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Tuesday, Sept. 29, 2009 RSSSEND TO A FRIENDPRINT
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Top Stories
NADA: Normalized Credit Would Boost Auto Sales by Millions
Sept. Sales Likely to Approach '09 Low
GMAC Debuts Carrot and Stick Plan for Dealers
Roger Penske Expected to Close Saturn Deal Soon
Buying a New Car Gets Pricier as GM, Ford Cut Inventory on Lots
Top Stories
NADA: Normalized Credit Would Boost Auto Sales by Millions

ORLANDO, Fla. – Light-vehicle sales would increase 1.5 million to 2 million units if auto financing returned to “normal,” the head of the National Automobile Dealers Assn. says. “Auto lending is slowly improving, but it is nowhere near where it was two or three years ago, and it may never get back to that,” McEleney says. Dealers continue to face credit problems of their own because many financial institutions are unwilling to provide them with floorplan financing for inventory purchases. Because of the current state of the auto industry and the closing of thousands of dealerships, lenders worry about providing large loans to what they view as credit risks. 

NADA is trying to alleviate the floorplan problems through various efforts, says Andrew Koblenz, the trade group’s vice president [of legal and regulatory affairs] and general counsel. One is to make such loans available through the Small Business Admin. But a setback occurred because, even though the SBA-related loans are government guaranteed, many banks still refused to cover floorplan costs. “We’re still working on that and securitization for floorplanning,” Koblenz says. “Securitization is a top down approach. SBA loans are a bottom up approach.”
Source: Ward's Auto

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Sept. Sales Likely to Approach '09 Low

J.D. Power and Associates estimates that the selling rate in September will be just 9.2 million cars and trucks when automakers report results on Thursday -- second only to February's 9.17 million rate. "It hasn't been pretty," said Bob Page, owner of Page Toyota in Southfield, where sales declined an estimated 35%.
Source: Detroit Free Press

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GMAC Debuts Carrot and Stick Plan for Dealers

A new program from GMAC Financial Services will pay dealers cash bonuses of $50 to $100 per contract based on their new and used retail finance contract volume with the lender. The finance company also is paying cash rebates tied to units sold on the GMAC SmartAuction Web site and cash rewards -- ranging from $25 to $65 per contract -- for higher sales penetration of the General Motors Protection Plan vehicle service contracts. Ally Dealer Rewards starts Oct. 1.
Source: Automotive News

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Roger Penske Expected to Close Saturn Deal Soon

Detroit businessman and booster Roger Penske is on track to close a deal to buy General Motors' Saturn division on Wednesday, the Free Press learned [Monday]. Saturn dealers have been asked to sign new franchise agreements with Penske. Joe Serra, who owns two Saturn dealerships, believes everything is on track. “It looks like they are probably on the two-yard line,” Serra said.
Source: Detroit Free Press

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Buying a New Car Gets Pricier as GM, Ford Cut Inventory on Lots

General Motors Co. and Ford Motor Co., bucking decades of tradition, are weaning themselves from dependence on profit- sapping discounts after factory shutdowns curbed dealers’ supply of cars and trucks. Ford ... said it expects to boost 2009 market share while keeping inventory and spending in check. “We’re not just chasing market share blindly,” Chief Financial Officer Lewis Booth told investors at the Frankfurt Motor Show Sept. 16.
Source: Bloomberg

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Quotable
 
"Auto lending is slowly improving, but it is nowhere near where it was two or three years ago, and it may never get back to that."

    -- NADA Chairman John McEleney, adding that sales would increase 1.5 million to 2 million units if auto financing returned to “normal,” Ward's Auto, Sept. 25

Video Highlights
 

Crisis Timeline: NADA in High Gear (NADA-TV)


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



NADA's New Buy Now Campaign


 Senate Testimony on Floorplan Loans (NADA-TV) 
 NADA Tackles Industry Crisis (NADA-TV) 
NADA on the Front Lines  (NADA-TV)

Click here for more video reports.
2010 Convention
 
 

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Orlando is rated No. 2 out of the top 200 event destinations, attracting more than 4 million attendees for conventions and meetings each year. Orlando is an exciting destination for both business and leisure travelers. So why not plan a family vacation before or after the NADA convention Feb. 13-15? Convention delegates can purchase discounted tickets for the entire family to nearly 100 attractions, such as SeaWorld, Universal Orlando, Walt Disney World, Kennedy Space Center, dinner theaters and much more. Click here for more details.

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