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

SPONSORED BY
 
NADA.org
Tuesday, Oct. 14, 2008 RSSSEND TO A FRIENDPRINT
Home | AdvocacyAffiliates | Convention | Jobs | Programs | Publications | Training | Services
At a Glance...
Top Stories
Many Question What Would Be Cut
GM Not Only Chrysler Suitor
Chrysler's Chairman Tells Employees Company 'Exploring Future Possibilities'
Engler: U.S. Should Not Delay Loans to Automakers
Ford Wants Customers to Know Loans are Available to Buy Cars
GMAC Tightens Lending Standards
Study Paves Way for Fuel Rules
Calif. Fuel Rule Proposal is Panned
'Green' Car Dealers Feted
Opinion: Savvy Dealers Find Ways to Weather the Storm
NADA Update
Coming Up: Another Virtual Seminar on the Red Flags Rule
Player Slots for Pre-Convention Charity Golf Tournament Filling Up
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
Many Question What Would Be Cut

GM, Chrysler talks have workers, dealers worried
American autoworkers and car dealers were concerned Saturday about what would be cut -- and whose jobs would be lost -- if talks between General Motors Corp. and Chrysler LLC result in one less U.S. automaker. Jim Hall, managing director of 2953 Analytics in Birmingham, said taking on both dealer networks would be the biggest impediment to a merger, since there is too much overlap. "It would take years and billions of dollars to deal with the dealer overlap," Hall said. An auto executive familiar with the merger talks said the dealer overlap isn't as much of a problem as people expect because the savings gained from combining corporate and manufacturing functions could amount to billions.
Source:  Detroit Free Press

[back to top]

GM Not Only Chrysler Suitor

Renault-Nissan, Fiat, Tata have been in contact; Cerberus says it's open to making a deal
Cerberus Capital Management LP began entertaining offers for Chrysler less than a year after acquiring the smallest and most vulnerable of Detroit's automakers. In recent months, as the industry's outlook has worsened, Cerberus officials have discussed deals involving Chrysler LLC with General Motors Corp. and with the Renault-Nissan alliance, according to sources familiar with the negotiations. They also have had contacts with Fiat SpA of Italy and India's Tata Motors, the sources said. With U.S. auto sales tumbling this year to their lowest level in more than 15 years, and Detroit's automakers all losing money, [Delphi Corp. Chairman Robert S. Miller] said there was mounting "pressure toward consolidation, just like we saw in the steel industry or the airline business."
Source:  The Detroit News

[back to top]

Chrysler's Chairman Tells Employees Company 'Exploring Future Possibilities'

Chrysler LLC Chairman and CEO Bob Nardelli told employees ... that the privately-held automaker had been in contact with other parties "interested in exploring future possibilities with Chrysler" but said no new agreements had been reached. "As the company evaluates strategic options to maximize core operations and leverage its assets, we engage in a dialogue with these parties. We do so keeping in mind our vision, our mission, and the best interests of those who have shown tremendous support for this company -- including you, our employees, dealers, suppliers and customers." His comments mark the first official confirmation of reports that Cerberus Capital Management LP, the New York-based owner of Chrysler, and General Motors Corp. held preliminary talks about a potential merger or other far-reaching deal.
Source:  The Detroit News

[back to top]

Engler: U.S. Should Not Delay Loans to Automakers

Top-level White House officials should push hard, using emergency measures if needed, to make sure that $25 billion in low-cost loans start flowing to U.S. automakers before the George W. Bush administration leaves office, former Michigan Gov. John Engler said in a speech ... at the Detroit Economic Club. Engler, now president of the National Association of Manufacturers, said he was alarmed to hear that release of the funds -- for retooling to produce more fuel-efficient vehicles -- may not take place until mid-2009 or later. Delays would be dangerous to the future of the automakers, Engler said, referring to dwindling cash reserves of General Motors Corp. and Ford Motor Co. and the sharp drops in their stock prices last week.
Source:  Detroit Free Press

[back to top]

Ford Wants Customers to Know Loans are Available to Buy Cars

DEARBORN -- Ford Motor Co. has a message for consumers: "We have our own finance company and we are still loaning money and leasing cars. All the talk about the credit crisis is keeping consumers away from dealerships. But Jim Farley, Ford's head of sales and marketing, says his company is still able to get loans and leases for most customers with decent credit through its finance arm, Ford Credit. He said this is "a critical advantage" at a time when some manufacturers are turning people away.
Source:  The Detroit News

[back to top]

GMAC Tightens Lending Standards

GMAC LLC, the consumer-finance arm of General Motors Corp., will limit auto loans to customers with credit scores of at least 700, making it harder for some customers to buy a car or truck. GMAC also raised by 0.75% the rate it charges auto dealers for making loans that aren't part of special incentive programs, the Detroit-based company said Monday in a statement. Most loans will be limited to 60 months, according to a letter sent to dealers. "The credit markets are tightening up everywhere and this is just a reflection of that," said GM spokesman John McDonald.
Source:  Detroit Free Press

[back to top]

Study Paves Way for Fuel Rules

NHTSA releases impact statement on raising auto fuel efficiency standards
WASHINGTON — A National Highway Traffic Safety Administration environmental impact study of a proposal to increase fuel efficiency standards through 2015 clears the way for the mid-November unveiling of final regulations. The 1,000-page study looks at the impact of fuel economy increases for cars and light trucks from the 2011 model year through the 2015 model year, the first stage in annual increases that eventually will require cars and light trucks reach a minimum average of 35 miles per gallon by 2020. To get there, in April NHTSA proposed increasing fuel efficiency requirements by 4.5 percent a year over that five-year span, which would bring the fleetwide average to 31.6 mpg. NHTSA’s statement released late Friday said the agency assumes it will continue to require 4.5 percent increases through 2020, pushing the fleetwide average to 39.4 mpg, higher than Congress’ original mandate. The public has 30 days to comment on NHTSA’s study though it appears the agency won’t dramatically increase requirements further. Automakers argued the agency “improperly exaggerates the environmental benefits that its discretionary choices appear to achieve.” Dave McCurdy, the alliance’s CEO, said Friday the companies “share with all Americans concerns about energy security and climate change,” adding that “greenhouse gas emissions from automobiles must be built on a single, strong national standard.”
Source:  The Detroit News

[back to top]

Calif. Fuel Rule Proposal is Panned

Annette Sykora, chairwoman of the National Automobile Dealers Association, took a swipe at California's proposed fuel-economy standards last week when she said having multiple standards across the United States would create a massive problem for the automotive industry. "This is especially important in light of the severe economic crisis facing the auto industry," Sykora said. "If the California approach on fuel economy were adopted, it would be very difficult. We would end up with state-by-state vehicle sales quotas. And it would be very difficult for us to have the right product mix for our customers." Sykora said the automotive industry will have enough trouble meeting the Corporate Average Fuel Economy standards approved by Congress last year, but said that while those standards are aggressive, they are achievable.
Source:  Detroit Free Press

[back to top]

'Green' Car Dealers Feted

PORTSMOUTH, N.H. — The National Automobile Dealers Association has recognized 20 dealerships, including three in the Seacoast, that took part in the NADA Energy Star Challenge. Each dealership reduced electricity or natural gas consumption by at least 10 percent since January 2007. This amounts to a reduction of more than 1,200 tons of carbon dioxide, close to the amount generated by 148 houses in one year. NADA recognizes three levels: gold, for dealers who cut energy 30 percent or more; silver, for those who cut energy 20 to 29 percent; and bronze, for those who cut energy 10 to 19 percent. Gil's Jeep in Stratham earned a silver rating, while Paul Holloway of Holloway Mercedes-Benz in Greenland and Susan McFarland Moynahan of McFarland Ford in Exeter garnered a bronze rating. "New car dealers are at the forefront of energy conservation," says Annette Sykora, NADA chairwoman and owner of two multi-brand dealerships in Texas. "The Energy Star program helps the dealers' bottom line and the environment at the same time."
Source:  Seacoastonline.com

[back to top]

Opinion: Savvy Dealers Find Ways to Weather the Storm
Automotive News

Some analysts say sales this year could struggle to reach 13 million units, and few expect retail deliveries next year to be much better. Annette Sykora, chairman of the National Automobile Dealers Association, estimates as many as 700 of the nation's dealerships could go out of business this year. But this is no time for dealers to surrender, and automakers should encourage what their dealers are doing to survive. Many already have hunkered down, recognizing that it's long past time for decisive, almost ruthless, cost cutting. But it takes more than cost cutting to build a stronger business model. That's why many dealers have developed new ways to improve their businesses, which should help them weather the downturn. For example, the owner of Pearson Ford in San Diego developed a fueling structure for ethanol. Napoli Motors in Milford, Conn., added a classic car business that includes sales on e-Bay. And Jackie Cooper Imports in Tulsa, Okla., has reduced turnover dramatically by hiring friends and relatives of current employees. Dealers are natural entrepreneurs who adjust and adapt their businesses to suit the times. They must be allowed to do what they do best.
Source:  Automotive News (Subscription required.)

[Editor's Note:  This week, Automotive News features a special section that begins on Page 21, which describes what eight innovative dealers have done to improve business.]

[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]

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


More Video Highlights

Quotable
 
"Ford Credit is still in business. We have to start pointing that out. It's up to us to communicate it." 

    -- Jim Farley, Ford's head of sales and marketing, says his company is still able to get loans and leases for most customers with decent credit through its finance arm, Ford Credit, The Detroit News, Oct. 14


"If the California approach on fuel economy were adopted ... we would end up with state-by-state vehicle sales quotas. And it would be very difficult for us to have the right product mix for our customers."

   
-- NADA Chairman Annette Sykora says California's proposed fuel-economy standards would create a massive problem for the auto industry, Detroit Free Press, Oct. 12


"Dealers are natural entrepreneurs who adjust and adapt their businesses to suit the times."

   
-- Automotive News (Opinion), Oct. 13
NADA Convention 2009
 
  
Convention Workshops Keyed to Today’s Economy

Now more than ever, dealers need to meet, talk and learn how to survive and thrive in tough times. In that spirit, workshops planned for NADA’s upcoming convention in New Orleans will focus on recession-proof business operations. NADA Headlines will spotlight three convention workshops each week.

(1) Selling Up in a Down Economy
(2) Survive or Thrive in the Used-Car Superstore Era
(3) Exposing the Myths of Automotive Internet Sales

Selling Up will feature Mark Walsh, veteran car salesman and manager, who will present a recession-busting blueprint to jump-start sales and revenues.

Survive speaker Dale Pollak, chairman of vAuto, Inc., will reveal how to use superstore techniques to realize your profit potential.

The Internet Sales Myths workshop will feature Howard Polirer of AutoTrader.com and Joe Lescota of Northwood University. They will show you how to turn online vehicle shoppers into buyers.

Join us in New Orleans at the 2009 NADA Convention and Exposition Jan. 24-27. Click here to register.

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


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.