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

SPONSORED BY
Click Here
NADA.org
Monday, June 8, 2009 RSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training
Top Stories
Chrysler Will Redistribute All Rejected Dealers' Inventory, Landry Says
Opponents of Chrysler Sale to Fiat Make Appeal to Supreme Court
Targeted Chrysler Dealers in a Race to the End
GM Plans to Clarify Dealer Participation Pacts
Senate Panel to Question Obama Auto Task Force
Md. Joins States Challenging the Closing of Chrysler Dealerships
Penske-Saturn Deal Could Change How Cars Are Sold
Penske 'a Good Home' for Saturn as GM Shrinks in Bankruptcy
Top Stories
Chrysler Will Redistribute All Rejected Dealers' Inventory, Landry Says

DETROIT -- Chrysler LLC will tell its dealers today that it will guarantee to redistribute all new vehicles in its rejected dealers' inventory, said Steven Landry, executive vice president of North American sales and service. Between payments from surviving dealers who will buy some of those cars and trucks, and reimbursement for fees from Chrysler, the rejected dealers will be out of pocket only $350 per vehicle for destination charges, he told Automotive News.
Source: Automotive News

[back to top]

Opponents of Chrysler Sale to Fiat Make Appeal to Supreme Court

Three Indiana state funds asked the United States Supreme Court late Saturday to delay a deal to sell most of Chrysler’s assets to Fiat, their last hope of challenging the transaction after two lower courts approved it. In documents filed to Justice Ruth Bader Ginsburg, lawyers for the funds asked to extend a stay on the sale, which is set to expire [today] at 4 p.m. Justice Ginsburg, who oversees the Second Circuit, may decide the matter on her own or refer it to the full Supreme Court. If the Supreme Court declines to issue its own stay of the deal, Chrysler and Fiat will be free to close the transaction immediately.
Source: The New York Times

[back to top]

Targeted Chrysler Dealers in a Race to the End

Trying to dump inventory before franchise agreements expire Tuesday
NEW YORK - Hundreds of Chrysler dealers across the U.S. on the automaker's "hit list" are scrambling to dispose of their inventory by Tuesday when their franchise agreements are slated to be terminated. Chuck Eddy, a Youngstown, Ohio, dealer who was among those chosen to remain with Chrysler, said dealers have quickly bought up the inventory of those going out of business and are preparing for the transition. "I have no fire sale going on. There's no dealer in my town who was terminated having a fire sale," Eddy said. "People are buying the car for the true value."
Source: The Associated Press

[back to top]

GM Plans to Clarify Dealer Participation Pacts

DETROIT -- To help curb growing anxiety over General Motors' new "participation agreement" for dealers, GM's sales chief says he will send a "letter of clarification" to dealers early [this week.] GM's Mark LaNeve, vice president of vehicle sales, service and marketing, [met] with leaders of the National Automobile Dealers Association Friday to discuss requirements GM is making in a proposed participation agreement. "NADA is a little worried. They have the concerns that this is a doomsday scenario," LaNeve told Automotive News. "But we've never acted that way."
Source: Automotive News

[back to top]

Senate Panel to Question Obama Auto Task Force

WASHINGTON -- A Senate committee plans to question two members of the White House's auto task force about using taxpayer money to restructure General Motors and Chrysler. The Senate Banking Committee will hear from Ron Bloom, a senior adviser to the auto task force, and Edward Montgomery, who serves as the Obama administration's director of recovery for auto communities and workers. The Wednesday hearing was announced by Chairman Christopher Dodd, a Connecticut Democrat. The session will review the use of funds from the Troubled Asset Relief Program, or TARP, to help the auto companies and whether taxpayers will receive a return on their investment.
Source: The Associated Press

[back to top]

Md. Joins States Challenging the Closing of Chrysler Dealerships

[Maryland] Attorney General Douglas F. Gansler has joined other states in opposing the closing of Chrysler dealerships because the move does not compensate franchise owners as required by state law. "While Chrysler should be allowed to restructure in bankruptcy, it must do so consistent with state laws," Gansler said in a statement [last] week. "Our objections contend that the proposed terminations fail to recognize protections provided for dealers under Maryland law."
Source: The Baltimore Sun

[back to top]

Penske-Saturn Deal Could Change How Cars Are Sold

Roger Penske's pending purchase of the Saturn brand from General Motors could be the beginning of the biggest change in how cars are sold since the dawn of the auto industry early last century. Penske can shop globally for low-cost automakers able to build to his specifications ... and developed for half the cost and in half the time it would take traditional automakers. "What if we're first? What if we win this race" to field must-have, low-cost, fuel-efficient vehicles, asks Marcy Maguire, CEO of Maguire Automotive Group, with an enthusiasm rare lately from beleaguered dealers. "We live in a global community," she says. "It truly is revolutionary."
Source: USA TODAY

[back to top]

Penske 'a Good Home' for Saturn as GM Shrinks in Bankruptcy

For GM, getting a buyer able to run a dealer network and market the vehicles “is like finally finding your puppy a good home,” said Jack Nerad, an auto analyst at car-pricing service Kelley Blue Book in Irvine, California. Penske Auto plans to keep selling Saturns made by GM, which has said it’s willing to assemble the cars on a contract basis through 2011. Chief Executive Officer Roger Penske, 72, said he expects to line up a “worldwide partner” to produce future Saturns with an “ultimate goal” of building them in the U.S.
Source: Bloomberg

[back to top]

 
Quotable
 
"Saturn has a passionate customer base and outstanding dealer network. For nearly 20 years, Saturn has focused on treating the customer right. We share that philosophy, and we want to build on those strengths."

   
-- Roger Penske, owner of Penske Automotive Group, which won the bidding for General Motors Corp.’s Saturn unit, Bloomberg, June 5


"It truly is revolutionary."

    -- Marcy Maguire, owner of two Saturn dealerships in Toms River and Bordentown, N.J., on Roger Penske's pending purchase of the Saturn brand from GM and its potential to change how cars are sold in the U.S., USA TODAY, June 8

Video Highlights
 
 
Car Dealers Trying to Buy More Time (NBC)

 
John McEleney's Testimony to Senate Committee (CNBC)



Fighting the Dealers' Fight (CNBC)


 
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.

 


Lenovo Exclusive Offers on Personal Computers

NADA AppraisalPRO_SM—Your Complete and Affordable Source of Used-Car Market Information

 

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.