Student Motivation

Student motivation refers to a student's interest, desire, compulsion, and need to participate in and be successful in the learning process. It is generally accepted that student motivation plays a key role in academic learning.

Highly motivated students actively engage more in the learning process than less motivated students. Motivated students have a positive impact on learning. They take advantage of a given opportunity and show intense effort and concentration in the implementation of learning process. Also, they reveal positive emotions such as excitement, enthusiasm, interest, and optimism during learning.

On the other side, the less motivated were found to be less interested in participating in the learning process. Most of them were physically present in the class room but were mentally absent. They often failed to actively engage themselves in the learning tasks. Such students were more likely to stop learning. Less motivated students should be guided so as to develop a favorable attitude towards the learning process.

A teacher or an instructor has a significant role in guiding less motivated students. A technique called attribution retraining, which includes modeling, socialization, and practice exercises, is used to restructure less motivated students. Its aim is to help students to concentrate on the learning task without the fear of failure.

There are two types of student motivation such as extrinsic motivation and intrinsic motivation. Extrinsic motivation is defined as the motivation to engage in an activity in order to obtain rewards or to avoid punishments from an external source. Extrinsically motivated students undertake an activity for the sake of getting good grades or a teacher's approval. Extrinsic motivation is again divided into two such as social motivation and material motivation. Social motivations include approval of teachers, parents, and friends. Good grades, future education, or job security come under material motivations.

Intrinsic motivation refers to engaging in an activity for its own sake, for the pleasure and enjoyment it provides. To be more precise, a student who is intrinsically motivated carries out an action for the learning it permits. Compared to extrinsic motivation, intrinsic motivation is more desirable as it is the motivation to engage in the learning process for the enjoyment of learning without considering its consequences.

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Motivation – The 3 Aspects of Human Behavior You Must Know to Succeed

Motivation can be defined in numerous ways, but there are two basic definitions or descriptions. It can be defined as the main reason or reasons that individuals partake in a certain behavior, specifically human behavior pursuant to the study of psychology or neuropsychology. It can also be defined as the driving force that initiates and drives an individual’s behavior. It is the internal energy that propels us to achieve our goals. Typically, it is considered to be a dynamic state of mind not concerned with personality.

There are three aspects of human behavior that motivation is based and founded in:

1. arousal of behavior

2. direction of behavior

3. persistence of behavior

Arousal of behavior relates to a specific thing that activates behavior whereas direction of behavior relates to what is responsible for directing the behavior. Persistence of behavior relates to how the behavior is sustained.

What drives an individual to be successful is referred to as motive. Usually, all motives fall into one of three categories and are considered to be physiological or psychological in nature:

1. homeostatic motives – hunger, respiration, thirst, etc.

2. nonhomeostatic motives – curiosity about the environment, seeking shelter, etc.

3. learned or social motives – achievement, approval, power, social affiliation, etc

In any endeavor that an individual undertakes, motivation (or the lack thereof) is the key element behind the success or failure of the endeavor. It plays a key role in the workplace where the effective performance of an employee is concerned. Management or supervisory personnel have a direct impact and play a significant role in employee motivation in that they employ different motivational techniques to raise productivity levels. It also follows that this has a direct effect on the cooperation levels between the employer and the employee.

Motivation can also be classified as

1. negative or positive

2. obvious or subtle

3. intangible or tangible

Education or learning is also interrelated with motivation and instructors will oftentimes employ motivational techniques to get their students to learn. It can benefit the student by making them more competent as well as encouraging confidence and the ability to solve problems.

Self-motivation has also been classified into two different types:

1. Extrinsic – generated by external factors

2. Intrinsic – generated by internal sensations and is longer-lasting than extrinsic

Self-motivation is considered to be intrinsic in nature, and originates from an individual’s internal drives. It is the basis for overcoming obstacles in the path of achieving one’s goals. Additionally, certain external factors are responsible for driving a person into undertaking a new project or to move in a positive direction. Characteristically, self-motivation is comprised of three factors:

1. beliefs

2. desires

3. values

Since an individual cannot rely on others for motivation, self-motivation has to come from within. It plays a key role wherein the individual gathers the courage and strength to achieve certain goals, and is essential for developing new undertakings or making a positive change in one’s lifestyle. Training programs have been proven to be the best way to educate oneself in order to improve motivation and self-motivation.

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Employee Motivation Management – Part I: The Turnover Phenomenon of Pay

In the 16 years of management experience I have obtained, I continually have heard that employee turnover is due to pay and benefits. Turnover essentially becomes an accepted industry phenomenon where efforts to improve employee retention become stagnant. After all, if the only turnover cause you perceive to have is ‘pay’ while financial and budgetary constraints mandate pay is unable to be changed, why should one even try to address a problem to which you have no control?

Some of you reading this know that pay has been discovered and identified as a minimal cause of turnover (typically <10%). Instead, leading observational research has identified development, leadership and management individuals as the leading causing of turnover.

It is from this point that I seek to encourage you to take a second look at the turnover you experience in your workplace and teams. In doing so, I’ll be covering motivation factors, costs of turnover, external position compression and the reality of current research associated with turnover causes.

Motivation factors

First, it is most important to first understand the motivation factors among employees and how those factors interact. Outlined below are motivation (intrinsic) factors and hygiene (extrinsic factors). It is important to note that ‘pay’ is an extrinsic factor. Extrinsic factors are those where the absence of extrinsic factors contributes to dissatisfaction, though the presences of such factors do not necessarily result in increased job satisfaction. One could thus argue, if satisfactory pay is not in place, the absence will ‘contribute to dissatisfaction’.

Next, what is associated with ‘pay’ among your team? This is the key to developing equilibrium within your workforce. If the workforce is largely extrinsically motivated, they are likely also motivated by status, job security, peer relationships and supervisor relationships. By improving the presence of extrinsic motivation factors, a balance among extrinsically motivated employees begins to take shape. Subtle alterations to the presence of relationships, evaluating job status equality/inequality and communications of job security can improve the ‘presence’ of factors that do not necessarily lead to satisfaction, but reduce dissatisfaction through factoral presence.

Now, what about a blended motivation? Or what about a workforce that is intrinsically motivated though pay is actually a key motivation factor? Again, it is important to understand the dynamics of your workforce. However, if a team is intrinsically motivated and de-motivated by pay, exploration of extrinsic off-setting factors (status, relationships, etc.) to improve presence may place a balance in the motivational dynamics. Further, intrinsic factors are those that, when present, have a positive satisfaction influence among employees. If a leader can increase the presence and quality of intrinsic factors, a counterbalance against extrinsic factors naturally begins to take shape. Remember, ‘pay’ is one of an endless list of turnover causes and a bottom factor among the top 10 most recognized factors.

All of this being said – the approach of motivation is based in two approaches: (1) what motivates your team, and (2) what factoral presence does the environment possess? Every workforce, micro-culture and demographic drives variation.

In the next article I will explore the costs and compression associated with turnover related to pay motivation factors.

Motivation and Intrinsic Motivation Factors

– Achievement

– Task completion, early completion

– Recognition

– Benefits of performance, monetary or non-monetary

– The Work Itself

– Essence of work performed contributing, and contributable to contentment

– Responsibility

– Autonomy to perform a task, individual terms in making a decision as to how work is carried out

– Advancement

– Increased responsibility, status and financial benefits

– Growth

– Opportunity to learn new skills

Hygiene and Extrinsic Motivation Factors

– Company Policies

– Transparency of policies easy to understand and follow

– Supervision

– Supervisor style and approach (i.e., participative, democratic, etc.)

– Relationship with Supervisor

– Superior influence, trust and consistency

– Relationship with Peers

– Peer influence and connection

– Working Conditions

– Working environment, surroundings, quality of equipment, working hours and physical environment (health and comfort)

– Salary

– Earnings and the influence of monetary form against one’s effort

– Status

– Respect socially driven by career, role and/or position

– Security

– The degree to which the organization is able to offer consistent careers for employees

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Instrumental Vs Integrative Motivation

I first learned about instrumental and integrative motivation when I was an English teacher, many years ago. The concept was first established by Gardner and Lambert in 1972 to explain why some students acquire a second language faster and better than others. Today I want to explain how that same concept applies to companies and performance and clearly explains evolution and sustainability. There are many other classifications of motivation one could use for companies, but I think this simple dichotomy is easy to use and very revealing.

Motivation is part of the Personal Sphere of a human being. The nature of a person's motivation can not be changed by anybody but that person because it is rooted in the person's belief system. We all have our own type of motivation and nobody can change it unless we each decide to change it ourselves. A good manager will be able to identify the type of motivation his or her subordinates have and will combine their skills based on the company needs at all times. Neglecting to do so will have a very negative and serious impact on the company's overall performance and development.

Instrumental motivation refers to the one that drives human beings to reach goals and objectives. Integrative motivation is the one that employees feel when they want to be part of the company and thrive with it. Although every human being has a bit of both, one is usually more important than the other and guides the person's actions. Human beings whose main motivation is instrumental will be completely task-oriented whereas those with integrative motivation will be more company-oriented.

Both types of motivation are necessary for companies to survive. If only instrumental motivation existed, employees would just seek objectives without considering the overall good of the company or its long-term survival. We often see this happening in companies that fail; They reach amazing goals but lack the solid foundations on which to stand after their very fast growth. On the other hand, when only integrative motivation exists, companies survive but barely ever reach great levels of success.

Each type of motivation entails a different set of characteristics. Let me try and summarize the most important ones:

Instrumental motivation:

  • task or goal-oriented, this type of motivation mainly focuses on expanding, reaching and growing
  • Always looks ahead and outside
  • those whose motivation is mainly instrumental will set and pursue goals and objectives more than anything else.
  • routine will be their number one enemy, destroying their drive and desire
  • the perfect driving force when looking to expand, grow or disseminate
  • A must in entrepreneurs and visionaries. No company can grow without it.

Integrative motivation:

  • the motivation of permanence and stability
  • Always looks inside
  • those whose motivation is mainly integrative will strengthen the company values ​​and philosophy and will seek every opportunity to create greater internal cohesion and team spirit.
  • risk will be their number one enemy, paralyzing them
  • the perfect force when stabilizing a new company or in situations of crisis
  • Basic in departments seeking to consolidate the company: human resources, accounting, and so on.

Companies need different mixtures of both types of motivation, depending on their level of development, growth and market situation. A good CEO or owner will make sure that their companies hire professionals with the right type of motivation depending on the tasks to be performed. Different realities will require different combinations. Once a stage is reached, a new combination might be required. That's why motivation is never fixed. Thriving companies know this and seek the right type for their moves.

Good managers also know that different types of motivation play different roles and will promote their employees also based on the company needs. So, if growth and expansion is needed, instrumentally-motivated individuals will be promoted to leading roles. When consolidation and stability are required, though, those promoted will be the ones with integrative motivations.

Understanding motivation in human beings is part of humanology. Humanology thus helps companies understand their own elements and components better. When those in higher positions contemplate their work from the point of view of humanology, things become clearer and make better sense.

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Motivation in the 21st Century

Throughout history, one important aspect of all facets of education (including music) revolve around the ways that a teacher helps to motivate their students. A teacher can be most-effective when the student trusts in the teacher. This relationship between teacher and student creates the natural love of learning that is nurtured by the teacher and is grown by the student. An important way that a good teacher helps to continue nurturing this love of learning is by accessing various types of motivation to give the student goals that they can achieve. In the field of education, there are two important types of motivation: intrinsic motivation and extrinsic motivation.

By definition, extrinsic motivation is the type by which the teacher includes objects, rewards, and other "prizes" that are offered to the student for a "job well done". The effect is this: the student works for the reward and receives the reward all within a short period of time. As such, extrinsic motivations are organized, worked for and achieved all within a short period of time. As soon as one series of extrinsic motivation triggers are completed, another set must be created and distributed by the teacher. An example of such extrinsic motivation would be the use of stickers to offer to students as a reward for their progress or conduct in class. The reward is given when the various tasks associated with the sticker are completed; the next task that warrants an additional sticker is provided to reset the previous task. As such, the motivational circle continues.

On the other hand, intrinsic motivation, by definition, offers the student internal rewards for a job well done through the actions that the student presents to the teacher. Essentially, by working hard or completing a task and thus receiving a strong sense of accomplishment for completing such a task in a successful fashion, the student not only receives accolades from the teacher, they also feel good for completing the tasks. There are no outward rewards, as is the case with extrinsic motivation. Instead, the motivation comes to the student through the feeling of accomplishment that comes with the completion of each task they set out to complete. This sense of accomplishment is the internal reward that nourishes the natural internal desire to learn that is within each student.

A good teacher is able to juggle both of these types of motivation. In the setting of the private music lesson, the teacher has the opportunity to get to know the student well enough in order to decide what tactics to use to help encourage continuous motivation. With the advent of various technological tools, the task for helping to motivate students has become increasingly easier.

In a series of surveys that were published in 2013 and 2014, facts were provided which stated that over 1-in-4 children under the age of 8 know how to use a computer, tablet, or smart phone. In the same study, it was calculated that 1-in-3 children between the ages of 9-13 had mastered the use of such technologies that they could confidently teach an adult to troubleshoot problems. Children that used technology for educational purposes in the home had a greater sense of problem solving skills and a higher ability to complete tasks when a reward was provided (such as the collection of points, completion of a level of a game, or the completion of the game itself). This use of extrinsic motivation to offer reward for the completion of tasks allows the student to have fun while completing the task at hand.

For all of us that have studied music as children, currently have children studying music, or teach music, we know that the challenge that we all face is this: learning a musical skill takes a lot of effort and time to succeed. The proper amount of time to master skills associated within music take many years. Many masters of performance art such as professional musicians, singers, record artists and recording engineers will all agree to this fact. All individuals of the same pedigree will also agree that at one point along the way, at least one teacher inspired them to thrive in their musical studies. This teacher, usually known and remembered by name, created the spark for musical growth that creates a life-long love of learning. This is strong proof to argue that intrinsic motivation is the powerful resource to help nurture life-long success.

There are many interesting tools that a music teacher can use including various apps on a series of topics including music theory, music history, ear training and recording techniques. In addition, there are many programs such as YouTube, Garage Band, Ever Note, among others. Each of these tools offer a cornucopia of options for any music teacher and music student to create a fun environment to increase motivation. No longer do students have to sit at their instrument and only have books as their primary resource to learning. By using the many multitudes of tools available, teachers have the option to create a personalized studio that fits the needs of many of learning environments. This allows the student to enter a world of vast possibilities that were not available 15 years ago.

The trick for every teacher is to create be willing to embrace this new generation of technological advancement while nurturing intrinsic motivation in an extrinsically motivated environment. In conclusion, there are many tools available to all music teachers, parents, and students in this new generation of technology within the 21st century. It is important to observe that these tools as mentioned will help encourage everyone to have fun while enjoying their musical studies yet these tools are not only secrets to success. The teacher must know how to motivate students to "keep going" through the successes and challenges that naturally come to all music students. The mixture of extrinsic and intrinsic motivational triggers will help to create the next generation of musicians, music enthusiasts and music appreciators. This is the main goal that will help keep music alive and thriving for the next generation and beyond.

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Everything You Need to Know About the History of the Car

We frequently take for granted the fact that we drive from A to B every day. How would we cope without cars or alternative forms of transportation? People fared well enough without automobiles in the past, of course, but such has been their development over time that they have gained a role in our day-to-day lives.

The history of the car actually dates from as far back as 1769, when it became possible to transport humans in steam-powered automobiles. 1806 saw the appearance of fuel gas and the first cars to be powered by internal combustion engines, but it took until 1885 for modern petrol or gasoline fuelled internal combustion engines to be introduced.

It might surprise you to hear that cars with electric power actually made their first appearance in around 1900, but disappeared until now, when they have undergone a restructuring so that they can meet interest in zero or low emission transport solutions. Attempts were made for the first time in 1838, when an electric locomotive that proved capable of a speed of 4mph was built by Scotland’s Robert Davidson.

The first attempts at making cars powered by internal combustion engines are said to have been hampered by insufficient suitable fuels, meaning that gas mixtures were used by the earliest engines. An internal combustion engine running on a mixture of oxygen and hydrogen, for example, was built by Swiss engineer François Isaac de Rivaz in 1806.

Particular progress was made in Britain in 1895 when one of the first four-wheeled automobiles to run on petrol appeared; the model was made in Birmingham by Frederick William Lanchester, who went on to patent the disc brake as well as the first electric starter. A national automotive industry had emerged in many countries within five years, but there were not yet any clear standards for vehicle controls or architectures.

A boom subsequently took place in the growth of the car industry, with many smaller firms taking on the challenge. The era’s most widely produced and available car, the Ford Model T, entered production in 1908. Cars no longer had to be a mere novelty, but this was no indication that they were universally affordable either.

Various car designs have come and gone since then, with an attendant significant increase in their functionality. We invest in car insurance for our own protection, and are also assisted by satellite navigation systems, which some vehicles have built into them. Our cars come with temperature control, cup holders, electric windows and hi-tech stereo systems that are capable of incorporating our MP3 players and iPods. There has been a true advance in technology in the short period in which cars have existed, so who knows what future cars could offer?

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What is the History Behind Honda Cars?

Headquartered in Japan, the Honda Company has had a long and successful history of making quality cars. The Honda Technology Research Institute Company is the 6th largest automobile manufacturer in the world and the biggest engine-builder in the world. Each year, Honda builds more than 14 million internal combustion engines. The company builds automobiles, motorcycles, trucks, scooters, robots, jets and jet engines, ATV, water craft, electrical generators, marine engines, lawn and garden equipment, mountain bikes, and aeronautical technologies.

In October 1946, Soichiro Honda established the Honda Technical Research Institute in Hamamatsu, Japan. The goal was to develop and build small 2-cycle motorbike engines. Two years later, Honda Motor Company, Ltd. was created. Honda’s first US storefront opened in 1959 in Los Angeles.

Honda’s first production automobile was the T360 mini pick-up truck. The first production car from Honda was the S500 sports car.

Chronological highlights of the history of behind Honda cars as reported by world.honda.com include:

1963 Honda’s first sports car (S500) and light truck (T360) released. 1966 Sales and export of S800 begin. 1967 Front-wheel-drive minicar, N360, released. 1968 Export of N360 and N600 begin.

1971 Life minicar released.

1972 Civic released.

1976 Accord CVCC (1600cc) released.

1978 Prelude released.

1981 City released. 1985 Today minicar and Legend released. Quint Integra released.

1986 Honda expanded into the luxury automobile market with the creation of the Acura brand

1989 Accord Inspire released.

1990 NSX sports car released. 1992 Worldwide automobile production reaches 20 million units. 1994 Odyssey released.

1995 Worldwide Civic production reaches 10 million units. CR-V sports utility vehicle released. Worldwide automobile production reaches 30 million units.

1996 Step WGN (Wagon) released. 1999 Honda S2000 sports car released. Lagreat Canadian-made minivan released. Insight hybrid released.

2000 Life Almas, first minicar with features for the physically challenged, released. Stream minivan released.

2001 Fit released. Civic Hybrid released.

2003 Honda becomes the first Japanese automaker to produce 10 million cars in the U. S. New Odyssey released.

2005 Ridgeline next-generation truck released in U.S. American Honda Motor begins sales of Phill, the first home refueling appliance for natural gas vehicles. Leasing of FCX fuel cell vehicle for home use begins. Worldwide sales of Honda hybrid vehicles reached 100,000.

2006 Zest unveiled. Performance of next-generation fuel-cell car FCX Concept demonstrated.

2007 Crossroad released.

In August 2008, Honda surpassed Chrysler as the 4th largest automobile manufacturer in the United States. Currently, Honda is the second largest manufacturer in Japan behind Toyota and ahead of Nissan.

Honda increased global production in September 2008 to meet demand for small cars in the U.S. and emerging markets. Due to the current global crisis, the company is now rearranging U.S. production to keep operations functioning, while building fewer minivans and sport utility vehicles.

Honda introduced the second-generation Insight in its home nation of Japan in February 2009. The U.S. market received the new Insight in April 2009. Honda expects to sell 200,000 of the vehicles each year, with half of those sales in the United States. Since 2002, Honda has been selling the Honda Civic Hybrid (2003 model) in the US market. It was followed by the Honda Accord Hybrid.

The history of Honda Cars has been filled with many achievements. With the current economic slow down, Honda is making necessary adjustments to its business structure to ensure its future success.

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5 Connectivity Trends That Will Shape the Future of the Automotive Industry

Innovation is already behind the wheel of the modern automobiles. Yes, smart connectivity is now shaping the automotive sector in a never before way. While some of these technologies are already on the verge of becoming mainstream, there are other technologies that are just on their nascent state and are on the making. Most automotive management services predict that together these technologies will shape the future of the connected automobiles of the future.

Here are the 5 trends that will shape the future of the connectivity in automotive industry.

1. Self-driving cars

Self-driving cars that can run on the road without the intervention of the driver behind the wheel is already a reality with several automakers having come with their respective models of such cars. Already out through several successful test-runs Driverless cars truly holds the future of the automobile in the world. But according to expertise of leading automotive management services, driverless cars in spite of being already a reality, still a decade or so is required for such cars to become public and hit the road as regular vehicles.

2. AI-powered car infotainment systems

The infotainment systems of the modern cars are increasingly getting powerful and responsive and already they are all apt to respond to most regular commands including voice commands. The AI-powered virtual assistants will rule the future car infotainment systems of the cars to respond to passengers and driver in more responsive ways. AI is supposed to be introduced in the car infotainment systems of the future cars in just one or two years from now.

3. Blockchain-Powered Maintenance and Repair

We all are aware how the counterfeit car parts cause performance failure and in the long run damage vehicles. But as of now, in many countries to prevent such counterfeit parts entering the market there is no trusted system in place. In this respect, Blockchain based maintenance and repair mechanism can really play a revolutionary role in authenticating car parts. Blockchain which as a distributed ledger system allows no deletion or tampering of data while offering open and widespread access to data can actually help to authenticate car parts through an easily accessible distributed ledger of car parts.

4. Vehicle-to-Vehicle Connectivity

Vehicle to Vehicle connectivity commonly referred to as V2V technology allows cars on the road sharing information and keeping in touch with each other. On the road, a car can share information concerning speed, traffic, road conditions, any dangerous threats, etc. Automotive management services maintains that such V2V communication not only dramatically improves car safety and security it also actively helps cars avoiding routes that may take longer to reach the destination because of the heavy traffic. Already some cars are having a better in-car communication system and there are already highly equipped fleet management systems in place. All these together will shape the fully equipped Vehicle to Vehicle connectivity system of the future.

5. AR powered maintenance

Augmented Reality technology which already penetrated many industries and niches because of the unique capability of integrating the digital interaction to the real world around. Just like finding the digital game character of Pokemon in a popular AR game like Pokemon Go in an AR powered vehicle repair and maintenance environment the servicemen can render their services with guidance from a digital interface showing each and every part of the car.

A service engineer being able to see the entire car starting from the car seats to the interior features to the engine and bonnet can easily have a guided experience in repairing the entire car. This will help the car industry saving huge on maintenance and services. For customers also, this will ensure more precision, timely service and longer durability of the vehicle.

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Maserati – The Luxurious Partner

If you are crazy about Maserati then congratulations! You are not alone in the world, there are countless people out there who can die for any of these luxurious beauties. Maserati with vehicles like Maserati Quattroporte, Maserati GranTurismo in their fleet, is among top of line car manufactures in the world. Maserati is originally from Italy. The main theme behind these vehicles is always luxury. Although, through the course of time Maserati has gone through many changes but this factor remain the USP for Maserati always.

Since its inauguration Maserati has been associated with motor sports vehicles, but their non sports car is also very famous among the common household. Whether it is about the sports vehicles or domestic automobiles, the tag line of Maserati has to be the luxury. Maserati Brothers the founders of Maserati automobiles had the dream of making the dream cars that can compete with the best on the race tracks, highways and intra city roads. So far, Maserati has lived up to the expectations of its founder. The moment you hold the keys of your Maserati in your hand, you will yourself feel the comfort and pleasure of driving. It always strives to present the beginning of art vehicles that are prepared with best available parts to ensure a hassle-free experience overall. That is why you see that there are so many loyal fans who cannot appreciate any other automobile at all. You can check more information over the World Wide Web related to Maserati automobiles.

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Selling Automobile Dealerships to Public Companies – Effect of Framework Agreements

A framework agreement provides the basis for the business relationship between a factory and a public company (Public). It includes the terms and standards for a Public’s acquisition and ownership of new car automobile dealerships. Each factory has its own restrictions on a Public’s ability to acquire and operate its dealerships.

Most framework agreements are, by their own terms confidential. However, if one is anticipating selling a dealership to a Public, it would be wise to become familiar with its framework agreement and how it might affect a potential sale.

When I was negotiating the sale Lexus of Stevens Creek, a Public indicated it wanted to purchase the dealership, but it already owned 4 Lexus stores (the maximum allowed nationwide at the time). The Public told the factory it would sell one if it entered into a buy-sell with my dealer; however, the factory told them it had to sell one before it put a deal together.

The relationship between Publics and factories has been an interesting metamorphosis to observe. When Publics first came on the scene the factories kicked and screamed. Lawsuits were filed and the concept of public ownership of automobile dealerships was vigorously opposed by the manufacturers.

Later, the confrontational attitude subsided and the factories embraced the Publics as a way to replace certain dealers and as a means to have new facilities built. The glow came off the relationships when a number of the Publics did not perform the way the factory wanted: poor CSI, broken promises, poor sales performance.

For the factories and the Publics, the drafting of the original framework agreements was like composing pre-nuptial agreements without ever having been married or divorced. As the factories learned from experience, the agreements were massaged and modified.

Several years ago while helping obtain the first factory approval for an Indian Nation to become a dealer, a generic Sales and Service Agreement was not adequate to cover the uniqueness of the tribes and modifications had to be made.

The factory knew how to deal with large dealership groups, both public and private, but how does one transact business with a Sovereign Nation (a Native American tribe) that has immunity from lawsuits and does not have to pay taxes? These were some of the issues that had to be addressed (with the factory, the state dealer association and the selling dealer). In hindsight, similar to the Publics’ framework agreements, some of the anticipated problems were imaginary and some were missed.

Publics are rated daily according to the market value of their stock, which value, when they first began buying dealerships, was affected dramatically by increasing the sales volume of the companies through the acquisition of new dealerships.

Dealers, on the other hand, are rated by how things turn out when the game is over and they sell their stores. Consequently, while it might be good for a Public to sell a hypothetical dealership property to a REIT (Real Estate Investment Trust), it may or may not be wise for a private dealer to sell that same property even if given the same terms, or vice-versa.

Privates and Publics have different rules and different motives and, in my opinion, until recently, some Publics did not think they had to act very much like dealers. With the slow-down in their acquisitions, however, Publics have had to act more like dealers and get the most out of each store. As most dealers would agree, the task of successfully operating an automobile dealership is substantially more difficult than buying one with someone else’s money.

In the long-run I believe framework agreements are good because they keep the Publics from controlling too great a percentage of the distribution channels of manufacturers, while simultaneously forcing them to operate more like car dealers.

Although framework agreements are redefined at times, at one time or another the following factories had the following requirements:

TOYOTA/LEXUS

1. Had a limit on the number of Toyota and Lexus dealerships that a Public may own: (a) on a national level; (b) in each Toyota-defined geographic region or distributor area; and (c) in each Toyota or Lexus-defined metropolitan market.

2. Prohibited ownership of contiguous dealerships in the same market.

3. Nationally, the limitations on dealerships owned were for specific time periods and based on certain percentages of total Toyota unit sales in the United States.

4. In geographic regions or distributor areas, the limitations on dealerships owned by Publics were specified by the applicable Toyota regional limitations policy or distributor’s policy in effect at such time.

5. In metropolitan markets, the limitations on dealerships owned by Publics were based on Toyota’s metro markets limitation policy then in effect, which provided a limitation based on the total number of Toyota dealerships in the particular market.

With respect to Lexus, a Public could own no more than one Lexus dealership in any one Lexus-defined metropolitan market and no more than five Lexus dealerships nationally.

HONDA

1. Honda limited the number of Honda and Acura dealerships a Public could own (a) on a national level; (b) in each Honda and Acura-defined geographic zone; and (c) in each Honda-defined metropolitan market.

2. Nationally, the limitations on Honda dealerships owned by Publics were based on specified percentages of total Honda unit sales in the United States.

3. In Honda-defined geographic zones, the limitations on Honda dealerships owned by Publics were based on specified percentages of total Honda unit sales in each of 10 Honda-defined geographic zones.

4. In Honda-defined metropolitan markets, the limitations on Honda dealerships owned by Publics were specified numbers of dealerships in each market, which numerical limits varied based mainly on the total number of Honda dealerships in a particular market.

5. With respect to Acura, Publics could own no more than (a) two Acura dealerships in a Honda-defined metropolitan market, (b) three Acura dealerships in any one of six Honda-defined geographic zones and (c) five Acura dealerships nationally.

6. Honda also prohibited ownership of contiguous dealerships.

MERCEDES-BENZ

Mercedes restricted any company from owning Mercedes dealerships with sales of more than 3% of total sales of Mercedes vehicles in the U.S. during the previous calendar year.

FORD MOTOR COMPANY

1. 80% of the Public’s Ford dealerships had to meet Ford’s performance criteria.

2. Could not make an acquisition that would result in owning Ford or Lincoln Mercury dealerships with sales exceeding 5% of the total Ford or total Lincoln Mercury retail sales of new vehicles in the United States for the preceding calendar year.

3. Could not acquire additional Ford or Lincoln Mercury dealerships in a particular state if such an acquisition would result in the public company owning Ford or Lincoln Mercury dealerships with sales exceeding 5% of the total Ford or total Lincoln Mercury retail sales of new vehicles in that state for the preceding calendar year.

4. Could not acquire additional Ford dealerships in a Ford-defined market area if such an acquisition would result in the Public owning more than one Ford dealership in a market having a total of three or less Ford dealerships or owning more than 25% of the Ford dealerships in a market having a total of four or more Ford dealerships. An identical market area restriction applies for Lincoln Mercury dealerships.

5. The factory could impose conditions, such as requiring facilities improvements at the acquired dealership.

GENERAL MOTORS

General Motors limited the maximum number of General Motors dealerships that a Public could acquire to 50% of the General Motors dealerships, by brand line, in a General Motors-defined geographic market area having multiple General Motors dealers.

SUBARU

Subaru limited Publics to (a) no more than two Subaru dealerships within certain designated market areas; (b) four Subaru dealerships within its Mid-America region; and (c) 12 dealerships within Subaru’s entire area of distribution.

BMW

BMW prohibited publicly held companies from owning BMW dealerships representing (a) more than 10% of all BMW sales in the U.S. or (b) more than 50% of BMW dealerships in a given metropolitan market.

Other manufacturers may impose different restrictions and conditions which may or may not be more stringent.

As a condition to granting their consent to acquisitions, a number of manufacturers required additional restrictions or conditions, such as prohibiting:

1. Material changes in the Public, or extraordinary corporate transactions such as a merger, sale of a material amount of assets or change in the Public’s board of directors or management that could have a material adverse effect on the manufacturer’s image or reputation or could be materially incompatible with the manufacturer’s interests.

2. The removal of a dealership general manager without the consent of the manufacturer.

3. Dualing with another brand without the factory’s consent.

If a buyer cannot comply with the restrictions of its framework agreement with the factory, it will not be approved. Consequently, if one intends to sell a dealership to a Public it would be wise to know the requirements to of its framework agreement before investing a substantial amount of time and energy into negotiating with the Public.

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