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Wednesday, June 17, 2009 RSSSEND TO A FRIENDPRINT
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Top 10 Stories
NADA Launches New 'Buy Now' Campaign
AutoNation's Mike Jackson Addresses NADA Board of Directors
'Clunkers' Bill Faces Opposition in Senate
Obama Aide: Congress Shouldn't Interfere With Dealership Closings
Rural Democrats Differ with Barack Obama
Greater N.Y. Dealers Demand Halt to GM Store Closings
GM Expects to See Small Improvement in June U.S. Auto Sales
Dealers Facing Tight Supply of SUVs, Trucks
White House Turns Down Auto Suppliers' Aid Request
Opinion: Remember, GM: Dealers Are Not the Enemy
Top 10 Stories
NADA Launches New 'Buy Now' Campaign

McLEAN, Va. -- Consumers this summer are hearing about more good reasons to “buy now” as phase two of NADA’s national media campaign kicks off the sales season. The new TV, radio, print and online ad campaign, "No Kidding," touts the federal sales-tax deduction and the potential for lowering monthly payments thanks to the great deals available. With children as the ads’ “spokespersons,” the messages are sure-fire attention grabbers. The collaborative effort comes thanks to the California ad agency Brandtailers that volunteered to produce updated versions of last fall’s “Best Time to Buy” messages for free. That campaign—the most comprehensive in NADA’s history—resulted in tens of millions of dollars worth of free airtime and print. Click here for the complete AutoExec story on NADA’s national media ad campaign. Click here to view and download the new "No Kidding" ads.
Source: AutoExec

Editor's Note: All dealers are encouraged to ask their local newspapers, radio, TV and cable stations to run the ads for free as a public service announcement (PSA). Click here for the list of participating media organizations, which includes both the new campaign, "No Kidding," and the first campaign, "Best Time to Buy." The list will be updated daily.

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AutoNation's Mike Jackson Addresses NADA Board of Directors

Describes lobbying on bridge loans for GM and Chrysler as 'NADA's finest hour'
In a wide-ranging review of the state of the auto industry, AutoNation Chairman and CEO Michael Jackson told the NADA board at its meeting in Seattle Tuesday that "we're witnessing the reinvention of the American automobile business." He described what the auto industry is currently experiencing as "unimaginable, incomprehensible and unbelievable." He predicted that the industry will end up stronger but acknowledged that for those losing their franchises, "it's a horrible end with no words to adequately describe the tragedy." On the subject of last year's lobbying efforts to get the Bush administration to provide bridge loans to GM and Chrysler, Jackson said, "it was NADA's finest hour." He said NADA made the case in a "relentless and compelling way." NADA's efforts made the difference in getting the bridge loans for GM and Chrysler. "Without that," he said, "we would have lost everything, but with the bridge loans, GM and Chrysler and its dealers live to fight another day."
Source: NADA Newswire

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'Clunkers' Bill Faces Opposition in Senate

GOP senator calls proposal a handout to the auto industry
WASHINGTON -- New obstacles emerged Tuesday to a "cash for clunkers" program to spur new-car sales, even as the House narrowly approved legislation including the proposal. Sen. Judd Gregg, R-N.H., said he would invoke a Senate rule to try to strip the "cash for clunkers" language from the bill. "Taxpayers already have provided around $85 billion in direct assistance to the auto industry, and it's about time we stop these deficit-spending handouts that pass the bill to our children and grandchildren," Gregg said in a written statement.
Source: The Detroit News

Editor's Note: The future of cash for clunkers legislation is in question because of an upcoming procedural vote in the Senate. Passage of fleet modernization legislation will benefit all dealers. With a vote expected as soon as today, all dealers are strongly urged to contact their senators IMMEDIATELY and ask them to support the cash for clunkers legislation. Senators can be reached through the Capitol Switchboard at (202) 224-3121. Information on the cash for clunkers proposal can be found here.

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Obama Aide: Congress Shouldn't Interfere With Dealership Closings

Larry Summers, the White House's chief economic adviser, said in an interview that Congress shouldn't interfere in the running GM and Chrysler. "We've been very clear that companies needed to be run commercially, rather than politically," [Summers said.] A House bill to hamstring GM's plans to terminate franchise agreements with nearly 1,400 dealers, and seeking to reopen 789 Chrysler dealerships that closed last week, now has [147] cosponsors, including House Majority Leader Steny Hoyer and House Financial Services Committee chairman Barney Frank, D-Mass.
Source: The Detroit News

Editor's Note: NADA supports H.R. 2743, “The Automobile Dealer Economic Rights Restoration Act of 2009.” The bill, sponsored by Rep. Daniel Maffei, D-N.Y., now has 147 cosponsors (101 Democrats, 46 Republicans). Dealers are encouraged to contact their House Members and ask them to cosponsor the bill. Click here to see if your Representative has signed on to cosponsor the bill.

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Rural Democrats Differ with Barack Obama

Angered by White House decisions on everything from greenhouse gases to car dealerships, congressional Democrats from rural districts are threatening to revolt against parts of President Barack Obama’s ambitious first-year agenda. The conflict with rural Democrats burst into the open at the Capitol last week, when rural and moderate Democrats revolted against the decision to close roughly 3,400 General Motors and Chrysler car dealerships. “If you knock out four dealerships, the ripple effects of that are substantial,” said Rep. Frank Kratovil (D-Md.), who ... is co-sponsoring a bill that could force the auto companies to honor their contracts with the rejected dealerships.
Source: Politico

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Greater N.Y. Dealers Demand Halt to GM Store Closings

NEW YORK -- The president of the Greater New York Automobile Dealers Association has called for a moratorium on General Motors' dealership closings and also suggested that store-count reductions do more to harm than help the automaker. "A moratorium on dealership closures would not impact the other financial and structural changes that the automakers are being forced to make, but it would save thousands of small businesses and tens of thousands of jobs," [stated Mark Schienberg, who heads up the GNYADA.]
Source: AutoRemarketing

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GM Expects to See Small Improvement in June U.S. Auto Sales

General Motors Corp., now in its third week of operating in bankruptcy, expects a small improvement in U.S. auto sales this month. “Since March of this year, we have seen small improvements in sales on a monthly basis,” Chief Executive Officer Fritz Henderson told reporters today in an Internet chat ... He projected that the so-called cash-for-clunkers legislation ... may boost sales to individual buyers by 10 percent.
Source: Bloomberg

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Dealers Facing Tight Supply of SUVs, Trucks

Even with the auto industry mired in depression ... big vehicles such as the Ford Expedition and Chevy Tahoe are in tight supply because of drastic production cuts that automakers imposed last year as sales began to plummet. For the past year, dealers accustomed to having one of everything on the lot have learned to function on smaller inventories, noted Paul Taylor, chief economist at the National Automobile Dealers Association. "But when the market comes back, inventories will increase to a 60-day supply," he said.
Source: Dallas Morning News

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White House Turns Down Auto Suppliers' Aid Request

WASHINGTON -- The Obama administration has turned down a request by auto-parts suppliers for up to $10 billion in new aid, saying the government shouldn't further interfere in the industry's contraction. Parts makers are now turning their lobbying efforts toward Congress. Sen. Sherrod Brown (D., Ohio) has proposed legislation would "provide a new funding source to help auto suppliers and other manufacturers retool for the clean energy industry." He plans to unveil the proposal [today] on Capitol Hill.
Source: The Wall Street Journal

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Opinion: Remember, GM: Dealers Are Not the Enemy

As General Motors goes about restructuring itself in Chapter 11, it must build even-handed relationships with dealers and suppliers, not use bankruptcy as a weapon to take advantage of them. If GM acts like a powerful 800-pound gorilla, it will ensure that the new GM will fail like the old one by being arrogant, slow and clumsy. GM must treat dealers and suppliers as partners, not the enemy.
Source: Automotive News

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Quotable
 
"It was NADA's finest hour."

   
-- AutoNation Chairman and CEO Michael Jackson referring to NADA's lobbying efforts to get government bridge loans on behalf of GM and Chrysler, NADA Newswire, June 17


 "The domestic automakers are getting back on their feet and this legislation will be a shot in the arm..."

    -- Rep. Sander Levin, a Michigan Democrat, in a statement after the House passed a "cash for clunkers" measure Tuesday, Bloomberg, June 17


"None of us can quite understand why they consider dealerships a drag when they are the ones that buy the cars, that take the financial risks. Many of the dealerships that are being closed are profitable."

   
-- Sen. Kay Hagan, D-N.C., who questioned during a hearing last week how independently owned and operated businesses have any financial impact on automakers, Politico, June 17


"A moratorium on dealership closures would not impact the other financial and structural changes that the automakers are being forced to make, but it would save thousands of small businesses and tens of thousands of jobs."

   
-- Mark Schienberg, president of the Greater New York Auto Dealers Association, calling for the Obama administration to halt GM dealership closings, AutoRemarketing, June 16

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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