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

SPONSORED BY
Click Here
NADA.org
Friday, March 20, 2009 RSSSEND TO A FRIENDPRINT
Home | AdvocacyAffiliates | Convention | Jobs | Programs | Publications | Training | Services
At a Glance...
Top Stories
Dealer Urges Senate Panel to Ease Eligibility for U.S.-Backed Loans
Auto Parts Makers Get $5 Billion Lifeline
Message From a Condemned Car Brand: 'We're Still Here'
$2B Battery Grant Touted
Sales Surprise: Some New Cars May Be Cheaper Than Used Ones
NADA Update
New NADA Training Video Helps Dealers Find Additional Profits
Seminar Takes 'Deeper Dive' into FTC Red Flags Rule
Top Stories
Dealer Urges Senate Panel to Ease Eligibility for U.S.-Backed Loans

 

New Mexico dealer Bob Cockerham testifies before the U.S. Senate Committee on Small Business and Entrepreneurship Thursday.


New Mexico dealer Bob Cockerham says he is "extremely impressed" with the reaction of lawmakers who listened to his testimony before the U.S. Senate Committee on Small Business and Entrepreneurship [Thursday]. "They gave us the feeling that they really cared," Cockerham said in a telephone interview following the session. He is the operator of Car World Kia in Santa Fe, N.M. "The interviews afterwards went well." Cockerham says he asked lawmakers to raise the cap on annual sales for businesses to qualify for U.S. Small Business Administration-backed loans from $29 million to $60 million so more dealerships can qualify for them. He also spoke of how in January, after having a perfect credit record with their bank, the lender said the business was too small to successfully navigate the deeper economic downturn that is expected to occur in 2009. "This is the same situation that literally thousands of dealers are facing, and within the next six months, these thousands of dealers will be out of business," Cockerham testified. Ivette Rivera, the National Automobile Dealers Association's executive director of legislative affairs, said Cockerham succeded in "putting a human face" on the plight of dealers.
Source: Automotive News

[back to top]

Auto Parts Makers Get $5 Billion Lifeline

U.S. Aid Boosts Hopes for the Entire Industry
The Obama administration announced yesterday that it will provide $5 billion in financial aid to auto parts manufacturers, signaling the government's continued interest in propping up the domestic car industry and raising hopes that it will soon provide even more money. The $5 billion in federal assistance will come out of the $750 billion Troubled Asset Relief Program, the financial rescue effort passed by Congress in October. Automakers usually pay suppliers for parts 45 to 60 days after they're shipped. During that time, suppliers borrow against these billings, or receivables, to continue to pay their workers and fund operations. The economic crisis has cut into such short-term financing, however, because banks have been reluctant to accept those receivables as collateral, given the weakened condition of so many companies. In an effort to relieve that situation, the government said it would guarantee the auto company payments, making it easier for the parts makers to borrow against those amounts. The government also said it would give suppliers the option of exchanging their receivables for cash.
Source: The Washington Post

[back to top]

Message From a Condemned Car Brand: 'We're Still Here'

For the first time since the financial difficulties of General Motors began threatening the company’s existence, a G. M. division will run advertising that addresses the effects of the precarious situation. A campaign for the Saturn division of the General Motors Corporation, which is now under way, features dealers — known in Saturn-speak as retailers — talking frankly to consumers. The dealers urge potential car buyers not to be deterred from considering Saturn by the problems confronting G. M., the American automotive industry or the economy in general. Saturn is among four marques, along with Hummer, Saab and Pontiac, that G. M. identifies as not part of its long-range plans for full brand lines. G. M. said last month that Saturn would be phased out by 2012, although the company would consider a plan from dealers or investors for a spinoff of the division. One television commercial is titled “We’re Still Here.” “Not a day goes by that someone doesn’t ask me, ‘What’s going on with Saturn?’ ” Todd Ingersoll, who owns two dealerships in Connecticut, in Danbury and Watertown, says in a television commercial. “Let me tell you what’s going on with Saturn,” Mr. Ingersoll continues. “We’re still here.” The Saturn campaign, scheduled to run through early May, is being timed to arrive with spring, usually a good sales season. “Absolutely, the timing couldn’t be better,” said Mr. Ingersoll ... Mr. Ingersoll said he hoped consumers might be in a buying mood “now that we’ve gotten through winter.” “If you’re an auto dealer, you’re a pretty optimistic guy,” he added. “I feel, hopefully, the worst is behind us.”
Source: The New York Times

[back to top]

$2B Battery Grant Touted

Obama pushes plan for 1 million electric cars by 2015, says funding will spur development.
President Barack Obama on Thursday renewed his campaign pledge to push for 1 million plug-in electric hybrid vehicles on U.S. roads by 2015, and promoted a $2 billion battery research program that is part of the economic stimulus program. Speaking at an electric vehicle development facility in California, Obama said the $2 billion grant program "will spark the manufacturing of the batteries and parts that run these cars, build or upgrade the factories that will produce them, and in the process, create thousands of jobs right here in America." Auto manufacturers have said they worry the plan is too ambitious -- Toyota officials have called the plan "unrealistic." But Obama said Thursday it's a key component of his plans to reduce dependence on imported oil. The White House said the Department of Energy will offer $1.5 million in competitive grants to U.S. developers of advanced batteries, and $500 million for development of other components needed for plug-in hybrids, such as electric motors.
Source: The Detroit News

[back to top]

Sales Surprise: Some New Cars May Be Cheaper Than Used Ones

DETROIT — For cash-strapped consumers shopping for a car, used would seem like the place to start. Not necessarily. A new one might actually be cheaper. Consider this: The average cost of a used 2008 Honda Accord EX sedan, certified by the dealership, was $21,544 earlier this month, according to Edmunds.com, a car-buying website. A new 2009 model cost $80 less. Used cars still generally cost less than new ones, but a mix of drastic price cuts, rebates and financing incentives is narrowing the gap. Automakers are subsidizing zero-percent or low-interest loans on new cars, while the average rate on a three-year used car loan is about 7.5%, according to Bankrate.com. Factor in the lower cost of financing and the total cost of the new car can be less. Automakers like Ford Motor are banking on the phenomenon to drive consumers back to new car showrooms. "There is an equilibrium level which we believe we are getting back to between the value of used vehicles and the transactional price of new," said Ken Czubay, Ford's sales and marketing vice president, when the company announced its February sales fell 48% from a year earlier. "This also portends, we believe, a favorable future for the new business."
Source: The Associated Press

[back to top]

NADA Update
New NADA Training Video Helps Dealers Find Additional Profits

You can tell a lot about a person by the vehicle he or she drives. For many, a car or truck is more than just a way to get from point “A” to point “B.” It is an extension of the self. It is a way for everyone to express his or her individuality. Accessorizing is as much about passion as it is about product. NADA Management Education’s new training DVD, Accessorizing Your Way to Additional Profits, is designed to help dealers tap into this passion and add dollars to every sale. Dealers and managers can learn how to launch an accessories operation from dealers who have actually done it, examining staffing, displays, marketing, warranties, and more. The Specialty Equipment Market Association (SEMA) estimates that accessories sales top $38 billion, and that dealerships capture just 10–15 percent of this market. If this percentage were to increase significantly, U.S. dealerships as a whole could see billions in additional profits and build customer loyalty. Consumers who accessorize their vehicles spend, on average, up to $3,500 annually on accessories. This training package includes a four-part DVD and a 22-page study guide, complete with an accessories quiz and lists of established parts vendors. To order, visit www.nada.org/accessorizing or call (800) 252-6232, ext. 2. Order online to watch a free video preview!

[back to top]

Seminar Takes 'Deeper Dive' into FTC Red Flags Rule

Attorneys from the FTC’s Division of Privacy and Identity Protection—which drafted and enforces the Red Flags Rule—will present a virtual seminar “A Deeper Dive into the FTC Red Flags Rule” on March 26 from 1 to 3 p.m. EST.

With the revised May 1 enforcement date approaching, dealers should ensure that their required Identity Theft Prevention Programs incorporate all of their covered accounts, include all relevant Red Flags, contain effective response and detection procedures, address all the Rule’s other requirements, and are tailored to their particular operations. It's a daunting task in view of the Rule’s general provisions that encompass all types of financial institutions and creditors.

To assist dealers in understanding how the Rule applies to dealership operations, FTC attorneys will join NADA Regulatory Affairs Director Paul Metrey to recap the required elements of the Red Flags and Address Discrepancy Rules and examine implementation considerations for dealers—and then, we’ll open the phone lines so dealers can present their questions directly to the FTC attorneys. Dealers should consider attending the “Deeper Dive” seminar even if they attended one of the previous Red Flags Rule virtual seminars. If you still have any questions, now is the time to ask. We’ll have a great team to answer your questions. And be sure to bring your copy of NADA's A Dealer Guide to the FTC Red Flags and Address Discrepancy Rules.

The fee for this important virtual seminar is $199 per computer connection. To register, visit www.nada.org/seminars or call (800) 252-6232, ext. 2.

[back to top]

 
Quotable
 
"This is the same situation that literally thousands of dealers are facing, and within the next six months, these thousands of dealers will be out of business."

   
-- New Mexico dealer Bob Cockerham, who testified Thursday at a Senate committee, says his bank gave him up to 90 days to find another lender to finance his vehicle inventory, despite having a perfect credit record, Automotive News, March 19


"Not a day goes by that someone doesn't ask me, 'What's going on with Saturn?' Let me tell you what's going on with Saturn. We're still here."

   
-- Todd Ingersoll, who owns two dealerships in Connecticut, in a television commercial for Saturn, The New York Times, March 19
Video Highlights
 
 

NADA-TV: McEleney Says Meeting With Obama Auto Task Force Was Productive

 

NADA-TV: McEleney Testifies at EPA Hearing on Fuel Economy Rules

 NADA Tackles Industry Crisis


NADA Chairman Speaks at the Convention in New Orleans
NBC: "Demise of Local Dealerships Leaves Big Dent"
2009 Convention in New Orleans
NADA on the Front Lines


Click here for more NADA-TV reports.

Member Products & Services
 
 

Need Some Low-Cost Consulting? NADA's Dealer Hotline is Free

While new-car and truck dealers face unprecedented challenges today, NADA is offering free professional advice to help dealers meet them. NADA is helping members prioritize their dealership's top financial and operational challenges and identify areas of opportunity. Then, NADA will provide recommendations and suggestions for improvement. Free phone consultations are scheduled by appointment only. To schedule an appointment, visit www.nada.org/lifeline.

 
Lenovo Madness Sale

Lenovo is offering all NADA members up to 35 percent off select notebooks. Enter eCoupon USXTHINKMADNESS at checkout. Great savings are available on all ThinkPad and IdeaPad notebooks along with all computing accessories. Free shipping is available on all Web orders. This offer ends March 31. To take advantage of these savings, visit NADA's PC Purchase Program online (login required).


NADA Used Car Guide Unveils Used-Vehicle Appraisal Product for Dealers

NADA Used Car Guide is introducing a unique and affordable new appraisal product called NADA AppraisalPRO, which provides a complete picture of the used-vehicle market in one location. The online tool provides dealers with the flexibility to define the market area and customize each appraisal by making adjustments to determine the best number for each and every trade-in. NADA AppraisalPRO is available at a low introductory monthly subscription rate of $150 for unlimited lookups per location. For more details, visit www.nada.com/appraisal. To order, call (866) 974-6232.

 
Click Here
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.