Feature: May 2007

How Green Is My … Dealership

This year’s USA Today Dealer Innovation Award winner:
saving energy costs while helping the environment.

By Nancy Dunham

“Dealers are doing some very innovative, exciting things today. Many are completely invisible to customers, but all are designed to improve their dealership experience while maintaining or enhancing profitability,” said NADA chairman Dale Willey at the award presentation.

Meanwhile, NADA has partnered with the EPA’s Energy Star program to help dealers make cost-effective, energy-saving investments for both existing facilities and new construction, which directly reduce overhead costs.

The excellence of the entries made narrowing the selection difficult, says NADA’s Douglas Greenhaus, who judged the program along with Jake Kelderman of the Newspaper Association of America, Arlington, Va., and Energy Star director Jerry Lawson. “These are wonderful projects that save money and also protect the environment,” says Greenhaus.

Adds Kelderman, “The thing that impressed me with all the winning entries is that they are comprehensive. The projects were carefully thought through and progressed in a logical fashion.”

	Fluorescent light bulbs use a fraction of the energy of incandescent bulbs.			Energy-efficient windows—often double-paned and tinted—are a no-brainer.
	Swap out old HVAC units for new, more efficient units.			Install climate- controlled zoning in work areas.
				Metal halide lighting schemes also can prove energy-efficient.
		Ceiling fans can cool spaces, save on A/C costs.

Grand Winner: Kim Maxwell, General Manager, Hill International Trucks LLC, Washington, Pa.

Maxwell was chosen for building a state-of-the-art dealership three times bigger than his previous store that costs 77 percent less per square foot in energy to operate. He implemented dual waste-oil furnaces as part of an ambient floor heating system; a wash-recycling system; light-colored roofing material to reflect solar heat; air-locked door systems; dual-pane tinted glass; and fluorescent and metal halide lighting schemes.

Maxwell was trying to not only save energy costs but show that truck dealers can help to enhance the environment. He called various dealers who had undertaken energy-savings initiatives, then visited six. He also contracted with an architect and builder who had worked in this area. Highlights: tinted windows to reflect sun and cut down on air-conditioning costs; heated cement floors; and floors that are tiled, not carpeted, to prevent mold and keep the dealership cleaner.

Advice to other dealers: “Talk to dealers who have done similar projects. They’ll share ideas with you. Also, hire seasoned contractors. They do this every day and will have great ideas. You really do have to spend additional money for some items, but you have to look at this long-term. You will get a hefty payback.”

Finalist: Gordon Moore, Owner, McCormick Motors, Nappanee, Ind.

Here’s what motivated Moore to ensure his store became green: hearing news reports about hundreds of businesses required by EPA to pay for illegal used-oil dumping. Moore, a car and heavy-truck dealer, took a series of steps, including installing waste-oil furnaces with supply transfer systems that reduced his dealership’s annual liquid waste from some 9,000 gallons to 100. The store uses, reclaims, or recycles the balance. In all, these measures have brought a 99 percent reduction in the disposal of liquid waste. Highlights: adding insulation to more than 6,000 square feet of roof space, installing climate-control zoning of work areas, and replacing standard fluorescent lighting with a high-efficiency system.

Advice to other dealers: “People tell you that these initiatives cost money. It’s important to look at the long-term savings. Some of the initiatives have long-term payoffs, but these projects are investments. You have to look at the long-range savings. Talk to other dealers in your area. Everyone is willing to share their ideas.”

Finalist: Pat Lobb, Owner, Pat Lobb Toyota, McKinney, Tex.

Pat Lobb Toyota was the first dealership in the U.S. to get LEED (Leadership in Energy and Environmental Design) certification from the U.S. Green Building Council for energy-saving initiatives. Toyota approached him about constructing a green dealership. Some of the measures are basic, such as motion detectors for lights; others, such as waterless urinals, may cost a bit more than standard ones, Lobb says, but save plumbing and water costs. Highlights: multiple layers of decking, concrete, and Styrofoam, as well as a white cover, to reflect heat off the building; energy management software packages for better energy control; and a water-recycling system for the car wash. The store also uses efficient plumbing fixtures to save more than 150,000 gallons of water a year.

Advice to other dealers: “Take a hard look at your dealership with an architect and a builder. If you are going to go to all of the time and expense to renovate existing buildings with sustainable projects, take time to research them. Something as simple as replacing your roof with a white cap that reflects sun can save a lot of energy costs.”

Finalist: Jeff Morrill, Owner, Planet Subaru, Hanover, Mass.

Morrill implemented programs that cut the dealership’s electric and gas consumption by 30 percent. Highlights: designing walls and windows to maximize passive solar heat, using river rock on the roof to keep cooling loads lower, and recycling car wash water and reclaiming residual heat in it.

Morrill also found that there are many untapped programs that will help pay for energy-savings measures. About 80 percent of the cost of Morrill’s lighting was covered by the local utility. Using such programs is almost like getting a rebate, he says.

Advice to other dealers: “The fast pace of our business really discourages a lot of innovation. We are all just trying to survive. But what we have found is that reduction in energy costs is how we survive. Just walk around your building and you’ll see things. Half of the power in a dealership is used by an electric compressor. A new compressor costs about $6,000, but you save about $1,000 a month. Many of these payoffs are in months, not years.”

Nancy Dunham is a contributing writer based in the Washington, D.C., area.