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

SPONSORED BY
 
NADA.org
Tuesday, Oct. 7, 2008 RSSSEND TO A FRIENDPRINT
Home | AdvocacyAffiliates | Convention | Jobs | Programs | Publications | Training | Services
At a Glance...
Top Stories
Delinquencies Are Increasing for Car Loans
Dealers Give Mixed Reactions to Chrysler Incentive Program
Ford Takes Second Look at Bringing Tiny Ka to U.S.
Volvo Strives to Refashion Itself
VW to Renew Efforts in U.S.
Opinion: Europe: Still Very Different from Us
Committed to Community: Donations Advance Project Lifesaver Efforts
NADA Update
Coming Up: Another Virtual Seminar on the Red Flags Rule
Player Slots for Pre-Convention Charity Golf Tournament Filling Up
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
Delinquencies Are Increasing for Car Loans

Auto-loan delinquencies are on the rise as cash-strapped Americans increasingly struggle to repay car and truck loans, according to a study out Monday, the latest sign that the nation's economic woes are bleeding into the automotive-finance business. Nearly $25 billion in auto loans are past due, according to a report by Experian Automotive being released at the Automotive Finance Summit in Las Vegas. Auto lenders saw a 9% increase in loans 30 days past due in the second quarter of 2008 from a year earlier, and an 11% increase in loans 60 days past due. "There is a pretty big dollar burden that is out there in terms of delinquencies," said Melinda Zabritski, Experian director of automotive credit. "We expect to see this pattern hold strong."
Source:  The Wall Street Journal (Subscription required.)

[back to top]

Dealers Give Mixed Reactions to Chrysler Incentive Program

DETROIT — In a campaign to coax hard-pressed auto dealers to order more vehicles, Chrysler LLC last week introduced a monthly incentive that rewards dealers who meet or exceed the factory's wholesale purchasing target. But there's a catch: Chrysler also wants dealers to participate in a second incentive plan, in which the company asks each dealership to order a certain number of vehicles from the factory. If a dealer meets his wholesale purchasing target, Chrysler will double the dealer's monthly sales bonuses. The sales incentive — dubbed the Q4 Stairstep program — is making some dealers uneasy. Other dealers like it because it gives them an opportunity to earn a generous bonus.
Source:  Automotive News (Subscription required.)

[back to top]

Ford Takes Second Look at Bringing Tiny Ka to U.S.

DETROIT — Rising demand for small cars has pushed Ford Motor Co. to revisit its decision not to bring the tiny European Ka model to the United States, Ford's chief executive said today. "We're assessing that right now," CEO Alan Mulally told a Detroit radio station, adding that many people share the opinion that Ford should sell the Ka in the United States. A new version of the Ka was unveiled last week at the Paris Motor Show. It will be launched in major European markets by late this year or early 2009. The Ka is far smaller than the Focus, which is Dearborn-based Ford's only U.S. compact car. Focus sales are up 24% through September, even though the U.S. auto market is down nearly 13% for the year.
Source:  Detroit Free Press

[back to top]

Volvo Strives to Refashion Itself

Chief Stephen Odell Tries to Stress 'Subtle Luxury' to Find Lost Customer Niche
Posting losses and losing market share, Volvo had appeared destined for the auction block as Ford moved quickly to shed its other European luxury brands. But Ford Chief Executive Alan Mulally decided last year to keep the company and find a way to restore its lackluster image. Enter Stephen Odell. Handpicked by Mr. Mulally earlier this year to be chief executive of Volvo, the former European chief operating officer for Ford is attempting to take the company back to the basics in order to find its lost customer niche. "I don't want Volvo to be a copycat, luxury European car maker; there are too many of those," Mr. Odell said in an interview at the Paris Motor Show.
Source:  The Wall Street Journal (Subscription required.)

[back to top]

VW to Renew Efforts in U.S.

German automaker's upcoming models to take on Toyota and Honda in the American market
PARIS -- Volkswagen AG, once a leading foreign carmaker in the U.S. market, hopes to increase its dwindling presence by rolling out new models targeting big, mainstream segments dominated by the Japanese. In the next few years, Volkswagen will launch five new models in the United States, including an as-yet-unnamed sedan that it will build in Tennessee and field in the mid-size car category led by Toyota Motor Corp.'s Camry. VW also is developing a smaller car to compete against the Honda Civic and Toyota Corolla, and a sport utility vehicle that would be priced below the Touareg SUV, which ranges from $39,300 to $68,340. "We need to get more into the sweet spots of the market," said Stefan Jacoby, president of Volkswagen's U.S. operations.
Source:  The Detroit News

[back to top]

Opinion: Europe: Still Very Different from Us
by Keith Crain

We watched gasoline prices rise to more than $4 a gallon in the United States in a very short time earlier this year. The simple solution for an automaker would have been to scrap everything it makes in the United States and bring over all the high-mileage cars from Europe — that is, if it has a footprint in Europe. Europe has some great cars. General Motors' Opel subsidiary and Ford of Europe make fuel-efficient vehicles that are well-received all over Europe. But you can't just pick them up and drop them into the United States without making some time-consuming changes. But, please, don't throw out all those pickups and SUVs. There are still hundreds of thousands of Americans willing to drive fewer miles or pay a higher price to enjoy what they want. There are some great global products that could be sold anywhere. But the U.S. market needs unique products, too. It just complicates the ballgame.
Source:  Automotive News (Subscription required.)

[back to top]

Committed to Community: Donations Advance Project Lifesaver Efforts

RALEIGH -- Two donations will make it easier for the Wake Sheriff's Office to find people who have wandered away from their caregivers. The county's Project Lifesaver provides tracking bracelets for people with Alzheimer's disease or other conditions who have wandered away before. Search teams can use mobile receivers to find them. The Sheriff's Office will be able to buy new gear with $5,000 from the Wake County New Vehicle Dealers Association and $1,500 from the National Automobile Dealers Charitable Foundation. The $1,500 gift was made in memory of late Sir Walter Chevrolet president Frank R. Anderson. The donations were presented last week.
Source:  The Raleigh News & Observer

[back to top]

NADA Update
Coming Up: Another Virtual Seminar on the Red Flags Rule

Due to the unprecedented demand—so far, more than 1,100 individuals and dealer groups have logged on to NADA’s Red Flags seminars—we are offering another virtual seminar on what you need to do by Nov. 1, 2008 to comply with the new FTC Red Flags Rule. The seminar will be repeated on Monday, Oct. 20 from 1-3 p.m. EST.

Like past sessions, the seminar will be presented live and online, and invite participation by attendees. Participants are encouraged to ask questions, which will be answered by presenters, Bert Rasmussen, author of NADA’s 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 dealership’s board of directors

Dealers, general managers, CFOs, controllers, finance managers, sales managers, IT managers and outside compliance professionals are encouraged to attend. The fee is $199 per computer connection. Be sure to have your copy of A Dealer Guide to the FTC Red Flags and Address Discrepancy Rules: Protecting Against Identity Theft at hand during the seminar. To register online, go to www.nada.org/seminars, or call (800) 248-6232, Ext. 7273. To order A Dealer Guide to the FTC Red Flags and Address Discrepancy Rules: Protecting Against Identity Theft, go to www.nada.org/RedFlags.

[back to top]

Player Slots for Pre-Convention Charity Golf Tournament Filling Up

Registrations for the "Dealers for Charity" golf tournament in New Orleans are starting to roll in, reports Lin Peacock, vice president of NADA Insurance. The tournament, hosted by NADA’s hole-in-one insurance partner, ACECO, is slated for Friday, Jan. 23, 2009 before the opening of the NADA Convention and Exposition. Proceeds from the event will benefit the Brees Dream Foundation, a charitable organization founded by New Orleans Saints quarterback Drew Brees. The tournament will be held at TPC Louisiana, the only PGA Tour course in the state. The event is open exclusively to NADA members. Registration fees are $300 per player. Participation is limited to the first 144 golfers who sign up. The registration deadline is Nov. 9. Visit www.ACECOinsurance.com and click on the "Dealers for Charity" logo to sign up.

[back to top]

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
 

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.
More Video Highlights
Quotable
 
"There is a pretty big dollar burden that is out there in terms of delinquencies. We expect to see this pattern hold strong."

   
-- Melinda Zabritski, Experian director of automotive credit, referring to auto-loan delinquencies rising, but not nearly as severe as the rippling problems caused by the nation's mortgage meltdown, The Wall Street Journal, Oct. 7


"... don't throw out all those pickups and SUVs. There are still hundreds of thousands of Americans willing to drive fewer miles or pay a higher price to enjoy what they want. There aren't as many as before, but it is still a substantial market."

    -- Keith Crain, columnist, says the U.S. market is still different than the European market, Automotive News, Oct. 7
Video Highlights
 


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.


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.