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Top Stories
Dealers Seek Rescue Package from Bush, Congress
Treasury Department Stops Negotiating With Automakers About Aid
Governors Press Fed, Treasury to Help Auto Industry
Consultant: GM-Chrysler Deal Possible by Tuesday
Chrysler Faces Massive Cuts in a GM Deal
Ford Says it Can Make it Without a Merger
GMAC May Become Bank, Eyes Massive Debt Overhaul
Fla. Panel Delays Tougher Auto Emission Standards
nada update
NADA Insurance Offers New Plan to Protect Dealerships from Identity Theft Liability
Red Flags Enforcement Delayed Six Months
Player Slots for Pre-Convention Charity Golf Tournament Filling Up
Scam Alert: Spark Plug Orders
STAR Answers Dealers' Questions About Internet Access Methods
HP Offers NADA Members Small Business 'Smart Deals'
Top Stories
Dealers Seek Rescue Package from Bush, Congress

WASHINGTON -- Auto dealers are calling on President Bush and Congress to take emergency measures to help revive vehicle retailing and contribute to the nation’s economic recovery. The request came this week in a hand-delivered letter to ... the White House... The letter asks Congress and the White House, after next week’s election, to consider enacting refundable tax credits for car and truck buyers and restoring the tax deductibility of vehicle loans. Other options cited in the letter are providing federal funds for state programs to take air-polluting clunkers off the roads and giving businesses additional tax breaks for vehicle purchases. The letter also asks the White House to provide emergency loan guarantees to dealers through the Small Business Administration so that they have working capital. The government’s “rescue plan has begun to show its promise by freeing up credit for corporations and banks to start lending again,” [NADA Chairman Annette Sykora] wrote. “Now it is time to give families an extra financial incentive to buy a new car or truck and to provide dealers the access to capital they need to keep their small businesses open and their work forces employed,” she said. The letter was delivered by NADA President Phil Brady, a former White House staffer, and by Andrew Koblenz, NADA’s vice president and general counsel. David Hyatt, NADA vice president for public affairs, said today that the association’s legislative staff will pitch the plan outlined in the letter to members of Congress. Hyatt said the nation’s 20,000 franchised dealers face a “crisis situation.”
Source:  Automotive News (Subscription required.)

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Treasury Department Stops Negotiating With Automakers About Aid

The U.S. Treasury Department, armed with a $700-billion fund to help salvage the economy, is no longer talking to automakers about possible aid, further complicating efforts by General Motors to seek help for a merger with Chrysler... "The Treasury is not negotiating with automakers," a Bush administration official said late Thursday. It's not known why the Treasury stopped talking, but GM and other automakers are now turning to other parts of the administration for financial assistance. Treasury is skittish about the idea of pumping billions of taxpayer dollars into a merger resulting in tens of thousands of job losses... Treasury officials have been stretched in recent weeks, managing the $700-billion rescue of the financial industry, including taking stakes in several banks. Chrysler owner Cerberus Capital Management and GM have been in talks for weeks to merge the two automakers, but the deal is being held up by financing. Such a merger likely would lead to 90,000 job losses at Chrysler and suppliers... Also Thursday ... the nation's ... auto dealers asked the Bush administration and Congress ... to consider a broad stimulus plan for boosting auto sales and helping dealers survive the worst market in over a decade. Democratic presidential nominee Barack Obama said he wants to meet with the leaders of the Detroit automakers and the UAW if elected, and auto dealers asked Congress to help their struggling businesses. Under the $700-billion bailout plan passed earlier this month, the Treasury has the power to buy loans from auto finance companies such as GMAC and Ford Credit.
Source:  Detroit Free Press

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Governors Press Fed, Treasury to Help Auto Industry

Six state governors, a Ford executive and others added their voices to the debate over whether to free up government money to rescue Motor City and help General Motors merge with Chrysler. The governors of Michigan, Kentucky, Ohio, Delaware, New York and South Dakota banded together this week to pressure Treasury Secretary Henry M. Paulson Jr. and Federal Reserve Chairman Ben S. Bernanke to use their regulatory authority to make it easier for Detroit automakers to access credit and gain addition funding. "As governors, we appreciate your recent efforts to provide liquidity to the credit and financial markets, and urge that you use your broad regulatory authority to ensure that your continued actions help promote liquidity within the U.S. auto industry," said the letter sent Wednesday. "This industry is vital to millions of citizens in our states and across the country." The auto industry employs millions of Americans and it is one of the largest buyers of steel, aluminum, iron, copper, plastics, rubber and electronics. And a large network of suppliers, vendors and dealers rely on the economic stability of Motor City, they said.
Source:  The Washington Post

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Consultant: GM-Chrysler Deal Possible by Tuesday

There is a chance that there could be an agreement between General Motors Corp. and Chrysler LLC by Tuesday that would result in half of Chrysler’s assembly plants closing and 24,000 lost jobs, Kimberly Rodriguez, principal of Grant Thornton’s automotive practice, said today. Such a deal would require a total of at least $10-billion in assistance from the federal government and investments from other stakeholders. After Tuesday, Election Day, the Bush administration officially enters a lame-duck transition period for the next president, which could change the political dynamics. Also, Rodriguez said, the faster a deal happens, the faster the changes can be made at plants during shutdowns scheduled for December.
Source:  Detroit Free Press

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Chrysler Faces Massive Cuts in a GM Deal

DETROIT -- Much of Chrysler LLC would disappear in a merger with General Motors Corp. -- including an estimated half of its assembly lines and all but seven of its 26 models -- an auto-industry consultant said Thursday. But the consultant, Kimberly Rodriguez of Grant Thornton LLP, warned the impact on jobs and the economy would be worse without a deal. A second consultant, Patrick Anderson, founder of Anderson Economic Group in East Lansing, Mich., agreed, saying a merger would be "in the interest of the shareholders, the workers, the U.S. government, all the stakeholders. The alternative would be bankruptcy for Chrysler."
Source:  The Wall Street Journal (Subscription required.)

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Ford Says it Can Make it Without a Merger

While its Detroit rivals General Motors and Chrysler wrestle over terms of a possible merger and seek help from Washington to survive the steepest downturn in the industry in decades, Ford says it can survive, and thrive, on its own. Ford executives and directors rejected overtures in August to join forces with G.M., choosing instead to focus on better coordinating its own far-flung global operations, where it sees considerable potential to cut costs and improve quality. “Our biggest opportunity is to make sure we integrate Ford,” said Mark Fields, president of Ford’s Americas division. “Merging Ford is our Job 1.”
Source:  The New York Times

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GMAC May Become Bank, Eyes Massive Debt Overhaul

NEW YORK -- GMAC LLC, the money-losing auto finance and mortgage provider, on Thursday confirmed it was seeking to become a bank holding company, and said it plans to overhaul and slash its debt load, barely four months after completing a $60 billion refinancing package. The Detroit-based lender said it was in talks with federal regulators about becoming a bank holding company, which would make it easier to participate in U.S. Treasury Secretary Henry Paulson's $250 billion bank recapitalization plan. On Tuesday, GMAC said it won the right to take part in a U.S. Federal Reserve commercial paper program designed to help unlock credit markets.
Source:  Reuters

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Fla. Panel Delays Tougher Auto Emission Standards

TALLAHASSEE, Fla. -- Bowing to the auto industry and other business interests, a state panel Wednesday delayed a vote on adopting California's tough standards for car and light truck emissions. It was a setback for Gov. Charlie Crist, environmentalists and others who support the California standards to cut greenhouse gases, which have been blamed for causing global warming. A dozen other states besides California already have adopted the standards, including Washington, Oregon, Pennsylvania and New York. Colorado and Arizona also have begun the adoption process. Only two of the seven Environmental Regulation Commission members voiced outright support for the California rules. Others were unsure or said they first want to see if the federal government sets stricter fuel mileage requirements -- possibly in the next two or three weeks. They postponed a vote until their Dec. 2 meeting. Manufacturers oppose the California auto emission standards, arguing they will increase car prices and make certain light truck models scarce in Florida. Industry representatives also told commissioners Florida would cede authority to California for little gain because the proposed federal Corporate Average Fuel Economy standards would cut greenhouse gases nearly as much.
Source:  Associated Press

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nada update
NADA Insurance Offers New Plan to Protect Dealerships from Identity Theft Liability

NADA Insurance is offering a new Identity Theft Insurance Plan to NADA members. The plan will provide dealers and its employees with the financial resources needed in case they are implicated in an identity theft incident. The wide use of data processing, electronic loan origination, e-signature and Web-based transactions has dramatically increased the incidence of identity theft. Since 2005, more than 88 million Americans have been victims of identity theft. “Identity theft is one of the fastest growing crimes in America,” says Lin Peacock, vice president of NADA Insurance. The insurance plan covers the following identity theft expenses:

• Legal Liability
• Regulatory Action Expenses
• Notification Costs
• Identity Theft Recovery Services
• Defense Costs
• Crisis Expenses

“An identity theft case could cost your dealership hundreds of thousands of dollars and negatively impact your dealership’s reputation,” Peacock added. The new plan also protects dealers and employees individually in case a customer files a civil suit against specific employees. The plan’s coverage ranges from $100,000 to $5 million. For more information or to apply for coverage, contact NADA Insurance at (888) 302-4342 or go to www.nadainsurance.com.

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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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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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Scam Alert: Spark Plug Orders

An NADA member has recently reported receiving several fraudulent orders for parts. In this case, multiple orders for 800 spark plugs were placed over the phone and paid with stolen or bogus credit cards. The orders were originally scheduled to be delivered via UPS or FedEx to a U.S. location, but the shipments were later redirected to an address in Nigeria. NADA advises all dealerships’ fulfillment staff to scrutinize all parts orders from unknown clients.

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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 (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
 
"Now it is time to give families an extra financial incentive to buy a new car or truck and to provide dealers the access to capital they need to keep their small businesses open and their work forces employed."

   
-- NADA Chairman Annette Sykora in a letter urging President Bush and Congress to take emergency measures to help revive auto retailing, Automotive News, Oct. 30


"This industry is vital to millions of citizens in our states and across the country." The auto industry ... is one of the largest buyers of steel, aluminum, iron, copper, plastics, rubber and electronics. And a large network of suppliers, vendors and dealers rely on the economic stability of Motor City.

    -- Six state governors and a Ford Motor Co. executive in a letter to Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke urging them to use their regulatory authority to make it easier for Detroit automakers to access credit and gain additional funding, The Washington Post, Oct. 31


"Chrysler as we know it will cease to exist very soon. We believe a transaction between GM and Chrysler is likely because it would be the most expedient way to protect cash and jobs at both companies."

   
-- Kimberly Rodriguez, principal of Grant Thornton's automotive practice, Detroit Free Press, Oct. 31
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) The Credit Crisis: Implications and Opportunities for Your Business
(2) Leveraging the Social Web: Build Your Brand, Grow Your Business
(3) Lifeline to Profit$

Credit Crisis speaker Erin Kerrigan of AutoStar will update dealers on the credit crisis and help them understand it. She will discuss how to manage through the crisis, explaining the implications of limited credit and the corresponding business model changes required for survival. She will also address opportunities for auto retailing.

Social Web will feature Jared Hamilton of DrivingSales.com, who will explain which social networking mediums can affect dealers’ businesses and provide actual case studies. Attendees will learn how to use social networking to build their brands, amplify their messages and increase sales.

Lifeline will reveal how to increase profitability in all departments, taking a candid look at each. Presenting the workshop will be Randy Brenckman of NADA Dealer Academy and Brad Lawson and Mark Rogers of NADA 20 Group. Participants will develop action plans so they can better prepare to guide their management teams. Lifeline will cover cash flow, absorption, inventory management, and operational drivers of fixed and variable departments.

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.