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Monday, May 18, 2009 RSSSEND TO A FRIENDPRINT
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Top Stories
NADA Calls GM Action 'Drastic'; Many Dealers Stay Mum
GM Dealers Feel the Pain
Dumped GM, Chrysler Dealers Endure Grieving Process
US Treasury: Working on Providing Loan Guarantees to Auto Dealers
Ford Consolidating Dealers
GMAC Bank Re-Brands Itself as Ally Bank
These Cars Have Got to Go: Dealer Cuts Mean Deals
Top Stories
NADA Calls GM Action 'Drastic'; Many Dealers Stay Mum

'I never cost them a dime. I have made a profit every year for 60 years,' Nebraska dealer says
General Motors' plans to end franchise agreements in October 2010 at 1,124 stores are "drastic and far-reaching," the National Automobile Dealers Association said [Friday] ... GM's plans, delivered to affected dealers via FedEx envelopes, "will impact more than 63,000 dealership employees," NADA said in a statement. The NADA said it "fully expects GM to honor all its obligations to the affected dealers, whether or not they decide to wind down their operations."
Source: Automotive News

[Editor's Note: NADA's advocacy for fair treatment of affected GM and Chrysler dealers continues. NADA is working with the Obama administration, Congress, courts and automakers on assistance for dealers. As a result of the NADA fly-in, there has been considerable interest from Members of Congress and the Democratic leadership for transparency and justification of forced dealer closures. Lawmakers are also seeking an analysis of dealer cuts on employees and communities. On Friday, Reps. Daniel Maffei (D-N.Y.) and Christopher Lee (R-N.Y.) and 66 other Members of Congress expressed their concerns with forced dealership closures and asked the auto task force to provide an explanation of how dealer closures will save GM and Chrysler money or boost manufacturer revenue.]

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GM Dealers Feel the Pain

The beleaguered auto company targets 1,124 dealerships for closing, following on the heels of a similar move by Chrysler
Dealers are angry, peppering their legislators with pleas to intervene, as well as hiring lawyers to appeal the decisions by Chrysler and GM. "GM's decision comes through no fault of the dealers, who are, in many cases, family-run businesses that have been loyal partners with GM—through good times and bad—for multiple generations," [NADA said in a statement.]
Source: BusinessWeek

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Dumped GM, Chrysler Dealers Endure Grieving Process

DETROIT — Nearly 2,000 car dealers spent the weekend asking themselves: What now? ... before dealers can do anything, they have to work through grief, anger and shock. Allan Rose, who owns Rose PontiacBuick GMC in Gloversville, N.Y., said he didn't know how to feel after receiving GM's notice that his franchise won't be renewed. "It's been extremely stressful," he said. "I've been through a lot of very, very difficult times ... But this is the worst. By far, the worst."
Source: USA TODAY

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US Treasury: Working on Providing Loan Guarantees to Auto Dealers

WASHINGTON -- The U.S. Treasury Department is working on a program to provide loan guarantees to auto dealers, trying to prevent a wave of failures as General Motors Corp. and Chrysler LLC restructure. Treasury's auto task force is working with the Small Business Administration on the program, which would back loans for dealers to purchase vehicles to stock their showroooms. The SBA would administer the program. "We can confirm this is something we are working on," a Treasury spokesperson said Friday, declining to comment further.
Source: Dow Jones Newswires

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Ford Consolidating Dealers

More than 670 have closed in the U.S. since end of 2005
As General Motors Corp. and Chrysler LLC move to close hundreds of dealerships around the country, Ford Motor Co. executives say they already have made substantial progress on consolidating their own dealer network. "We've been working on that for the last three years," CEO Alan Mulally told reporters at the company's annual meeting in Delaware on Thursday ... "[Ford dealers are] very interested in right-sizing also, and we're supporting that."
Source: The Detroit News

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GMAC Bank Re-Brands Itself as Ally Bank

As of Friday, GMAC Bank has become Ally Bank, which will offer a variety of savings products, including no-penalty certificates of deposits, online savings accounts and money market accounts. The company, which provides financing for both GM dealers and customers, has struggled amid the collapse of the housing and auto markets.
Source: The Associated Press

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These Cars Have Got to Go: Dealer Cuts Mean Deals

DETROIT – At 789 Chrysler lots across America sit 44,000 potential bargains, cars and trucks that are stuck between shellshocked dealers and a troubled company that no longer wants their services. [Company spokeswoman Kathy Graham] said dealers to be cut from the company will get Chrysler warranty reimbursement and sales incentives such as rebates and low-interest financing until June 9. But after that, they won't be reimbursed for either.
Source: The Associated Press

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Quotable
 
"NADA is working with the Obama administration, Congress, courts and automakers on assistance for affected dealers."

    -- NADA statement on efforts to create a "soft landing" for affected dealers, NADA Newswire, May 18


"We're 98 years old. We're two years from a hundred, and I don't want to go out at 99 years." 

    -- Alan Bigelow, whose family runs a Cleveland-area Chevrolet dealership, learned it was on GM's hit list, The Associated Press, May 16


"We can confirm this is something we are working on."

    -- A Treasury spokesperson referring to efforts by the auto task force and Small Business Administration to back floorplan loans for dealers, Dow Jones Newswires, May 15

Video Highlights
 

Dealers Head to Capitol Hill (CNBC)

 
Should Government Decide Dealers' Fate? (CNBC)



Auto Dealers Strike Back (CNBC)



The Case Against Closing Dealerships (CNBC)



NADA and the Obama Auto Task Force (PBS, NewsHour with Jim Lehrer)



NADA on Cash for Clunkers (NADA-TV)



NADA on Floorplan Credit Crisis (NADA-TV)



Senate Testimony on Floorplan Loans (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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