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Top Stories
Lawmakers Prepare Industry-Aid Bills for Lame-Duck Session
Big 3 Woes Imperil Japanese
More Than Just Auto Jobs in Danger in Detroit
Running On Empty: GM's Fate Is Debated
Committed to Community: Auto Dealers Collect 20,000 Pounds of Food
NADA Update
Convention Updates Headed to Member Mailboxes
STAR Answers Dealers' Questions About Content Filtering Systems
NADA Members Can Save on Lenovo's ThinkPad Notebooks
Top Stories
Lawmakers Prepare Industry-Aid Bills for Lame-Duck Session

Pelosi to call for 'emergency and limited financial assistance'
WASHINGTON -- Key members of Congress said today they are preparing emergency legislation that would provide more federal aid to the auto industry. House Speaker Nancy Pelosi (D-Calif.) said a bill is being drafted to provide “emergency and limited financial assistance” to the industry as part of a $700 billion financial rescue program already on the books. Separately, Sen. Barbara Mikulski (D-Md.) is planning to announce Wednesday a bill that would make automobile loan interest deductible from federal taxes, Automotive News has learned. The proposal is part of a package of ideas the National Automobile Dealers Association advocates to boost business at dealerships and lift the nation’s economy. Maryland dealers deserve credit for getting the proposal on interest deductions introduced in Congress, said NADA spokesman Bailey Wood. Wood said NADA is working with Congress on other proposals to aid dealers. NADA seeks tax credits for car and truck buyers and faster write-offs for businesses that buy vehicles.
Source:  Automotive News (Subscription required.)

[Editor's Note: NADA supports an auto industry relief package that recognizes the important role that dealers play in the auto industry. Congress has been made aware of how the credit crisis has affected auto sales. NADA will also continue to engage key members of Congress to ensure that they understand that a financially sound local dealer network is essential to the success of every automobile manufacturer—especially a manufacturer facing severe economic challenges.

Yesterday, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid signaled for the first time their willingness to seek and negotiate an auto industry relief package during the lame duck session of Congress reported to begin next week. Previous efforts on an industry relief package have focused primarily on the executive branch: accelerating the approved $25 billion in loans for automaker retooling; and providing credit assistance to the industry through the $700 billion Troubled Assets Relief Program at the Department of the Treasury. 

Later today, NADA will be sending a statement of principles to the Hill that provide the basis of our discussions with the members of Congress and staffers involved in this process. As this legislation takes shape, NADA will keep dealers apprised in an effort to effectively target grassroots messages in support of a specific proposal.]

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Big 3 Woes Imperil Japanese

Collapse of U.S. automaker would disrupt Toyota, Nissan, Honda because they share parts suppliers
Japan's leading automakers are beating Detroit's Big Three in the plunging U.S. auto market, but they would sustain enormous damage if one of the domestic carmakers collapsed. Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co., the biggest foreign producers of vehicles in the United States, rely on the same parts suppliers as the U.S. automakers. So the failure or bankruptcy of a domestic automaker would also disrupt the Japanese car companies' operations in what has traditionally been their most lucrative market. "We're deeply concerned," said Mike Goss, a spokesman for Toyota Motor Engineering & Manufacturing North America Inc. in Erlanger, Ky. "Seventy-five percent of the vehicles we build in North America are sourced in North America, and many of those suppliers are shared with the Big Three."
Source:  The Detroit News

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More Than Just Auto Jobs in Danger in Detroit

Should any one of Detroit's Big Three collapse in the near future – or cut back even more drastically – scores of workers throughout the nation could become victims of a ripple effect and end up jobless. Within a year's time, roughly 2.5 million jobs throughout the U.S. would likely be cut if just one of the nation's three largest auto manufacturers fail in 2009, according to a report released earlier this month from the Center for Automotive Research, a nonprofit trade group. The majority – or an estimated 1.4 million jobs – would be positions at companies unrelated to the automotive industry and not positions at GM, Chrysler, Ford or even their direct and indirect suppliers. These would include both blue collar and white collar jobs at restaurants, real-estate firms, public schools and more, suggesting that the impact would be widespread.
Source:  The Wall Street Journal (Subscription required.)

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Running On Empty: GM's Fate Is Debated

Bankruptcy Filing Is Not an Option, Company Says
As General Motors burns through cash, edging its way toward possible financial collapse, a growing number of analysts have said bankruptcy might be inevitable. GM insists such a move is out of the question, and as the debate roils, people on both sides point to two past scenarios for lessons. One is a story of success. Several major U.S. airlines have operated under Chapter 11 bankruptcy provisions. United Airlines has been through it. US Airways and Continental Airlines filed twice. But another was a disaster. Daewoo Motor -- South Korea's equivalent of Chrysler -- could not stay afloat during the Asian financial crisis. In 2000, burdened by $16 billion in debt, it filed for bankruptcy. Its global brand all but disappeared. GM said it is trying to stave off such a fate.
Source:  The Washington Post

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Committed to Community: Auto Dealers Collect 20,000 Pounds of Food

Four dealerships -- Legacy Ford, McCurley Integrity Dealerships, Transportation Solutions and Tri-Cities Motor Sales -- get together each October to raise donations for the food banks. In seven years, they've collected enough money and nonperishables to provide more than 210,000 pounds of food, said Carmen Marquart, marketing director for Tri-Cities Motor Sales and Transportation Solutions. About 40 percent of the food goes to Tri-Cities Food Banks' outlets... Craig Cavanaugh, general sales manager for McCurley, said the food drive started because the Autoplex dealers wanted a project that would give something back to the community, and they saw a need at the food banks. Josh Dykes, owner of Legacy Ford, said the drive's success each year shows him there's a strong spirit of giving in the Tri-Cities. "That's important to me," Dykes said. "It tells me there's still hope during times when it seems like everything is negative. I think a lot of places right now people don't have a lot of hope. This proves it's alive." During October, the four dealerships set a $10,000 goal for collecting nonperishable food. They also set aside a portion of each vehicle sale to buy food to donate. This year they raised $10,680.
Source:  TriCityHerald.com (Mid-Columbia, Kennewick, Pasco and Richland, Wash.)

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NADA Update
Convention Updates Headed to Member Mailboxes

NADA members will begin receiving the much-anticipated update for the 2009 NADA Convention & Exposition in the mail this week. The update includes details about workshops, franchise meetings and much more planned for the annual event, which takes place Jan. 24-27 in New Orleans. Many new workshops have been added to the program, including sessions on improving cash flow, combating the credit crunch, and tactics for driving customers back to the store. The popular "Lifeline to Profit$" workshop will be offered twice--Friday, Jan. 23 and Tuesday, Jan. 27--to help dealers through tough times. “You’ll be amazed how much we have packed into this convention,” says Stephen Pitt, NADA vice president of conventions & expositions. To register for the NADA convention, visit www.nada.org/convention before Dec. 5.

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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
 
"Seventy-five percent of the vehicles we build in North America are sourced in North America, and many of those suppliers are shared with the Big Three."

    -- Mike Goss, a spokesman for Toyota Motor Engineering & Manufacturing North America Inc., says a collapse of the U.S. automakers would disrupt Toyota, Nissan, Honda because they share parts suppliers, The Detroit News, Nov. 12


"It tells me there's still hope during times when it seems like everything is negative. I think a lot of places right now people don't have a lot of hope. This proves it's alive."

    -- Josh Dykes, owner of Legacy Ford, referring to food bank contributions collected by the dealerships, TriCityHerald.com, Nov. 12
NADA Convention 2009 
 
  
Convention Workshops Keyed to Today’s Economy

Now more than ever, dealers need to learn how to survive in tough times. In that spirit, workshops planned for the NADA Convention & Exposition in New Orleans Jan. 24-27 will focus on recession-proof business operations. NADA Headlines will spotlight three convention workshops each week.

(1) The ABCs of Privacy and Data Security Rules Affecting Dealers

(2) Managing for Profitability: Tracking and Measuring Media Value in the Online Age

(3) "On Board": Hire the Right Employees and Create an Orientation Process to Keep Them

ABC's of Privacy speaker Kathryn Ratté of the Federal Trade Commission (FTC) will discuss the requirements of the Privacy Rule and Safeguards Rule, and how the FTC enforces them. She will also provide an overview of dealers' responsibilities outlined under the FACT Act, including Red Flags Rule compliance.

Media Value will feature David Kain of Kain Automotive and Dennis Galbraith of Cars.com, discussing how to measure and manage the effectiveness of media dollars in the online age. Participants will learn what they need to track to determine their true media ROI—allowing them to manage their marketing mix for optimal results.

On Board speakers Robert Bekken of the Bekken Law Group and Mike Poskey of ZeroRisk HR, Inc. will analyze each stage of the hiring and orientation process, revealing best practices for hiring professionals, reducing turnover and increasing the productivity of new employees.

Join us in New Orleans at the NADA convention 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.