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Top Stories
House OKs Reversing Dealer Cuts
House Breaks With White House on Car Dealers
House Committee Wants GM, Chrysler Documents
GM Dealers, Losing Franchises, Search for New Identities
[Auto Dealer] Schmitz Wins Mayor's Seat
Nissan May Add More Hybrid Models to Challenge Toyota, Honda
NADAPerks, a Brand-New Monthly Member Benefit, Launches Today
Top Stories
House OKs Reversing Dealer Cuts

But provision's fate in Senate uncertain
WASHINGTON -- The U.S. House approved a measure meant to reverse some 2,100 dealer cuts at General Motors Co. and Chrysler Group LLC, but its backers called on dealers and the automakers to find a compromise. The bill faces uncertainty in the Senate. Chrysler offered a lengthy justification for its cuts, while GM urged the National Automobile Dealers Association to engage in talks. Both companies and the Obama administration have warned Congress that restoring the dealers could jeopardize the automakers' recovery from bankruptcy, but that argument has gained little ground in Congress so far. The provision was part of a $46-billion budget bill for government agencies that passed 219-208. A version of the plan in the Senate has 25 cosponsors. Rep. David Obey, D-Wis., said it was unlikely the plan would survive as written. "What we do want is to see that language used as an opportunity to get the auto dealers and auto companies to sit down and work out a better appeals process," Obey said. GM spokesman Greg Martin said the company also wanted to find a compromise, but that the dealers had yet to agree to talks.
Source: Detroit Free Press

Editor’s Note: The following is a statement from NADA Chairman John McEleney: “We want to thank the thousands of dealers who took the time to call their Members of Congress and to tell their story. Without these grassroots efforts to win broad, bipartisan support for H.R. 2743, we would not be where we are today. NADA will be working with congressional leadership to discuss the next steps on the issue of dealership closures. Our objective remains the same: to do what is best for all dealers.”

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House Breaks With White House on Car Dealers

The House broke with the Obama administration Thursday over a key part of the auto industry restructuring, pressing General Motors and Chrysler to restore dealerships shuttered by the car companies' bankruptcies. The White House said Wednesday it strongly opposes the measure, arguing it would "set a dangerous precedent, potentially raising legal concerns, to intervene in a closed judicial bankruptcy proceeding on behalf of one particular group."
Source: The Associated Press

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House Committee Wants GM, Chrysler Documents

A House committee asked the Obama administration [today] to release documents on the federal bailouts of General Motors Co. and Chrysler Group LLC, seeking more details on decisions that led to the auto industry bankruptcies. "They negotiated, they reviewed and they approved every aspect of the Chrysler and General Motors reorganization," Rep. Spencer Bachus, R-Ala., said of the White House. "We don't know how the president's auto task force reached its conclusion." The resolution, proposed by House Republican Leader John Boehner, R-Ohio, underscored the lingering resentment in Congress over the government's work to push GM and Chrysler into bankruptcy. The request to the White House, approved by the House Financial Services Committee on a voice vote, seeks information about the work of the Obama administration's auto task force, the billions in federal aid to GM and Chrysler... Lawmakers said many questions remained about how the president's auto task force reached its decisions on GM and Chrysler. They said it hurt many dealerships, workers and retirees. "These decisions were implemented without the auto manufacturers or the task force presenting evidence publicly that these (dealer) closings would actually benefit the auto companies financially," said Rep. Dan Maffei, D-N.Y., who has pushed GM and Chrysler to restore shuttered dealerships.
Source: The Associated Press

Editor's Note: Today, the House Financial Services Committee, chaired by Barney Frank, D-Mass., approved H. Res. 591, which requests that the Obama administration transmit to the House of Representatives all information regarding federal investment in GM and Chrysler, including provisions that ask for documents concerning the role of the auto task force approving dealership closures.

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GM Dealers, Losing Franchises, Search for New Identities

The next 15 months will be a "winding down" period for about 21 Oregon dealerships, staring at an uncertain future in a dismal economy. And while the company itself has emerged from bankruptcy, many questions remain about the fates of those dealers, some of whom have asked to close down before the deadline. "There's still a lot of grappling on how the wind-down dealers are going to be treated." says Ed Tonkin, vice president of Tonkin Family Dealerships and vice chairman of the National Automobile Dealers Association. "If you can't order new vehicles from the factory, you have no reason to be a new vehicle dealer."
Source: The Oregonian (Portland, Ore.)

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[Auto Dealer] Schmitz Wins Mayor's Seat

[Mike Schmitz, owner of Mike Schmitz Automotive Group in Dothan, Ala.,] breezed into the mayor’s seat Tuesday, capturing more than 86 percent of the vote and easily winning every polling place in the city’s six districts, campaigning on a platform of consensus-building, industry recruitment and attention to supporting education. Schmitz, who will officially take office Oct. 1, said he plans to concentrate on the financial health of the city during his first days in office.
Source: Dothan Eagle (Dothan, Ala.)

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Nissan May Add More Hybrid Models to Challenge Toyota, Honda

The automaker is “studying possibilities to put our hybrid system in other models” in addition to a previously announced luxury car, Sadayuki Hamaguchi, a spokesman, said by phone today. Nissan has said it will start selling a hybrid car using its own system in fiscal 2010 in Japan and the U.S. Currently, the automaker’s sole hybrid, the Altima, is only available in the U.S. The vehicle uses Toyota technology.
Source: Bloomberg

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NADAPerks, a Brand-New Monthly Member Benefit, Launches Today

Every month, memberbenefits@nada.org will email NADAPerks, a news capsule of the association’s latest key accomplishments plus a complimentary perk that members can put to use immediately. The first NADAPerks features a free mini-Webinar to be presented on July 29 by vAuto chairman Dale Pollak, together with Stu Zalud of the NADA Official Used Car Guide and Les Abrams of Dealer Academy. This Webinar augments NADA's just-released "A Dealer Guide to the Trade Appraisal Process in a Transparent Market." A different timely and relevant perk will be offered each month, exclusively for NADA members, so make sure NADA has your correct email address by going to www.nada.org/membership.
Source: NADA Newswire

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Quotable
 
"We want to thank the thousands of dealers who took the time to call their Members of Congress and to tell their story. Without these grassroots efforts to win broad, bipartisan support for H.R. 2743, we would not be where we are today. NADA will be working with congressional leadership to discuss the next steps on the issue of dealership closures. Our objective remains the same: to do what is best for all dealers."

   
-- NADA Chairman John McEleney's statement in response to the passage of a House Bill to restore dealer rights, July 17


"What we do want is to see that language used as an opportunity to get the auto dealers and auto companies to sit down and work out a better appeals process."

   
-- House Appropriations Committee Chairman David Obey, D-Wis., said it was unlikely the House-approved plan would survive the Senate in its current version, Detroit Free Press, July 17


"An economic recovery will not be possible if we continue to throw people out of work."

   
-- Rep. Steve LaTourette, R-Ohio, who proposed a plan in Congress that seeks to force GM and Chrysler to restore agreements with dealerships shed during the automakers’ bankruptcy proceedings, The Associated Press, July 16

Video Highlights
 

GM Still Government Motors? (Fox Business)


Helping Dealers Left Out of New GM (Fox Business)



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)



Fighting the Dealers' Fight (CNBC)



Cutting Dealers a Mistake (Fox Business)



Vice Chairman Tonkin on Chrysler Closures (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.

 


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