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

SPONSORED BY
 
NADA.org
Friday, Oct. 17, 2008 RSSSEND TO A FRIENDPRINT
Home | AdvocacyAffiliates | Convention | Jobs | Programs | Publications | Training | Services
At a Glance...
Top Stories
Chrysler CEO Says Auto Industry Ripe for Mergers
GM Talks with Chrysler Said to Intensify
Financing May be Holding Up Deal
Ford Says Auto Loans Are Still Available for Customers
Car Dealers Demand More Cash for Down Payments
Local Car Dealers, There's Money for You to Borrow
Oil Prices Fall Below $70; Will SUVs Come Back?
Kerkorian Reinforces Ford Stock Stake
J.D. Power: Online Vehicle Research Shows Significant Year-Over-Year Growth
Committed to Community: Auto Dealer Puts Safe Driving for Teens First
NADA Update
Coming Up Monday: Virtual Seminar on 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
HP Offers NADA Members Small Business 'Smart Deals'
Top Stories
Chrysler CEO Says Auto Industry Ripe for Mergers

DETROIT – Chrysler LLC Chief Executive Bob Nardelli said Thursday that a steep decline in U.S. auto sales has created an environment for industry consolidation, but he would not comment on reports that talks are accelerating for General Motors Corp. to acquire his company. "It certainly creates an environment for consolidation where you can get synergies of productivity that will allow you to be more competitive, not only here in the U.S. market, but on a global basis," he said. The Wall Street Journal reported on its Web site Thursday night that potential lenders are eager to see the deal finished, and that GM wants it done as early as the end of October. GM is trying to raise additional capital as it faces potentially huge losses when it reports third-quarter earnings in the coming weeks.
Source:  Associated Press

[back to top]

GM Talks with Chrysler Said to Intensify

With G.M. burning through cash and auto sales sinking to historic lows, [CEO Richard] Wagoner is pushing hard for a merger with Chrysler — in talks reported in The New York Times a week ago — after testing the waters for a similar deal with the Ford Motor Company. The merger discussions, intended to be private, are gaining momentum as both sides want to reach an agreement within the next two to three weeks, according to people briefed on the discussions. Financial institutions that hold Chrysler debt, including JPMorgan Chase and Goldman Sachs, are pressing Cerberus Capital Management, which owns Chrysler, to sell the automaker...
Source:  The New York Times

[back to top]

Financing May be Holding Up Deal

Cerberus could put up the cash to make it work
Chrysler owner Cerberus Capital Management and General Motors Corp. are working as hard as they can to get a deal to merge the two automakers, but financing is the issue keeping them apart, a person familiar with the talks told the Free Press. But the private equity firm is “willing to put in cash to any deal that makes sense,” another source said. A merger is seen as Cerberus’ preferred solution for Chrysler, where U.S. sales have dropped 25% so far this year, the people said. But financing a deal such as this can be complicated and could involve money flowing either way.
Source:  Detroit Free Press

[back to top]

Ford Says Auto Loans Are Still Available for Customers

Ford Motor Co. sent a letter to dealers that sought to reassure their customers that the auto maker still has a credit arm willing to lend. The move had become necessary as the company worried car buyers were staying away from showrooms because they were convinced they wouldn't qualify for a loan. Some Ford dealers, seeing a marketing opportunity, have relayed the corporate letter to potential customers in emails, according to a person familiar with the matter. "As valued Ford Motor Company dealers, we wanted to reassure you that Ford Credit will continue as your strong and supportive finance source during these difficult economic times," the letter said. "Many companies providing automotive lending have recently decided to exit this market or reduce their exposure by tightening their purchase policies. These actions by others may be unnerving, but Ford Credit is here for you."
Source:  The Wall Street Journal (Subscription required.)

[back to top]

Car Dealers Demand More Cash for Down Payments

LOS ANGELES — Buying a new car? Bring some extra cash. Lenders are pulling back on how much of the transaction price they'll finance, cutting their risk and requiring buyers to fork over more cash. The average loan in August accounted for 88% of the car's value, down from 95% in July, says RDQ Economics. GMAC is pulling back from financing extras besides vehicle purchase price, such as accessories, sales taxes, extended warranties or remaining debt on a trade-in vehicle. It also required that borrowers have credit ratings of 700 or higher. Toyota Financial Services has taken a similar approach to extras, says spokeswoman Kerry Rivera, and retreated from deals in which it was lending up to 110% of a new vehicle's price. Chase Auto Finance started cutting back high-loan-to-value deals last year. "The concern on some of these deals is making sure it's affordable for the consumer," says Chase spokeswoman Mary Kay Bean.
Source:  USA TODAY

[back to top]

Local Car Dealers, There's Money for You to Borrow

If you're looking for a car, come on down. That's the message from 19 auto dealers in Savannah who took out a full page advertisement Wednesday in the Savannah Morning News. The ad reads in part "Don't believe what you see and read in the mass media. It's as easy as ever to get a car loan." [Ross Kaminsky from Southern Motors Honda] says there's "definitely" still money in the pipeline, despite the fact that we're living through some scary times. "I think the money is there, although there have been a few bad weeks with the stock market and all," he says. "But I think now we're coming right out of it and we've had a strong week so far." If there is any fine print here, it's that your credit standing is more important than ever. "The better your credit the easier it is obviously," Kaminsky says. "But not so great credit, we'll still work with you and get something done."
Source:  WSAV (NBC affiliate), Savannah, Ga.

[back to top]

Oil Prices Fall Below $70; Will SUVs Come Back?

Analysts, automakers don't expect SUV sales to recover
Even with oil closing today at $69.87 a barrel, almost no one expects rapidly falling gasoline prices to restore pickup and SUV sales. “The driver of new-car sales has and always will be job and income growth,” says George Pipas, Ford Motor Co.’s sales analysis and reporting manager. “There is scant little right now. In fact, they’re contracting, not growing.” When October sales are tallied in two weeks, lower fuel prices won’t translate into higher sales of pickups and SUVs, Pipas predicts. The weak economy, not lower fuel prices, will steer buyers to less expensive vehicles, he believes. “People are of the opinion that gasoline prices are what killed the SUV,” says Pipas. “That’s not true. What it did was accelerate the decline of sales in that category. They were going down anyway.”
Source:  Automotive News (Subscription required.)

[back to top]

Kerkorian Reinforces Ford Stock Stake

Billionaire investor Kirk Kerkorian has pledged another 50 million shares in MGM Mirage to back a $600 million credit line used to purchase shares in Ford Motor Co., according to documents filed with the Securities and Exchange Commission Thursday. The Las Vegas casino mogul is already Ford's largest private shareholder. His Tracinda Corp. owns more than 140 million shares, or 6.43 percent of the company. ...a source close to Kerkorian told The Detroit News that he remains a believer in CEO Alan Mulally's plan to save Ford by consolidating its global operations and downsizing its production to match the reduced demand for its cars and trucks.
Source:  The Detroit News

[back to top]

J.D. Power: Online Vehicle Research Shows Significant Year-Over-Year Growth

WESTLAKE VILLAGE, Calif. — The number of new-vehicle shoppers who conduct research online is approaching a historic level, and a recent study from J.D. Power and Associates attributes a great deal of the surge to the shifts in segment preferences among consumers. J.D. Power found that three-quarters of new-vehicle buyers said they have used the Web while shopping this year, versus 70 percent a year ago, the study indicated. This 5-percent upswing marks the largest surge in online shopping in seven years, J.D. Power noted. "Shoppers who were once loyal to larger vehicle models are now finding themselves in the market for a compact or midsize car. For many, this is unknown territory, and these shoppers are turning to the Internet for information and education about the vehicles in their new consideration set," said Arianne Walker, director of marketing/media research at J.D. Power.
Source:  Auto Remarketing

[back to top]

Committed to Community: Auto Dealer Puts Safe Driving for Teens First

Susan Scarola [executive officer of DCH Auto Group] thinks dealers should play a prominent role in reducing a ghastly teen death statistic — 5,000 of them die on American roads each year. "Our role should be more than just selling cars," Scarola told a group of teens and auto sales executives in Bloomfield. "Too many families have felt the unimaginable pain of losing their children in these crashes." The New Yorker knows a bit about kids. But that's not why DCH sank $1 million into its "Mindless Driving — Keep It Out of Cars" campaign. "Saving lives just makes good business sense," she said. "We wanted to focus on a larger ethical effort — something we could put our hearts and minds behind."
Source:  The Record, NorthJersey.com

[back to top]

NADA Update
Coming Up Monday: Virtual Seminar on 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]

HP Offers NADA Members Small Business 'Smart Deals'

NADA members can save up to 30 percent on HP's dc5750 desktop PCs or $791 on HP's Compaq 2710p. This offer is valid on call-in orders only. To take advantage of this offer, call (800) 888-0365 and mention passcode "NAD1." To see more "Smart Deals," visit NADA's PC Purchase Program online at www.nada.org/Technology/PCpurchaseprogram (member login required), then click on www.hp.com/go/promos/nad1 then "Smart Deals" on left navigation bar.

[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
 
"I hope the general public, I hope the leaders in Washington understand the implications of the pressure the industry is under right now."

   
-- Chrysler LLC Chief Executive Bob Nardelli says a steep decline in U.S. auto sales has created an environment for industry consolidation, Associated Press, Oct. 17


"As valued Ford Motor Company dealers, we wanted to reassure you that Ford Credit will continue as your strong and supportive finance source during these difficult economic times."

   
-- An exerpt from letter sent by Ford dealers to consumers to reassure them that credit is still available, The Wall Street Journal, Oct. 16


"People are of the opinion that gasoline prices are what killed the SUV. That's not true. What it did was accelerate the decline of sales in that category. They were going down anyway."

    -- George Pipas, Ford Motor Co.’s sales analysis and reporting manager, explaining the impact of falling job and income growth on industry sales, Automotive News, Oct. 17


"Our role should be more than just selling cars. Saving lives just makes good business sense." 

    -- Susan Scarola, executive officer of DCH Auto Group, referring to the dealership's support of the "Mindless Driving — Keep It Out of Cars" campaign that aims to reduce teen driving deaths, The Record, NorthJersey.com, Oct. 17 
NADA Convention 2009
 
  
Convention Workshops Keyed to Today’s Economy

Now more than ever, dealers need to meet, talk and learn how to survive 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) Single-Point Dealerships can Survive and Thrive in Today’s Market 
(2) Five Sure-fire Techniques to Increase Special Finance Volume and Profit
(3) Improving Attitudes, Efficiency, and Communication in the Dealership

Survive and Thrive speakers Chip Maher and Steve Risso, both of NADA 20 Group, will demonstrate how to substantially improve performance in a shrinking market economy. Learn how to adapt and thrive through rightsizing and performance tracking.

Special Finance will feature Mike Tamas of American Financial and Automotive, who will explain how to turn a prospect into a satisfied customer while increasing gross profit.

Improving Attitudes will feature Art Niemann, Sr., of Art Niemann and Company. He will outline specific ways to implement four “absolutes” for achieving sales success: integrity, positive outlook, meaningful relationships, and open communication.

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.