For optimal viewing through your web browser or PDA, click here.

SPONSORED BY
 
NADA.org
Friday, Oct. 3, 2008 RSSSEND TO A FRIENDPRINT
Home | AdvocacyAffiliates | Convention | Jobs | Programs | Publications | Training | Services
At a Glance...
Top Stories
Industry Leaders Ramp Up Rescue Support
Auto Dealers Feel Pain of Credit Crunch
Car Executives Urge Action to Heal Finances
Ford CEO Sees 'Deeper and Longer' U.S. Slowdown
Daimler Won't Change U.S. Leasing Strategy: CEO
Toyota Offers 0% Financing on 11 Vehicles for October
Automakers' Lobby Group Adds Jaguar-Land Rover
NADA Update
ALERT: Be Sure to Work with NADA-Approved Convention Vendors
Two New Legal Compliance Publications Now Available Online
STAR Answers Dealers' Questions About Internet Access Methods
Save Up to $760 on Select ThinkPad Notebooks
Top Stories
Industry Leaders Ramp Up Rescue Support

WASHINGTON -- Automobile industry leaders today turned up pressure on Congress to pass a financial rescue package that they say is necessary to thaw frozen credit markets. The National Automobile Dealers Association, in a letter to each member of the House of Representatives, said the legislation is essential to overcome the “precarious times” faced by dealers, their employees and customers. “Simply put, credit is the lifeblood of automobile retailing,” wrote David Regan, NADA vice president of legislative affairs. The Senate approved the rescue plan Wednesday night by a 74-25 vote. The House is expected to try again [today.]
Source:  Automotive News (Subscription required.)

[back to top]

Auto Dealers Feel Pain of Credit Crunch

Buyers shy away from showrooms; loans harder to get, more expensive
With legislation to fix the nation’s current financial crisis still up in the air, the view from the showrooms of McEleney Autocenter in Clinton, Iowa, is gloomy and getting gloomier by the day. “I wouldn’t characterize our business as doing great,” said John McEleney, who runs the pair of automobile dealerships selling General Motors, Toyota and Hyundai vehicles. Rattled by higher gas prices, turmoil on Wall Street, a string of high-level bank failures and tighter lending standards, car shoppers are shying away from buying new vehicles, and it’s hitting auto dealers hard. Stark evidence of the problem came Wednesday, when new data showed U.S. auto sales dropped below 1 million last month for the first time in over 15 years. “Domestic dealerships are under stress,” said McEleney, who is chairman-elect of the National Automobile Dealers Association, a trade group. “Volumes are down, and underwriters are more cautious when it comes to extending credit,” he said. “In a few cases, customers were not able to get loans. It’s not impossible for people to get credit, but it’s certainly more expensive now because of higher interest rates and stricter terms.” Just as dealers were getting a handle on the shift away from larger pickup trucks and SUVs toward smaller, more fuel-efficient cars, the credit crisis has come along to make a terrible year much worse. McEleney says the enactment of the $700 billion financial rescue plan for Wall Street, which was passed by the Senate and is awaiting its fate in the House of Representatives, would go a long way toward stemming the current plunge in auto sales.
Source:  MSNBC.com

[back to top]

Car Executives Urge Action to Heal Finances

Industry clamors for U.S. bailout at event in Europe, where market ails
PARIS -- Stunned by huge declines in U.S. and European car sales, auto executives appealed to their governments Thursday to take steps to halt the deterioration in their economies and alleviate some of the burdens on the industry. American as well as European industry executives at the Paris auto show said they hoped the U.S. Congress would approve a $700 billion financial rescue package to put a stop to the spiraling consumer fears and rising credit shortages spreading across two continents. "We have a financial meltdown that's leading into an economic recession," said Carlos Ghosn, CEO of Renault SA of France and Japan's Nissan Motor Co. "If no measures are taken, this could lead to a long recession and a very painful one." The passage or failure of the bill will have repercussions in Europe as well. "These days, economies are connected to each other," said Stefan Jacoby, president of Volkswagen AG's U.S. operations. "What happens in the United States has a direct impact on other markets as well."
Source:  The Detroit News

[back to top]

Ford CEO Sees 'Deeper and Longer' U.S. Slowdown

PARIS -- Ford Motor Co. Chief Executive Alan Mulally said he believes the economic slump in the U.S. will be "deeper and longer" than most people previously expected. In an interview at the Paris auto show, Mr. Mulally also said the global auto industry is slowing down, a trend likely to crimp auto makers' revenue. Slowing global auto sales "makes it harder for everybody," he said. "It means you have to continue taking action on the cost side." Mr. Mulally also reiterated past statements that a bankruptcy filing for Ford is unlikely. Bankruptcy "is not in our consideration," he said. Ford "is going to keep restructuring for lower demand" and has ample financing "in place," he explained.
Source:  The Wall Street Journal (Subscription required.)

[back to top]

Daimler Won't Change U.S. Leasing Strategy: CEO

PARIS -- Daimler AG will not change its leasing strategy in the U.S. market even though it may take an earnings hit from a drop in the prices of cars coming off lease, Daimler Chief Executive Dieter Zetsche said. Zetsche declined comment when asked whether or when the company might reach an agreement to sell its remaining 19.9 percent stake in U.S. automaker Chrysler LLC to Chrysler's majority owner, private equity firm Cerberus. Zetsche reiterated that he continues to expect 2008 vehicle sales at Daimler's Mercedes-Benz Cars premium division to exceed the level seen in 2007.
Source:  Reuters

[back to top]

Toyota Offers 0% Financing on 11 Vehicles for October

TORRANCE, Calif. -- Toyota Motor Co. is offering incentives on 11 vehicles for the month of October as the Japanese auto maker seeks to entice buyers after suffering a 32% decline in U.S. sales last month. Toyota will offer free financing for between 36 and 60 months depending on the vehicle, according to Randy Pflughaupt, a senior marketing executive at Toyota Motor Sales. The incentive is being offered across its product line and includes the fuel-efficient Corolla and top-selling Camry. The company needed to do something "extraordinary," said Mike Michels, a Toyota spokesman. The company historically has been very conservative in offering incentives.
Source:  The Wall Street Journal (Subscription required.)

[back to top]

Automakers' Lobby Group Adds Jaguar-Land Rover

The Alliance of Automobile Manufacturers said Thursday that Jaguar Land Rover has joined the Washington-based association, joining General Motors Corp., Ford Motor Co, Chrysler LLC, as well as BMW, Mazda, Mercedes-Benz USA, Mitsubishi, Porsche, Toyota and Volkswagen. The alliance represents approximately 77 percent of all car and light truck sales in the U.S. "and works to unite the industry in its commitment to enriching society through sustainable mobility," the group said in a statement. "We're pleased that Jaguar Land Rover recognizes the Alliance's continued role in shaping meaningful public policy on the federal, state and even global levels," said Alliance President and CEO Dave McCurdy. "We're looking forward to working with these two iconic British brands as this entire industry continues its historic transformation."
Source:  The Detroit News

[back to top]

NADA Update
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.

[back to top]

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. NADA Management Education is also 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.

[back to top]

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.

[back to top]

Save Up to $760 on Select ThinkPad Notebooks

NADA members can save in three ways:

  • Instant savings with discounted Web pricing
  • Save even more with your NADA discount
  • Enter eCoupon USXFALLSAVINGS at checkout

To take advantage of this offer, visit www.nada.org/Technology/PCPurchaseProgram/ (member login required), click www.lenovo.com/shop/deals/nada, then click "Special Offers," or call (800) 426-7235, Option 1, Ext. 4838. Enter eCoupon USXFALLSAVINGS at checkout. Free ground shipping is available on all Web orders.

[back to top]

 
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
 
"Simply put, credit is the lifeblood of automobile retailing."

    -- David Regan, NADA vice president of legislative affairs, wrote in a letter to U.S. House members urging them to pass the financial rescue package, Automotive News, Oct. 3


"... we need to get this rescue plan approved. There's so much lack of consumer confidence out there, and people are worried about their jobs; the plan is better than no resolution, and it would prevent auto sales from deteriorating more than they have to. I think it would go a long way to helping the auto sales numbers..." 

    -- John McEleney, NADA vice chairman and Iowa dealer who sells General Motors, Toyota and Hyundai brand vehicles, says enactment of the $700 billion rescue plan would stem the current plunge in auto sales, MSNBC.com, Oct. 3


"We have a financial meltdown that's leading into an economic recession. If no measures are taken, this could lead to a long recession and a very painful one."

    -- Carlos Ghosn, CEO of Renault SA of France and Japan's Nissan Motor Co., urged the government Thursday to take steps to halt the deterioration in the economy and alleviate some of the burdens on the industry, The Detroit News, Oct. 3
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.

 
Search Back Issues | Unsubscribe/Manage your subscription | email us
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.