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Top Stories
NADA-TV Reports on the Launch of the 'Green Checkup' Campaign
Tight Credit Puts Sqeeze on Big Three Auto Dealers
Analyst: Big 3 May Lose $5.6 Billion
GM, Ford, Chrysler Discuss U.S. Loans at Convention
Car Makers Face Hurdles to Aid
Chrysler Joins GM, Ford in Trimming Niche Vehicles
Ford Exec Sees Dealership Ranks Thinning
Toyota Lowers 2009 Global Sales Target
NADA Update
Sign Up Today to Become a Green Checkup Dealer
Convention Registration is off to a Strong Start
Committed to Community: NADA Hole-in-One Insurance to Host Charity Golf Tournament in New Orleans
Did You Miss the First Virtual Seminar on the Red Flags Rule?
NADA Insurance Announces New Plan for Retiring and Career-Changing Dealers
STAR Answers Dealers Questions about Dealership Security
Save up to 42% on Select ThinkPad Notebooks
Top Stories
NADA-TV Reports on the Launch of the 'Green Checkup' Campaign

Since the campaign was launched Aug. 18, more than 320 dealers in 43 states have signed up to become Green Checkup dealers. The campaign was announced at a news conference in Denver last week. Annette Sykora, NADA chairman, and Governors Bill Ritter, D-Colo., and Arnold Schwarzenegger, R-Calif., spoke at the event along with the president of the Alliance of Automobile Manufacturers, Dave McCurdy, who introduced his association's EcoDriving initiative, and Dan Grossman with the Environmental Defense Fund. View the NADA-TV report on the event.
 
In her remarks, Sykora emphasized that the goal of the Green Checkup campaign is to highlight simple steps that car owners can take to maintain their vehicles in top running condition. "Dealerships are located in every major community in the country, which means we are ideally positioned to be at the forefront of a national consumer awareness campaign," she said.
 
NADA is urging member dealers to offer free Green Checkups at their dealerships. Only dealers from Alaska, Hawaii, Idaho, Mississippi, Nebraska, Nevada and Utah have yet to sign up. To sign up to become a Green Checkup dealer, go to www.nada.org/green. Participating dealers are listed on a special consumer Web site, www.GreenDrivingUSA.com.

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Tight Credit Puts Sqeeze on Big Three Auto Dealers

The weakening credit profiles of GM, Ford Motor Co. and Chrysler LLC and their finance arms are adding a new challenge for dealers. In the past, GMAC, Chrysler Financial and Ford Motor Credit were key elements in how Detroit pumped up vehicle sales. They typically offered dealers easy credit to help them sell as many cars and trucks as possible, even if they gave away some of their margin to do so. Tighter credit is "starting to hurt," said Mark Williams who sold a dealership near Cincinnati to Ford earlier this year but still owns two others. "You have less [financing] sources, and the sources you do have today are willing to advance less money," Mr. Williams said.
Source:  The Wall Street Journal (Subscription required.)

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Analyst: Big 3 May Lose $5.6 Billion

Annual earnings loss comes from permanent consumer shift from trucks to small cars
High gasoline prices and the shift away from trucks and sport utility vehicles is hitting Detroit's automakers hard. In the United States, they may lose about $5.6 billion annually in earnings as consumers permanently shift to cars from more profitable trucks, said Scott Merlis, a managing director at research and consulting firm Ducker Worldwide. The loss is based on a comparison with 2004, when trucks made up almost 60 percent of U.S. vehicle sales...
Source:  Bloomberg

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GM, Ford, Chrysler Discuss U.S. Loans at Convention

General Motors Corp., Ford Motor Co. and Chrysler LLC ... discussed low-interest loans with members of Congress at the Democratic National Convention. The automakers and their suppliers want Congress to appropriate $3.75 billion that would back $25 billion in U.S. loans approved in last year's energy bill to help develop more fuel-efficient vehicles, and add $25 billion in new loans, people familiar with the strategy have said. "Our intent is to drive whatever we get into transforming ourselves faster," said [Mike] Moran, [Ford spokesman] who is based in Washington. Ford is converting three North American truck plants to make small cars as it works to lessen its dependence on sales of large pickup trucks and sport-utility vehicles. As part of GM's push to spotlight its shift to more-efficient vehicles, the ... automaker sent 450 alternative-fuel models to Denver...
Source:  Bloomberg

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Car Makers Face Hurdles to Aid

WASHINGTON -- A push by Detroit's beleaguered auto makers to win support for as much as $50 billion in government loans must overcome tight timelines, tricky election-year politics and the risk that investors and consumers will be rattled that the companies need federal intervention to survive. The supports pushed by General Motors Corp., Ford Motor Co. and Chrysler LLC would represent the biggest intervention of this kind by the government in the auto sector since Washington's bailout of the former Chrysler Corp. in 1979-80. This time, Detroit is making the case that the loans will help advance the country's energy-saving goals by offsetting some of the estimated $100 billion it will cost Detroit to comply with tougher fuel-economy standards enacted as part of the energy bill. "To me, a bailout is just, 'Here's a chunk of money and we don't really care what you do. We just don't want you to collapse,'" said Alan Reuther, legislative director for the United Auto Workers. "That's not what this is."
Source:  The Wall Street Journal (Subscription required.)

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Chrysler Joins GM, Ford in Trimming Niche Vehicles

Chrysler LLC, now studying a sale of its Viper sports-car business, is following General Motors Corp. and Ford Motor Co. in looking to shed specialty vehicles and focus on main brands. Ford during the past two years sold off its U.K.-based luxury-car divisions. GM is considering a sale of its Hummer line of sport-utility vehicles based on military trucks. Chrysler said today that it hired Lazard Ltd. to help in a review of options for the 600-horsepower, 10-cylinder Viper. "When times are tough, you retreat to the core businesses," said David Cole, chairman of the Center for Automotive Research in Ann Arbor, Michigan.
Source:  Bloomberg

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Ford Exec Sees Dealership Ranks Thinning

DETROIT — With U.S. sales continuing to decline, a top Ford Motor Co. executive said he expects to see more Ford, Lincoln and Mercury dealers willing to consolidate with others, speeding up plans to thin their ranks nationwide. The automaker outlined its forecasts and product lineups for the Lincoln-Mercury dealership council this week so dealers have the best information possible before making decisions, said Ken Czubay, the new vice president of sales and marketing for the domestic brands. “The industry forces have been bearing down on the entire industry dealer network,” he said. “Frankly in the last four or five months it’s been very challenging to our dealers.” Because of declining market share, many Detroit Three dealers are losing money. Last year, 28.6 percent of Chrysler, Ford and GM dealers broke even or lost money, according to the National Automobile Dealers Association. The compares with only 14.5 percent of foreign-car dealers.
Source:  Associated Press

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Toyota Lowers 2009 Global Sales Target

TOKYO -- Toyota lowered its global sales target for 2009 to 9.7 million vehicles on Thursday, down from an earlier 10.4 million vehicles, blaming "tough times," caused by rising material costs, a slowing U.S. market and soaring gas prices. President Katsuaki Watanabe said Japan's biggest automaker will continue to boost growth by focusing on gas-electric hybrids as a core strategy, and offsetting declining U.S. and European demand with sales in emerging economies. As part of the new plan, Toyota will start making the Prius hybrid in the U.S., at its Mississippi plant, to meet growing demand for fuel-efficient models, while scaling down production of trucks and other gas-guzzlers there. "We see the slowdown in the U.S. market as a fundamental change," he told reporters...
Source:  Associated Press

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NADA Update
Sign Up Today to Become a Green Checkup Dealer

NADA is urging its members to offer free Green Checkups at their dealerships during the month of September. The Green Checkup focuses on the things that have the greatest effect on fuel economy, such as oil and air filters, engine performance, tire pressure and emission controls. Participating dealers can refer to the Green Checkup Guidelines, which provide the estimated tech hours to perform a Green Checkup.

Already, dealers in 43 states have signed up to become Green Checkup Dealers. (Click here to sign up to become a Green Checkup Dealer.) Dealers may decide to provide the Green Checkup along with inspections of child passenger safety seats that are also offered at many dealerships in September. “While customers wait in line to have their child safety seats inspected, we will offer them the option of having the Green Checkup,” says Annette Sykora, NADA chairman.

Although NADA is promoting Green Checkup Month in September, the program is designed for dealers to offer checkups as part of their routine service year-round.

To help dealers raise public awareness of how the auto industry is increasing fuel economy through innovation and new technologies, NADA created the Toolkit “A New Car is a Green Car.” The toolkit is designed to highlight how easy it is to be green. It includes tips on hosting green driving events, participating in the Green Checkup program and case studies that offer “greenprints” for success.

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Convention Registration is off to a Strong Start

 

Registration for the 2009 NADA Convention & Exposition in New Orleans Jan. 24-27 is open. 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 convention. Since Hurricane Katrina, more than $1 billion has been invested in hotel renovations. More than 900 restaurants are open in the city today than before Katrina, and the French Quarter is cleaner than ever. "The heart and the core of New Orleans ... looks better than it did before the storm," said Stephen Perry, president and CEO, New Orleans Convention and Visitors Bureau. Hotels rooms are selling out fast. Be sure to take a moment now to register by clicking here.

 Click here to see just how much progress New Orleans has made since Katrina.

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Committed to Community: NADA Hole-in-One Insurance to Host Charity Golf Tournament in New Orleans

NADA Insurance announced that its hole-in-one insurance program, ACECO, will host a charitable golf tournament in conjunction with the 2009 NADA Convention & Exposition in New Orleans next January. The inaugural “Dealers for Charity Golf Tournament” is slated for Friday, Jan. 23 at TPC Louisiana, the only PGA TOUR golf course in the state. The challenging 7,300-yard, par-72 Pete Dye-designed course is set among bayous and old-growth cypress trees. Built in 2004, it is home to the prestigious PGA TOUR Zurich Classic of New Orleans. All proceeds from the tournament will benefit the Brees Dream Foundation, a charitable organization founded by New Orleans Saints quarterback Drew Brees and his wife Brittany.
 
"NADA's convention theme is 'Committed to Community,' so it's fitting that we're raising money for a New Orleans-based organization," says Lin Peacock, vice president of NADA Insurance. "Our members have a long history of supporting charitable events within their own communities." The National Automobile Dealers Charitable Foundation donated $400,000 in May to restore the athletic fields at Lusher Charter School, located in the heart of Uptown New Orleans.

If you're interested in a sponsorship, contact tournament director Alicia Rodriguez at (888) 828-8540 for details. The tournament is open to NADA members only. Fees for the 144-person tournament are $300 per person or $1,200 per foursome. Online registration opens on Tuesday, Sept. 2 at www.ACECOinsurance.com.

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Did You Miss the First Virtual Seminar on the Red Flags Rule?

If you weren’t among the 500 individuals and several dealer association groups who logged on this past week for our first virtual seminar on complying with the new FTC Red Flags Rule, you have another chance: The seminar will be repeated on Tuesday, Sept. 23, 2008 from 1-3 p.m. EST.

Like the first one, the seminar will be presented live and online, inviting participation by attendees. Questions are encouraged, which will be answered by presenters, Bert Rasmussen, author of A Dealer Guide to the FTC Red Flags and Address Discrepancy Rules: Protecting Against Identity Theft, and Paul Metrey, NADA director of regulatory affairs. The seminar will address what you need to do by Nov. 1, 2008 to comply with the Red Flags Rule, such as:

  • Preliminary risk assessment
  • Construction of a written Identity Theft Prevention Program
  • Knowing the indicators of identity theft (Red Flags) and how to detect and respond to them
  • Training requirements
  • Service provider oversight
  • Involvement of a dealership’s board of directors

Dealers, general managers, CFOs, controllers, finance managers, sales managers, IT managers and outside compliance professionals are encouraged to participate. The fee is $199 per computer connection.

To register online, visit www.nada.org/seminars or call (800) 248-6232, Ext. 7061. To order A Dealer Guide to the FTC Red Flags and Address Discrepancy Rules: Protecting Against Identity Theft, visit www.nada.org/RedFlags.

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NADA Insurance Announces New Plan for Retiring and Career-Changing Dealers

NADA Insurance is offering a new, two-year continuation of NADA's Dealer Life Insurance plan for members who are either retiring or transitioning out of the retail-automotive industry. "In the spirit of supporting dealers who have been loyal clients of NADA's insurance programs over the years, this new program is available to them once they are no longer NADA members," says Lin Peacock, vice president of NADA Insurance. The plan is available to members who have been NADA Insurance clients for a minimum of five years. The current policy and premiums remain the same. No additional applications or underwriting are necessary. To learn more about this new enhancement to the NADA Dealer Life Insurance plan, call NADA Insurance at (888) 461-6232.

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STAR Answers Dealers Questions about Dealership Security

 

Standards for Technology in Automotive Retail (STAR) has developed new guidelines to help dealers evaluate their Dealership Data Security. Visit STAR's Dealer Infrastructure Guidelines (DIG) publication. for more information. To find out "How Often Should a Dealership Back Up Data?" click here.

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Save up to 42% on Select ThinkPad Notebooks

  

NADA members can save three ways:

  • Instant savings with discounted Web pricing;
  • Save even more with your NADA discount; and
  • Enter eCoupon USXLABORDAY at checkout.

Visit www.nada.org/Technology/PCpurchaseprogram/default.htm (member log-in required), then click www.lenovo.com/shop/deals/nada or call (800) 426-7235, Option 1, Ext. 4838 to take advantage of these savings. Enter eCoupon USXLABORDAY at checkout. Hurry! Limited time offer! FREE ground shipping is available on all Web orders.

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Featured Video
 
 

NADA-TV Reports on the Launch of the 'Green Checkup' Campaign.


More Video Highlights

Quotable
 
"The industry forces have been bearing down on the entire industry dealer network. Frankly in the last four or five months it's been very challenging to our dealers."

   
-- Ken Czubay, Ford's new vice president of sales and marketing for the domestic brands, Associated Press, Aug. 28


"We see the slowdown in the U.S. market as a fundamental change."

   
-- Toyota President Katsuaki Watanabe, announcing the company has lowered its 2009 global sales target, Associated Press, Aug. 28


"To me, a bailout is just, 'Here's a chunk of money and we don't really care what you do. We just don't want you to collapse.' That's not what this is." 

   
-- Alan Reuther, legislative director for the United Auto Workers, explaining that the industry plans to use government-backed loans to offset some of the estimated $100 billion it will cost Detroit to comply with tougher fuel-economy standards, The Wall Street Journal, Aug. 28
Video Highlights
 
  
Registration for the NADA convention in New Orleans Jan. 24-27 is now open. Click here to see just how much progress New Orleans has made since Katrina. 
 


NADA's New Orleans Project: Lusher Charter School
NADA's Return to New Orleans
NADA and 'SeeMore's Playhouse' Promote Child Passenger Safety Month in September


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.