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Top Stories
Next NADA Chairman to Tackle Public's Credit Fears
GM Launches Campaign to Tell Buyers They Can Still Get Loans
General Motors Giving Dealers Cash Bonuses for Non-GMAC Sales
Tighter Rules on Car Loans Could Slam GM's Sales
One Plan: GM May Absorb Chrysler
Toyota's Watanabe Reiterates 2008 Vehicle Sales Goal
Honda CEO: Reaction to Gas Prices Key for Sales
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
Next NADA Chairman to Tackle Public's Credit Fears

The National Automobile Dealers Association has elected Iowa dealer John McEleney as chairman for 2009. McEleney ... says his top priority will be reassuring consumers that they can obtain credit through dealerships. “It may be a tough time for business, but it’s a great time for consumers who have a stable job and solid credit scores. There are plenty of incentives that lower costs. Dealers can help find financing. And the quality of today’s vehicles is the best ever,” McEleney said.
Source:  Automotive News (Subscription required.)

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GM Launches Campaign to Tell Buyers They Can Still Get Loans

DETROIT — With October auto sales expected to fall short of September's 15-year low, General Motors is launching a campaign this week to reach people who have stopped looking for cars out of fear that they can't get a loan. Many banks and finance companies, including GM's own GMAC Financial Services, have tightened credit standards because they can't borrow money to lend, or they're reluctant to lend and risk defaults. "But that doesn't necessarily mean you can't get a car loan if you want to get a car loan," GM spokesman John McDonald said. "We just want consumers to know that you have options that you may not be aware of." GM will promote its financing options with radio, newspaper and digital advertising from Friday through Nov. 3. The program, called "Financing that Fits," will publicize a 6-year-old computer database that lets dealers locate banks, credit unions and other lenders willing to make loans based on a particular buyer's credit information.
Source:  Associated Press

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General Motors Giving Dealers Cash Bonuses for Non-GMAC Sales

General Motors Corp., the biggest U.S. automaker, is expanding its incentives to dealers by offering cash bonuses for sales financed by lenders other than its part-owned GMAC LLC, a dealer said. Spurring dealers to find other sources of credit may further pare GM's dependence on GMAC, which provided only 20 percent of the automaker's loans last month after accounting for 43 percent in the second quarter. The bonus program began last week and includes most 2008 and 2009 models, said Richard Joseph, director of Cincinnati-based Joseph Auto Group.
Source:  Bloomberg

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Tighter Rules on Car Loans Could Slam GM's Sales

GMAC LLC, the big home and auto financing company, this week began restricting new loans to the most credit-worthy buyers after an attempt to raise new funds failed. The move threatens to crimp General Motors Corp.'s U.S. sales, forcing the struggling auto maker to push its potential buyers to other lenders. In the past, GMAC and GM have relied on one another for cash -- through dividends or other payments. But earlier this week, GMAC Chief Executive Officer Al de Molina signaled the taps may run dry. In a Monday email to employees, Mr. de Molina said the firm's mortgage and auto lending operations "have limited if any access to funding." By tightening its lending policies, GMAC hopes it can conserve cash.
Source:  The Wall Street Journal (Subscription required.)

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One Plan: GM May Absorb Chrysler

General Motors Corp. could swallow Chrysler LLC and end the Auburn Hills automaker's 83-year existence under one scenario being discussed by GM and Chrysler's owner, Cerberus Capital Management LP, said a source briefed on the talks. Such a deal, similar to Chrysler's 1987 acquisition of American Motors Corp., would allow GM to pick up some of Chrysler's 2.7 million in annual sales -- while avoiding the bulk of Chrysler's costs, the source said. GM, Cerberus and Chrysler all declined to comment. "That would be the likely scenario, if such a thing were to happen," said Aaron Bragman, an analyst at Global Insight.
Source:  The Detroit News

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Toyota's Watanabe Reiterates 2008 Vehicle Sales Goal

Toyota Motor Corp., Japan's largest automaker, expects to meet its sales goal of 9.5 million vehicles this year amid "severe" economic turmoil in the U.S., President Katsuaki Watanabe said. "We will make our best efforts to make the target," Watanabe said ... at a press conference near Tokyo. "At this moment we have no plans to change our forecast." The collapse of the mortgage market in the U.S., where Toyota gets about half its operating profit, has driven sales down the most in more than 20 years. The company is offering no-interest loans on 11 models including Camry sedans and Corolla small cars after sales in the country plummeted 32 percent last month.
Source:  Bloomberg

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Honda CEO: Reaction to Gas Prices Key for Sales

TOKYO — Honda's chief executive welcomed the U.S. government's decision to extend loans to American automakers ... but said their problems highlighted their slow response to soaring gas prices. Honda Motor Co., whose models are reputed for good mileage, has avoided some of the major sales battering that U.S. rivals have taken as gasoline prices soared. "Times have changed," Fukui said. "Their response was too slow." Fukui said Honda sales were holding up despite the gloomy outlook for the industry, and he foresaw no major revisions to fiscal-year sales forecasts.
Source:  Associated Press

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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.

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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.

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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. 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.

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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 $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.

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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
 
"Most people have heard the expression, 'All politics is local.' The same is true of credit. All credit is local. The fact is, local dealers have access to multiple sources of financing, including many community banks and credit unions that have plenty of money to lend."

   
-- John McEleney, incoming NADA chairman, says one of the association's top priorities in the coming year will be dealing with issues related to credit, Quad-City Times (Davenport, Iowa), Oct. 15


"GM has worked hard over the last decade to change consumer perceptions about our quality and products -- and we've moved the needle in this area. Now, with these tough economic times, we also need to ensure customers and employees maintain confidence in GM, its products and its dealers."

   
-- GM spokeswoman Kelly Cusinato, The Detroit News, Oct. 16


"As long as America's car dealers can get credit for their customers, Americans will continue to buy automobiles."

    -- Keith Crain, columnist for Automotive News, explaining the importance of credit to the auto industry, 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.

 
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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.