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

SPONSORED BY
Click Here
NADA.org
Monday, Oct. 19, 2009 RSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training
Top Stories
Vote on Amendment to Exclude Dealers from CFPA Regulation Expected Tuesday
Dispute Between Chrysler Financial, GMAC Traps Chrysler Dealers
When GMAC Bailed, SBA Loan Saved Mont. Store
GM May Review Opel Sale After EU Questions German Aid
J.D. Power Says Automakers Can Earn Profits at Lower Sales Levels
Top Stories
Vote on Amendment to Exclude Dealers from CFPA Regulation Expected Tuesday

WASHINGTON – A critical vote in the House Financial Services Committee on an amendment to exclude auto dealers from Consumer Finance Protection Agency (CFPA) regulation is expected as early as Tuesday.

NADA supports an amendment to H.R. 3126 offered by Rep. John Campbell, R-Calif., which would not subject motor vehicle dealers to regulation by the proposed CFPA, but would maintain existing consumer protection regulations administered by the Federal Reserve, the FTC and other state regulations.

NADA’s legislative office is strongly urging dealers to call their Representatives today and urge them to vote in favor of the Campbell Amendment. The legislative office lists these as the key points to make with lawmakers:

  • Financial reform legislation should focus on what led to an economic crash last year. Auto dealers did not cause the credit meltdown.
  • Effective federal and state laws governing dealer-assisted financing already exist.
  • CFPA jurisdiction over auto dealers is unnecessary since the banks and finance companies that originate auto loans that dealers arrange will be regulated.
  • The Campbell Amendment reflects the policy goals of Chairman Barney Frank’s Sept. 22 memo that auto dealers should not fall under CFPA regulation.

House Members can be reached through the Capitol switchboard at (202) 225-3121. Click here for the list of committee members. Click here for the lead editorial in this week’s edition of Automotive News under the headline, “Don’t Impose More Federal Oversight on Dealer Loans.”
Source: NADA Newswire

[back to top]

Dispute Between Chrysler Financial, GMAC Traps Chrysler Dealers

An undetermined number of Chrysler Group LLC dealers are at risk of closure within a month, caught in a dispute between their former finance company and their new lender. Imperiled dealers are those with mortgages and capital loans with former captive finance company Chrysler Financial but who need a line of credit from new lender GMAC Financial Services to buy vehicle stock with a wholesale or "floor plan" loan. They have temporary financing but face a mid-November deadline to secure permanent financing to stay in business. "Everybody's nervous," said Jim Arrigo, a Florida dealer and co-chairman of the Chrysler Dealer Council. "There is a large group of dealers waiting to see if they can get refinanced."
Source: The Detroit News

[back to top]

When GMAC Bailed, SBA Loan Saved Mont. Store

On Aug. 20, Robin Vert-Rubel's small Chevrolet-Pontiac dealership in Polson, Mont., was approved for a $1.3 million floorplan loan backed by the U.S. Small Business Administration. The loan arrived just days before she would have had to close her dealership. The crisis began June 1 when Mission Valley Auto's former floorplan lender, GMAC Financial Services, told Vert-Rubel it was reducing the dealership's new- and used-vehicle credit lines and significantly increasing the wholesale interest rate. "I would have had to go out of business or become a used-car store," says Vert-Rubel, a second-generation dealer. "I knew my only hope was to make this SBA program work through my local bank. Vert-Rubel obtained her floorplan financing loan ... under a federal pilot program started in May to help struggling dealerships find inventory financing. As of Thursday, Oct. 15, 14 dealerships had been approved for loans totaling $16 million under the program, including Mission Valley Auto, SBA spokesman Mike Stamler says.
Source: Automotive News

[back to top]

GM May Review Opel Sale After EU Questions German Aid

General Motors Co. could retreat from a decision to sell a majority of its Opel unit to a group led by Canadian car-parts maker Magna International Inc., according to a person familiar with the situation. The European Union is challenging the deal, saying it’s concerned that Germany may have influenced the outcome by agreeing to back Magna’s purchase with 4.5 billion euros ($6.7 billion) in loans and guarantees.
Source: Bloomberg

[back to top]

J.D. Power Says Automakers Can Earn Profits at Lower Sales Levels

Domestic automakers have cut costs so much that they can break even next year, even if U.S. industry sales were to fall by 2 million cars and trucks below expectations. That's according to a forecast at J.D. Power and Associates' Automotive Internet Roundtable, meeting in Las Vegas this week.
Source: MLive.com

[back to top]

 
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
 
 

Did you know?

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

Be in the know
at the NADA convention Feb. 13-15.

 
Click Here

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.