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Wednesday, July 1, 2009 RSSSEND TO A FRIENDPRINT
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Top 10 Stories
SBA Ready to Accept Floorplan Loan Applications from Dealers
EPA Approves California Vehicle-Emissions Rule
NADA Says EPA Decision to Grant Calif. Waiver Is Troubling
U.S. June Auto Sales May Reach Highest Rate This Year
Consumers Show 'Huge Interest' in Clunkers Program, LaHood Says
Own a Clunker? It's Time To Do the Math for the Cash
NADA, NHTSA Experts to Present Cash-for-Clunkers Webinars
GM's Henderson Makes Case for Bankruptcy Asset Sale
Toyota Builds Thicket of Patents Around Hybrid to Block Competitors
Marchionne Says Chrysler Slows 'Bleeding,' Cash Loss
Top 10 Stories
SBA Ready to Accept Floorplan Loan Applications from Dealers

NADA to present webinars for lenders and dealers later this month reviewing the new program
Beginning today under a new pilot program, eligible dealerships can apply for Small Business Administration (SBA)-guaranteed floorplan financing. Dealer Floor Plan (DFP) financing is available through SBA’s 7(a) loan guarantee program through Sept. 30, 2010, at which time an extension of the program will be considered.

In numerous meetings with the Obama administration, NADA urged greater access to floorplan loans. As a result, the SBA created the pilot program, which effectively sets aside an outdated regulatory prohibition on the use of 7(a) loan guarantees for floorplan financing.

DFP loans are available for a minimum of $500,000 up to a maximum $2 million and a maximum repayment term of five years. Borrowers also benefit from the temporary elimination of fees made possible by the American Recovery and Reinvestment Act of 2009. DFP loan guarantees will range from 60 to 75 percent, depending on the type of collateral and the lender’s advance rate. Lenders may advance up to 100 percent of a vehicle’s wholesale price. SBA begins accepting floorplan loan applications today, and will begin reviewing applications the week of July 6. For more information, visit www.nada.org/sbaloan. For the dates of upcoming NADA webinars and seminars, click here.
Source: NADA Newswire

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EPA Approves California Vehicle-Emissions Rule

WASHINGTON -- The U.S. Environmental Protection Agency on Tuesday approved California's rules to regulate greenhouse-gas emissions from cars and light trucks, a step that could put the state in a position to set the direction for a new round of regulations beyond a deal that covers the period through 2016. But that is already riling car dealers. "With its action today, the Obama administration has effectively ceded the long-term setting of national fuel-economy standards to unelected California regulators," John McEleney, the chairman of the National Automobile Dealers Association, said in a statement.
Source: Dow Jones Newswires

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NADA Says EPA Decision to Grant Calif. Waiver Is Troubling

In response to the action taken today by the Environmental Protection Agency to allow California and 13 other states to implement their own fuel economy and greenhouse gas program, John McEleney, chairman of the National Automobile Dealers Association, issued the following statement:

“EPA’s decision to reverse its 2008 denial of California’s request for a pre-emption waiver is sadly a triumph of politics over good common sense.

“NADA has commended President Obama for his announcement last month recognizing and addressing the ‘patchwork’ aspect of California’s greenhouse gas rules. We also recognize that California has stated its willingness to conform its rules to the President’s forthcoming national program.

“However, NADA remains concerned that today’s action risks a series of negative results if that conformity never occurs. These include the potential for triple regulation of major manufacturers such as General Motors and Toyota.

“Moreover, with its action today, the Obama administration has effectively ceded the long-term setting of national fuel economy standards to unelected California regulators. The administration has now created the framework for three fuel economy standards, administered by three different agencies and under three different sets of rules. As a result, consumers in the future risk facing significantly reduced new vehicle choices and substantially higher new vehicle prices.”

BACKGROUND

Earlier this year, NADA released a comprehensive report on California’s fuel economy regulations entitled “Patchwork Proven.”  This report found that California’s fuel economy regime:

1. Is illegal under federal law;
2. Exempts over a dozen global automakers from regulation;
3. Creates a “cross-border sales loophole” that will encourage new car buyers to purchase vehicles outside of “California” states;
4. Has a lower fuel economy standard than the federal CAFE standard; and
5. Creates a “patchwork” of differing state regulations.
Source: NADA Newswire

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U.S. June Auto Sales May Reach Highest Rate This Year

The U.S. auto-sales slide may have slowed in June, with an annual rate of more than 10 million for the first time this year as consumers gain confidence and shrug off bankruptcies at General Motors Corp. and Chrysler LLC. “There are reasons to be optimistic in a cautious sense” for autos, said Jeff Schuster, executive director of forecasting at J.D. Power & Associates Inc. in Troy, Michigan. “There has been a true strengthening in retail sales.”
Source: Bloomberg

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Consumers Show 'Huge Interest' in Clunkers Program, LaHood Says

A U.S. “cash-for-clunkers” Web site got 400,000 hits in a week, signaling “huge interest” in the discount trade-in program for cars and light trucks, Transportation Secretary Ray LaHood said. Consumers will be able to visit auto dealer showrooms as early as July 24 for credits of as much as $4,500 to purchase or lease new vehicles under federal rules now being crafted, LaHood said in a telephone interview [Tuesday]. “There are going to be thousands of cars sold that would’ve never been sold,” LaHood said. “This is the strongest incentive I have ever seen offered by car manufacturers. If this doesn’t work, I don’t know what will.”
Source: Bloomberg

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Own a Clunker? It's Time To Do the Math for the Cash

Wondering what to do with that banged up 1999 Ford Explorer stashed at the vacation house, or the 1992 Buick Park Avenue inherited from your aunt in Florida? Uncle Sam is almost ready to help you turn that into a down payment on a new car. With only enough money for 250,000 or so vouchers, consumers who think they can take advantage of Uncle Sam’s generosity should start sounding out dealers now, and then be ready to jump later this month.
Source: The Wall Street Journal

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NADA, NHTSA Experts to Present Cash-for-Clunkers Webinars

The Consumer Assistance to Recycle and Save (CARS) Act of 2009, also known as “Cash for Clunkers” will be covered in detail in two upcoming NADA Webinars. The Act, which was signed into law by President Obama on June 24, allows for credits of up to $4,500 for eligible used vehicles toward the purchase of certain new vehicles. Staff from the National Highway Traffic Safety Administration (NHTSA) and NADA will provide an expert overview of the CARS Act in the first upcoming NADA Webinar, to be held July 7 from 1–3 p.m. (EST). A second CARS webinar is planned for later in July, in which NHTSA’s final CARS guidance will be reviewed in detail. Participants can attend both webinars for the combined registration fee of $199. For more information or to register, visit www.nada.org/seminars or call NADA at (800) 252-6232, ext. 2.
Source: NADA Newswire

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GM's Henderson Makes Case for Bankruptcy Asset Sale

Cost of winding down 'Old GM' estimated at $1.25 billion
NEW YORK -- General Motors' CEO told a U.S. bankruptcy court [Tuesday] that the sale of GM's main assets to the government-backed "New GM" must win court approval in order for the automaker to survive. Fritz Henderson told the court that if the sale is not approved by July 10 and GM loses access to government funding, the company would be forced to liquidate.
Source: Reuters

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Toyota Builds Thicket of Patents Around Hybrid to Block Competitors

The Obama administration's tough new fuel-efficiency standards could pose problems for some car makers, but Toyota Motor Corp. is hoping to benefit. Toyota's goal: to make it difficult for other auto makers to develop their own hybrids without seeking licensing from Toyota, as Ford Motor Co. already did to make its Escape hybrid and Nissan Motor Co. has for its Altima hybrid. "Our system is the best technology for hybrids to get the best carbon dioxide emissions and best fuel economy. [Rivals] will not be able to compete," said Gouichiro Kuriyama, a manager in Toyota's product planning division.
Source: The Wall Street Journal

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Marchionne Says Chrysler Slows 'Bleeding,' Cash Loss

Chrysler Group LLC has slowed the pace at which it uses cash after emerging from bankruptcy on June 10, Chief Executive Officer Sergio Marchionne said. “We are still burning cash, but it’s slowed down by far,” Marchionne, also CEO of Italian automaker Fiat SpA, said in an interview in New York yesterday. “The question is how quickly we can stop the bleeding. That is priority No. 1.”
Source: Bloomberg

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Quotable
 
"EPA's decision to reverse its 2008 denial of California's request for a pre-emption waiver is sadly a triumph of politics over good common sense."

   
-- NADA Chairman John McEleney, in a statement following action taken by the EPA to allow California and 13 other states to implement their own fuel economy and greenhouse gas program, NADA Newswire, June 30


"This is the strongest incentive I have ever seen offered by car manufacturers. If this doesn’t work, I don’t know what will."

   
-- Transportation Secretary Ray LaHood, on the federal "cash-for-clunkers" program, which LaHood says has "huge interest," Bloomberg, July 1


"There are reasons to be optimistic in a cautious sense [for autos]. There has been a true strengthening in retail sales." 

   
-- Jeff Schuster, executive director of forecasting at J.D. Power & Associates Inc., on U.S. June auto sales, which will be reported today, Bloomberg, June 30

Video Highlights
 

Media Coverage: The Tragedy of Dealer Closings (NADA-TV)


NADA's New Buy Now Campaign



No Dent in Demand for Some U.S. Cars (NBC)



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 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.

 


Orlando 2010 - Go to Know

"Smart Deals" from HP

Summer Specials from Lenovo

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