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Wednesday, May 27, 2009 RSSSEND TO A FRIENDPRINT
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Top 10 Stories
Chrysler, Dealers Await Judgment Day
Chrysler on Pace for Swift Finish to Restructuring
GM Moves Closer to Bankruptcy as Bondholder Offer Falls Short
U.S. Expected to Own 70% of Restructured G.M.
GM Said to Gain Consumer Trust From Chrysler Process
Appeal? Spurned GM Dealers See Little Hope
Chrysler Dealers Shift to Used Cars
Tracking the Recession: Car Dealer Closings Will Add to State Budget Woes
A Tale of Two Dealers Only One is Spared
Car Deals, Rebates Blossom With Spring
Top 10 Stories
Chrysler, Dealers Await Judgment Day

Fate of Chrysler's bankruptcy and hundreds of dealers depends on ruling from federal judge.
NEW YORK -- The federal judge in Chrysler LLC's Chapter 11 case could decide [today] whether the automaker can pull its choice assets - its best-performing factories and dealerships - out of bankruptcy and sell them to a newly-formed incarnation of itself, called Chrysler Group. But not everyone is happy about it. The strongest opposition comes from the auto dealers who resent being left behind.
Source: CNNMoney.com

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Chrysler on Pace for Swift Finish to Restructuring

Chrysler has suffered few of the problems some predicted before it filed for bankruptcy. If the sale [of its assets to a new entity led by Italy's Fiat] is approved, Chrysler is expected to move quickly to close the transaction and reemerge as a new entity. But Chrysler's bankruptcy case could continue for years as other stakeholders such as dealers resolve their claims.
Source: The Washington Post

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GM Moves Closer to Bankruptcy as Bondholder Offer Falls Short

General Motors Corp. said it won't proceed with the repurchase any of the $27.2 billion of notes it sought, saying bondholder interest was far below the 90% threshold it was looking for. The company could file for bankruptcy before a government-imposed Monday deadline to reorganize itself into a viable company.
Source: The Wall Street Journal

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U.S. Expected to Own 70% of Restructured G.M.

DETROIT — In better times, many employees of General Motors called their company “Generous Motors” because of its rich benefits. Now G.M. may stand for something else: Government Motors. The latest plan for the troubled automaker, which is expected to file for bankruptcy by Monday, calls for the Treasury Department to receive about 70 percent of a restructured G.M.
Source: The New York Times

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GM Said to Gain Consumer Trust From Chrysler Process

Chrysler’s May sales were similar to those in April, showing consumers have taken President Barack Obama at his word that he intends for a retooled company to survive, [a person familiar with the matter said]. That leaves consumers feeling more optimistic that if GM goes through a similar [bankruptcy] process, warranties and service will be provided, the person said yesterday.
Source: Bloomberg

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Appeal? Spurned GM Dealers See Little Hope

Chevrolet dealer Phillip Alderman is appealing General Motors' decision not to renew his franchise agreement in late 2010, but he's holding out little hope. "I know the appeal is bull because GM's going to go bankrupt ... anyhow," says Alderman, who owns Colonial Chevrolet-Buick in Talladega, Ala. Many dealers share his pessimism.
Source: Automotive News

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Chrysler Dealers Shift to Used Cars

Goal: Stay in the car business, use the building
Steve Biegler's family-owned Aberdeen, S.D., dealership has been through automaker shutdowns before. Biegler is one of many dealers who say they — very reluctantly — likely will reinvent themselves as used-car dealers after being cut off by bankrupt Chrysler LLC. About 10 percent of the 960 franchise dealerships that exited the industry last year converted to used-car sales only, says Paul Taylor, chief economist at the National Automobile Dealers Association.
Source: Automotive News

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Tracking the Recession: Car Dealer Closings Will Add to State Budget Woes

Just when many state governments are weeks away from the start of another budget year, a new crisis has emerged that threatens their finances: the closing of nearly 2,000 automobile dealerships. Dealers often are keystones of their communities, “with some of the better jobs available,” said Paul Taylor, chief economist of the National Automobile Dealers Association in Virginia. Dealers collect taxes on auto sales, parts and repairs. Their employees pay state income taxes in most states.
Source: Stateline.org

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A Tale of Two Dealers Only One is Spared

Chrysler axes 87-year-old Pa. franchise, spares more modern neighbor
Two very different Chrysler dealerships, separated by just seven miles in southeastern Pennsylvania, are facing two very different fates. One of these two dealerships got bad news and the other good news from Chrysler May 14 when the bankrupt automaker notified nearly a quarter of its 3,200 dealers that they would be dropped from the Chrysler family.
Source: MSNBC.com

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Car Deals, Rebates Blossom With Spring

The large supply of inventory, 120 days versus the ideal 60-day supply, has led to the escalation of incentives, says Paul Taylor, chief economist with the McLean, Va.-based National Automobile Dealers Association, or NADA. "In many cases, the deals are tremendous," he says. "The incentives that are available are stronger than they've ever been and dealers are trying very hard to get cars sold as well."
Source: Bankrate.com

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Quotable
 
"I have to turn the page and move on. It's all about how you deal with things in life. Every second you put toward that negativity is a second you don't see an opportunity."

   
-- Larry Weathers III, owner of 87-year-old Weathers Dodge in Lima, Pa., one of the dealerships Chrysler plans to close next month, MSNBC.com, May 26


"As these local dealerships close, the impact will be more profound than people realize."

   
-- Sen. Mark Norris, the Republican Senate majority leader in Tennessee, which is losing 14 Chrysler dealerships, Stateline.org, May 26

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-TV)
 McEleney Speaks at NADA Convention (NADA-TV)
 Demise of Dealerships Leaves Big Dent (NBC)
NADA on the Front Lines  (NADA-TV)


Click here for more video reports.

 

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