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Top Stories
GM to Cut 21,000 US Factory Jobs, Shed Pontiac
GM Bondholders Said to Find Swap Offer Unlikely to Succeed
Deal With the UAW May Save Chrysler
Ford Targets Rivals as Loss Eases
Preparing for the Worst: Webinar on Bankruptcy Offered to Dealers
J.D. Power: New Sales Could Spike by 20 Million Over Next 5 Years
Top Stories
GM to Cut 21,000 US Factory Jobs, Shed Pontiac

General Motors Corp. said it will cut 21,000 U.S. factory jobs by next year, phase out its storied Pontiac brand and ask the government to take more than half its stock in exchange for half of GM's government debt as part of a major restructuring that would leave current shareholders holding just 1 percent of the company. The company also said it plans to reduce its dealership ranks by 42 percent from 2008 to 2010, cutting them from 6,246 to 3,605. When asked how GM would accomplish that, Henderson would say only that the company would be making offers to the dealers in the coming weeks. ...and the futures of its Hummer, Saturn and Saab brands will be resolved by the end of this year by either selling them or phasing them out.
Source: The Associated Press

[NADA Statement on GM’s Pontiac Brand Phase-Out and Revised Dealership Reduction Plan: Today’s announcement by General Motors that it will phase-out Pontiac at the end of 2010 marks a sad day for the 80 year-old brand and especially, the 2,627 Pontiac dealers that proudly represent the franchise. In addition, GM’s updated Viability Plan calls for a much more drastic dealership reduction. GM says it will now aggressively move to eliminate over 2,600 (42%) of its dealerships by 2010.  This is a further reduction of 500 dealers, and four years sooner than the earlier plan. In both cases NADA will work closely with GM to ensure that dealers will be treated fairly and equitably. While NADA understands the realities of the current marketplace, we also know that dealers didn’t cause the situation that GM finds itself in today.  Dealers impacted by these decisions have been good partners with GM and should be treated as such.]

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GM Bondholders Said to Find Swap Offer Unlikely to Succeed

General Motors Corp. bondholders find the automaker’s offer to exchange their $27 billion in debt for equity unlikely to succeed, according to a person familiar with the committee representing creditors. That’s because the offer by GM, the biggest U.S. automaker, treats bondholders worse than other claimants, such as unions, said the person, who declined to be identified because the discussions are private. At least 90 percent in principal amount of the notes must be exchanged to satisfy the U.S. Treasury and avert a bankruptcy, Detroit-based GM said today in a statement. Bondholders are being asked to swap all their claims for 10 percent of the equity in the reorganized company.
Source: Bloomberg

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Deal With the UAW May Save Chrysler

Concessions could help it get loan
Chrysler LLC and the UAW reached a tentative agreement Sunday night that, if ratified, could reduce the chance the Auburn Hills automaker will file for bankruptcy. [The agreement] provides “the framework needed to ensure manufac­turing competitiveness and helps to meet the guidelines set forth by the U.S. Treasury Department,” Chrysler said.
Source: Detroit Free Press

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Ford Targets Rivals as Loss Eases

Ford Motor Co. said it likely wouldn't need a government bailout in reporting a smaller-than-expected loss for the first quarter. But it warned that an uncontrolled bankruptcy reorganization of General Motors Corp. or Chrysler LLC could change that by taking down their shared networks of suppliers and dealers.
Source: The Wall Street Journal

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Preparing for the Worst: Webinar on Bankruptcy Offered to Dealers

“Bankruptcy in the Automobile Industry: It Never Hurts to be Prepared” will be presented by attorneys Michael G. Charapp and Jason Gold on Tuesday, May 12 from 1-3 p.m. EST. The webinar will arm dealers with information they’ll need to protect themselves and their dealerships if the troubled manufacturers are unable to restructure without bankruptcy. The webinar is offered at a discounted fee of $50 per computer connection. Register online or call (800) 252-6232, ext. 2.
Source: NADA Newswire

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J.D. Power: New Sales Could Spike by 20 Million Over Next 5 Years

WESTLAKE VILLAGE, Calif. — Though new-vehicle sales through April's first 16 selling days fell almost 33 percent from a year ago, the market appears to be stabilizing and could actually show some moderate gains in the second half of the year, according to J.D. Power and Associates.
Source: Auto Remarketing

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Video Highlights
 

NADA on Floor Plan Credit
(NADA-TV)


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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