BMW ACA/CCA Issue

Stalls - I Desssent

On March 16th, BMW officially announced it got smaller. It did this by turning Rover Automobiles over to a privately-held turnaround company, Alchemy Partners, and by selling Land Rover to Ford for $2.9B. The spokeskrauts were spinning faster than a Formula One motor, but the bottom line is that BMW can now concentrate on its core competencies as a smaller entity.

One day later, the Republic of Taiwan held an election. The Premier of the People's Republic of China, Zhu Rongji, spent the preceding few weeks suggesting that the election of pro-independence candidate Chen Shui-bian would necessitate military intervention. The people of Taiwan carefully weighed these threats, then elected Chen (probably because of the threats). They have little interest in becoming another province of China on China's terms, and are willing to risk war to avoid it.

We can be informed by both events.

Lesson 1: With size comes a loss of agility, direction and purpose. This is the nature of all institutions. Like oil tankers, the larger the institution, the harder it is to change course.

Now, in the case of BMW CCA, it is a top-heavy national organization. It has well-paid executives, well-paid staff, and directors that fly around the country for meetings at members' expense. Individual chapters have little control over the national organization's management or direction. Political intrigue and abuses, which are found in any large organization, have occurred and no doubt will occur again.

Lesson 2: Do not enable those who are bullying you.

The whole merger issue is now before us due to CCA's tacit threats and bullying, with an assist from BMW AG.

Illustrating BMW CCA's character is its conduct toward us in the last year. It unilaterally abrogated a written agreement not to compete with us in the Puget Sound region. And, it has refused to be bound by our members' vote regarding merger, despite its involvement in the process. Do we want to join such a group?

Since the politically-engineered removal of BMW ACA from he World Council of BMW Clubs, we have not enjoyed formal BMW AG recognition. Without its blessing, someday our logo may require redesign and BMW NA may stop sending us press releases, but that's about it. Is this a fair trade for thirty years of growth, tradition, vitality and independence? I think so.

Lesson 3: The whole is often less than the sum of the parts. Whenever local control is ceded to a remote master, arbitrary and inappropriate decision making results.

In our own situation, we know a few of CCA's rules. We know that at the track helmets will have a five-year lifetime, and that passengers will not be allowed in cars unless an instructor is on board. We know that our bylaws will be rewritten until Cambridge approves. We know that $13.50 of our $35 dues will be returned, and we can beg for more for special events. I have no doubt that we do not yet know all manners in which CCA's control will be manifest; there will be "discoveries" of more after merger, and many more again as CCA's management changes.

Lesson 4: Have confidence in what you already are.

There is one outstanding BMW marque club in the Pacific Northwest, and we are it. We have a first-rate newsletter, concours, driving instruction, banquet, and many other activities. More importantly, we have an established reservoir of devoted, talented and energetic volunteers (all of whom have agreed to abide your vote), and a much larger local membership base.

An assumption is made by the board that a CCA chapter will be formed here if we vote not to merge.

This is only an assumption. It is still possible that prior agreements, and our elections, will be respected.

But if a CCA chapter is established here, what is so bad about two clubs? CCA's activities would more complement ours than compete.

CCA provides a national magazine, new-car discounts and a national Oktoberfest. A local chapter would have a very small proven talent pool to draw from, and would do well to sponsor additional track days and a few other activities. Many members already spend $60 per year for both clubs' dues. If CCA forms a chapter here, there is no reason to think that belonging to both clubs won't continue to be worth $60/yr. to those members. ACA provides local resources, CCA provides national resources.

Two other arguments deserve comment. The board has convinced itself that if we don't transfigure into a CCA chapter, we will gradually dry up and blow away. They are reading different entrails than am I; it is an argument without factual foundation. Second, the board offers that we are no worse off with local use of $13.50 of $35 annual CCA dues than with all of our $25 annual ACA dues. We are no better off, either. We could lose 300-400 members before we're worse off. And I do not believe this would happen anytime soon, if at all.

Conclusion

My purpose here is not to vilify BMW CCA, which for a large institution is relatively benign. Neither is it to flame our board, for which I have great respect and which arrived at its conclusions in good faith. My purpose is to present an independent, and I believe correct, conclusion.

We presently have a BMW club which is the envy of the country. It is large and growing, it is economically and competently run, and it provides members with a great benefits for a remarkably small price. On the basis of conjecture and intimidation, the board asks you to exchange this for being an insignificant cog in a large, remotely-controlled machine which delivers, at best, incremental benefits. It is my hope that you will say "no, thanks," to this, and that we celebrate our 30th anniversary in June as a BMW ACA chapter.

(Editor's Note: Mr. Nast became involved as an unofficial Special Committee member over the last few months of considering the ACA CCA Issue. Tom offered to write the pro-independence recommendation. As it turned out, the Board ended up being unanimous in recommending a merger with BMW CCA. Mr. Nast asked that his opinion be presented.)

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