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Thursday, June 18, 2009 RSSSEND TO A FRIENDPRINT
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Top Stories
NADA Board Reaffirms Dealer Rights Bill
Heavy Media Coverage Highlights the Tragedy of Dealership Closings
Senate Vote on Cash-for-Clunkers Program Delayed
New GM is Moving Ahead on Fast Track
Leading Index in U.S. May Signal Recession Will End in 2009
Automakers' Pain Can Be Consumers' Gain
Pickens, Gore-Backed V-Vehicle to Begin Automaking in Late 2010
Mulally: Supplier Health a Top Priority
Top Stories
NADA Board Reaffirms Dealer Rights Bill

The NADA board of directors reaffirmed its support for H.R. 2743, the “Automobile Dealer Rights Restoration Act,” which would restore dealers’ rights under state automotive franchise laws. Bipartisan support continues to grow for the Maffei-Kratovil bill with 101 Democrats and 46 Republicans. "The weakening of state automotive franchise laws under an automaker bankruptcy filing affects the rights of every dealer," said NADA Chairman John McEleney. "And that's why we strongly support the Dealer Rights Restoration Act." NADA's legislative office is urging all dealers to contact their representatives and ask them to co-sponsor H.R. 2743. House members can be reached through the Capitol switchboard at (202) 225-3121. Click here for the current list of co-sponsors.
Source: NADA Newswire

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Heavy Media Coverage Highlights the Tragedy of Dealership Closings

McLEAN, Va. – The issue of dealership closings has received an unprecedented amount of news coverage recently, according to a new report from NADA-TV. “In newspaper after newspaper and broadcast after broadcast, TV, radio and online, the dealer story is being heard everywhere,” said Dale Early, chairman of NADA's public affairs committee. Click here to view the NADA-TV report.
Source: NADA Newswire

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Senate Vote on Cash-for-Clunkers Program Delayed

Just hours after Sen. Judd Gregg ... denounced the inclusion of the cash-for-clunkers amendment as “unfunded baggage” on the war spending bill [Wednesday] evening, Senate Majority Leader Harry Reid delayed a vote until [today]. If the Senate approves it, the measure will go to President Barack Obama for his signature. Then the National Highway Traffic Safety Administration will have 30 days to put regulations in place for the program which – under the war spending provision – will expire on Nov. 1.
Source: Detroit Free Press

Editor's Note: The vote on the Cash for Clunkers provision in the war spending bill is still very close to the 60 votes required to overcome a procedural hurdle. Just a handful of senators will make a difference on whether or not the program will pass. Since the measure would benefit every vehicle brand, all dealers are strongly urged to contact their senators IMMEDIATELY, and ask them to support the Cash for Clunkers legislation. If approved, it will take the Department of Transportation several weeks to get the program up and running. Senators can be reached through the Capitol switchboard at (202) 224-3121.

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New GM is Moving Ahead on Fast Track

Henderson says bankruptcy exit 'could be sooner' than promised
In its third week of bankruptcy, General Motors Corp. appears on track to emerge as a reconstituted company this summer ahead of the 60- to 90-day timeline previously promised. A hearing is slated for June 30, and experts said a new GM could emerge quickly if the judge approves. Based on the Chrysler case, experts said few serious objections appear to be in the way.
Source: Detroit Free Press

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Leading Index in U.S. May Signal Recession Will End in 2009

The index of U.S. leading economic indicators probably rose in May for a second straight month, reinforcing signs that the worst recession in five decades may end this year, economists said before a report today. The gains in stock prices, consumer confidence and building permits ... bolster forecasts the economy will start growing again in the second half of 2009. “The worst part of the economic decline is behind us,” said Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida.
Source: Bloomberg

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Automakers' Pain Can Be Consumers' Gain

With historically weak sales and two of the Detroit Three having teetered for months on the brink of collapse, analysts said car buyers are getting some of the best discounts on record. And there's evidence the perks are working: U.S. auto sales increased 0.5 percent from April to May, boosting overall retail sales. For consumers, the window of opportunity to get the huge discounts is likely to close by the end of the summer, analysts said. The automakers have significantly cut production. Once the inventories are depleted, they won't need to offer incentives.
Source: The Washington Post

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Pickens, Gore-Backed V-Vehicle to Begin Automaking in Late 2010

V-Vehicle Co., backed by billionaire T. Boone Pickens and a venture capital firm employing former U.S. Vice President Al Gore, said it plans to begin making cars by late 2010, joining a line of new California-based automakers. The company, partly funded by Kleiner Perkins Caulfield & Byers, where Gore is a partner, [Wednesday] unveiled a $248 million plan for a former auto-parts factory in Monroe, Louisiana. Joseph Fisher, a spokesman, declined to comment on what type of cars the company would make when contacted by phone.
Source: Bloomberg

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Mulally: Supplier Health a Top Priority

Ford President and CEO Alan Mulally said today that additional consolidation among automotive suppliers is necessary because plant production capacity in the United States has been reduced. “The most important thing we can do now is to help them go through this consolidation,” Mulally said. “And it’s going well. It’s hard work, because consolidation is tough, but it’s the right thing to do."
Source: Detroit Free Press

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Quotable
 
"The weakening of state automotive franchise laws under an automaker bankruptcy filing affects the rights of every dealer. And that's why we strongly support the Dealer Rights Restoration Act."

   
-- NADA Chairman John McEleney, NADA Newswire, June 18


"It's important that the American taxpayers understand how their investment is going, where their money is being spent, where it's being invested -- all the things that you would see in a public company."

    -- Ford Executive Chairman Bill Ford Jr., calling for more visibility of the government's role in the GM and Chrysler restructurings, The Detroit News, June 18


"The worst part of the economic decline is behind us."

   
-- Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Fla., Bloomberg, June 18

Video Highlights
 

Media Coverage on Dealership Closings (NADA-TV)


NADA's new Buy Now PSA, 'No Kidding' 


 
Car Dealers Trying to Buy More Time (NBC)



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)


John McEleney's Testimony to Senate Committee (CNBC)
 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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