For optimal viewing through your web browser or PDA, click here.

NADA.org
Monday, Feb. 9, 2009 RSSSEND TO A FRIENDPRINT
Home | AdvocacyAffiliates | Convention | Jobs | Programs | Publications | Training | Services
At a Glance...
Top Stories
EPA Sets Fuel Efficiency Hearing
Opinion: GM Has Left Dealers Hanging Long Enough
At D.C. Show, Industry Unites in Pleas for Federal Help
Nissan to Cut 20,000 Jobs
GM in Talks to Take Back Part of Delphi
GM, Chrysler Push UAW, Creditor Cuts to Beat Deadline
Ohio's Tim Doran Elected as ATAE Chairman
NADA Update
FTC Civil Penalties to Increase Feb. 9
Webinar Feb. 12: Shore Up Your Bottom Line by Saving Energy
NADA Study Finds Double Regulating Fuel Economy by States Harmful to Struggling Auto Industry
NADA, SBA and NAMAD Launch Campaign on Dealer Eligibility for SBA Guaranteed Loans
Understanding TALF
Top Stories
EPA Sets Fuel Efficiency Hearing

If OK'd, California's standards would go into effect immediately
WASHINGTON -- The Environmental Protection Agency plans to move quickly to consider a request by California and 13 states to impose a 30 percent reduction in tailpipe emissions by 2016 -- a measure that would require automakers to dramatically boost the efficiency of light trucks and passenger cars. The EPA has set a public hearing on the issue on March 5 and will take public comments through April 6. In a Friday notice about the public hearing, the EPA repudiated its prior denial saying it "significantly departed from EPA's longstanding interpretation of the Clean Air Act's waiver provisions and from the agency's history." California's waiver would require automakers to boost fuel economy to a fleetwide 35.7 miles per gallon by 2016 and 42.5 mpg by 2020. John P. McEleney, chairman of the National Automobile Dealers Association, urged the EPA to keep an open mind. "It is apparent from its notice that EPA has all but made up its mind to allow for state-by-state fuel economy/greenhouse gas regulations, which is contrary to the President's statement against a 'confusing and patchwork set of standards that hurts the environment and the auto industry,'" McEleney said.
Source: The Detroit News

[back to top]

Opinion: GM Has Left Dealers Hanging Long Enough

The time for half-measures is over. General Motors must quickly define the long-term brand and channel strategies that will be part of its restructuring plan and then immediately implement them. It is reprehensible that GM has left its dealers and their customers hanging for this long. To dealers and consumers, GM already has rung the death knell for Saturn, Hummer, Saab and Pontiac. Loudly declaring them noncore brands and then announcing that Hummer and Saab are for sale and that the long-term options for Saturn are under review sent clear messages across America. While GM has dithered, consumers have stayed away from many dealerships, leaving loyal, long-standing dealers in the lurch. Those dealers are independent businesspeople. Their fortunes and the livelihoods of their employees depend on what GM does. It is wrong to keep them guessing... It would be unconscionable for GM to starve dealers by withholding product in the hopes that they will wither, die and go away without a whimper, let alone compensation. The current crisis and the government's bailout largesse offer an opportunity to set GM right. GM should ... factor that into its loan requests. That's the prudent and ethical thing to do.
Source: Automotive News

[back to top]

At D.C. Show, Industry Unites in Pleas for Federal Help

WASHINGTON — At the Washington Auto Show, cars shared the spotlight with some ominous warnings. Auto dealers predicted the U.S. economy won't recover until consumers start buying vehicles again.  Industry leaders showed unity not only in their distress but in their pleas for government action. "There could not be a more important time to get the policy right," said Phil Brady, president of the National Automobile Dealers Association. NADA Chairman John McEleney came to Washington to ask the federal government to guarantee dealer floorplan loans and to provide consumer incentives. The Senate version of the economic stimulus bill would allow consumers to deduct loan interest and sales taxes on new vehicles from federal income taxes. The tax breaks represent a savings of about $1,500 on a $25,000 vehicle purchase. Said McEleney, a multifranchise dealer in Clinton, Iowa: "The recovery is going to start in dealer showrooms."
Source: Automotive News

[back to top]

Nissan to Cut 20,000 Jobs

HONG KONG — Nissan Motor on Monday joined Toyota, Mazda and Mitsubishi in forecasting a loss for the current financial year, and announced it was cutting 20,000 workers in one of the most aggressive cutbacks so far by a Japanese company since the start of the global downturn. Nissan on Monday joined the spree of profit warnings, saying it now expected a full-year loss of ... $2.9 billion ... “Despite actions already taken during 2008 to respond to the global crisis, worsening conditions are prompting the need for further changes to the company’s cash management strategy, business structure and investment plans,” Nissan said in a statement. The company said it would cut 20,000 jobs from its 235,000-strong workforce, the third huge job cut announcement in Japan in less than two weeks.
Source: The New York Times

[back to top]

GM in Talks to Take Back Part of Delphi

General Motors Corp. is in talks to take back large portions of Delphi Corp., the parts supplier spun off by the auto maker a decade ago, people involved in the negotiations said. The move is part of a strategy to qualify for additional government loans. GM also is expected to pursue the closure of more auto-assembly plants beyond the nine shutdowns it has already announced, people familiar with the matter said. GM executives have been in negotiations over the Delphi plants since December. At the heart of the talks: up to five Delphi plants that produce exclusive parts for GM, including steering systems, radios and air conditioners for models such as the Cadillac CTS and Chevrolet Silverado. The Delphi plans are likely to be part of the viability proposal GM will present to the Treasury by Feb. 17. They will be subject to approval by President Barack Obama's yet-to-be named car czar, who will administer the government's auto-industry bailout. It is not clear how much GM would need to pay for the plants, located in the likes of Lockport, N.Y., Kokomo, Ind., and Saginaw, Mich. GM wants to pay nothing, arguing it would benefit Delphi and its lenders to get rid of them.
Source: The Wall Street Journal

[back to top]

GM, Chrysler Push UAW, Creditor Cuts to Beat Deadline

General Motors Corp. and Chrysler LLC, racing to meet a Feb. 17 U.S. deadline, plan meetings this week with advisers to creditors and the United Auto Workers to hammer out agreements they need to keep $17.4 billion in aid, people familiar with the matter said. The automakers, still awaiting President Barack Obama’s appointment of a so-called car czar to oversee their restructuring, need signed preliminary accords to cut retiree and other union costs and to exchange bondholder and creditor debt for equity before next week’s deadline. GM, the biggest U.S. automaker, and No. 3 Chrysler both ended a program in the last two weeks that paid union workers most of their salary to come to the factory when they didn’t have tasks to perform. They are also trying to get thousands of their 91,200 U.S. union workers to agree to retire or quit to make room for new workers who are paid half as much. If GM and Chrysler can’t persuade creditors and the UAW to agree to new terms, the government could force them to return the loans or convert them into funding for a government-backed bankruptcy. Both car companies have said a bankruptcy may lead to liquidation because it would further erode sales.
Source: Bloomberg News

[back to top]

Ohio's Tim Doran Elected as ATAE Chairman

NEW ORLEANS – Tim Doran, president of the Ohio Automobile Dealers

 

 Tim Doran

Association, was elected 2009 chairman of the Automotive Trade Association Executives (ATAE) at its annual meeting in New Orleans. The ATAE, which represents the leaders of 114 state and metropolitan dealer associations in the U.S. and Canada, helps its members respond to dealer needs on state and local legislative, regulatory, business and consumer issues. “The economic challenges facing the nation’s new car and truck dealers and the overall U.S. economy are unprecedented in recent history,” Doran said. “With many months of uncertainty ahead, it will be more important than ever for dealers and dealer groups to work together and find solutions to weather this economic storm.”
Source: NADA Newswire

[back to top]

NADA Update
FTC Civil Penalties to Increase Feb. 9

The FTC has announced an increase in civil monetary penalty amounts effective Feb. 9, 2009.  The adjustments are based on the increase in the Consumer Price Index (CPI), and include an increase in the maximum penalties per knowing violation of the Fair Credit Reporting Act (examples of which would include the Red Flags, Address Discrepancy, and Affiliate Sharing Rules) from $2,500 to $3,500. In addition, the maximum statutory penalty per violation for certain FTC rules that are enforced under the FTC Act will also increase from $11,000 to $16,000. Under the FTC Act, when a rule (such as the GLB Safeguards Rule, Privacy Rule, or the Red Flags and Address Discrepancy Rules) continues to be violated despite an order to comply with a rule, the FTC can file a lawsuit in federal court seeking $16,000 for each violation of that rule as well as equitable relief. For more information, click here.

[back to top]

Webinar Feb. 12: Shore Up Your Bottom Line by Saving Energy

In uncertain economic times, every dollar counts. And the money dealers spend on energy is a controllable expense. To learn how to begin reducing your dealership’s energy bills, a free Webinar, “Energy Savings 101” hosted by EPA’s ENERGY STAR, will be offered Thursday, Feb. 12 at 11:30 a.m. EST. The Webinar covers ENERGY STAR guidelines for energy management, including general and dealership-specific upgrade opportunities. Participants will also learn about the importance of benchmarking. The Webinar will demonstrate what energy savings can mean for your dealership, your customers and your bottom line. NADA and ENERGY STAR are entering their third year of an Energy Stewardship Initiative that challenges dealers to cut their energy expenses by at least 10 percent. If all dealers reduced energy consumption by about 10 percent, they would save more than $190 million a year and “green” their stores. Click here to register for the free “Energy Savings 101” Webinar. It lasts one hour and includes time for Q&A. For more information about NADA’s partnership with ENERGY STAR, go to www.nada.org/energystar.

[back to top]

NADA Study Finds Double Regulating Fuel Economy by States Harmful to Struggling Auto Industry

Industry needs single national standard, not patchwork of state regulations
WASHINGTON — A comprehensive analysis released by the National Automobile Dealers Association (NADA) on a California Air Resources Board’s (CARB) rule that would allow individual states to regulate  fuel economy standards finds numerous unintended consequences that will cause economic harm and provide little or no environmental benefit over the proposed federal standards. “With new national fuel economy standards expected to be finalized by the Obama administration by April 1, complying with the additional state standards would create a regulatory patchwork that would undermine the national fuel economy program at a time when the auto industry needs regulatory certainty and stability,” says David Regan, NADA vice president of legislative affairs. “Separate and apart from the stringency of standards set by the federal government or California, the establishment of 13 state-based fuel economy regimes would cause irreparable harm to an already struggling automobile industry.” Regan added that a major slump in auto sales forced 900 dealerships to close their doors in 2008 and put the domestic automakers in the difficult position of needing billions in bridge loans from the federal government to prevent bankruptcy.  GM and Chrysler have already received $17.4 billion in loans. Ford has yet to ask for assistance.  “It makes no sense for the federal government to aid the auto industry with one hand, and then burden it with a duplicative rule that regulates fuel economy completely differently than the federal government,” Regan continued. Click here for the report, "Patchwork Proven: Why A Single National Fuel Economy Standard Is Better for America Than A Patchwork of State Regulations."
Source: NADA Newswire

[back to top]

NADA, SBA and NAMAD Launch Campaign on Dealer Eligibility for SBA Guaranteed Loans

NADA, the National Association of Minority Automobile Dealers (NAMAD), and the Small Business Administration (SBA) have developed a joint Motor Vehicle Dealer Loan Guaranty Campaign to inform small new-car and -truck dealers about their eligibility for SBA 7(a) guaranteed loans. Small dealers who have been affected by recent economic conditions may benefit from the program. The SBA guarantees loans made by local lenders for small business applicants who cannot obtain credit on a conventional basis. Questions may also be directed to the NADA Hotline at (888) 672-5147 between 8:30 a.m. and 4:30 p.m. EST, Monday through Friday. When calling, mention that you are seeking assistance in applying for or obtaining a SBA-guaranteed loan. Click here for the campaign fact sheet.
Source: NADA Newswire

[back to top]

Understanding TALF

A new Web page on nada.org explains in greater detail what the Federal Reserve Board's Term Asset-Backed Securities Loan Facility (TALF) program means to dealers and how they will benefit from the action taken on Dec. 19 to include securities backed by dealer floorplan loans as a qualifying asset class. The information is helpful in explaining this action to dealers and the media. Click here for "Understanding the TALF."
Source: NADA Newswire

[back to top]

 
Featured Video
 
 

 NADA Tackles Industry Crisis


More Video Highlights

Quotable
 
"It is apparent from its notice that EPA has all but made up its mind to allow for state-by-state fuel economy and greenhouse gas regulations, which is contrary to the President's statement against a 'confusing and patchwork set of standards that hurts the environment and the auto industry.'"

   
-- John McEleney, NADA chairman, is urging the EPA to keep an open mind on proposed changes to fuel economy standards, The Detroit News, Feb. 9


"It would be unconscionable for GM to starve dealers by withholding product in the hopes that they will wither, die and go away without a whimper, let alone compensation."

   
-- Automotive News' opinion stating that General Motors must quickly define its long-term brand and channel strategies in its restructuring plan and then immediately implement them, Feb. 9


"There could not be a more important time to get the policy right."

    -- Phil Brady, NADA president, says the government needs to agree on a single, cost-efficient way to regulate fuel economy and greenhouse gases from vehicles, Automotive News, Feb. 9


"The recovery is going to start in dealer showrooms."

    -- John McEleney, NADA chairman, Automotive News, Feb. 9
Member Products & Services
 
 
Save Big with Lenovo
Lenovo is offering NADA members up to $815 off select ThinkPad notebooks. Enter eCoupon USXHOTSAVINGS at checkout. Free ground shipping is available on all Web orders. This offer ends Feb. 9. To take advantage of these savings, visit NADA's Online PC Purchase Program (login required), click the link for Lenovo, then "Special Offers," or call (800) 426-7235, Option 1, Ext. 4838. 
Video Highlights
 
  

"The next two months are critical to the future of our industry as we know it," says NADA Chairman John McEleney, addressing a crowd of about 5,000 at the general session of the NADA convention in New Orleans.


NBC: "Demise of local car dealerships leaves big dent."
2009 Convention in New Orleans
NADA on the Front Lines


Click here for more NADA-TV reports.

 
Search Back Issues | Unsubscribe | Subscribe | Manage your subscription | email us
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.