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Top Stories
U.S. Autos CEOs Seek $50 Billion in Federal Aid
Auto Makers Would Accept Strings on Aid
With GM, Ford Losses Expected, Worries About Survival Loom
Dealer Chain's Losses Ominous
Toyota U.S. Share Proves 'Cold Comfort' Amid Slump
American Financial Services Association Announces New Chairman
NADA Update
STAR Answers Dealers' Questions About Content Filtering Systems
NADA Members Can Save on Lenovo's ThinkPad Notebooks
Top Stories
U.S. Autos CEOs Seek $50 Billion in Federal Aid

WASHINGTON -- Chief executives of distressed U.S. auto companies sought a $50 billion federal bailout on Thursday to survive a financial crisis blamed on a worsening economy and the "near collapse" in demand for cars. Rick Wagoner of General Motors Corp., Alan Mulally of Ford Motor Co. and Bob Nardelli of Chrysler LLC wore heavy faces while trudging through the deserted halls of Congress where they held long meetings with House Speaker Nancy Pelosi and Senate leader Harry Reid. Industry sources with knowledge of company and labor priorities said carmakers and their union want the government to extend borrowing for $25 billion in emergency capital and another $25 billion for a health care trust to meet obligations for more than 780,000 retirees and their dependents. "The U.S. Treasury and the Federal Reserve can help immediately by taking steps to provide liquidity to auto manufacturers so they can get through the difficulties caused by an across-the-board decline in auto sales," UAW President Ron Gettelfinger said in a statement. Gettelfinger attended the meetings.
Source:  Reuters

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Auto Makers Would Accept Strings on Aid

WASHINGTON -- The heads of Detroit's three auto makers and the United Auto Workers union pleaded Thursday with Democratic congressional leaders to rush more government aid to their foundering companies, offering to accept conditions such as granting stock warrants to the government in return for capital, a person familiar with the discussions said. A spokesman for [House Speaker Nancy] Pelosi said after a meeting with the auto makers and UAW that she wants some form of "recoupment" for taxpayers in return for more subsidies, possibly faster rollout by the car makers of more fuel-efficient vehicles. He declined to be more specific about the kinds of commitments or conditions the speaker would want. "There's still a long way to go," he added. GM issued a statement Thursday describing the talks with Mrs. Pelosi as "a very frank and constructive discussion...on the deteriorating liquidity situation of our companies."
Source:  The Wall Street Journal (Subscription required.)

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With GM, Ford Losses Expected, Worries About Survival Loom

General Motors and Ford Motor report quarterly financial results [today] — almost certainly huge losses — but more telling will be how fast the automakers are burning through their cash hoards. The cash-burn numbers will signal the likelihood of the until-recently unthinkable: a Detroit automaker filing for bankruptcy-court protection to try to survive — or simply going out of business. While Americans have been distracted by how to pay for $4 gasoline, or how to retire on 401(k)s that some now bitterly joke have shrunk to 201(k)s, or how to fix the roof when the bank won't cough up a home-equity loan, America's already staggering industrial icons — the Detroit 3 — have been hammered by disappearing sales. Without significant revenue — never mind profits — from new vehicle sales, Detroit's cash on hand soon may dwindle to where automakers have too little to keep up day-to-day operations.
Source:  USA TODAY

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Dealer Chain's Losses Ominous

AutoNation's hit bad for Detroit
As General Motors Corp. and Ford Motor Co. prepared to announce massive financial losses for the third quarter -- numbers that could help them make a case for federal aid -- the nation's largest seller of domestic cars and trucks, AutoNation Inc., reported Thursday an ominous financial plummet of its own. Ft. Lauderdale, Fla.-based AutoNation, which owns 311 dealerships in 15 states, said that its net income during the quarter had swung from a $72.1-million profit in the same quarter a year ago to a $1.4-billion loss. AutoNation's net income from GM, Ford and Chrysler stores alone plummeted 57.4%, while it declined a lesser 23% for import and luxury brands. Most of the company's net loss during the July-September period came from non-cash special charges such as the declining future value of automotive franchises, especially Detroit's brands, which make up 36% of AutoNation's sales volume. Mike Jackson, the CEO of AutoNation, told the Free Press that the business of Detroit's automakers is "deteriorating disproportionately to import and premium luxury and in a very dramatic way."
Source:  Detroit Free Press

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Toyota U.S. Share Proves 'Cold Comfort' Amid Slump

Toyota Motor Corp., rocked by a sales slump that led it to project the biggest annual earnings drop in at least 18 years, may win market share with its ability to fund car loans as cash-strapped U.S. competitors seek government aid. "Toyota is running a zero-percent loan campaign, because they, and Honda, are the only companies that can do it right now," [said said Tim Gilbert, who helps manage about $287 billion in assets at Principal Global Investors in Des Moines, Iowa, including Toyota and Honda Motor Co. debt.] U.S. market share for Toyota will likely continue to rise, said Stephen Usher, a San Diego-based equity analyst for Japaninvest Plc, who rates Toyota shares "neutral." "That's going to be cold comfort to Toyota,'' said Usher. "It's not going to be a V-shaped recovery where sales plunge and rebound sharply. We're going to go into a hole and will stay there for some time."
Source:  Bloomberg

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American Financial Services Association Announces New Chairman

WASHINGTON -- Steven Lambert, president and chief executive officer of Nissan Motor Acceptance Corporation, will lead the American Financial Services Association (AFSA) as the association’s 2008-2009 chairman. “As the government and other policymakers pursue solutions for the turmoil occurring within the financial services marketplace, the industry must continue participating in the process,” said Lambert. “Now more than ever, we need the unifying voice of AFSA, which represents a cross section of creditors serving consumers and small businesses.” During his one-year term, Lambert will preside over the AFSA Board and Executive Committee meetings, serve as an ex-officio member of all AFSA committees, and represent AFSA at industry and association sponsored conferences and meetings. In 1992, Lambert joined Nissan, where he was responsible for forecasting, budgeting and financial planning for the sales department. He moved up to director of financial planning and budgeting of Nissan North America before assuming his current role in 2002.
Source:  American Financial Services Association

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NADA Update
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 U.S. Treasury and the Federal Reserve can help immediately by taking steps to provide liquidity to auto manufacturers so they can get through the difficulties caused by an across-the-board decline in auto sales."

    -- UAW President Ron Gettelfinger, who attended meetings yesterday with all of the Detroit 3 executives and House Speaker Nancy Pelosi, is urging the government to provide aid to the auto industry, Reuters, Nov. 7


The business of Detroit's automakers is "deteriorating disproportionately to import and premium luxury and in a very dramatic way."

    -- Mike Jackson, CEO of AutoNation, responding to its recent sales decline, Detroit Free Press, Nov. 7


"Toyota is running a zero-percent loan campaign, because they, and Honda, are the only companies that can do it right now."

    -- Tim Gilbert, who helps manage about $287 billion in assets at Principal Global Investors in Des Moines, Iowa, referring to Toyota and Honda's financial positions, Bloomberg, Nov. 7
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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