For optimal viewing through your web browser or PDA, click here.

SPONSORED BY
Click Here
NADA.org
Monday, Aug. 31, 2009 RSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training
Top Stories
Opinion: NADA Continues to Move Forward
Compromise Talks Are Near in Dispute Over Store Closings
Big Leap Seen in August Auto Sales
Dealers Pleased to Have Clunker Sales, But Paperwork is 'Nightmare'
GM Sees Rise in 2010 Industry Sales to 12.1 Million
Credit Lines Dry Up for Auto Dealers
GM Will Pay Dealers Who Meet Upgrade Goals
Top Stories
Opinion: NADA Continues to Move Forward
By Phil Brady

Regarding "Dealership closings turn NADA into battleground" (Aug. 24): A couple of important points were overlooked.

One, the article fails to note that the National Automobile Dealers Association's proposal to help affected dealers has the full backing of the Automotive Trade Association Executives (ATAE), which represents state and metro dealer groups around the country, and the National Association of Minority Automobile Dealers (NAMAD).

Second, it fails to include the substance of the NADA proposal. NADA, ATAE and NAMAD seek to accomplish two main goals:

1. A transparent appeals process that offers a realistic opportunity for reinstatement.

2. Fair and proper financial compensation for affected dealers who are not reinstated.

We believe the proposal provides the best opportunity to obtain meaningful relief for all affected dealers.

Since the onset of the credit crisis last September, dealers have had to face a series of historic challenges, none of their own making. NADA has been aggressively engaged in support of dealers -- with Congress, the White House, the regulatory agencies, the manufacturers, the investment community, the courts, the media and the public. We will continue to press forward on all fronts.

Having said that, we are proud of what we have achieved, including helping to secure the original loans that enabled General Motors and Chrysler to continue operations. That success alone allowed all of us to live to fight another day. We also have spent countless hours helping to move the credit markets toward stability, and we have focused on boosting auto sales, getting two stimulus bills enacted (auto sales tax deductibility and cash for clunkers).

With a large, diverse membership, NADA is well-accustomed to vigorous internal debate. To us, that's a sign of health. What's important is to build a consensus to move forward. We have done that.

Given the unprecedented nature of the issues we face, that is perhaps one of NADA's biggest successes.
Source: Automotive News

Editor's Note: The Letter to the Editor by NADA President Phil Brady appears in today's issue of Automotive News.

[back to top]

Compromise Talks Are Near in Dispute Over Store Closings

WASHINGTON -- Senate Majority Whip Richard Durbin is trying to set up comprehensive talks about dealer terminations in an attempt to forge a compromise alternative to legislation, according to spokesmen for the National Automobile Dealers Association and General Motors Co. Participants in the proposed talks would include GM, Chrysler Group, NADA, key lawmakers and the White House, NADA Chairman John McEleney said in an interview. An independent dealer group that has pushed for the reversal of dealer terminations also might be invited, McEleney said. The NADA proposal calls for GM and Chrysler to offer reinstatement automatically to any dealers that meet or exceed criteria previously disclosed by the carmakers. Any disputes would be decided in arbitration.
Source: Automotive News

[back to top]

Big Leap Seen in August Auto Sales

Analysts: Clunkers impact to differ among Detroit 3
Wall Street analysts expect automakers to report sales on Tuesday that hit an annual rate of more than 15 million vehicles -- a massive leap from the roughly 10 million rate the industry was suffering through before the government paid people to junk gas guzzlers for new and more efficient models. Analysts expect General Motors Co. to report a moderate sales decline compared with a year ago, when it was pushing a big employee discount sale. Ford Motor Co. will have the reverse effect; after underperforming by not chasing GM's sales last year, Ford's August sales could be up 40% over a year earlier. Chrysler Group LLC is expected to post a moderate increase.
Source: Detroit Free Press

[back to top]

Dealers Pleased to Have Clunker Sales, But Paperwork is 'Nightmare'

The Cash for Clunkers program created demand — and headaches, at least one local automobile dealer says. “I would say in terms of stimulating auto sales, I’d give it a 10,” says Dawson Grimsley, president of Davis-Moore Auto Group. “But in terms of the government Web site and (its) implementation, I’d give it a one.” Grimsley says he made 277 clunkers deals­ ­— and he’s been paid for 25. Now Grimsley says he and other dealers are taking the government at its word that they will get paid on all the deals.
Source: Wichita Business Journal (Wichita, Kan.)

[back to top]

GM Sees Rise in 2010 Industry Sales to 12.1 Million

General Motors Co., the largest U.S. automaker, said it expects the industry’s sales to rise 15 percent to 12.1 million next year as government stimulus programs help restore consumer confidence. GM forecasts U.S. deliveries of 10.5 million this year before the increase, Brent Dewar, head of the Chevrolet brand, told reporters [Friday] in Novi, Michigan. “All of the global stimulus programs have had the impact of moving inventory and building consumer confidence,” Dewar said.
Source: Bloomberg

[back to top]

Credit Lines Dry Up for Auto Dealers

To help ailing auto dealers, the Small Business Administration launched new loan offerings -- but so far, few banks are playing along.
NEW YORK -- Most small businesses are having trouble finding loans and credit lines these days, but auto dealers are in their own special financing hell. Recognizing that dealers need help, the Small Business Administration began rolling out new programs tailored for them. A pilot project launched in July to back inventory loans to auto dealers has so far approved just one loan, according to the SBA. Doug Greenhaus, a spokesman from the National Automobile Dealers Association, is frustrated that lenders are blackballing the entire auto industry and refusing to evaluate specific businesses on their own merits.
Source: CNNMoney.com

[back to top]

GM Will Pay Dealers Who Meet Upgrade Goals

DETROIT -- General Motors Co. is promising cash to dealers who upgrade their dealerships, train employees and make other improvements. Dealers who achieve the goals will be paid bonuses each quarter based on how many units they buy from GM. The program, called Essential Brand Elements, will be rolled out over the next two weeks at regional meetings with the 4,100 dealerships that survived GM's cuts in U.S. Bankruptcy Court.
Source: Automotive News

[back to top]

 
Quotable
 
"With a large, diverse membership, NADA is well-accustomed to vigorous internal debate. To us, that's a sign of health. What's important is to build a consensus to move forward. We have done that."

    -- NADA President Phil Brady, referring to an agreement by NADA, ATAE and NAMAD on a new proposal to restore dealer rights, Automotive News, Aug. 31


"Overall, we thought it was a very, very successful program in jump-starting sales."

    -- Mark Fields, Ford Motor Co. president of the Americas, on the clunkers program, which wrapped up last week, The Associated Press, Aug. 28

Video Highlights
 

NADA Chairman on Success of 'Clunkers' (Fox Business)


Keep or Scrap Cash for Clunkers? 
(CNBC)



Dealers, Detroit Look for Boost From 'Clunkers' (PBS)



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)



Cutting Dealers a Mistake (Fox Business)



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.

2010 Convention
 
 

Did you know?

As a bonus for attending the upcoming NADA convention, you can attend two workshop sessions on Friday afternoon before the convention starts at no extra charge!

For more money-saving ideas, click here or visit www.nada.org/convention and click the $$$ Savings icon. And for special airline discounts, check out our airfarewatchdog in the money-saving section.

Be in the know at the 2010 NADA Convention & Expo in Orlando, Fla., Feb. 13-15.

 
Click Here



Orlando 2010 - Go to Know

Save Instantly on HP Laptops

Save up to 44% on Lenovo PCs

NADA Insurance Gives Dealers Thousands in Hole-in-One Coupons


Search Back Issues | Unsubscribe | Subscribe | Manage your subscription | email us
NADA For more information on NADA, visit www.nada.org or contact NADA, 8400 Westpark Drive, McLean, VA 22102. This email may contain an advertisement of NADA products and services. Any opinions or statements contained herein do not necessarily reflect the views of NADA. Factual errors are the responsibility of the listed publication. If you are a franchised new-car or -truck dealer and would like to become a member of NADA, please visit the Join NADA section of www.nada.org. Questions or comments concerning NADA Headlines content may be directed to media@nada.org.