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Top Stories
Michigan Representatives Call for Auto Industry Support
Cerberus Favors Single Buyer for Chrysler
Nissan Said to be Unwilling to Pay Cash for Chrysler
GM May Sell its Parts Business
Hyundai Motor Gains on Better-Than-Expected Profit
NADA Update
Red Flags Enforcement Delayed Six Months
NADA to Eliminate Duplicate Versions of NADA Headlines on Oct. 28
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
Michigan Representatives Call for Auto Industry Support

The Michigan congressional delegation has drafted a letter it intends to send to Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson later this week, urging the two officials to use their "broad regulatory authority" to "promote liquidity in the U.S. auto industry." The letter, currently being circulated through the ranks of Michigan lawmakers in an effort to gain signatures, comes amid disappointment among auto-industry backers concerning the lack of help for auto lenders in the $700 billion Emergency Economic Stabilization Act bailout package that congress approved recently. Credit for car buyers has been drying up in recent months as the domestic auto maker's lending arms – such as GMAC LLC and Ford Credit – increasingly lack sources of funding. In the Michigan delegation's draft letter, obtained by the Wall Street Journal, industry backers say that "in this current economic environment it is imperative that the government ensures that liquidity is restored so that the U.S. auto industry is able to function until normalcy is restored to the credit markers." The congressional leaders urge Messrs. Bernanke and Paulson to use the powers of the EESA bailout package as a tool to inject liquidity.
Source:  The Wall Street Journal

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Cerberus Favors Single Buyer for Chrysler

As Chrysler owner Cerberus Capital Management continues merger talks with General Motors Corp., one option not being considered is splitting up the Auburn Hills automaker among different buyers, the Free Press was told Wednesday. Cerberus' preferred play is merging Chrysler LLC with GM in a deal that gives the private equity firm a stake in the combined company and a greater share of GM's financing arm -- GMAC. Meanwhile, Chrysler is working to reassure its independent dealers, which were already hit hard by the credit squeeze and now face the brutal reality that their automaker is on the sales block -- again. Jim Press, Chrysler's president overseeing sales, and Steven Landry, executive vice president for North American sales, held a conference call earlier this week with dealers in an attempt to soothe them, dealers said. Chrysler's 3,500 dealers find themselves in an already tough market of declining sales, poor consumer confidence and tightened credit rules that disqualify many potential buyers.
Source:  Detroit Free Press

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Nissan Said to be Unwilling to Pay Cash for Chrysler

Nissan Motor Co., Japan's third-largest carmaker, isn't willing to put up cash for an alliance with Cerberus Capital Management LP's Chrysler LLC, according to two people with knowledge of the matter. "Any deal that used Nissan's cash would be viewed negatively as increasing risk, at a time when they should be reducing it," said Michael Tyndall, a London-based analyst with Nomura Securities... A share-swap certainly seems to be one option." While Nissan is profitable, it might be forced to tap its reserves should a global recession crimp sales.
Source:  Bloomberg

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GM May Sell its Parts Business

General Motors, trying to raise cash as auto sales slump, said it may sell its ACDelco parts business. Merrill Lynch has been hired to assist in the possible sale, G.M. said in a statement Wednesday. G.M. ... may shed ACDelco as part of its effort to raise as much as $4 billion through asset sales, which might also include its Hummer brand, a parts plant in France and its medium-duty truck business. G.M. wants to increase its available financing by $15 billion by the end of 2009.
Source:  Bloomberg

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Hyundai Motor Gains on Better-Than-Expected Profit

Hyundai Motor Co., South Korea's largest automaker, jumped in Seoul trading after reiterating full-year targets and posting a better-than-expected third-quarter profit. The carmaker is "confident" about meeting its annual sales goal, Treasury Director Park Dong Wook said today. "The outlook for global auto demand doesn't look good, but Hyundai has strong price competitiveness against rivals," said Park Sehick, a Seoul-based fund manager at Hanwha Investment Trust Management Co., which oversees $995 million of equities.
Source:  Bloomberg

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NADA Update
Red Flags Enforcement Delayed Six Months

The FTC has announced a six-month “delay of enforcement” of the Red Flags rule. Dealers and other creditors now have until May 1, 2009 to develop and implement a written identity theft prevention program (“ITPP”). This does not affect the address discrepancy rule, which continues to have an effective date of Nov. 1, 2008.

Dealers who have already drafted and implemented their ITPP are not required to do anything. NADA encourages those dealers who have not yet finalized their ITPP to complete their work as soon as possible in advance of the new deadline. 

All NADA members received a copy of A Dealer Guide to the Red Flags and Address Discrepancy Rules: Protecting Against Identity Theft (http://eseries.nada.org/scriptcontent/ProductDetail.cfm?pc=MEDPRL50E) in August 2008. For more information, see http://ftc.gov/opa/2008/10/redflags.shtm and http://ftc.gov/os/2008/10/081022idtheftredflagsrule.pdf.

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NADA to Eliminate Duplicate Versions of NADA Headlines on Oct. 28

Members are urged to subscribe to e-newsletter and cancel printed versions.
If you are currently receiving NADA Headlines in both the weekly fax and the daily e-mail formats, you will no longer get the fax version after Oct. 28. NADA Headlines fax version is more condensed than the daily e-mail and also does not offer the top industry news stories or NADA-TV video reports found in the e-mail version. This move will help cut paper waste as well as fax costs for NADA and its members. To cancel your fax or mail subscription, contact NADA Membership at membership@nada.org.

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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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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.

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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
 
"It is imperative that the government ensures that liquidity is restored so that the U.S. auto industry is able to function until normalcy is restored to credit markets."

    -- Michigan lawmakers are expected to send a letter to Treasury Secretary Henry Paulson and Federal Reserve Board Chairman Ben Bernanke urging them to use the emergency powers granted in the $700 billion Wall Street rescue package to boost Detroit's Big Three, The Detroit News, Oct. 23

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 & 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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