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Top Stories
The Early Returns on the CFPA Vote
Lenders' Tug of War Leaves Dealers Without Stock
J.D. Power Sees U.S. Auto Sales Down 6 Percent in October
Ford Gains While Rivals Falter
Obama Wants Banks to Lend More to Small Businesses
NADA Marketplace
New Webinar on Oct. 28 to Address Dealers' Commercial Credit Issues
Red Flags Rules Enforcement to Begin on November 1
Webinar on Nov. 18 to Address New IRS Field Directive on UNICAP and What It Means for You!
Experient, Inc. is NADA's Official Housing Bureau for the NADA Convention
Top Stories
The Early Returns on the CFPA Vote

The battle over the consumer financial protection agency has already revealed who has the real political juice and who’s losing ground in the fight to rewrite the nation’s financial regulations. The National Automobile Dealers Association waged an intense grass-roots lobbying campaign to make most of its dealers exempt from the CFPA’s reach — and it showed. Democrats joined Republicans to overrule (Rep. Barney Frank’s) opposition to adopt the exemption for auto dealers on a 47-21 vote. An even more significant sign of the clout auto dealers have on Capitol Hill: When it became clear that the measure had enough votes to pass, at least five Democrats switched their “no” votes to “yes,” aligning themselves with their local auto dealers.
Source: Politico

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Lenders' Tug of War Leaves Dealers Without Stock

Chrysler Financial-GMAC spat delays floorplan financing
At least 41 Chrysler dealerships are caught in a legal tug of war that is preventing them from ordering new vehicles. The dealerships had inventory financing through Chrysler Financial, and they're trying to establish new floorplan credit lines with GMAC Financial Services. The National Automobile Dealers Association is working with dealers and the finance companies to help negotiate a deal between GMAC and Chrysler Financial that would help dealerships transfer their floorplan financing to GMAC. NADA fears the number affected could be larger than GMAC's current tally. GMAC "is still evaluating over 600 Chrysler dealers," says NADA attorney Bradley Miller. "Many could be subject to the same conflict."
Source: Automotive News

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J.D. Power Sees U.S. Auto Sales Down 6 Percent in October

DETROIT - October U.S. auto sales should be down about 6 percent from a year ago, marking the first single-digit monthly decline since May 2008, influential industry forecasting firm J.D. Power and Associates predicted on Friday. "While year-over-year comparisons benefit from a low selling base in October 2008, improvements in consumer confidence and credit are propelling the return to positive sales gains relative to last year," said Gary Dilts, senior vice president of global automotive operations at J.D. Power and Associates.
Source: Reuters

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Ford Gains While Rivals Falter

Car Maker Is Closer to Turning a Profit as its Market Share Rises
Ford Motor Co. has weathered the car industry's downturn better than many competitors. Now some analysts think the company has turned the corner so far it could report break-even results for its core North American operations or even an overall profit when it releases third-quarter earnings Nov. 2.
Source: The Wall Street Journal

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Obama Wants Banks to Lend More to Small Businesses

Banks should return the favor they received in their recent taxpayer-financed bailout by lending more money to small businesses, President Barack Obama said Saturday. In his weekly radio and Internet address, Obama said too many small business owners remain unable to get credit despite administration steps to jump-start lending, which was virtually frozen when the financial crisis took hold last year.
Source: The Associated Press

Editor's Note: NADA is working closely with the Obama administration and Congress to push for expedited implementation of the President's small business initiatives. Today NADA will file extensive comments with SBA suggesting modifications designed to get more lenders to participate in its Dealer Floor Plan program.

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NADA Marketplace
New Webinar on Oct. 28 to Address Dealers' Commercial Credit Issues

NADA will present a Webinar on Wednesday, Oct. 28 from 1-3 p.m. EDT, designed to suggest possible near-term solutions to current dealership commercial credit issues. A panel of representatives from the Small Business Administration (SBA), a dealership trade association, and the commercial lending community, as well as an automotive finance consultant, will review current credit concerns and how the SBA’s dealer floorplan (DFP) loan guarantee pilot program, among other solutions, can help.

While the Webinar’s emphasis will be on floorplan lending, other credit lines, including real estate loans, are expected to be discussed. Special attention will be paid to SBA’s 7(a) loan guarantee programs, including DFP loans. This Webinar is offered at a special reduced rate of $125. For more information or to register for “Credit in Crisis: Dealership Commercial Credit Concerns and Possible Solutions,” visit www.nada.org/seminars or call (800) 248-6232, ext. 7222#.
Source: NADA Newswire

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Red Flags Rules Enforcement to Begin on November 1

The FTC's "Red Flags Rule" became effective Jan. 1, 2008, and after several delays, the FTC will begin enforcing the Red Flags Rule against all entities subject to the enforcement authority of the FTC, including all auto dealers on Nov. 1, 2009. Many dealers have already implemented their Red Flags programs, but those who have not should review the NADA Guide "A Dealer Guide To The Red Flags and Address Discrepancy Rules: Protecting Against Identity Theft." Dealers should ensure compliance no later than Nov. 1, 2009 with all aspects of the Red Flags Rule, including the drafting and implementation of a written Identity Theft Prevention Program tailored to their dealership operations. Visit the sites below for more information:

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Webinar on Nov. 18 to Address New IRS Field Directive on UNICAP and What It Means for You!

NADA will present IRS Motor Vehicle Technical Advisor Terri Harris in a Webinar on the Uniform Capitalization Rules (UNICAP) directive on Wednesday, Nov. 18, from 1-3 p.m. EST. Here’s the background: On Sept. 15, the IRS Director for the Heavy Manufacturing and Transportation (HMT) Industry issued a memo that provides direction to IRS field examiners on how to conduct UNICAP audits at car and truck dealerships. The unofficial directive contains an audit toolkit and announces the suspension of new UNICAP audits through Dec. 31, 2010 to provide dealers with an opportunity to change their accounting methods in order to comply with a September 2007 Technical Advice Memorandum [TAM 200736026] that involved a franchised car dealer. The Industry Director issued the field directive to address the "high level of taxpayer noncompliance on this issue" and because it represents "the highest compliance risk" to the industry. So what does this mean for dealers?

NADA will tackle this issue in an interactive Webinar that will feature a powerpoint presentation by the IRS' Terri Harris. The program will be moderated by Paul Metrey, director of NADA's Regulatory Affairs. Thirty to 60 minutes of the Webinar will be devoted to Q & A. Cost of the Webinar is only $199 per computer connection. Registrants will have access to the Webinar recording for up to six months. Register online at www.nada.org/seminars or call (800) 248-6232, ext. 7273.
Source: NADA Newswire

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Experient, Inc. is NADA's Official Housing Bureau for the NADA Convention

NADA has made arrangements with Experient, Inc. to book hotel rooms for the upcoming NADA Convention & Expo in Orlando. NADA has NOT authorized any other organization or company to make hotel reservations for the convention. E-mails, phone calls or other communications from “Expo Marketing” or “Expo Housing” or any other third party are not being sent by NADA or on behalf of NADA. To register and reserve a hotel room for the convention, visit www.nada.org/convention.
Source: NADA Newswire

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Quotable
 
"Before Chrysler's bankruptcy, floorplan lenders used to cooperate when a dealer wanted to shift business over to a new lender. Chrysler Financial changed the rules in midstream."

    
-- Michael Charapp, a McLean, Va., dealer lawyer, Automotive News, Oct. 26
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?

As a bonus for registering for the NADA convention, you’ll receive Steve Miller’s Marketing Stimulus Package, which includes the seven-part video series, “Introduction to the Seven Foundational Concepts for a Successful Marketing Strategy” and once a week for 12 weeks you’ll also receive an e-mail with a link to valuable marketing tips, tactics or tools designed to help generate more prospects and customers.

Already registered? Check your e-mail for instructions to access these marketing tips. For more information or questions, contact
expo@nada.org.


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

 
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