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Wednesday, Nov. 5, 2008 RSSSEND TO A FRIENDPRINT
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At a Glance...
Top Stories
Obama Victory Helps Unions, Auto Companies
GM, Ford, Auto Suppliers May Step Up Pleas for Help from Obama
Auto Slump Means Bargains for Consumers Able to Buy
Toyota Lowers its 2008 U.S. Sales Forecast
Slammed by Financial Crisis, BMW Drops Full-Year Outlook
Auto Earnings Forecast Grim
Former Democratic Sen. McGovern Joins Opposition to Labor-Backed 'Card Check' Legislation
Opinion: Chrysler Needs a Buyer, But Not GM
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
STAR Answers Dealers' Questions About Content Filtering Systems
NADA Members Can Save on Lenovo's ThinkPad Notebooks
Top Stories
Obama Victory Helps Unions, Auto Companies

WASHINGTON -- Barack Obama's victory in the presidential race will give labor unions and the embattled U.S. auto industry a strong ally in the White House, and likely will put pressure on oil and gas producers and pharmaceutical companies. His election Tuesday also makes congressional approval of a fresh economic stimulus package -- perhaps as large as $150 billion -- more likely, economists said. Obama is expected to move quickly to put his stamp on the huge $700 billion financial bailout Congress approved last month, analysts said.
Source:  Associated Press

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GM, Ford, Auto Suppliers May Step Up Pleas for Help from Obama

General Motors Corp., Ford Motor Co. and U.S. auto-parts makers will greet President-elect Barack Obama with the same plea they have been making for months: We need help from Washington, and fast. The industry's agenda for the new president will be topped by intensified calls for an immediate disbursement of $25 billion in low-interest loans signed into law by President George W. Bush Sept. 30. While the money is supposed to be for the development of fuel-efficient vehicles, automakers argue it should be freed up to meet current capital needs. Sympathetic lawmakers also have been calling for auto lenders, if not the manufacturers themselves, to get some of the $700 billion bailout fund set aside for financial institutions. "Time is critical when it comes to availability of capital for this industry," said Dave McCurdy, chief executive officer of the Alliance of Automobile Manufacturers, which represents GM, Ford, Toyota Motor Corp. and eight other automakers.
Source:  Bloomberg

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Auto Slump Means Bargains for Consumers Able to Buy

While tough-to-get credit and a sinking economy is keeping legions of consumers out of showrooms, those able to buy are in a prime position as car makers take unprecedented steps to halt skidding sales. "The affordability index for the auto industry is at its best level in 28 years," said Bob Carter, group vice president for Toyota Motor Corp.'s Toyota Division. "Buyers are in the driver's seat in a market that's awash with deals."
Source:  The Wall Street Journal (Subscription required.)

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Toyota Lowers its 2008 U.S. Sales Forecast

DETROIT -- Toyota Motor Corp. lowered its 2008 U.S. sales forecast to a range of 2.2 million to 2.3 million units after it saw October sales drop 26 percent. Bob Carter, General Manager of Toyota's U.S. division, said yesterday that challenges facing the auto industry are expected to continue through the end of the year. Toyota had previously forecast that it expected U.S. sales of 2.44 million units in 2008.
Source:  Reuters

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Slammed by Financial Crisis, BMW Drops Full-Year Outlook

FRANKFURT -– Reeling from a head-on collision with the global financial crisis, German luxury car maker BMW said Tuesday it could no longer give an earnings forecast for this year. "No serious prognosis is currently available for the rest of 2008," chairman Norbert Reithofer told a telephone news conference just two months before the end of the year. In late October, rival Daimler acknowledged it too had been hit by the crisis as it lowered its own outlook. Reithofer said on Tuesday: "We are far from overcoming the financial crisis, in particular with respect to its consequences on the real economy in 2009."
Source:  Associated Press

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Auto Earnings Forecast Grim

Ford, GM likely to announce more cuts as they report 3rd quarter results on Friday
Friday will be a day of reckoning for Detroit's two largest automakers as Ford Motor Co. and General Motors Corp. are expected to report more dismal financial results when they release third-quarter figures. Both companies are likely to announce additional product cuts, and more jobs could be slashed as they struggle to cope with the weakest auto market in decades. Ford warned as much Monday during a conference call with reporters and analysts. "Now the tables have kind of turned," [said Ford sales analyst George Pipas,] explaining that Ford has too many of the more fuel-efficient vehicles and too few trucks as demand stabilizes. "We need to get car and crossover inventories more in line with demand for those products."
Source:  The Detroit News

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Former Democratic Sen. McGovern Joins Opposition to Labor-Backed 'Card Check' Legislation

George McGovern, a prominent member of the senate for years and 1972 Democratic presidential nominee, has joined business groups opposing legislation that would eliminate the secret ballot requirements for union representation. Employees at a business such as an auto dealership would be able to organize by collecting a simple majority of employee signatures. “I believe in the secret ballot as a very important part of our democracy. When we elect a president, sheriff or member of Congress, we walk into the voting booth and pull the curtain free of anyone trying to twist our arm,” the former Senator remarked in a recent interview.

NADA opposes the card check legislation, H.R. 800, The Employee Free Choice Act, and supports efforts to defend the right of workers to a secret ballot free of intimidation by unions. "Currently, NADA is working with the Coalition for a Democratic Workplace to oppose this anti-business legislation," said David Regan, vice president of NADA legislative affairs. With increased Democratic majorities in both the House and Senate, organized labor will renew its push to pass the legislation next year. President-elect Barack Obama has previously indicated support for card check legislation. 

Last year, H.R. 800 passed the House, but fell short of the 60 votes necessary to overcome a procedural hurdle in the Senate. For more information, visit www.myprivateballot.com or call NADA's legislative office at (202) 547-5500.
Source:  NADA Newswire

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Opinion: Chrysler Needs a Buyer, But Not GM
by Keith Crain

Make no mistake; Cerberus is desperate to find a buyer for Chrysler. Meanwhile, for reasons that few outside General Motors can understand, GM is intent on buying Chrysler and taking it off Cerberus' hands. GM might even give away the rest of GMAC, which would compound the earlier mistake. The number of people GM would have to fire, the plants it would have to close and the dealerships that would become redundant would eat through any bailout money from the government in a hurry. If Chrysler doesn't get help soon, it will begin to exude that terrible odor of finality. When that happens, there won't be anything that dealers or marketing people can do. If Washington is going to give GM and Chrysler an influx of cash to try to save them, the government had better act quickly. Life support can last only so long, and both companies are in the intensive care unit.
Source:  Automotive News (Subscription required.)

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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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STAR Answers Dealers' Questions About Content Filtering Systems

Standards for Technology in Automotive Retail (STAR) has developed new guidelines to help dealers evaluate their Dealership Security. Visit STAR's Dealer Infrastructure Guidelines (DIG) publication for more information. To learn if you should choose a hardware or software content filtering system click here.

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NADA Members Can Save on Lenovo's ThinkPad Notebooks

Lenovo's ThinkPad SL notebook built for small businesses with legendary ThinkPad reliability, plus advanced wireless and multimedia features, starts at only $450 with eCoupon USXTHANKSGIVING for a limited time. To take advantage of these savings, visit NADA's PC Purchase Program online (member log-in required), click www.lenovo.com/shop/deals/nada, then click Special Offers, or call (800) 426-7235, Option 1, Ext. 4838. Enter eCoupon USXTHANKSGIVING 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
 
"The affordability index for the auto industry is at its best level in 28 years. Buyers are in the driver's seat in a market that's awash with deals." 

    -- Bob Carter, group vice president for Toyota Motor Corp.'s Toyota Division, explaining that consumers are in prime position to purchase cars and trucks, The Wall Street Journal, Nov. 5


"Time is critical when it comes to availability of capital for this industry." 

    -- Dave McCurdy, CEO of the Alliance of Automobile Manufacturers, expects GM, Ford and auto suppliers to step up their pleas for help from President-elect Barack Obama, Bloomberg, Nov. 5


"If Washington is going to give GM and Chrysler an influx of cash to try to save them, the government had better act quickly. Life support can last only so long, and both companies are in the intensive care unit." 

    -- Columnist Keith Crain indicating Chrysler needs a buyer, but not GM, Automotive News, Nov. 5
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) Grass Roots Marketing: Building a Valuable Connection between your Dealership and your Community

(2) Increase Traffic and Sales for Every Department with a Video Marketing Strategy

(3) The Lost Art of the Business Manager…A Credit Score is Not F&I

Grass Roots speakers Scott Toland of The Marketing Academy and Denise Scattergood of Sale-in-a-Box will teach participants how to build valuable connections between their dealerships and communities through grass roots marketing. Attendees will learn how to engage customers where they live and work to increase traffic, word-of-mouth sales networking and earning free positive publicity.

Video Marketing will feature Sean Bradley of Dealer Synergy, who will explain how dealers can implement targeted, cost-effective video marketing strategies online. Participants will learn how to create videos and use popular search engines to raise the visibility of their dealerships and drive more traffic to their Web sites and showrooms.

Credit Score, presented by Tony Dupaquier of American Financial & Automotive, will examine all of the elements that a lender considers when deciding on a deal. Attendees will learn how they can approve more car shoppers for financing by taking a closer look at the credit application and asking the right questions.

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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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.