot turning radius that reduces tire wear.

“For the limo operator wanting to get into motorcoaches, we have a unique brand that will set them apart and offer all the features their clients are demanding, and at a lower purchase price and operating cost because of the low proprietary parts content,” Hotard says.

Alliance sells two primary Caio model lines — G Series and S Series — to the chauffeured and charter bus transportation industries. The key difference in the lines, both monocoque constructed, is based on exterior styling. Starting with the 2016 MY, stainless steel frames became optional and will be standard with the 2018 MY.

Hotard claims Caio buses come with the same standard and/or optional amenities as competitors. “We offer what we believe is a superior curb appeal styling and ride quality thanks in part to Freightliner and ZF components,” he says.

“At every use, we have a fresh water flush and a waste tank sealed off from the restroom,” Hotard says. “It does an 80% better job of containing odor than the typical port-o-let bathroom in a motorcoach.”

Besides the Freightliner module, Caio buses include A/C systems from MCC and TransAir; wheelchair lifts made by Braun; REI A/V systems; Hehr side passenger windows; Velvac mirrors; and lighting from Hella and Grote.

“We’ve analyzed the buses based on Buy America criteria, which is what public transit uses, and we meet the 60% U.S. content standard,” Hotard says. “That helps with parts availability and competitive pricing. The bus does not have a high content of proprietary parts, which means you can get most parts directly from U.S. manufacturers.”

All the U.S. made parts are sent to Brazil for integration and then Caio ships the completed buses to the Port of Galveston in Texas.

Caio Bus Interior Equipment
• Black leather seats and interior
• Woodgrain flooring
• Satellite TV
• 110-volt outlet / USB port combinations
• Wi-Fi capability
• Footrests, headrests, retractable armrests
• Cup holders
• Freshwater restroom flushing system with 42-gallon water tank and a 45-gallon waste tank

Motorcoach Models
• G3400: 36-feet, 38 passengers, $300,000 to $320,000
• S3436: 36-feet, 38 passengers, $320,000 to $340,000
• G3600: 45-feet, 56 passengers, $410,000 to $430,000
• S3645: 45-ft. 56-passengers, $430,000 to $460,000

Keywords

Alliance Bus Group   Caio   dealerships   foreign vehicle brands   motorcoach operators   motorcoaches   OEMs   vehicle sales   

 

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One Year Later: Irizar i6 Gains In U.S. Market

When Omar Orozco put his first Irizar i6 motorcoach on the road in March 2016, several clients immediately told him to only send that bus in the future. Eighteen months later, the owner of Professional Charter Services in San Francisco owns six of them to meet demand as revenues have doubled.

“The passengers really like it; I’ve been getting good feedback,” says Orozco, whose fleet includes 22 motorcoaches that serve universities and technology company clients.  “My clients are paying back on my investment in these elegant buses.”

Such testimonials are rolling in for Spain-based Irizar and its U.S. distributor INA (Irizar North America) Bus Sales one year after it introduced its i6 luxury 45-foot, 56-passenger motorcoach into the U.S. chauffeured transportation and motorcoach markets. “The seating is very comfortable,” Orozco adds. “It’s modern like a bullet. The angle of the window and windshield gives you a panoramic view from the inside.”

Repeat Customers
The Irizar i6 has not only drawn its first — but repeat — limousine and charter bus company clients who are using the coach for all types of runs such as school and university-related trips, employee and on-campus shuttles, long haul scheduled service, casino contracts, convention transfers, and tour group trips.    

So far, 15 bus operations nationwide are running more than 50 i6 coaches. It’s also received custom orders for the i6 to be delivered later this year.

More than half of the first-year buyers are repeat customers, like Orozco, says Chad Dixon, COO of INA Bus Sales.

“There is no stronger testament to our customers having a great experience with their new Irizar i6 than a client returning to purchase additional i6 coaches from our company.”  

The i6 offers a full package of luxury, safety, and mechanical amenities. For Kelly Cook, consultant and partner at Santiago Express in Dallas, that combination was a business lifesaver when he urgently needed new buses late last year.

Before buying the new Irizar buses, one of the motorcoaches he used for interstate line runs was pulled over by the California Highway Patrol because it lacked an engine label certifying the bus meets California’s strict EPA rules, which are far more stringent than in other states, Cook said.

While searching the Internet for buses that meet all environmental certifications in California, he came across Irizar and Mike Haggerty, the owner of INA Bus Sales. He called Haggerty on a Saturday night, who immediately invited him to view i6 coaches in Dallas that weekend. By Tuesday, Cook flew to INA headquarters in Las Vegas to close the deal on three buses.

“It was an out of the blue call on the Internet on a Saturday night,” Cook says. “I was desperate to get buses. Mike, his wife, and son were a big reason why we are loyal to the Irizar brand. We’ll buy Irizars for the rest of our life due to their representation.”

Customer testimonials, like those of Orozco and Kelly, have been encouraging for Irizar as the luxury motorcoach market grows in the U.S. due to a post-recession demand this decade for safe, comfortable, and high-quality group transportation that exceeds the experience of airline economy class.

Service & Support
A critical component of motorcoach service for operators is the aftermarket support and access to fast maintenance.

“The alliance of Irizar and INA Bus Sales is very focused on aftermarket support and we hold ourselves to a very high standard,” Dixon says. “As we have had a little more than a year with our early adopters of the Irizar i6 and more than two million miles across that collective fleet that has been in the market, the performance and customer satisfaction have been very telling.”

INA has been closely monitoring the performance and durability of its new coach so it can position it as a long-term product in the motorcoach market. Despite its foreign origins, the aftermarket and support service network set up by INA Bus Sales is as good as any run by a domestic manufacturer, Dixon says.

INA has multiple locations nationwide. “All of the first-class service centers, each with full maintenance capability, parts inventory on hand, and experienced technicians on site and located throughout the U.S. are a part of the INA Bus Sales service network as authorized Irizar i6 service centers,” Dixon explains. Those locations include Burlingame, Calif., Orlando, Fla., Las Vegas, Dallas, Faribault, Minn., and Pine Brook, N.J.

Troubleshooting is easy with INA able to pinpoint problems quickly and immediately send help if needed, Orozco says. “They help me a lot to understand and work through anything about the vehicle.”

The service structure reflects INA/Irizar’s goal of staying close to its customers. “We have found a dedication to be responsive and creative with how best to solve challenges or unscheduled maintenance events has led to a stronger connection to our customers,” Dixon says. “We all face challenges and unexpected problems in our business, and with sophisticated equipment such as a new motorcoach, it is how we overcome those issues with our partner operators that makes all the difference.”  
[PAGEBREAK]
Like the business model of its bus clients, the company works to provide VIP treatment. “Our research suggested this was an opportunity with the status of the market when we launched the company last year, enabling not only the uniqueness of the Irizar i6 to be a real differentiator, but also our approach to aftersales service,” Dixon says.    

Product Updates
• Since the first i6s hit U.S. roads last year, Irizar introduced customized seating options that improve comfort with added legroom and enhanced safety. Irizar maintains it offers the only seats for full size coaches on the market that surpass both FMVSS 207 and 210 standards. For custom orders, clients may choose from a wide array of the latest European leathers, fabrics, and synthetic materials in a wide range of colors and customize seven different sections of the seats.

• Irizar has developed a new design for its ADA wheelchair lift system in which the enclosure hangs from the top of the luggage compartment instead of on the floor of the baggage bays.  This further enhances the storage capacity of its SuperCargo models, providing better access for the loading and unloading of luggage when using the last curbside cargo bay of the Irizar i6.  

• Irizar delivered its first two-door model earlier this year, which includes a second door halfway down the right side.

• The integral i6 designed for the U.S. market, with a stainless steel monocoque designed chassis and equipped with a Cummins ISX EPA 2017 engine and Allison B500 transmission, are made at Irizar’s primary state-of-the-art production factory and headquarters in the San Sebastian region of Northern Spain.

These motorcoaches have a dedicated production line with a spec production run of i6 coaches monthly. INA Bus Sales can fulfill custom orders to their exact specifications and deliver those units within a 90-120 day timeframe, year round.  It keeps a new inventory of in stock units strategically positioned throughout the country. 

ADA Advantage
Both the Standard and Super Cargo i6 models are ADA compliant and have the option to come one of three ways:
1. Non ADA: No door midship on the curbside of the coach, no Masats lift system
2. ADA Prep: Door for lift system with pre-wiring, no Masats lift system
3. ADA: Door midship with Masats lift system located in luggage compartment below the midship door. 

[PAGEBREAK]

FASTFACTS: Irizar

• Headquarters: Ormaiztegi, Spain
• Founded: 1889
• Facilities: Spain, Brazil, Mexico, South Africa, and Morocco
• Annual production: About 3,000 buses
• Global workforce: 2,600 employees
• Related Irizar Group companies: Masats – Pneumatic and electric door components and systems including ADA wheelchair lift systems; Hispacold – HVAC climate control systems; Datik – Complete transportation management solutions including driver fatigue warning systems; Creatio – Research & Development group; Jema – Power electronics; Alconza – Electric motors; Irizar e-mobility – Urban electromobility solutions*
• U.S. distributor: INA (Irizar North America) Bus Sales, Las Vegas, Nev.**
• INA executives: Mike Haggerty, founder and Chairman of the Board; Chad Dixon, COO; Marty Barrett, EVP; Miguel Oliva, SVP Sales & Service – Southwest; Gene Hall, Sr. Account Executive – Southeast; Randy Kolesar, Sr. Account Executive – West; Steve Blaschke, Sr. Account Executive – Midwest.
• Websites: www.irizar.com/usa • www.inabussales.com
• Phone: (702) 431-0707

*Source: Irizar / INA Bus Sales
**Source: LCT

FAST FACTS: Irizar i6

• Models: Standard and Super Cargo
• Passengers: 56 + 1
• Luggage capacity: 476 cu.ft. Standard / 620 cu.ft. Super Cargo
• Parcel rack compartment volume: 56.5 cu.ft.
• Free-standing aisle height: 78 in.
• Bus length: 45-ft
• Height: 12.23 in. / 12.89 in.
• Width: 102 in.
• Turning circle: 40.8 ft.
• Max authorized weight: 54,000 lbs.
• Motor: Cummins ISX
• Transmission: 6-speed Allison B500
• Fuel capacity: 210 gal.
• Max torque: 1,700 lb-ft.

• Standard passenger amenities: Individual A/C and lighting, 110V plug sockets and USB ports at each seat, 3-pt. seat belts, armrests, footrests, Bosch or REI audio/video system with five monitors, wood laminated flooring, LED interior lighting
• Optional passenger amenities: Moquette seats, leather seats, seats with leather inserts, 2+1 wider seating floor plan, coat hangers behind seats, seatback tables, magazine nets, aircraft style locker lids; Bosch DVD; WiFi Internet
Sources: Irizar/INA and LCT 

Keywords

bus manufacturers   buses   Irizar   Mike Haggerty   motorcoach operators   motorcoaches   OEMs   

 

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Richard Murillo Moves To New Sales Post At Coach West

CARSON, Calif. — Former sales and marketing executive Richard Murillo of American Limousine Sales announced Sept. 12 his new sales post at Coach West in Carson.

Murillo, citing an interest in expanding into the bus and Sprinter van markets, joined Coach West on Aug. 4 after 11 years at American Limousine Sales, a limousine builder and seller based in Lynwood and Los Angeles.  

“It been on my mind for a while,” Murillo told LCT. “I have a lot of admiration and respect for the entire team at American Limousine Sales. I needed to offer clients more than limousines and party buses. Coach West will allow me to do that with different options.”

Thanks to a partnership with Executive Coach Builders, Murillo and Coach West can offer a wide variety of bus and limousine vehicles.

“I am really excited to be part of a family oriented team that offers professional vehicles to the industry,” said Murillo, a regular exhibitor at LCT trade shows known for posting and picturing exotic vehicles for sale on Facebook. “I will miss the gull wing doors and exotic limos, but I know that time has passed. The bus industry is huge with a lot to offer clients.”

Murrillo says he looks forward to embracing the new team and family at Coach West and learning from them. “I have been in the limo industry for 15 years and now it’s time to plant my feet in the bus and Sprinter market as well.”

Information: Richard Murillo, www.coachwest.com, o: (310) 609-2900; m: (310) 291-2920

Keywords

bus market   Coach West   dealerships   executive changes   Sprinter   vehicle sales   

 

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Operators Land Business Feature On MSNBC

SAN JOSE, Calif. — Maurice and Rhonda Brewster, owners of Mosaic Global Transportation of San Jose, got the life story of their chauffeured transportation company told before a national audience Aug. 13 on the MSNBC network.

The network featured Mosaic in a 6 and 1/2-minute report on Your Business with JJ Ramberg, which airs weekend mornings at 7:30 a.m. ET. A crew shot the report at Mosaic on June 8.

While limousine operators often get coverage in their local media markets, such  high-profile exposure on a national network brings positive publicity to the industry overall.

The magazine-style report told the story of how the Brewsters started 15 years ago with an old Rolls Royce as a classic vehicle wedding service, and then grew exponentially into a corporate chauffeured car and bus transportation company with Fortune 500 contracts. Mosaic runs 69 luxury fleet vehicles, including eight motorcoaches, with more than 100 employees, and fulfills transportation contracts for such big names as Google, MUFG Union Bank, Johnson & Johnson, Macy’s, Yahoo, ExxonMobil, and IBM.

“How the interview came about had everything to do with our social media working well and the producer specifically needing a story of a small business thriving among the giants in Silicon Valley,” Brewster told LCT. “With all the disruption going on in our industry, we find it critical to reinvent our business and our business model. Everything is on the table to further secure our success.”

Brewster also is the President and a founder of the Minority Limousine Operators of America, which won the 2016 LCT Association Award of Excellence during LCT’s annual business achievement awards at the International LCT Show in Las Vegas. Mosaic Global was a finalist in the 51-plus vehicle category of the LCT Operator of the Year Awards in 2016 and 2017.

The MSNBC report can be seen here: http://ift.tt/1L8Fswe.

Keywords

breaking news   California operators   LCT Association Award of Excellence   Maurice Brewster   media   Minority Limousine Operators of America   minority-owned businesses   Mosaic Global Transportation LLC   Operator of the Year Awards   San Francisco operators   

 

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Inspectors Ready To Enforce CA Stretch Limo Retrofit Law

PALM DESERT, Calif. — Operator Gary Cardiff may have been the first limousine fleet owner in California to be officially told his stretch limousines must comply with the state’s long-awaited limo retrofit law, effective Jan. 1, 2018.

On July 18, his company, Cardiff Limousine & Transportation, the largest chauffeured fleet in the Coachella Valley, received a visit from California Highway Patrol inspectors for a first-ever terminal inspection on his three stretch limousines. Cardiff is used to such inspections for his majority bus fleet, but this visit serves as an alert to traditional stretch limousine operators statewide. The CHP reminded Cardiff of the law, and it resulted in one of his three stretches being required for a retrofit.

“I don’t live off limousines, but you still have a lot left in California,” said Cardiff, who contacted LCT about the inspection. “I’ve got a new one with a roof hatch, a fifth door, and an engineered window escape.” In addition, Cardiff plans to sell one of his stretches and retrofit the third. While his company gets most of its business from bus clients and groups, he keeps a few stretches for weddings, funerals, and quinceaneras.

The retrofit law, known as SB109 and now officially California Vehicle code 378, affects stretch limousines carrying 10 or fewer passengers.

• If a stretch limousine has a fifth door, it needs either two pop-out window emergency exits OR a rooftop escape hatch.
• If a stretch limousine does not have a fifth door, then it needs two pop-out window emergency exits AND a rooftop escape hatch.

The CHP’s modified limo inspection sheet requires that pop-out windows, also referred to as push-out, must be installed by an independent engineering firm or the manufacturer, and must be certified according to Federal Motor Vehicle Safety Standards (FMVSS). The sheet also lists specific minimum window dimensions.

The official language on what vehicles qualify:

378. (a) Limousine means any sedan or sport utility vehicle, of either standard or extended length, with a seating capacity of not more than 10 passengers including the driver, used in the transportation of passengers for hire on a prearranged basis within this state.
(b) Modified limousine means any vehicle that has been modified, altered, or extended in a manner that increases the overall wheelbase of the vehicle, exceeding the original equipment manufacturer s published wheelbase dimension for the base model and year of the vehicle, in any amount sufficient to accommodate additional passengers with a seating capacity of not more than 10 passengers including the driver, and is used in the transportation of passengers for hire. For purposes of this subdivision, wheelbase means the longitudinal distance between the vertical centerlines of the front and rear wheels.

Gov. Jerry Brown signed SB109 on Oct. 11, 2013 to take effect on Jan. 1, 2015. Since then, the Greater California Livery Association succeeded several times in getting the enforcement date delayed until Jan. 1, 2018, arguing operators and coachbuilders needed time to figure out how to do the retrofits. GCLA President David Kinney ruled out the possibility of anymore extensions to the enforcement deadline. “The last time I testified, they told me not to ask for an extension.”

The retrofit law came in response to a horrific stretch limousine fire on May 4, 2013 on the San Mateo Bridge near San Francisco, in which five women celebrating a bachelorette party died when they could not escape the 1999 Lincoln Town Car 120-in. stretch. Four other women got out and survived.

A state investigation determined the fire was caused by an obscure series of catastrophic factors that so far have not been identified as causes in any other stretch limousine fires or accidents. The limousine also was carrying one passenger beyond its legal safety limit (in the limo compartment), and the chauffeur failed to immediately pull over when hearing the first warning of smoke from a passenger.

Kinney told LCT this week he so far was not aware of any other operators receiving visits, but the CHP has trained inspectors on the details and procedures of the law.

He estimates 80-85% of California operators have never received a terminal inspection from the CHP. With this law going into effect, it will be a first for inspectors and operators, especially those with smaller fleets that have traditional stretch sedan limousines. “Now all those people will have CHP officers knock on their doors.”

That could lead to some misinterpretations or misunderstandings until enforcers get used to the law. The code also contains some vague language on some of the details, he said.

For example, during the CHP visit to Cardiff on July 18, the inspectors claimed a Cadillac XTS sedan stretched only six inches for added legroom qualified for a retrofit under the law. Cardiff and Kinney had to clear up the confusion with the CHP, and in an email dated July 28, a CHP administrator wrote to Kinney that Cardiff’s “limousine with a six-inch stretch is NOT a modified limousine by definition.”

Kinney reiterated, “It is the GCLA’s understanding vehicles that are stretched or modified but DO NOT increase passenger capacity do not meet the definition of a ‘modified limousine,’ and therefore are not subject to the new modified limousine safety or inspection requirements.”

He advises operators to ensure they have all of their legal and regulatory paperwork in order, including insurance, workers’ comp, drug-pull program records, and any fleet-related maintenance and inspection records.

An added concern is what coachbuilders are available to do the retrofits. Estimates vary, but a retrofit involving windows and roof hatches can range from $5,000 to $10,000 depending on the scope of the work.  

“We’re not sure who’s doing retrofits. It gets into a whole liability issue. Who will do it?” Kinney asked. [LCT has reached out to Quality Coachworks in Ontario and Tiffany Coachworks in Corona to see if the coachbuilders are available for retrofits, and will update with any new information. American Limousine Sales of Lynwood responded Wednesday it may be able to retrofit windows or a roof hatch but not a fifth door].

The traditional Lincoln Town Car stretch limousine was last built for the 2011 model years, with the MKT cross-over vehicle model succeeding it as the official Lincoln limousine. For operators with older stretches, it may be worthwhile to sell them and buy new ones in compliance.

Ryan Silva, owner of Epic Limousine in San Diego and a GCLA board director, said he has ordered a stretch limousine to be custom built that complies with the new California law. He advises operators to make sure any limousine they plan to purchase will meet the new standards before putting any money down.

“I sold my stretches and am having one built. It’s a challenge, but I’m having one built based on what an inspector said would work. It can be very vague.”

Silva also pointed out older sedan stretches now straddle the $20,000 range in the used vehicle market, so an operator may be better off buying a new stretch than sinking $5,000 to $10,000 into a stretch worth only two or three times that amount.

Overall, the new law could help relieve the constant problem of illegal operations, Kinney said. “I think it is good for the industry and will make it safer. If 85% of industry has no enforcement, then some operators can skirt the rules leading to unfair competition and not taking care of public. This could help the industry become more compliant with rules and regulations, the riding public will be safer, and it could reduce accidents and injuries in our industry. That could filter all the way down.”

California operators with any questions or concerns about the limo retrofit law can call the GCLA Help Line at (213) 440-4634 or Tom@gcla.org.

Keywords

California operators   David Kinney   Greater California Livery Association   limousine fires   passenger safety   regulatory enforcement   Safety   state regulations   stretch limousine   

 

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Operator Selling Batch Of 2015 BMWs With Low Miles

PLEASANTON, Calif. — Ten BMW 740Li livery sedans, all with less than 100,000 miles, have been posted for sale on Limoforsale.com by an operator who only wants to buy more of them.

Black Tie Transportation owner and CEO Bill Wheeler Sr. bought 30 BMWs in 2015 as his new primary fleet sedan, and is now selling the first 10 of them so he can buy 10 2018 MY BMWs within the next 90 days.

The 10 740Lis are available now on Limoforsale.com for $28,999 each and range from 89,000 to just under 100,000 miles. Anyone who buys two to 10 of them will get an additional $1,000 off each vehicle, Wheeler said.

SPECS, PHOTOS, SELL INFO HERE

Black Tie used all 10 long-wheelbase luxury sedans to carry mostly single-rider clients to and from airports in the San Francisco Bay Area, which means the cars have accumulated more highway than city miles and received minimal client wear-and-tear. Wheeler can attest to the model’s low maintenance track record and client enthusiasm.

“The car has been received amazingly by clients, and basically been locked into our market,” Wheeler told LCT. “Besides putting tires on them, we have not had to do anything; no transmissions, no A/C compressors, nothing but reusables like tires and a few windshield breaks.”

Given the 740Li’s durability, Wheeler plans to run his remaining 20 2015 sedans until about 150,000 to 200,000 miles. His company follows a fleet policy of turning over vehicles every two to three years.

When Wheeler bought his first BMWs, he slightly raised his rates with no drop-off in client business. His approach was to distinguish his company as a premium chauffeured service provider in the metro area where transportation network companies (TNCs) started.

LCT background articles:

• How To Upgrade Your Fleet For Better Results
• Operator Orders Most BMW Limo Sedans To Date

Keywords

Bill Wheeler   BMW   BMW 7 series   California operators   Limoforsale.com   online vehicle sales   premium luxury sedans   San Francisco operators   used vehicles   

 

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Too Much Smart Talk On A.I.

Each year seems to bring a topic alarming the industry with related forecasts of bad endings. In 2015, it was driverless cars. In 2016, the supremacy of TNCs. This year: AI (artificial intelligence).

I’ve been to three conferences so far this year that included the subject of AI, which is applying technology to replace human tasks in faster ways. In a positive way, the state of the industry presentation at the March LCT Show touched upon a direct benefit to operators: Bot and voice activated technology that can handle call center, service desk, and web FAQ functions. Likewise, Leadership Summit speaker Brian Solis talked about AI’s disruptive role, such as apps and the advent of driverless vehicles.

But during a digital media conference I attended in April, a speaker warned 6% of jobs will be lost to AI by 2021; 47% by 2037; and 95% of machines will write better than humans. Could AI replace writers, editors, and marketers, the speaker asked? I wondered if it would happen after I retire.

What’s Next?
2015 – Driverless Cars
2016 – TNC Supremacy
2017 – Artificial Intelligence (AI)

Mad Info
Media coverage brings such doomsday scenarios: One third of men 25-54 will be unemployed! 45% of jobs to be automated! 30 million unemployed drivers with nowhere to go! 75% unemployment by 2100! What will people do? How will they earn a living? Can everyone earn money polishing robots? (Wait, no, they’ll polish each other). We need a national guaranteed income!

Oh, please sheeple media, calm down already. I’ve recently read several articles on AI explaining how it’s an innovative tool that creates new jobs and makes our lives easier. I can’t think of anyone now who wants a harder life.

AI Benefits
• Call Center
• Service Desk
• Web FAQ

More Jobs
In several industries, physical labor jobs have yielded to more digitally-driven jobs. A commentary in the May 14 Wall Street Journal by two economic academics, Bret Swanson and Michael Mandel, points out how e-commerce has created 397,000 jobs since December 2007, making up for the 76,000 jobs lost at stores. Hydraulic fracking that spurred the shale oil and gas boom — at least one cylinder pulling the U.S. out of the Great Recession — has boosted oil-and-gas work hours by 17% during the last 10 years.

Tech think tanker Robert D. Aktinson in the April 17 issue of National Review cites studies showing how fewer than 5% of jobs can be fully automated, while AI will eliminate only 1.25% of jobs in 15 major developed and emerging companies by 2020. Only 10% of jobs across 702 different occupations are actually at risk of automation. More than offsetting such small losses are the billions of dollars saved, new job roles yet to be created, and increases in economic productivity thanks to AI and robotics. In my case, I wouldn’t mind having a bot edit rote press releases and upload content to our websites, thereby freeing me up to write more interesting articles, create videos, and tour companies.

Really? AI Job Loss Forecast
6% by 2021
47% by 2037

Losses < Gains
Now, some jobs and roles will be lost forever. On May 11, 1997, chess champion Gary Kasparov was defeated by an IBM supercomputer, Deep Blue. Writing in the WSJ in April, Kasparov admitted he had a hard time with the machine-beat-man irrelevancy. But he sums it up best: “Waxing nostalgic about jobs lost to technology is little better than complaining that antibiotics put too many gravediggers out of work.” Civilization advances non-stop. No one would want to bring back all the jobs that collectively provided the brainpower and service levels of the smartphone now in about every purse and pair of pants. Kasparov points out how jobs such as drone pilot, social media manager, and 3-D print engineer did not exist 20 years ago.

Intelligent machines free us from menial physical and mental labor, he writes, thereby “elevating our mental lives toward creativity, curiosity, beauty, and joy.” I can think of worse ways to spend one’s time.

Most of us will keep working. For now, mass driverless cars seem further off than first predicted, maybe 2030 instead of 2022. Uber has hit some skids, to say the least. The limousine industry still supports our LCT events and magazines, print and digital. Technology will sort out all the progress and keep more people busy.

As we size up how AI will change our business lives, we’ll still need the informed intelligence and judgment of the human mind. That human mind attached to a soul brings infinite potential for creativity and achievement, one unique person at a time. I’m not betting techies ever find an AI invention replacing God.

Keywords

artificial intelligence   industry trends   Information Technology   innovation   LCT editor   Martin Romjue   research and trends   

 

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Trump Campaigner Urges Fair Play With TNCs

MIAMI BEACH, Fla. — Summit attendees got a strong dose of insider politics and a pro-business outlook from one of President Donald Trump’s frontline supporters, who assured operators Trump has always been an avid user of chauffeured transportation.  

“Even before he was the President, he was a chauffeur and limousine kind of guy,” said Corey Lewandowski, who served as Trump’s campaign manager from January 2015 to June 2016. “He would go around New York all the time in chauffeured limousines; that’s just how he operated.” Trump likely isn’t very familiar with or fond of using Uber, he added.

Lewandowski’s presentation on May 22 consisted of part business pep-talk and part political intrigue as he relayed insider tales from his 18 months as Trump’s first campaign manager. He was interviewed at the Eden Roc Hotel conference center by LCT Publisher Sara Eastwood-Richardson and Dav El / BostonCoach Chauffeured Transporation CEO Scott Solombrino, who also serves as a board director for the National Limousine Association focused on legislation.

Lewandowski made it clear he wasn’t officially speaking for the Trump Administration, but only sharing his views as a political observer and pundit. Before the Trump campaign, he worked as a campaign strategist for the Republican Party and as a lobbyist. He now appears as a political analyst and commentator on the Fox News Channel and One America Network.

All About Business
“What Trump understands is you need to give small business owners relief. You need to give them the tools so they can be successful,” Lewandowski said.  

He drew parallels between the businesses Trump developed as he grew his enterprises to chauffeured transportation operations. Trump wants to create 25 million jobs, and “none of those are Uber jobs,” he said. “This administration is about jobs; it’s about the economy and growing businesses.
“What we’ve seen in general is significant investments from companies that want to grow again in the U.S.,” Lewandowski said. “That’s not been the case for a long time, because the biggest and most important part of this administration is jobs. And when you guys are out creating jobs on a daily, weekly, monthly basis, that story collectively is being compiled and told to the administration so they better understand what they’re doing.”

Putting Uber It Its Place
Lewandowski underscored the main regulatory goal of the limousine industry as it confronts transportation network companies (TNCs).

“I think what your industry needs — what every industry should have — is a level playing field,” he said. “That’s all you’ve ever asked for, which is the same rules for everybody. You are an industry that’s trying to play by the rules but you don’t have a fair playing field.”

Lewandowski warned Uber’s drive to keep rates as low as possible risks compromising safety for business travelers, a leading client niche for the chauffeured transportation industry.

“I am certain there will come a time where an employee who is working for a business on the clock goes from point A to B in an Uber and something detrimental happens,” he said. “And you will see a massive lawsuit from that individual who says to the corporation, ‘You told me to take an Uber, because for whatever reason, you didn’t provide me the service, and this is what happened.’ That will happen. There’s no question about it because the companies think that’s a cost-savings approach because they don’t have to have a limousine service on-call. Well wait until one lawsuit comes. . .  you want to talk about [what will happen to] insurance premiums?”

Lewandowski encouraged industry leaders to work with officials at the Departments of Treasury and Labor as the transition evolves and positions are filled. He urged leaders and operators to help the new administration better understand the limousine industry and its push for fairer regulations.

The top administration leadership, which has not worked in government jobs, is looking at big picture agenda items and getting a handle on running the federal government. “What they want is small businesses to come in and say, ‘Let us help you be successful,’” Lewandowski said.

On The Front Line
The bulk of Lewandowski’s presentation centered on his role helping ignite one of the most memorable, historic, and stunning Presidential election upsets in U.S. history.

It was at a Conservative Political Action Committee Conference in February 2015 where Lewandowski realized Trump was more than a passing phenomenon. Compared to other Republican candidates at the conference, Trump drew enthusiastic, overflow crowds, not because of his reality TV billionaire stardom, but because of his populist political message that resonated with America’s middle class. Lewandowski observed such crowds again while campaigning in New Hampshire.

“There were so many people, the cars were backed up two miles deep, and people were literally running after the car with Trump as we got to the event,” he recalled. “They were literally standing on the roof of this building just to get a glimpse of this guy. I have never seen anything like it. What were supposed to be only 200 people turned out to be 3,000 people. We knew right there that people wanted something so different.”  

Trump would fill up stadiums with people waiting in line for hours to see him. “What the media refused to report is the intensity level of the people who supported Trump,” Lewandowski said. “Once we got first place in the polls in New Hampshire, which happened in July 2015, we never looked back.”

After he was replaced as campaign manager in June 2016, Lewandowski became a commentator for CNN. He told the audience how he refused to criticize Trump and remained loyal because he believed in the future President’s ideas and plans. He relayed the election night upset that took Trump to the White House, and him from CNN to Fox News:

“So I knew at 10:30 p.m. Trump would win, and I went to the CNN guys and said, ‘Look, Donald Trump is going to be the President of the United States. Here are the numbers.’ So they said, ‘You can’t say that on TV.’ ‘Okay, I won’t say it.’ But I said, ‘But it’s a fact. I’m looking at the numbers, he’s going to win Florida, he’s going to win North Carolina, he’s won Ohio and Iowa. He’s going to win Pennsylvania, he’s probably going to carry Michigan. Wisconsin looks very good for us.’ They said, ‘You can’t say that.’ So, we sat on this panel all night long and they refused to acknowledge that Trump was winning.”

“The only state that was potentially still close was Nevada, but we didn’t need it once you pick up Wisconsin, Michigan, and Pennsylvania. So, they [still] didn’t want to call the race, even though a bunch of the other channels had called it. And as a matter of fact, this network executive waited — literally waited — until after Hillary Clinton called Donald Trump to concede, to then say, ‘We’ve got breaking news. We can now say Donald Trump is going to be the next president.’”

At 4 a.m., Lewandowski said he walked off the set and told a CNN executive, ‘It’s so disingenuous. You guys knew, you refused to call it, and I can’t do this. I quit.’ So I walked out and I quit.”

Keywords

business trends   Donald Trump   economic outlook   industry education   industry politics   LCT Leadership Summit   Sara Eastwood-Richardson   Scott Solombrino   TNCs   Uber   

 

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Why Giving Away Pays Off The Most

The bidding war that erupted among two industry titans Nov. 14, 2016 over a donated Lincoln Continental sedan finally had to wind down to a draw and a good deal.

No industry auction event had ever spawned such high stakes one-upmanship before a rapt audience. And all this over a mid-$40,000s sedan that either one could have just bought on his own, checkbook in hand.

Dawson Rutter, the CEO-owner of Commonwealth Worldwide Chauffeured Transportation in Boston, and George Jacobs, CEO-owner of Windy City Limousine & Bus in Chicago, finally settled on giving $72,000 each for the car. The vehicle donor, Ford/Lincoln Limousine & Livery Vehicles, came up with a second car so each CEO would get one. When the tab was settled, the auction beneficiary, the NLA Harold Memorial Berkman Fund, netted a record $100,000, while $44,000 funded the second vehicle.

At one point during the dinner gala bidding, held during LCT-NLA Show East in Atlantic City, N.J., the sparring CEOs threw out $2,500 raises on each other as other bidders fell by the wayside.

“Dawson says to me, ‘How far do you want to go with this?’ It was so funny,” recalled Jacobs in a recent interview. Craig Hall, the marketing manager for Ford/Lincoln, got worried about the clash. “He feared Dawson and I would come to blows. He was terrified our friendship was disintegrating but he had no idea we were having the best time. It didn’t matter who got the car and what we paid. We’re both Type As and knew we were doing something special for charity. You give to charity and have the best possible fun.”

Rutter recalled how at one industry auction about 15 years ago a bidding session for an auction item stalled at $3,400. So Jacobs waved a $100 bill to keep interest going. Once bids resumed, the auctioneer returned the $100 bill to Jacobs, who didn’t want it back and instead bid it out on behalf of the auction. Rutter bought the $100 bill for $1,000.

Intangible ROI
So how did these two chauffeured transportation leaders, who trace their industry lineage to the founding era of the mid-1980s when LCT and the NLA started, get so carefree about donating to charity? Their charitable efforts provide some guidelines for operators who seek the most joyful investments of all.

Jacobs and Rutter say their philanthropy grants a satisfaction that goes beyond any bottom line ROI. Most of their donations consist of money and chauffeured transportation.

“I didn’t have a particular motive,” Jacobs says of his years of philanthropy, “other than just a desire to give back.”

Among the many groups Jacobs has donated to over the years: Make-A-Wish Foundation Illinois/Wisconsin/Indiana, Hydrocephalus Foundation, Front Row Foundation, Harold Berkman Memorial Fund, Step Up Women’s Network, YWCA, Ronald McDonald House, Greater Chicago Food Depository, Chicago Police Department, Food Bank, Hemisphere Travel, Rush University, University of Chicago Hospitals, Loyola University, Toys For Tots, The Salvation Army, Nature Conversancy, Autobahn Society, Covenant House, Alzheimer’s Foundation, National Arbor Day, the SPCA, Animal Rescue, scholarship funds, and hometown teams Chicago Bulls, Bears, White Sox, and Cubs. In August, Jacobs will donate to Camp Kids Are Kids, a group that helps children with cancer attend summer camp free of distractions.

“It makes you feel good when you are doing something good for others,” Jacobs says. “Everything I have I got from the limousine industry. I like to give it away; sometimes it’s dollars, transportation, or advice, or sometimes it’s speaking and giving incentives to people. The letters we get from Make-A-Wish kids who draw pictures and take photos when they ride in a limo gives me joy. To them it’s everything. In some cases, it’s their final request.”

As Commonwealth grew, Rutter started compiling a list of local charity recipients, such as Massachusetts General Hospital. At first, he donated small amounts of $1,000 or less. Since 2001, Rutter has been a grand benefactor of the Boston Symphony Orchestra, donating $1.5 million in transportation. He’s also been involved with the Cystic Fibrosis Foundation, Wounded Warriors, the Berkman Fund, and the Lupus Foundation of America, to name a few.

“One thing I really felt great about is donating to cystic fibrosis for 25 years,” Rutter said. “There have been major breakthroughs and they are on the verge of curing a significant part of the fibrosis population. When you’re giving money for many years and seeing no result, and then see progress, that is very gratifying.”

Sometimes charity donations can involve showing up at activities such as golf tournaments and fishing derbies. At one event, Rutter bought a few golf balls bid up to $5,000.

Forming A Habit
Jacobs and Rutter say once a company finds a financial rhythm for donations, it should become a budget item. The amount can still vary depending on revenue and economic conditions. “When we have a soft year, I drop the amount of donated service; in a good year it goes back up,” Rutter says.

During the last recession, Jacobs had to cut salaries at his company 10% and reduce charitable donations, but the company never laid anyone off and kept giving as it could. “You try to plan ahead and make it part of your expenses,” Jacobs says. “You do the most you can do; sometimes you don’t have the best year ever. You always let them know you’re there and you always do something.”

Finding The Right Causes
Like any business line item, organized donations require review and evaluation. Donors often learn by doing. To select charities, Jacobs and Rutter follow two approaches:

1. Check out recommendations from clients and employees. “I like to get input from other people and see the best use of funds to do the most good and cover the greatest number of people,” Jacobs says.

2. Rutter suggests using charity scorecard websites online that can tell you if a charity misuses funds or doesn’t run efficiently. “Some of them donate very little to the actual cause and most of the money is eaten up by administration and to support salaries,” he says.

While both companies give generously, they do not designate a position to handle donations. Rutter makes all decisions on charity. Jacobs and senior managers choose where to disburse funds. Jacobs advises not to allow sales staff to determine giveaways because “they think they can sell more if they give more.”

Personal Connections
Some causes are obvious good fits for the limousine industry, such as the NLA’s Harold Berkman Memorial Fund that sends money to a group of charities, and the Make-A-Wish Foundation that uses free limousine rides for children. Otherwise, operators should choose donors based on success and a high pass-through of funds to recipients, Rutter says.

Worthy causes also can reflect the interests and motives of the owner. “A lot of charities suit my own wishes and desires,” Rutter says. “With the Lupus foundation, it almost all goes to the patients. I donate to Alzheimer’s because by the time I get older, I’d like to see less risk for getting the condition. I’ve had animals my whole life, so I donate to the Massachusetts Society for the Prevention of Cruelty to Animals. I had a heart issue, heart arrhythmia, so I put in $50,000 for a heart charity. I’m with a group of men a friend put together and we all pledged $50,000 each to Brigham and Women’s Hospital’s cardiac center and cardiologist research.”

“The Berkman Fund has no fees or salaries and makes perfect sense because it’s a good central location,” adds Jacobs, who helped start the fund named after the late founder and owner of Los Angeles-based Music Express, Harold Berkman.

Qualifiers
As with any business-related venture, not all charitable efforts necessarily work for the best. “We do not donate to auctions anymore,” Rutter says. “The reason is when people buy [your service] at an auction, they think they own the car. It’s based on availability, but we had so many problems with people arguing and complaining to us about the free service. No more. People abused us on one-off donations. Now we’ll donate $200 instead of a car.”

For the same reason, Commonwealth does not offer rides for weddings or proms. “Too many complaining brides and we don’t have limos anymore,” Rutter says. “We don’t do proms or retail work, so we don’t get people throwing up in the back of limos. No more brides complaining dirt got on their dress from my car.”

Let Publicity Find You
While media exposure on charitable activities can yield new clients and positive word-of-mouth, the CEOs eschew those motives. “You don’t do it with that mind, but it’s a nice thing when that happens and it comes back to you,” Jacobs says.

“I don’t look for publicity,” Rutter says. “I used to go to charity golf events and donate items back to be auctioned off. It’s a lot of fun just giving away money to the right people.”

Inspiring Employees
Another benefit for a business with a charity program is it sets an example for employees. At Commonwealth, employees participate in a YMCA Christmas gift giveaway for children in underprivileged neighborhoods. “They are happy to be part of what we’re doing as a company,” Rutter says. Adds Jacobs: “What our company does is if a chauffeur or employee falls on hard times, has a death in the family, or a setback, employees raise funds. I match the employees by a set amount and it creates great camaraderie.

Tax Write Offs?
Rutter advises keeping accurate records for tax returns. The mention of taxes spurs a pet peeve for Jacobs: “Everything you do in business — payroll, rent, gas, etc. is an expense. It’s income minus expenses. Charitable expenses are no different. You give because you want to give, not because it’s a tax deduction. Every expense is a tax deduction in a way.”

What’s Next?
After the blowout auction in Atlantic City, Jacobs and Rutter plan to ratchet up their efforts.

“We have all this year to figure out how to top ourselves,” Rutter said. “We’re starting to have a germ of an idea: Team Dawson and Team George. Maybe we raise $10,000 from each of 10 people. . .” he says, thinking out loud.

Such an idea could yield another high-stakes stalemate.

But then, who cares if Rutter or Jacobs gives more? The benefits always ensure the most winners.

Keywords

charity   Commonwealth Worldwide Chauffeured Transportation   Craig Hall   Dawson Rutter   Ford   George Jacobs   industry charity   LCT-NLA Show East   Lincoln Limousine & Livery Vehicles   Lincoln-Continental   National Limousine Association   vehicle auctions   Windy City Limousine   

 

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