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

SPONSORED BY
Click Here
NADA.org
Tuesday, May 26, 2009 RSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training
Top 10 Stories
GM, Chrysler Chiefs Will Be Asked to Explain Dealership Shutdowns [to Senate]
Congress Hammers White House, Automakers Over Dealership Closings
Rockefeller Targets Car Dealership Closure Timeframe
McCaskill, Bond Ask Car Czar for Details About Closing Dealerships
General Motors, Chrysler Brace for a Worrisome Week
GM Borrows Additional $4 Billion from Government
Obama 'Confident' GM Can Thrive After Restructuring
Chrysler Dealers Make Case Against Closings
Dealerships on Chrysler's Chopping Block Slash Prices
Opinion: Will U.S. Start Telling GM What to Build?
Top 10 Stories
GM, Chrysler Chiefs Will Be Asked to Explain Dealership Shutdowns [to Senate]

WASHINGTON -- The Senate Commerce Committee plans to call the CEOs of Chrysler LLC and General Motors to testify early next month about concerns over their plans to close hundreds of dealerships. The companies need to address "the short and insufficient transition period given to dealerships for franchise terminations," said Senators John Rockefeller and Kay Bailey Hutchison, the panel's Democratic chairman and ranking Republican ... The committee plans to hold a hearing June 2 on the dealer closures ...
Source: Reuters

[Editor's Note: NADA has been working with Members of Congress to expose the negative impact that closing nearly 2,000 dealerships will have on the economy, jobs and the automakers. NADA Chairman John McEleney is expected to testify at the hearing June 2 to highlight the fact that dealerships are not a cost to the manufacturers they represent and shuttering these businesses will do little to aid either Chrysler or GM.]

[back to top]

Congress Hammers White House, Automakers Over Dealership Closings

About 40 House members, including Rep. Thad McCotter, R-Livonia, wrote [President] Obama Friday, demanding congressional oversight of the auto bailout along the lines of the 1979 Chrysler bailout, which Congress approved. Several members, including Rep. John Conyers, D-Detroit, were believed to be meeting with White House officials to lodge their protest of plant and dealer closings.
Source: The Detroit News

[Editor's Note: David Regan, NADA vice president for legislative affairs, participated in the press conference last Friday with Members of the U.S. House. Regan applauded congressional efforts that question drastic dealer cuts. In his remarks, Regan stressed that reducing dealerships will not make Chrysler or GM more viable and that these closings will have a widespread effect on the local economies that these dealerships support.]

 

David Regan, NADA vice president for legislative affairs, participates on Friday in a congressional press conference against dealership closures with (l-r): Reps. Dennis Kucinich, D-Ohio; Glenn Thompson, R-Pa.; and Steve LaTourette, R-Ohio.

[back to top]

Rockefeller Targets Car Dealership Closure Timeframe

WASHINGTON -- The roughly 1,900 Chrysler and General Motors dealerships set to close ... should have enough inventory to last up to six more months, said U.S. Sen. Jay Rockefeller, D-W.Va. So it makes little sense to close those franchises by June 9, Rockefeller wrote in a letter to the chief executive officers of the two falling automobile giants. "These companies cannot be allowed to take taxpayer funds for a bailout and then leave local dealers and their customers to fend for themselves with no real notice and no real help," Rockefeller said.
Source: Charleston Daily Mail (Charleston, W.Va.)

[back to top]

McCaskill, Bond Ask Car Czar for Details About Closing Dealerships

U.S. Sens. Claire McCaskill and Kit Bond wrote a letter Friday to President Barack Obama’s auto task force seeking answers to concerns raised by Chrysler and General Motors dealerships in Missouri that learned last week their contracts will be terminated. "Many Missouri dealers are asking us why certain profitable dealers, costing the auto companies nothing, were selected for closure,” McCaskill, a Democrat, and Bond, a Republican, wrote to White House car czar Steve Rattner. “From this perspective it appears an arbitrary standard may have been used to make these decisions … these dealers deserve a little more than just a pink slip in the mail.”
Source: St. Louis Business Journal

[back to top]

General Motors, Chrysler Brace for a Worrisome Week

Clock ticks toward likely bankruptcy of GM and sale of Chrysler to Fiat
The next seven days could mark the biggest transformation ever of Detroit's auto industry. General Motors Corp. ... could face the ignominy of being forced into bankruptcy as early as this week. At the same time, crosstown rival Chrysler LLC ... is likely to be sold to Italian automaker Fiat SpA. When the air clears, the once mighty Detroit automakers hope to emerge as stronger, albeit much smaller, players on the global auto stage.
Source: The Detroit News

[back to top]

GM Borrows Additional $4 Billion from Government

NEW YORK — General Motors Corp. said Friday that it has borrowed an additional $4 billion from the Treasury Department, meaning the automaker has now accepted $19.4 billion in loans from the U.S. government. The company [last] week reached cost-cutting deals with Canadian and U.S. unions that still have to be ratified by members, but GM's unsecured bondholders have resisted an offer to take a 10% stake in the company to wipe out $27 billion in debt.
Source: The Associated Press

[back to top]

Obama 'Confident' GM Can Thrive After Restructuring

WASHINGTON — President Obama said in an interview released Saturday he was confident General Motors would thrive after restructuring, but he made no mention whether the ailing automaker might have to enter bankruptcy to complete reorganization. "Ultimately, I think that GM is going to be a strong company and we are going to be pulling out as soon as the economy recovers and they've completed their restructuring," Obama said.
Source: Reuters

[back to top]

Chrysler Dealers Make Case Against Closings

DETROIT — A week ago, Chrysler told [Robert Archer, who runs three Chrysler dealerships in the Houston area] that his ... stores were among the 789 dealerships the company was eliminating as of June 9. Now, Mr. Archer is among 330 dealers, calling themselves the Committee of Chrysler Affected Dealers, who are contesting the company’s action ... On June 3, the bankruptcy judge handling Chrysler’s case will consider their objections.
Source: The New York Times

[back to top]

Dealerships on Chrysler's Chopping Block Slash Prices

DETROIT — Most of the 789 car dealerships that Chrysler is cutting by June 9 have slashed prices by thousands of dollars as they desperately try to clear the vehicles clogging their lots before then. In Dubuque, Iowa, Mike Finnin Chrysler Jeep has a clock on its Web site counting down the days, hours, minutes and seconds until its franchise is terminated June 9. “Some of these prices are so embarrassing,” the owner, Mike Finnin, said. “We’re just doing whatever it takes to sell these vehicles. We’re losing money on most of them.”
Source: The New York Times

[back to top]

Opinion: Will U.S. Start Telling GM What to Build?
By Mark Phelan

Minicar mandate could put dent in profitability
Will GM become Government Motors, trying to jam politically correct minicars down the throats of Americans who don't want them? It appears not, although GM will certainly rely less on pickups and SUVs in the future. The logic is as clear as the difference between profit and loss. Over-reliance on trucks at the expense of cars helped get U.S. automakers into their current weakened state. Repeating that mistake at the other end of the product line is not in the cards.
Source: Detroit Free Press

[back to top]

 
Quotable
 

"... these dealers deserve a little more than just a pink slip in the mail."

   
-- U.S. Sens. Claire McCaskill and Kit Bond, in a letter Friday to President Barack Obama’s auto task force seeking answers to concerns raised by terminated Chrysler and General Motors dealerships in Missouri, St. Louis Business Journal, May 22


"These companies cannot be allowed to take taxpayer funds for a bailout and then leave local dealers and their customers to fend for themselves with no real notice and no real help."

   
-- U.S. Sen. Jay Rockefeller, D-W.Va., in a letter to the chief executive officers of Chrysler and GM, Charleston Daily Mail, May 22


"It doesn’t make any sense. You can't expect us to unwind businesses we've had for years and years in weeks. They expect us to vanish."

   
-- Gerald Spitler, owner of Buzz Leonard Chrysler Jeep, in Panama City, Fla., The New York Times, May 22

Video Highlights
 
 
Cutting Dealers a Mistake (Fox Business Network)


Vice Chairman Tonkin on Chrysler Closures (Bloomberg)


 
Should Government Decide Dealers' Fate? (CNBC)



The Case Against Closing Dealerships (CNBC)



In-Depth Look - Pent Up Auto Demand (Bloomberg)



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)


 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.

 
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.