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Friday, Nov. 14, 2008 RSSSEND TO A FRIENDPRINT
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Top Stories
Big Three Carmakers Line Up for Another Bailout
Paulson Says Congress Should Aid U.S. Automakers
Chances Dwindle on Bailout Plan for Automakers
Auto, UAW Representatives to Testify for Senate Next Week
Opinion: Big 3 Must Prove They Are Worth It
Chrysler Enlists Help in Push for Federal Aid
Carmaker Crisis Hits Suppliers
Committed to Community: Cars, Keys and a Cure
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
Big Three Carmakers Line Up for Another Bailout

WASHINGTON – All aboard, there may be another bailout train leaving the station on Capitol Hill. Talk of a $25 billion emergency loan package for the Big Three carmakers that could see a vote in a postelection session of Congress next week has a wave of business lobbyists clamoring for action — and a slice of the pie. The National Automobile Dealers Association is urging that their sector get a slice of any additional help for car manufacturers. "That legislation needs to operate to ensure the presence and the viability of the dealer network. The two go hand-in-hand. You can't have one without the other," said Andy Koblenz, an association executive. The group also wants Congress to approve new tax breaks for buying cars and trucks. Once the final auto bailout bill emerges, the group is ready to unleash a barrage of anxious car dealers to pressure lawmakers to back it. "We've put them on a high state of readiness," Koblenz said. "We're expecting to activate that network within the next few days."
Source:  Associated Press

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Paulson Says Congress Should Aid U.S. Automakers

WASHINGTON -- Treasury Secretary Henry Paulson on Thursday encouraged Congress to come up with the funds to help ailing Detroit automakers, but stuck to his position that the government's $700 billion bailout fund is for financial institutions only. "I think it would be harmful to see a bankruptcy of a major auto manufacturer, particularly during this period," Paulson told public television's "The Newshour With Jim Lehrer." "And so, clearly, I am of a view you should do something for the auto industry," he said.
Source:  Reuters

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Chances Dwindle on Bailout Plan for Automakers

WASHINGTON — The prospects of a government rescue for the foundering American automakers dwindled Thursday as Democratic Congressional leaders conceded that they would face potentially insurmountable Republican opposition during a lame-duck session next week. At the same time, hope among many Democrats on Capitol Hill for an aggressive economic stimulus measure all but evaporated. But while Democrats said the stimulus measure would wait until President-elect Barack Obama takes office in January, some industry experts fear that one of the Big Three automakers will collapse before then, with potentially devastating consequences. Despite hardening opposition at the White House and among Republicans on Capitol Hill, the Democrats said they would press ahead with efforts to provide $25 billion in emergency aid for the automakers. But they said the bill would need to be approved first in the Senate, which some Democrats said was highly unlikely. Senator Christopher J. Dodd, Democrat of Connecticut and chairman of the banking committee, said he did not believe there would be enough Republican support to get the 60 votes needed to move a bill forward. “Right now, I don’t think there are the votes,” he said, adding that he personally favored aid for the automakers. The White House, in resisting calls for aiding the automakers, has also warned repeatedly against throwing taxpayer money at companies that may not be salvageable.
Source:  The New York Times

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Auto, UAW Representatives to Testify for Senate Next Week

WASHINGTON – Detroit automakers and the UAW will be called by a Senate committee next week to testify about the need for a $25-billion bailout, as a key lawmaker said there were several unresolved questions about where the money might come from. Sen. Christopher Dodd, the Connecticut Democrat and chairman of the Senate Banking, Housing and Urban Affairs Committee, said he would hold a hearing either Monday or Tuesday on the rescue plan with automakers, the union and experts who might offer different views of a bailout. Dodd said it wasn’t clear whether the Senate would support carving out part of the $700-billion financial industry bailout for the auto industry, given the continuing turmoil in financial markets and high levels of home foreclosures. The leaders of the Detroit automakers and the UAW are already scheduled to testify before a House committee on Wednesday.
Source:  Detroit Free Press

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Opinion: Big 3 Must Prove They Are Worth It
by Daniel Howes

Gentlemen: 

You're the bosses (for now) of the Big Three automakers, not Big Tobacco, but the prospect of being grilled next week by New England's dynamic duo -- Rep. Barney Frank, D-Mass, and Sen. Christopher Dodd, D-Conn. -- likely could make you feel as if you are. ... your testimony next week will be the political equivalent of a presentation to investors. The difference is that the would-be investors are members of Congress, many of whom see the auto industry in general -- and the Detroit players in particular -- as economic punching bags whose chief missions are (a) financing environmental legislation so more folks don't have to and (b) providing jobs for taxpayers who vote.

Bottom line: Washington doesn't fear you any more, except for the prospect of you disappearing altogether and taking hundreds of thousands of jobs with you. That's the best card to play -- that and showing why you're not a lost cause.
Source:  The Detroit News

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Chrysler Enlists Help in Push for Federal Aid

Chrysler LLC is enlisting support in the push to get additional federal aid and is set to kick off Thursday a campaign to get their message to members of Congress. The Auburn Hills automaker is hoping to mobilize groups including employees, suppliers and dealers to remind policymakers of the importance of the auto industry and of Chrysler's role in every state in the nation. Jim Arrigo, co-chairman of the Chrysler dealer council and the owner of two of Chrysler's largest dealerships, said dealers are desperate and want to add their voice to the discussion in Washington. More than 3,300 Chrysler dealers are relying on the government's will to aid the manufacturers. "Our livelihoods hinge on someone making a decision for the manufacturer. We can only hope the industry gets what they need," Arrigo said.
Source:  The Detroit News

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Carmaker Crisis Hits Suppliers

S&P: Negative scenario for a dozen companies
The fallout from the financial crisis in the auto industry is reverberating down the parts supply chain of Detroit's Big Three, with more cost cutting, job losses, bankruptcies and liquidations expected. A number of North American suppliers had their credit ratings placed on CreditWatch with negative implications Thursday by Standard & Poor's Ratings Services because of their ties to General Motors Corp., Ford Motor Co. and Chrysler LLC. S&P singled out ArvinMeritor Inc., BorgWarner Inc., Cooper-Standard Automotive Inc., Federal-Mogul Corp., Goodyear Tire & Rubber Co., Hayes Lemmerz International Inc., Johnson Controls Inc., Lear Corp., MetoKote Corp., Shiloh Industries Inc., Stoneridge Inc., Tenneco Inc. and Visteon Corp. for their significant exposure to GM, Ford and Chrysler. "We're going to see a thinning of the herd," said Mike Wall, an auto supply analyst with Northville-based CSM Worldwide, who noted estimates on the number of suppliers considered vulnerable are in the range of 25 percent to 33 percent.
Source:  The Detroit News

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Committed to Community: Cars, Keys and a Cure

For a second year, the Birmingham Auto Dealers Association has kicked off the event with a special preview gala [at the Alabama International Auto Show] -- this year, benefiting the Arthritis Foundation and the Autism Society of Alabama. Melanie Jones of the Autism Society of Alabama says, "This is the first time the Autism Society's been a part of this event... And to come out and see these beautiful automobiles, like I said, this is for a great cause. The Autism Society sends their kids to camp with the money that'll be raised with this event." Last year we raised a little over $150,000, and we're really hoping to beat that mark tonight... A lot of different charities have their own gala and we found these two opportunities and said, hey, let's go benefit these guys," says Brett McBrayer, president of the Birmingham Auto Dealers Association.
Source:  CBS 42, Birmingham, Ala.

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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
 
"That legislation needs to operate to ensure the presence and the viability of the dealer network. The two go hand-in-hand. You can't have one without the other." 

    -- Andy Koblenz, NADA vice president and general counsel, whose members are on stand-by to lobby in favor of federal assistance for the auto industry. NADA also supports new tax breaks for buying cars and trucks, Associated Press, Nov. 14


"I think it would be harmful to see a bankruptcy of a major auto manufacturer, particularly during this period."

   
-- Treasury Secretary Henry Paulson encouraging Congress to come up with the funds to help ailing Detroit automakers, but sticking to his position that the government's $700 billion bailout fund is for financial institutions only, Reuters, Nov. 14


"Our livelihoods hinge on someone making a decision for the manufacturer. We can only hope the industry gets what they need."

   
-- Jim Arrigo, co-chairman of the Chrysler dealer council and the owner of two of Chrysler's largest dealerships, says dealers are helping the automaker in its push for federal aid, The Detroit News, Nov. 14
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.