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Top Stories
House Opens Debate on Bailout Legislation
Tougher Credit Market Compounds Auto Industry Woes
$25-Billion Loan Just the First Step for Rebuilding Carmakers
Automakers, DOE at Odds on Loans
Soft Economy Drags on Car Sales
GM Wants 100-MPG Rating for '10 Volt
Opinion: U.S. Loans for the Detroit Auto Makers Include a Mandate for Big Changes
NADA Update
Time is Running Out for NADA-SEMA Dealer Day Registration
ALERT: Be Sure to Work with NADA-Approved Convention Vendors
Two New Legal Compliance Publications Now Available Online
Sign Up Today to Become a Green Checkup Dealer
STAR Answers Dealers' Questions About Internet Access Methods
Save up to 42% on Select ThinkPad Notebooks
Top Stories
House Opens Debate on Bailout Legislation

President Bush Urges Quick Approval
The House began a heated debate this morning on legislation that would authorize what is likely to become the biggest federal government bailout in the nation's history, shortly after President Bush urged lawmakers to act quickly to approve the $700 billion financial system bailout bill hammered out over the weekend. Bush acknowledged that the vote will be "difficult" in the face of opposition from taxpayers and voters but necessary to protect the economy. "A vote for this bill is a vote to prevent economic damage to you and your community" by stabilizing financial markets and renewing the flow of credit, Bush said, attempting to undercut arguments that the proposed legislation bolsters Wall Street at taxpayers' expense. "This is a bold bill that will keep the crisis in our financial system from spreading through our economy." With three hours of debate beginning just before 9:30 a.m. [today], lawmakers expect a vote to be wrapped up before 1 p.m. Eastern time. Leaders of both parties are supporting the measure, but neither side has given a public estimate of how much support they have. After a week of political tumult and deepening economic anxiety, congressional leaders yesterday rallied support for the historic proposal, which would grant the government vast new powers over Wall Street and offer fresh help to homeowners at risk of foreclosure. The proposed legislation would authorize Treasury Secretary Henry M. Paulson Jr. to initiate what is likely to become the biggest government bailout in U.S. history...
Source: The Washington Post

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Tougher Credit Market Compounds Auto Industry Woes

Tight credit created by Wall Street's woes knocks buyers out of already shrinking auto market
DETROIT -- The troubles on Wall Street are clobbering the car lot on Main Street, with automakers and dealers saying tougher credit requirements are knocking potential buyers out of the market at a time when the struggling industry can least afford it. Customers are having trouble getting loans, and if they do qualify, they are paying higher interest rates. That's forcing the whole U.S. industry to lower prices through incentives to scrap for sales in a shrinking market, Chrysler CEO Bob Nardelli said. GM Chief Executive Rick Wagoner said the government's proposed $700 billion bailout of the U.S. financial industry would help automakers by loosening up credit. Despite the seizing up of credit markets, auto loans have performed well historically when it comes to defaults, Wagoner said [last week.]
Source:  Associated Press

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$25-Billion Loan Just the First Step for Rebuilding Carmakers

WASHINGTON -- With the approval of $25 billion in low-interest loans Saturday, the U.S. auto industry has won the help it urgently needs to rework its vehicles. But the loans are one of several government aids -- from research funds to consumer tax credits -- that automakers will increasingly rely on to build the technology they need to survive. The industry and its supporters say rising fuel economy standards, the drive to reduce consumption of foreign oil and increasing efforts by foreign countries to boost their industries will require ever closer ties between Detroit and Washington. "For them to do what they need to do, we're going to have to have a major government commitment," said Sen. Carl Levin (D-Mich.) "We have to change the way we look at industry in America."
Source:  Detroit Free Press

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Automakers, DOE at Odds on Loans

U.S. auto makers may not have access to a proposed $25 billion loan package for at least 18 months, Bush administration officials said, setting up a potential clash with congressional lawmakers. Under the legislation, the Energy Department will have 60 days to write regulations, setting criteria that will determine who qualifies for the loans and when. But an Energy Department spokeswoman said that time frame is unrealistic. "There are a number of legal and administrative requirements with which the department must comply," including provisions of the National Environmental Policy Act, said the spokeswoman, Healy E. Baumgardner. She said the department would work to expedite the issuing of the regulations but that setting parameters for such a large program would take at least six to 18 months. That estimate for a turnaround drew a rebuke from Rep. John Dingell (D-Mich.) "It appears that DOE is making excuses for its own anticipated failures," Rep. Dingell said, adding lawmakers were prepared to perform "vigorous oversight" of the department.
Source:  The Wall Street Journal (Subscription required.)

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Soft Economy Drags on Car Sales

Analysts expect consumer jitters, effects of Hurricane Ike to stunt automakers' numbers by 22 percent over last year.
Auto sales are expected to continue a prolonged slide when September results are reported this week as the ongoing financial crisis heaps more bad news on an industry coping with weak consumer confidence, forecasters and analysts said. This month's annualized selling rate is expected to be 12.7 million cars and light trucks, down 22 percent from a year ago, according to Merrill Lynch. Major automakers report September results on Wednesday. Hurricane Ike added to the difficulties this month by damaging and destroying dealerships in Texas, which had been one of the country's more resilient markets.
Source:  The Detroit News

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GM Wants 100-MPG Rating for '10 Volt

General Motors Corp. said Friday it has reached a preliminary agreement with the California Air Resources Board about how to classify its Chevy Volt in terms of emissions standards that could allow the extended-range electric vehicle to attain the 100-miles-per-gallon rating. That's a significant step for the automaker because the actions of the California board, known as CARB, often influence federal regulatory decisions. GM has been in talks with CARB and the Environmental Protection Agency for more than a year on how to rate the Volt. Achieving a 100-mpg rating would give GM a strong marketing message and boost its ability to comply with significantly higher fuel economy standards. "The final number has a tremendous impact on educating consumers," said Robert Peterson, a GM spokesman, comparing it to the "four-minute mile."
Source:  The Detroit News

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Opinion: U.S. Loans for the Detroit Auto Makers Include a Mandate for Big Changes
by Joseph B. White

Car Companies Who Survive Slump Will Build Smaller, More Profitable Vehicles
The U.S. government is about to offer billions to an industry that spent much of the past decade indulging itself in short-term strategies to boost profits and avoid reckoning with harsh reality. But the companies that make it to the other side of the current slump won't look much like the companies we've known for the past 100 years -- from the vehicles they offer to consumers to their business structure and possibly ownership they will be radically changed. The Detroit auto makers need a lifeline from the federal government for a variety of reasons. Some aren't entirely their fault, such as the mess in the credit markets that's choking off their access to capital to finance operations and consumer lending. The government loans are targeted to subsidize the production of cars with breakthrough technology to reduce oil consumption. That means that to get the money, the Detroit Three will have to stop showing off prototypes of high-technology vehicles and start building them. They seem to be prepared to do this. The Detroit car makers can make cars that average 35 miles per gallon. But they can't -- yet -- make very much money on such vehicles. Detroit's auto makers need to make money building small cars. They need to deploy costly advanced technology such as lithium-ion batteries, more sophisticated fuel management and hybrid systems and educate consumers on why these technologies are worth money. They need to rethink how to achieve economies of scale, rethink marketing and rethink assumptions about why people buy cars.
Source:  The Wall Street Journal (Subscription required.)

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NADA Update
Time is Running Out for NADA-SEMA Dealer Day Registration

Pre-registration for the inaugural NADA-SEMA "Dealer Day" program has been extended until Friday, Oct. 3. The event is being held in conjunction with the 2008 SEMA Show on Nov. 5 from 11 a.m. to 7 p.m. at the Las Vegas Convention Center. It will include a lively and informative panel discussion on four highly effective accessory sales profit models, a luncheon and four roundtable discussion lead by industry experts. A "Dealer Day" reception sponsored by NADA, SEMA and Automotive News will cap off the day.

Dealers can also take part in an optional SEMA Show tour from 8:45 to 10:45 a.m. The tour will depart from the Harley-Davidson store, located in the North Hall Lobby. Pre-registration is required for this event. To register visit www.sema.org/DealerDayReg or call (909) 396-0289 Ext. 158.

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ALERT: Be Sure to Work with NADA-Approved Convention Vendors

Both exhibitors and attendees planning to attend the 2009 NADA Convention & Exposition in New Orleans may receive email solicitations, phone calls, direct mail or other forms of communications from vendors and contractors claiming to be endorsed or approved by NADA, which many are not. Be on the lookout for these types of solicitations.

HERE IS A LIST OF OFFICIAL NADA VENDORS AND CONTRACTORS:              

  • Freeman (Service Contractor)
  • PSAV Presentation Services (Audio/Visual)
  • CCR Events (Computer Rental)
  • National Plant & Floral, Inc.
  • Experient (Lead Retrieval)
  • HMI – Holiday Models, Inc.
  • Oscar Einzig (Photography)
  • Marshall Robinson & Associates (Security)
  • Experient (Housing – Exhibitor & Attendee)
  • NADA's AutoExec Department (Advertising/Sponsorships)

Please use caution when dealing with any solicitations from companies that are not on this list. Contact NADA conventions at (703) 821-7141 if you have any questions.

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Two New Legal Compliance Publications Now Available Online

NADA has finalized two new publications aimed at helping dealers comply with several new federal legal requirements. All members will receive a free printed copy of A Dealer Guide to the FTC Affiliate Marketing Rule (L51) and Electronic Disclosure Rules for Dealership Online Commerce (L52) via mail. However, because the Oct. 1 compliance deadline for each of these new rules is approaching, NADA Management Education is making these two publications available immediately, in PDF form, free to members upon request.

The FTC’s Affiliate Marketing Rule specifies when certain credit-related information received from a company’s affiliates may be used for marketing purposes. The guide covering this new rule defines key terms, explains the new rule’s relationship to existing information-sharing restrictions under the Fair Credit Reporting Act, and provides examples of the notices required under the new rule.

The Federal Reserve Board’s Electronic Disclosure Rules affect dealers who currently engage in certain online activities (such as advertising leases online, advertising credit online, or providing access to/accepting online credit applications), or envision doing so in the future. This publication explains the rules, discusses amendments to certain regulations—including Regulations B, M, and Z—and provides context and compliance considerations.

Members may obtain a free PDF copy of each publication by sending an email to me@nada.org with their requests and member identification numbers.

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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 45 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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STAR Answers Dealers' Questions About Internet Access Methods

 

Standards for Technology in Automotive Retail (STAR) has developed new guidelines to to help dealers evaluate their Internet Access Methods. Visit STAR's Dealer Infrastructure Guidelines (DIG) publication for more information. To answer the question "How do I make sure I get a business-grade connection?" 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 (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 through Sept. 30. 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. Pictured above is NADA Chairman Annette Sykora with Colorado Gov. Bill Ritter at a news conference in Denver.


More Video Highlights

Quotable
 
"A vote for this bill is a vote to prevent economic damage to you and your community" by stabilizing financial markets and renewing the flow of credit. "This is a bold bill that will keep the crisis in our financial system from spreading through our economy."

   
-- President Bush urged lawmakers to act quickly to approve the $700 billion financial system bailout bill, The Washington Post, Sept. 29


Customers are having trouble getting loans, and if they do qualify, they are paying higher interest rates. That's forcing the whole U.S. industry to lower prices through incentives to scrap for sales in a shrinking market.

   
-- Chrysler CEO Bob Nardelli referring to the troubles on Wall Street that are clobbering car lots on Main Street, Associated Press, Sept. 26


"There's no doubt that the automotive securitization market is very tight now even for very high-quality paper. From our perspective, anything they can do to help loosen up that logjam in automotive credit is going to help from the standpoint of production and employment and demand for vehicles."

   
-- GM Chief Executive Rick Wagoner said the government's proposed $700 billion bailout of the U.S. financial industry would help automakers by loosening up credit, Associated Press, Sept. 26
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.