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Wednesday, April 22, 2009 RSSSEND TO A FRIENDPRINT
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Top 10 Stories
Bill Ford Says GM Bankruptcy Won't Be Quick, Easy
U.S. Recession Showing Signs of Moderating: IMF
Chrysler Lenders Propose Equity Swap Terms
Chrysler Lender Proposal is Unjustified, Says Obama Official
Fiat Has No Comment On Chrysler Lenders' Counteroffer
Suppliers Line Up for U.S. Aid
Honda's Fukui Says U.S. Market Shows Signs of Bottoming Out
Toyota May Report Losses on Falling U.S. Car Demand
Car-Sales Slump Hits Volkswagen's Net
NADA Used Car Guide: Traditional Spring, Summer Likely for Wholesale Market
Top 10 Stories
Bill Ford Says GM Bankruptcy Won't Be Quick, Easy

Ford Motor Co., the only big U.S. automaker not receiving federal aid, doesn’t want to compete with a “state-owned” General Motors Corp. and said a potential bankruptcy filing by its rival wouldn’t be quick or easy. “One keeps reading about quick and easy bankruptcies. I’ve got to believe this will be anything but easy,” Executive Chairman Bill Ford said at a conference [Monday] ... “We really don’t want to compete with a state-owned enterprise. Frankly, that’s probably not in anybody’s best interest, including the government’s.” Ford ... said April 6 it trimmed debt 38 percent and pared annual interest costs by more than $500 million. Bill Ford ... doesn’t expect the Dearborn, Michigan-based company to seek U.S. loans.
Source: Bloomberg

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U.S. Recession Showing Signs of Moderating: IMF

WASHINGTON – The U.S. economy is starting to show signs of shrinking more slowly but positive growth is not expected until sometime next year, the International Monetary Fund said [today]. "There has been some improvement in business confidence, some signs of bottoming out in housing market, but these are early days and we should not expect a return to growth any time soon," Charles Collyns, IMF's deputy director of research, told a press conference.
Source: Reuters

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Chrysler Lenders Propose Equity Swap Terms

Treasury approaches GM bondholders for meeting, report says
DETROIT -- Chrysler LLC's lenders have offered to take equity in a restructured automaker allied with Fiat SpA in exchange for writing off about 35 percent of the $7 billion they are owed. Rep. Gary Peters, a Michigan Democrat whose district includes Chrysler's headquarters, called the counter-offer "an affront to taxpayers." "This is not a serious counter-offer," Peters said in a statement. "These debt holders were offered fair market value for the debt, and the banks have responded by asking for a windfall."
Source: Reuters

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Chrysler Lender Proposal is Unjustified, Says Obama Official

WASHINGTON -- The latest debt reduction offer by Chrysler LLC's lenders is unacceptable because it would yield the lenders an unjustified return, an Obama administration official said. "It is neither in the interest of Chrysler's senior lenders nor the country for them to advance a proposal that would yield them an unjustified return as Chrysler, its employees and other stakeholders are working tirelessly to help this company restructure," the official said on Tuesday.
Source: Reuters

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Fiat Has No Comment On Chrysler Lenders' Counteroffer

MILAN -- Italian automaker Fiat SpA had no comment Wednesday on a proposal from a group of Chrysler LLC's creditors to eliminate about 35% of their combined debt in exchange for a minority stake in the restructured Chrysler. The creditors' counteroffer could be a source of conflict with Fiat, which has said it won't put cash in the deal and instead give only technology.
Source: Dow Jones Newswires

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Suppliers Line Up for U.S. Aid

Hundreds apply for stabilization effort
Hundreds of auto suppliers have applied for aid through the government's $5-billion program for parts makers aimed at stabilizing the struggling supplier industry. The high level of interest in the program illustrates how concerned suppliers, who've watched their credit lines dry up, are that GM, Chrysler or both could file for bankruptcy protection.
Source: Detroit Free Press

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Honda's Fukui Says U.S. Market Shows Signs of Bottoming Out

KYOTO, Japan -- Honda Motor Co. President Takeo Fukui said on Tuesday the U.S. market has shown signs of having bottomed out since the start of April.
Source: Reuters

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Toyota May Report Losses on Falling U.S. Car Demand

Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co., Japan’s three biggest automakers, may report quarterly losses after the global recession crippled sales. South Korea’s Hyundai Motor Co. may also say its profit fell to the lowest [level] in at least seven years. “Japanese automakers will have to take drastic restructuring measures to return to usual profit levels,” as their operating losses may top more than 1 trillion yen this fiscal year, Shinya Naruse, analyst at Nomura Securities Co., said in a report.
Source: Bloomberg

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Car-Sales Slump Hits Volkswagen's Net

FRANKFURT -- Volkswagen AG Wednesday said it couldn't give a reliable forecast for this year due to market volatility after it reported a 74% drop in first-quarter net profit ... Executives previously indicated Volkswagen might make a loss in the first quarter, but the sale of its Brazilian truck operations added €600 million to operating profit, keeping it profitable.
Source: The Wall Street Journal

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NADA Used Car Guide: Traditional Spring, Summer Likely for Wholesale Market

McLEAN, Va. — In the early part of April, wholesale prices have started to stabilize after strong month-over-month surges in March, and the market should continue on a more "traditional" pattern throughout the spring and summer, according to NADA Used Car Guide. "Used prices are back on a more traditional, seasonal trend ... Dealers should see the typical type of price movement from month to month," [NADA Used Car Guide's Terrence Wynne] explained.
Source: Auto Remarketing

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Quotable
 
"One keeps reading about quick and easy bankruptcies. I've got to believe this will be anything but easy. We really don't want to compete with a state-owned enterprise. Frankly, that's probably not in anybody's best interest, including the government's."

   
-- Ford Executive Chairman Bill Ford, Bloomberg, April 21



"It is neither in the interest of Chrysler's senior lenders nor the country for them to advance a proposal that would yield them an unjustified return as Chrysler, its employees and other stakeholders are working tirelessly to help this company restructure."

   
-- An Obama administration official who spoke on the condition of anonymity about Chrysler lenders' latest debt reduction offer, Reuters, April 22
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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