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Top 10 Stories
Opinion: Bankruptcy By Any Name Will Hurt GM
GM, Chrysler to Get Up to $5.5B More from Gov't
Dealer Jobs Disappear as GM, Chrysler Bankruptcy Threat Looms
Dealers Prepare for Worst if GM Files Chapter 11 Bankruptcy
Pay Rule Led Chrysler to Spurn Loan, Agency Says
Treasury Pressures Chrysler, Fiat in Meetings
EPA Begins Process for Rules on Carbon Dioxide Emissions
Gore Heads Speakers List at Greenhouse Hearings
BMW's U.S. Dealers to Invest $300M in Showrooms
Report: Toyota Sees Japan Output at 31 Year Low
Top 10 Stories
Opinion: Bankruptcy By Any Name Will Hurt GM
By Mark Phelan

Calling process surgical does not mean it will be painless
Surgical bankruptcy. It sounds, if not pleasant, at least quick, precise and scientific. A drastic treatment for General Motors Corp.'s many ills. The amputation of diseased limbs to create a stronger, healthier automaker. Except this is experimental surgery. It's never been done before. There's no procedure, no prognosis, no track record to predict the survival rate. One thing's fairly clear: Anyone who promotes it as a quick, painless cure is wrong.
Source: Detroit Free Press

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GM, Chrysler to Get Up to $5.5B More from Gov't

General Motors Corp. could get as much as $5 billion more in federal loans, while Chrysler LLC could get $500 million as they race against government-imposed deadlines to restructure, according to a government report filed [today]. The quarterly report by a special inspector general on the auto industry and bank bailout programs says the money will be made available for working capital. GM has until June 1 to complete restructuring plans that satisfy the government's auto task force, while Chrysler has until April 30. The Treasury also has estimated that it will spend up to $1.25 billion to guarantee warranties for people who buy Chrysler or GM vehicles during the restructuring period. The program is designed to reassure consumers that their warranties will be honored, according to the report, which was prepared for Congress.
Source: The Associated Press

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Dealer Jobs Disappear as GM, Chrysler Bankruptcy Threat Looms

Thousands of GM and Chrysler LLC dealers across the U.S. are preparing for the probability that as many as 5,000 of them will be forced to close because of an automaker’s bankruptcy. Dealers say they’re ordering fewer vehicles, cutting expenses, retiring debt and firing workers to preserve cash. “I’m urging all of our dealers not to spend money they don’t have to spend,” said Earl Hesterberg, chief executive officer of Group 1 Automotive Inc.
Source: Bloomberg

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Dealers Prepare for Worst if GM Files Chapter 11 Bankruptcy

DETROIT — Experts are advising car dealers to start preparing themselves for the very real possibility that General Motors files for bankruptcy protection. If the automaker does file, any money owed to dealers for warranty work they've done on cars or for rebates they've already paid to buyers could just disappear, warns Scott Silverman, an attorney. "They are going to have to plan to operate without any expectation of when and if that money is going to come in the door," Silverman says.
Source: USA TODAY

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Pay Rule Led Chrysler to Spurn Loan, Agency Says

Firm claims it didn't need the government infusion
Top officials at Chrysler Financial turned away a government loan because executives didn't want to abide by new federal limits on pay, according to new findings by a federal watchdog agency. Chrysler Financial officials denied in a statement that the company's executives had refused to accept new limits on their pay, adding that the firm turned down the loan because it no longer needed it.
Source: The Washington Post

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Treasury Pressures Chrysler, Fiat in Meetings

The Treasury Department kicked off meetings Monday with the heads of Chrysler LLC, Fiat SpA and the United Auto Workers union in Washington as signs increased that Chrysler could be headed for liquidation. If Chrysler is pushed into bankruptcy, the government and other stakeholders could begin the process of selling pieces of the Auburn Hills, Mich., company to others, possibly including Fiat or GM.
Sources: The Wall Street Journal

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EPA Begins Process for Rules on Carbon Dioxide Emissions

WASHINGTON — The EPA on Friday proposed a finding that greenhouse gases from new vehicles and industrial plants pose a danger to the public, kicking off a process that could result in tighter regulation of carbon dioxide emissions. The EPA's findings come two years after the U.S. Supreme Court ordered the agency to determine whether these emissions contribute to harmful air pollution under the Clean Air Act or whether the science is too uncertain. The long-expected move by the EPA sets the stage for the agency to use its power to revisit the auto industry's fuel economy standards. The proposed EPA finding will be published soon in the Federal Register, an action that will start a 60-day comment period.
Source: Automotive News

[Editor's Note: The practical effect of the EPA's declaration is that it sets the stage for the agency to begin regulating fuel economy. This action makes it more likely that within a year, EPA, NHTSA and the California Air Resources Board could all be regulating fuel economy under three different standards and in three different ways. NADA is actively pursuing a single, national fuel economy standard under the Corporate Average Fuel Economy (CAFE) program.]

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Gore Heads Speakers List at Greenhouse Hearings

WASHINGTON -- Former presidential candidate Al Gore heads up the list of VIPs, executives and industry experts who are expected to testify this week on draft legislation to limit greenhouse gases. Consideration of the draft legislation prepared by Waxman (D-Calif.) and Edward Markey (D-Mass.) follows the proposed EPA finding Friday that carbon dioxide and other greenhouse gases pose a danger to the public.
Source: Automotive News

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BMW's U.S. Dealers to Invest $300M in Showrooms

FRANKFURT -- Amid the worst slump in car demand in decades, dealers at BMW's 338 U.S. showrooms plan to invest $300 million to refurbish their operations or expand into new areas, the company said. "Investments from our BMW dealers are proof of confidence in the future success of the BMW brand in the U.S.," said Jim O'Donnell, BMW of North America president.
Source: Reuters

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Report: Toyota Sees Japan Output at 31 Year Low

TOKYO -- Toyota Motor Corp. expects its vehicle production in Japan to fall to the lowest in more than three decades this fiscal year, and below the level needed to maintain its full-time workforce, a report said Tuesday. Toyota has not laid off full-time workers since 1950. The paper also said Toyota's global output this year will likely stay at 6.2 million units.
Source: The Associated Press

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Quotable
 
"This is truly scary. Neither the government nor GM has any control over the outcome if this goes to bankruptcy court."

   
-- John Wolkonowicz, IHS Global Insight senior automotive analyst, Detroit Free Press, April 21



"... a surgical or prepackaged, bankruptcy would still lead to job losses, plant closings and economic uncertainty for a huge number of working and retired Americans."

   
-- Mark Phelan, (Opinion), Detroit Free Press, April 21
Video Highlights
 
 
GM Bankruptcy Not Inevitable (msnbc.com)

 
Senate Testimony on Floorplan Loans (NADA-TV)



NADA and the Obama Auto Task Force  (NADA-TV)


 
Banks Turning on American Car Dealers? (WTNH-TV)


 
EPA Hearing on Fuel Economy (NADA-TV) 


 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 video reports.

 
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