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Top Stories
Auto Lease Writedowns Drive $2.5B Loss at GMAC
GM to Continue Leasing in August with 'Adjustments'
Detroit Prods Drivers to Buy Instead of Lease
BMW Tries to Reduce Leases From 60% of Its U.S. Sales
Senate Democrats Seek $6 Billion in Loans for Auto Firms
NADAguides.com Launches Blog for Vehicle Shoppers, Enthusiasts
Car Dealers Give $38,700 to Red Cross
NADA Update
NADA Convention Registration Now Open
New Executive Education Class at Babson College Begins in January
NADA Publication Provides Guidance on New FTC 'Red Flags Rule'
NADA Management Education Video Helps Dealers Create Special Finance Operations
Save on HP Printers and Notebooks
Top Stories
Auto Lease Writedowns Drive $2.5B Loss at GMAC

DETROIT -- GMAC Financial Services said today it swung to a net loss of $2.48 billion in the second quarter as its auto finance business cratered on weaknesses in the leasing market. It posted a $293 million profit in the second quarter of last year. The company’s automotive finance business lost $717 million in the second quarter. The company said that was largely due to $716 million in writedowns related to its North American leases. GMAC said the writedowns were due to the falling residual value of leased trucks and SUVs.
Source: Automotive News

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GM to Continue Leasing in August with 'Adjustments'

DETROIT -- General Motors plans to continue offering leases next month but will make adjustments, GM sales chief Mark LaNeve said in a letter sent to dealers Tuesday... "Obviously, current financial pressures will continue to affect our perspective on leasing," LaNeve wrote. GM spokesman Pete Ternes said the automaker is deciding whether the adjustments and exceptions will be similar to the changes in finance options GM typically makes each month, or something more significant.
Source: Automotive News

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Detroit Prods Drivers to Buy Instead of Lease

Incentives From the Big Three, Glut of Used Cars Help Make Purchasing More Attractive
For car-leasing addicts accustomed to climbing into a new car every few years, the party may be ending, at least for customers of Detroit's Big Three auto makers. The upshot is that loyal lease customers looking to stay in a new car will increasingly have to consider buying, which in many cases will involve a higher monthly payment. But auto makers are looking to make these payments as attractive as possible. They are doing this in some cases by making leasing prohibitive.
Source:  The Wall Street Journal (Subscription required.)

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BMW Tries to Reduce Leases From 60% of Its U.S. Sales

BMW AG ... is increasing incentives to purchase cars as a way to reduce reliance on leases that make up 60 percent of its U.S. sales. The automaker several weeks ago began offering buyers 0.9 percent loans of as long as five years, said Jan Ehlen, a spokesman for its U.S. unit in Woodcliff Lake, New Jersey. BMW also raised its lease prices an average of 3 percent on May 1. "We are offering a broader variety of purchasing options," Ehlen said ... in an interview. "One of the intentions is to have a more balanced relation between financing and leasing," he said, adding that Munich-based BMW doesn't have a target figure.
Source: Bloomberg

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Senate Democrats Seek $6 Billion in Loans for Auto Firms

Senate Democrats unveiled a $24-billion economic stimulus plan Wednesday that includes funding for up to $6 billion in loans for automakers and suppliers. The lawmakers said they will put the proposal up for debate on the Senate floor in September. Senate Democrats said the bill would create about 200,000 jobs, including 60,000 in the auto industry through the Advanced Technology Vehicles Manufacturing Incentive Program. The bill would set aside $900 million for that program, which can cover the government's costs of up to $6 billion in loans. It also includes $300 million for research into batteries for hybrids and electric vehicles.
Source: Detroit Free Press

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NADAguides.com Launches Blog for Vehicle Shoppers, Enthusiasts

COSTA MESA, Calif. — NADAguides.com recently unveiled its NADAguides Garage blog that can help the industry connect with consumers by providing vehicle buying and selling tips, new make and model highlights, as well as various industry news and insights from the site's editorial staff. The blog also features information about classic cars and performance cars. Forum discussions have included such topics as the financial implications of buying a hybrid and advice on building the "dream car" ...
Source:  Auto Remarketing

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Car Dealers Give $38,700 to Red Cross

WATERLOO, Iowa -- Ten new-car auto dealers set aside competitive differences to assist local flood and tornado victims. ... Holdiman Motors, Rydell Chevrolet, Bill Colwell Ford and Community Motors presented $38,700 to the American Red Cross Hawkeye Chapter. "We make our living here in the community, we play here, we live here," said Tom Holdiman of Holdiman Motors. "We thought this was the least we could do and just a small way to give back to the community." It was among the largest gifts the Red Cross has received for 2008 disaster relief in the Cedar Valley. Other participants include Birdnow Motors, C & S Car Co., Dan Deery Toyota, Dick Witham Ford, John Deery Motors, Roling Motors and Saturn of Cedar Falls. "I think it's been unique in the community to have every dealership come together like this in the competitive industry that you have," Alan McKean, executive director for the Red Cross Hawkeye Chapter, told the dealers during a brief presentation at the Red Cross. "It really was the spirit of philanthropy. We can't thank you enough."
Source: Waterloo Cedar Falls Courier

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NADA Update
NADA Convention Registration Now Open

 

New Orleans -- the site of the 2009 NADA Convention & Exposition January 24-27 -- is ready for dealers to return. "The heart and the core of New Orleans ... looks better than it did before ... [Katrina]," says Stephen Perry, president and CEO, New Orleans Convention and Visitors Bureau. The NADA convention committee recently met in New Orleans to see firsthand the city's progress. "New Orleans is definitely ready for the dealers to come back," says Annette Sykora, NADA chairman.

In 2007, New Orleans hosted 7.1 million visitors. Since Hurricane Katrina, $700 million has been invested in new hotel renovations. More restaurants (913) are open in the city today than before the storm. And the French Quarter is cleaner than ever. "From the time you enter the city, you can see that everything has been revitalized," says Jeff Carlson, chairman of the NADA convention committee.

The theme of the NADA convention is "Committed to Community." Putting the theme into action, the NADA Charitable Foundation contributed $400,000 in May to the Brees Dream Foundation (founded by Drew Brees, New Orleans Saints quarterback) to complete the restoration of the athletic fields at Lusher High School, the city's largest public high school.

Already hotel reservations are going fast. Be sure to take a moment now to register. 

Click here to register online or for more information.

 Click here for the video that shows just how much progress New Orleans has made since Katrina.

[Editor's Note: In recognition of tough economic times, registration fees and hotel rates have remained unchanged, and discounted airfare is available. More than 700 exhibitors, 150 dealer workshops, a heavy-weight lineup of speakers and an additional half-day of workshops, including "Lifeline to Profit$" (offered both Friday and Tuesday) are slated for the NADA convention.]

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New Executive Education Class at Babson College Begins in January

Applications for a new Dealer Executive Education class scheduled to begin in January 2009 at Babson College are due October 1. For applications received on or before September 1, the $600 application fee may be applied toward the initial installment payment for tuition and fees.

Babson is the  preeminent provider of entrepreneurial executive education training in the United States. It has been ranked No. 1 in entrepreneurship for 13 consecutive years  by U.S. News & World Report. The customized six-module program focuses on leadership, management and entrepreneurship for the retail side of the automotive and truck industry. All six week-long classes are being held on campus at the Babson Executive Education Center over a 16-month period. "Ideal candidates for the program are individuals who are in a position to effect change within the dealership," says Allan Jones, director of the  NADA dealer academy. "This is a lot more than just changing your dealership. This is about making myself a better leader," said executive education student Jared Hamilton of Henry Day Ford in Sandy, Utah.

Visit www.DealerExecEd.org to enroll and find out more about the program or contact Dealer Academy Director Allan Jones at (703) 821-7210 or ajones@nada.org.

  Click here to view a brief video on the program.

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NADA Publication Provides Guidance on New FTC 'Red Flags Rule'

McLEAN, Va. — In response to the Federal Trade Commission (FTC)’s new Red Flags Rule — under which most dealers and other creditors must develop and implement a comprehensive Identity Theft Prevention Program by November 1 — NADA Management Education has released a new guide to assist with U.S. dealer compliance.

A Dealer Guide to the FTC Red Flags and Address Discrepancy Rules: Protecting Against Identity Theft (L50) explains the requirements under the Rule, and includes detailed, step-by-step guidance on developing the written program required under the Red Flags Rule, as well as a sample written program, worksheets and other helpful materials. All members will soon receive one free copy of the full guide in the mail. The sample written program is also being made available to members — free upon request, subject to terms and conditions — as a Word document to aid dealers in developing written programs specific to their dealerships in advance of the compliance deadline.

To receive these materials, contact me@nada.org with your request and member identification number. Additional copies of the guide, as well as a PDF version, are available to members for $40 each. The guide is also available to nonmembers for $80 each. The guide also will serve as the basis for two virtual seminars on the Red Flags Rule. Register for the seminars, to be held twice — August 26 and September 23 — at www.nada.org/seminars, or call (800) 248-6232, ext. 7061. For further information, visit the NADA Management Education online catalog at www.nada.org/mecatalog or call (703) 821-7227.
Source: NADA Newswire

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NADA Management Education Video Helps Dealers Create Special Finance Operations

In response to a growing special finance market, NADA Management Education has released a new video training program on establishing a special finance department in the dealership. "Creating a Special Finance Operation: Doing it Right" (VT20) illustrates the key steps dealers and managers need to follow in order to build a special finance operation. Video segments—which include advice from experienced managers and dealers—cover staff appointment, the process of selling to the special finance customer, inventory and marketing. An additional case study reveals how one particular dealership succeeded in the special finance market. A 27-page study guide is offered as a companion piece to the DVD. The guide serves as a reference on establishing, running and marketing a special finance department, and includes a special finance quiz. The DVD and study guide are available for $169. Additional information and a four-minute preview are available at www.nada.org/specialfinance. For further inquiries, call NADA Management Education at (703) 821-7227.

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Save on HP Printers and Notebooks

 

NADA members can save $200 on HP Color LaserJet printers CP4005n and CP4005dn. Members can also save $200 on HP Compaq 6515b notebook PCs with broadband wireless service. To take advantage of these savings, visit NADA's PC Purchase Program and click "HP" (member login required).

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Featured Video
 

Click here to see just how much progress New Orleans has made since Katrina. The NADA convention returns to New Orleans January 24-27.  

More Video Highlights
Quotable
 
"From the time you enter the city, you can see that everything has been revitalized."

    -- Jeff Carlson, chairman of the NADA convention committee, says in a video report on just how much progress New Orleans has made since Katrina.


"This is about creating jobs in Michigan and America, and making sure we're retooling our plants to build vehicles like the Volt," GM's planned plug-in hybrid.

   
-- Sen. Debbie Stabenow (D-Mich.), referring to her support of an economic stimulus plan for automakers and suppliers, Detroit Free Press, July 31


"I think it's been unique in the community to have every dealership come together like this in the competitive industry that you have."

    -- Alan McKean, executive director for the American Red Cross Hawkeye Chapter, referring to 10 dealerships raising $38,700 to assist flood and tornado victims in Iowa, Waterloo Cedar Falls Courier,  July 30
Video Highlights
 
  
NADA and "SeeMore's Playhouse" Team Up to Promote Child Passenger Safety
NADA's New Orleans Project: Lusher Charter School
NADA's Return to New Orleans
NADA Chief Economist Forecasts a Challenging '08
Click here for more NADA-TV reports.
 
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NADA For more information on NADA, visit www.nada.org or contact NADA, 8400 Westpark Drive, McLean, VA 22102. This email may contain an advertisement of NADA products and services. Any opinions or statements contained herein do not necessarily reflect the views of NADA. Factual errors are the responsibility of the listed publication. If you are a franchised new-car or -truck dealer and would like to become a member of NADA, please visit the Join NADA section of www.nada.org. Questions or comments concerning NADA Headlines content may be directed to media@nada.org.