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Tuesday, June 9, 2009 RSSSEND TO A FRIENDPRINT
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Top 10 Stories
NADA Supports GM's Changes in Participation Pact for Dealers
NADA Endorses Legislation That Would Restore Franchise Law Rights to Auto Dealers
Congress to Consider 'Cash for Clunkers' Plan
Supreme Court Delays Chrysler's Swift Sale
Chrysler Ruling Could Be Just a Bump in Road, Experts Say
Fiat Will 'Never' Walk Away From Chrysler, CEO Says
Colorado Chrysler Dealers Cope With Brand Loss
Saturn Dealers to Get Offers to Join Penske This Week
Auto Parts Makers Set to Seek as Much as $10 Billion More From U.S.
Dealers Asked to Assess System Providers in Phone Survey
Top 10 Stories
NADA Supports GM's Changes in Participation Pact for Dealers

DETROIT -- General Motors' plan this week to clarify its participation agreements for its surviving dealerships has won the support of the National Automobile Dealers Association. In a statement released late yesterday, NADA said it supports GM's amendments to the participation agreements. GM executives met with NADA and the GM National Dealers Council on Friday and Saturday to discuss dealers' "serious concerns" with the original agreement, the NADA statement said. "I especially commend GM for its flexibility and its willingness to make substantive clarifications and modifications to address dealer concerns," NADA Chairman John McEleney said in the statement. "We believe GM has made a very good-faith effort, given the unprecedented circumstances facing GM and the industry."
Source: Automotive News

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NADA Endorses Legislation That Would Restore Franchise Law Rights to Auto Dealers

NADA's board of directors voted Monday to endorse H.R. 2743, "The Automobile Dealer Economic Rights Restoration Act," sponsored by Reps. Daniel Maffei, D-N.Y., and Frank Kratovil, D-Md. Since its introduction yesterday, the bipartisan bill already has 26 cosponsors.

The Maffei-Kratovil bill: restores the protections of state motor vehicle franchise laws to General Motors and Chrysler dealers as they existed prior to each company's bankruptcies; preserves GM and Chrysler dealers' rights to recourse under state law; at the request of an auto dealer, requires GM and Chrysler to reinstate franchise agreements in effect prior to each company's bankruptcies; and makes clear that the legislation is not intended to void the court-ordered transfer of assets from Chrysler to New CarCo or the transfer of GM assets that could be approved by a court after the introduction of the Act.
 
NADA's legislative affairs office urges all dealers to immediately contact their representatives and ask them to cosponsor the Maffei-Kratovil bill, H.R. 2743. House members can be reached through the Capitol Switchboard at (202) 225-3121.
Source: NADA Newswire

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Congress to Consider 'Cash for Clunkers' Plan

WASHINGTON – Consumers could receive rebates of up to $4,500 for turning in their gas-guzzling cars and trucks for more fuel-efficient vehicles under a House proposal. The House proposal set for a floor vote [today] is aimed at stimulating car sales during a bleak period for the auto industry while increasing the nation's fleet of cars that get more miles to the gallon. Under the House bill, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 miles per gallon. The value of the voucher would grow to $4,500 if the mileage of the new car is 10 mpg higher than the old vehicle.
Source: The Associated Press

[Editor's Note: With a vote expected as early as today, all dealers are strongly encouraged to contact their representatives and urge them to vote in favor of the NADA-endorsed "cash-for-clunkers" bill sponsored by Rep. Betty Sutton, D-Ohio. House members can be reached through the Capitol Switchboard at (202) 225-3121.]

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Supreme Court Delays Chrysler's Swift Sale

Justices May Consider Creditors' Appeal
The U.S. Supreme Court yesterday held up the sale of Chrysler's assets to Italian automaker Fiat, at least temporarily interrupting the Obama administration's massive and speedy restructuring of the U.S. auto industry. Justice Ruth Bader Ginsburg's 53-word order did not hint at what she thought of an appeal led by a group of Indiana pension and construction funds ... The language Ginsburg used in her order usually signals a delay of short duration. There could be several explanations, not the least of which is that the justices may not have had time to fully consider the request.
Source: The Washington Post

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Chrysler Ruling Could Be Just a Bump in Road, Experts Say

U.S. Supreme Court Justice Ruth Bader Ginsburg raised the anxiety of already frazzled Chrysler LLC employees, families and communities Monday, but bankruptcy experts caution that her surprise order might be the equivalent of a television time-out in the last 30 seconds of a basketball game. "Sometimes the court wants a breather. Give us a little time to consider it so we get it right," [Peter Henning, who teaches law at Wayne State in Detroit] said.
Source: Detroit Free Press

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Fiat Will 'Never' Walk Away From Chrysler, CEO Says

Fiat SpA will “never” walk away from its deal with Chrysler LLC, Fiat Chief Executive Officer Sergio Marchionne said in an interview. “We should just be patient and let the system work,” Marchionne said by telephone [Monday] moments after Justice Ruth Bader Ginsburg ordered a delay of Chrysler’s planned sale to the Italian carmaker ... “We would never walk away,” Marchionne said in response to a question about whether Fiat would pull out of the deal if it isn’t completed by the June 15 deadline. “Never.”
Source: Bloomberg

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Colorado Chrysler Dealers Cope With Brand Loss

Hundreds of Chrysler dealerships ... have until today to shutter their Chrysler operations. Fourteen of Colorado's 45 Chrysler franchisees are losing Chrysler brands. "We are calling it Black Tuesday when 14 profitable dealers who were supporting their brands are being terminated for no apparent reason," said Tim Jackson, president of the Colorado Automobile Dealers Association. Dealers were given 26 days' notice to shut down. Many have joined a lawsuit, but so far efforts have been unsuccessful, Jackson said.
Source: The Denver Post

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Saturn Dealers to Get Offers to Join Penske This Week

DETROIT -- Saturn's 350 franchises in the United States will receive letters this week offering them a chance to continue under the brand's new owner, Penske Automotive Group Inc. The letter should arrive [today], Saturn spokesman Steve Janisse said today. "This doesn't require them to sign an agreement," Janisse said. "It's just an informational piece talking about the terms of the sale and offering them an opportunity to transition to this new owner."
Source: Automotive News

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Auto Parts Makers Set to Seek as Much as $10 Billion More From U.S.

Auto parts suppliers are planning to ask the Obama administration for an additional $8 billion to $10 billion in federal aid. In March, trade groups helped negotiate a $5 billion government package to back payments by General Motors and Chrysler to suppliers. But a survey by these groups found that only about half of the automakers' major suppliers were eligible or elected to participate. "The need for action is immediate," the suppliers say in their latest aid request.
Source: The Washington Post

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Dealers Asked to Assess System Providers in Phone Survey

Dealers have been actively participating in an NADA survey that provides them with an opportunity to assess the computer-related products and services used in the dealership. Representatives of Friedman-Swift, a market research company conducting the survey on behalf of NADA, are randomly calling dealers to learn their satisfaction with their dealer system providers (DSP) products and services. "As dealers assess the benefits of the products and services they use, it’s very important that they share their opinions with other members," says Jim Waldron, Chairman of NADA's Information Technology Committee. "It's a great way for them to help their fellow dealers, and we appreciate their participation."
Source: NADA Newswire

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Quotable
 
"I especially commend GM for its flexibility and its willingness to make substantive clarifications and modifications to address dealer concerns."

   
-- NADA Chairman John McEleney, in a statement Monday on GM's plan this week to clarify its participation agreements for its surviving dealerships, Automotive News, June 9
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.

 


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