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Top Stories
'Clunkers' $2 Billion Infusion Depends on U.S. Senate Vote
NADA Hosts 'Clunkers' Webinar Today to Address Claims Submission Issues
Dealers Can Postpone Disabling Engine in Revised Rule
Car Dealers Applaud Clunkers Program as Big Shot in the Arm
Ford Says It Will Post July Sales Rise
Chrysler Dealers' Good Problem: A Car Shortage
Chrysler to Drop 'Clunker' Incentive
Results of NADA Director Elections Are In
Top Stories
'Clunkers' $2 Billion Infusion Depends on U.S. Senate Vote

The future of the U.S. “cash for clunkers” program depends on the Senate backing a $2 billion infusion this week, with at least one Republican saying he was going to try to block the effort. “We’ve got to slow this thing down,” Senator Jim DeMint, a South Carolina Republican, said on “Fox News Sunday." Senator [John] McCain of Arizona is among Republicans who indicated they will vote against the measure. McCain has been “opposed to cash for clunkers from the beginning” because of the cost to taxpayers, Brooke Buchanan, his spokeswoman, said Friday.
Source: Bloomberg News

Editor's Note: NADA's Legislative Office is calling on dealers to urge their Senators to support H.R. 3435, which transfers $2 billion in energy stimulus funds to the clunkers program. The measure passed the House on July 31. The Senate is expected to take up the measure as early as today. Senators can be reached through the Capitol switchboard at (202) 224-3121. Click here for the legislative alert.

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NADA Hosts 'Clunkers' Webinar Today to Address Claims Submission Issues

Because many dealers have had qualifying clunker applications rejected, the National Highway Traffic Safety Administration (NHTSA) has asked NADA to hold another Webinar as soon as possible in order to help dealers handle the rejections and submit claims successfully. In "Cash for Clunkers, Part Three: How to Submit Claims Successfully," to be held today, Aug. 3, at 1 p.m. (ET), NHTSA staff will explain the leading causes of rejections and how to avoid rejections. NHTSA personnel will walk participants through a clunker transaction and will answer your questions. This will be a practical, nuts-and-bolts session. Frank Borris of NHTSA’s Office of Enforcement will conduct the presentation; other NHTSA and NADA staff will be on hand as well. Register for the webinar at www.nada.org/seminars or call (800) 252-6232, ext. 2. All participants in Part One and/or Part Two of the “Cash for Clunkers” Webinar series are invited to attend this Webinar at no additional charge. If this is your first “Clunkers” Webinar, the special member rate of $199 ($225 for non-members) includes today’s live Webinar and the archived Webinars for Part One (July 7) and Part Two (July 27). For additional information on the “Cash for Clunkers” program, please see www.cars.gov/dealersupport or www.nada.org/cashforclunkers.
Source: NADA Newswire

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Dealers Can Postpone Disabling Engine in Revised Rule

NADA urges members to lobby Senators for additional $2 billion
WASHINGTON -- Dealers can now postpone disabling the engine of a trade-in under the "cash for clunkers" program until after they have received a U.S. rebate instead of having to do so before they apply for the reimbursement. The U.S. Transportation Department amended its rules Friday in part to avoid sticking dealers with a disabled vehicle that has no value in case their rebate application is turned down, a copy of the new rule shows. The measure, adopted under expedited procedures, also ensures that dealers aren't left with a worthless vehicle if the $1 billion program runs out of money before its Nov. 1 expiration date, a spokesman for the National Automobile Dealers Association said.
Source: Automotive News

Editor's Note: According to the revised rule, a dealer now has seven days after receiving reimbursement to kill the engine; however, in taking advantage of this new rule, the dealer must ensure that it keeps the "clunker" on the dealer’s property until the engine is disabled. While this change is welcome, NADA recognizes that dealers have many other concerns with the program, mostly involving implementation. Be assured that NADA is working with NHTSA seven days a week to address those concerns as quickly as possible. To help dealers address claim submission issues, NADA has added a third "clunkers" Webinar today, August 3, at 1 p.m (ET). To register, visit www.nada.org/seminars or call (800) 252-6232, ext. 2.

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Car Dealers Applaud Clunkers Program as Big Shot in the Arm

David Hersrud's small Chevrolet dealership in Sturgis, S.D., had shriveled so much from lack of customers this year that he was considering selling some of his inventory to other dealers at wholesale. "We were getting a little nervous," he says. Then the federal cash-for-clunkers program kicked in July 24, and Hersrud did a month's worth of business in just six days last week. Cash-for-clunkers — officially the Car Allowance Rebate System (CARS) — helped more than Hersrud. Automakers have forecast a mild recovery the second half this year and hope CARS is the catalyst.
Source: USA TODAY

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Ford Says It Will Post July Sales Rise

Automaker to report sales rose from a year ago. 'Cash for Clunkers' incentive program gave boost, executive says.
Ford Motor Company saw an increase in July domestic sales -- the first monthly sales gain for a major automaker since the financial crisis began, a Ford official told CNN Radio on Sunday. While Ford will be in the spotlight [today] with the release of its July sales figures, other automakers and dealerships are also enjoying benefits from the Cash for Clunkers program, according to John McEleney, chairman of the National Automobile Dealers Association. "Whether it's GM, Ford, Chrysler, Toyota, Honda or Mazda -- dealers in all segments of the country, almost without exception, are reporting significant sales. I think dealers sold almost as many cars in the last week of the month, in many cases, as they probably sold in the first three weeks of July," McEleney said.
Source: CNNMoney.com

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Chrysler Dealers' Good Problem: A Car Shortage

On July 25, Philadelphia Chrysler dealer Dave Kelleher did something he hadn't done in ages. A customer was bargaining hard on a 2009 Dodge Grand Caravan, Kelleher recalls. The customer wanted the vehicle for $1,500 below invoice. Kelleher says he took a deep breath and told the customer: "I don't want to lose you as a customer, but if you can find that vehicle somewhere else, go ahead. I cannot give up that unit." Other Chrysler dealers are in a similar predicament. Long accustomed to being choked with too many cars, they now can't find enough of several key models, including minivans and the Jeep Wrangler.
Source: Automotive News

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Chrysler to Drop 'Clunker' Incentive

DETROIT-- Chrysler Group LLC is dropping an incentive plan that offered to double the government's "cash for clunkers" rebates amid complaints from dealers that inventory is running short. Effective Tuesday, Chrysler will no longer offer a flat $4,500 rebate on top of the clunker incentive. Instead, it will vary the size of rebates, depending on the model and brand a customer selects. Chuck Eddy who owns a Chrysler Dodge and Jeep dealership in Austintown, Ohio said he's waiting on more than 300 vehicles from Chrysler. "We've got enough cars to last through August, but September will be an issue," Mr. Eddy said.
Source: The Wall Street Journal

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Results of NADA Director Elections Are In

Two NADA at-large directors and two directors representing their states have been elected. They are:

  • Maryland: David Williams, Jr. (Anchor Pontiac Buick GMC) succeeds Joseph "Tad" Hinder.
  • Nevada: James “Jim” R. Marsh (Jim Marsh Mitsubishi Suzuki Kia) succeeds Tom Dolan.
  • At-Large Minority East: Henry A. Ware, Jr., (Southaven Buick Pontiac GMC, Southaven, Miss.) succeeds Larry Brown.
  • At-Large Minority West: Donald “Don” P. Hicks (Shortline Auto Group, Aurora, Colo.) succeeds Dale Early.

Eighteen directors were re-elected: Rick Morrison, Alaska; Bill Willis, Del.; George Nahas: Fla.; Ramsey "Bub" Way, Ga.; David Cox, Ind.; Marshall Hebert, La.; Jim Waldron, Mich.; George Gorno, Metro Detroit; Bill Schicker, Mo.; Bill Underriner, Mont.; Brian Hamilton, Neb.; Jack Tulley, N.H.; Don Chalmers, N.M.; Gene Smith, Okla.; Peter Barry, R.I.; Ted Russell, Tenn.; Michelle Primm, at-large woman east; Kathy Sims, at-large woman west. They will begin serving their three-year terms in February 2010 at the annual convention to be held in Orlando, Fla.
Source: NADA Newswire

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Quotable
 
"We're seeing customers that have never bought a new car before, probably for economic reasons, that now are finding it very affordable to buy a new car with a warranty, so that's kind of exciting,"

    -- John McEleney, NADA chairman, on the "cash-for-clunkers" program, CNNMoney.com, Aug. 3



"This has really stimulated the economy. I think there has been a psychological effect that has gotten consumers to start buying cars again."

    -- Michael J. Jackson, chief executive of AutoNation Inc., on the "cash-for-clunkers" program, The Wall Street Journal, Aug. 1

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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