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

NADA.org
Friday, Feb. 13, 2009 RSSSEND TO A FRIENDPRINT
Home | AdvocacyAffiliates | Convention | Jobs | Programs | Publications | Training | Services
At a Glance...
Top Stories
Auto Dealers Praise Tax Break in Stimulus Bill
GM's Talks With Bondholders Go Down to the Wire
Chrysler Dealers Meet Order Quota After 2nd Extension
Facing a Loss, Toyota Offers Job Buyouts, Ends Bonuses
Nissan Reviewing Tie-up Plans with Chrysler Amid Downturn
BMW to Make First 2 Monthly Payments for U.S. Buyers
NADA Update
2010 NADA Convention Workshop Proposals Now Being Accepted
FTC Civil Penalties Have Increased
NADA, SBA and NAMAD Launch Campaign on Dealer Eligibility for SBA Guaranteed Loans
Top Stories
Auto Dealers Praise Tax Break in Stimulus Bill

WASHINGTON -- The nation's auto dealers on Thursday praised a slimmed-down version of a tax break for new car buyers as part of a $789.5 billion stimulus bill. The Senate passed an $11 billion tax provision last week that made both the sales tax paid on a new car and the interest on a new car loan tax deductible for most buyers, but the compromise struck late Wednesday stripped the interest deduction. The House and Senate are expected to vote on the compromise bill on Friday. The National Automobile Dealers Association praised the partial break. "NADA is pleased that tax incentives on new-auto sales are included in the economic stimulus package," said David Regan, the association's vice president of legislative affairs. "Allowing consumers to deduct sales and excise taxes paid on new vehicle purchases will help jump-start auto sales." Regan said that making interest deductible would have done even more to generate consumer demand for new vehicles, but he applauded lawmakers for recognizing the importance of automotive retailing to the overall U.S. economy. "Anything that increases auto sales will also provide help for state and local budgets that rely on sales tax revenues, consumers, dealers and the auto industry," Regan said. "New-car dealers generate almost 20 percent of all retail sales in this country. Therefore, anything that can help get consumers back into dealership showrooms can also help stimulate an economic recovery."
Source: The Detroit News

[back to top]

GM's Talks With Bondholders Go Down to the Wire

With a deadline just days away, General Motors bondholders still have not signed off on concessions aimed at helping the struggling automaker win additional federal aid, said people familiar with the deliberations of a committee representing bondholders. A group of 10 bondholders have been reviewing the automaker's tentative business plan. They are waiting to see whether the United Auto Workers will agree to shrink labor costs to become competitive with Nissan, Toyota and Honda, according to those familiar with the talks. At the same time, the union appears reluctant to wrap up negotiations without knowing what bondholders will do. The UAW is set to become a large GM shareholder because the Treasury has mandated that at least half of the company's payments to a union-run health care trust be paid in stock. The face-off between GM bondholders and the union punctuates the frustration some in Congress have expressed over the pace of the restructuring negotiations and the concern that the benchmarks might not be met in time. "In a way, it's a game of chicken," said Sen. Bob Corker (R-Tenn.) ... Analysts expected the appointment of a "car czar," the person who will ultimately review the automakers' viability plans, to speed up the talks by clarifying the government's mandates. "They don't know how stringent the oversight is going to act," Corker said. "It creates some vagueness."
Source: The Washington Post

[back to top]

Chrysler Dealers Meet Order Quota After 2nd Extension

CHICAGO -- Chrysler LLC succeeded in getting dealers to buy enough vehicles to keep the company operating after twice extending a deadline, co-President Jim Press said today. "We're buttoned up for the month," Press said here at the Chicago Auto Show. Chrysler had set a goal of 78,000 orders for February at last month's National Automobile Dealers Association convention in New Orleans, where Press urged dealers to buy more cars to ensure the company's survival. Press repeated the request in a conference call last week as he extended the deadline three days. "You can either help us or burn us all down,'' he said then. Press sought the orders to keep the company's viability plan on target after U.S. sales dropped more than 50 percent in December and January. Chrysler must deliver a report on its restructuring efforts by Feb. 17 to keep $4 billion in federal loans and help secure an additional $3 billion in U.S. aid.
Source: Automotive News

[back to top]

Facing a Loss, Toyota Offers Job Buyouts, Ends Bonuses

Toyota Motor Corp. is offering widespread job buyouts to its U.S. workers for the first time and cutting the workweek at some of its American plants by 10% to contend with falling sales. The Japanese company also said it is eliminating bonuses for approximately 3,000 executives and salaried employees and cutting executive pay. In addition, the world's biggest car maker said there will be no wage increases for the foreseeable future and spring bonuses paid to hourly workers will be reduced and later eliminated. "We are taking every measure we can to protect employment," said Mike Goss, a Toyota spokesman. As an inducement to leave the company, Toyota is offering all 25,000 of its North American workers 10 weeks of pay, two weeks of additional pay for every year of service and $20,000. The company doesn't expect a significant number of employees to take the option and has no target for its "voluntary exit program," Mr. Goss said. That compares with GM's offer of $20,000 in cash to certain workers to leave the company, plus a $25,000 voucher toward a car purchase.
Source: The Wall Street Journal

[back to top]

Nissan Reviewing Tie-up Plans with Chrysler Amid Downturn

TOKYO — Nissan is reviewing its tie-up plans with Chrysler as the Japanese automaker struggles to boost profitability amid a global downturn. Nissan has decided to put on hold the plans for Chrysler to produce a full-size pickup for Nissan by 2011, and for Nissan to produce a small car for Chrysler by 2010, Nissan spokesman Mitsuru Yonekawa said Friday. The deal, inked last year, to have Tokyo-based Nissan supply a model based on the Versa model, to Chrysler for sale in South America starting this year, is still on, he said. But the other partnership plans are being looked at again in detail as part of an overall cost-cutting effort at the embattled company, Yonekawa said. Chrysler Vice Chairman Jim Press said Thursday in Chicago that the tie-up is still on, and said Chrysler just reviewed interiors for one of the projects. But Frank Klegon, Chrysler's product development chief, conceded the Nissan deal would duplicate some products from Italian automaker Fiat SpA, with which Chrysler has recently announced an alliance. Klegon said Chrysler, based in Auburn Hills, Michigan, is still working with the Japanese automaker, but he also noted that no contract has been signed with Nissan.
Source: The Associated Press

[back to top]

BMW to Make First 2 Monthly Payments for U.S. Buyers

Bayerische Motoren Werke AG, the world’s biggest luxury-car maker, said it plans to entice U.S. buyers by making their first two car payments. The payments of as much as $750 a month will be offered on certain versions of BMW’s 1 Series, 3 Series, 5 Series, 6 Series, and X5 models, the company said in a statement [Thursday]. The offer runs until March 2 for 2008 models and March 31 for 2009 vehicles, BMW said. Automakers are seeking new types of incentives to spur consumers to overcome concern about the recession. Munich-based BMW reported a 12 percent drop in U.S. sales in January and a 15 percent fall in 2008.
Source: Bloomberg

[back to top]

NADA Update
2010 NADA Convention Workshop Proposals Now Being Accepted

Proposals are now being accepted for speakers who are interested in presenting a workshop at the 2010 NADA Convention & Exposition in Orlando, Fla., Feb. 13-16. Topics that are applicable to the current state of the U.S. automobile industry are strongly preferred. To download the proposal, go to www.nada.org/workshops. Completed proposals should be postmarked by midnight, April 30, 2009. For more information, contact NADA Management Education at (703) 821-7227 or workshops@nada.org.

[back to top]

FTC Civil Penalties Have Increased

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 have increased 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]

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]

 
Featured Video
 
 

 NADA Tackles Industry Crisis


More Video Highlights

Quotable
 
"Allowing consumers to deduct sales and excise taxes paid on new vehicle purchases will help jump-start auto sales. Anything that increases auto sales will also provide help for state and local budgets that rely on sales tax revenues, consumers, dealers and the auto industry."

    -- David Regan, NADA vice president of legislative affairs, The Detroit News, Feb. 13


"It would be a mistake to assume that this '10 million market' is an aberration. Instead, we need to accept and come to grips with it."

   
-- Jim Press, Chrysler LLC president, working on a Feb. 17 progress report under a federal emergency loan, is assuming that U.S. auto sales may stay at about 10 million annually for four years, Bloomberg, Feb. 12


"Toyota's profile is now very similar to that of a Big 3 U.S. manufacturer, in terms of product. They're running into some of the same issues in the downturn."

    -- Rebecca Lindland, IHS Global Insight analyst based in Lexington, Mass., referring to Toyota Motor Corp.'s decision to freeze wages, eliminate bonuses for all salaried employees and offer voluntary redundancy to plant workers in North America for the first time, Bloomberg, Feb. 13
Member Products & Services
 

Save Big with Lenovo
Lenovo is offering NADA members up to $815 off select ThinkPad notebooks. Great savings are available on all ThinkPad and IdeaPad notebooks along with all computing accessories. Free ground shipping is available on all Web orders. This is a limited-time offer. To take advantage of these savings, visit NADA's PC Purchase Program online (login required), click the "Lenovo" link, 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.