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Tuesday, Oct. 27, 2009 RSSSEND TO A FRIENDPRINT
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Top Stories
Fiat Models to Drive Chrysler
Dealerships at Risk in Dispute Over Financing
Jim Press Saga: A Hero Falls, Hard
Strong Yen Pulls More Auto Production to U.S.
New NADA Research Shows Overall Decrease in Dealership Satisfaction with Dealer System Providers
NADA Marketplace
Webinar Tomorrow to Address Dealers' Commercial Credit Issues
Red Flags Rules Enforcement to Begin on Nov. 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
Fiat Models to Drive Chrysler

New lineup will see return of Alfa Romeo, end of many Chryslers, Dodges and Jeeps
Four months after exiting bankruptcy, Chrysler Group LLC is about to unveil a product road map that relies heavily on vehicles from Italian partner Fiat SpA while abandoning many of the U.S. car maker's own models. The plan, due to be revealed Nov. 4, involves the return of Fiat's premium, sporty Alfa Romeo brand to the U.S. starting in 2012... Chrysler also will introduce to Americans the 500, Fiat's tiny car that is popular in Europe. Fiat and Chrysler also are working on several new vehicles with Fiat technology for the U.S., including a midsize Chrysler sedan slated to be released in 2012... Meantime, Chrysler is preparing to phase out many current models, including a number of Dodge cars, the Dodge Grand Caravan minivan and several Jeeps. Many Chrysler and Jeep models also will die. The Jeep Commander is slated to end next year. By 2012, the Chrysler PT Cruiser, Chrysler Sebring midsize sedan and Jeep Compass and Jeep Patriot SUVs all will exit the market.
Source: The Wall Street Journal

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Dealerships at Risk in Dispute Over Financing

Chrysler stores are caught in the middle
A conflict between Chrysler Financial and GMAC is threatening about 40 otherwise viable Chrysler, Jeep and Dodge dealerships with loss of financing and possibly foreclosure, according to the National Automobile Dealers Association. As part of Chrysler Group LLC's bankruptcy restructuring, the U.S. Treasury agreed to guarantee floor plan loans ... until Nov. 15, while GMAC absorbed the wholesale financing operations previously serviced by Chrysler Financial. GMAC has informed dealers it needs more collateral. For some dealers, the only way to raise the additional collateral is to draw on their mortgages. But Chrysler Financial, which holds the mortgages on some of these dealerships, has refused to relinquish its stake in those properties. "The parties have taken inconsistent positions and dealers are stuck in the middle," said Forrest McConnell, an official with NADA.
Source: Detroit Free Press

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Jim Press Saga: A Hero Falls, Hard

In June, after Fiat had taken control of Chrysler, the new owners sent Jim Press to Washington to defend Chrysler's quick, harsh closing of 789 dealerships. Privately, he had opposed both the scope and terms of the dealership closings. Soon after Press returned to Detroit, a highly placed Chrysler source says, he was fired. By some accounts, the seeds of Press' demise were sown before he set foot in his 15th-floor office at Chrysler headquarters in Auburn Hills, Mich.
Source: Automotive News

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Strong Yen Pulls More Auto Production to U.S.

TOKYO -- To combat the yen's profit-pounding surge against the dollar, Honda Motor Co. and Nissan Motor Co. are ready to shift more car production from Japan to the United States. Other Japanese automakers may join them, sparking a round of Japanese production increases in North America. "Without any doubt, our plants in Mexico will be fully used," (Nissan CEO Carlos Ghosn) said. "And the capacity in the United States is going to be much more used than in the past, not only for the U.S. market but even for export."
Source: Automotive News

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New NADA Research Shows Overall Decrease in Dealership Satisfaction with Dealer System Providers

Fewer dealers would recommend their DSP vendor
McLEAN, Va. – New research from the National Automobile Dealers Association’s Information Technology Committee shows that dealership satisfaction with Dealer System Provider (DSP) vendors declined significantly from the 2007 survey. DSP vendors develop and support dealership computer systems that assist dealers in managing their operations.

The 2009 survey, conducted for NADA by the automotive marketing research firm Friedman-Swift Associates in Cincinnati, Ohio, shows that only 72 percent of dealership personnel are satisfied overall with their DSP vendors in 2009 versus 79 percent in 2007. Fifty-three percent of dealership personnel in 2009 would recommend their DSP vendor to another dealership, slightly less than the 55 percent that said they would recommend their DSP vendor in 2007. “The survey highlights areas that are important to dealers and where there are opportunities for the DSP vendors to improve,” said Dick Malaise, NADA vice president and chief information officer. (Click here for the complete survey.)
Source: NADA Newswire

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NADA Marketplace
Webinar Tomorrow to Address Dealers' Commercial Credit Issues

NADA will present a Webinar tomorrow, 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 Nov. 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
 
"The parties have taken inconsistent positions and dealers are stuck in the middle."

   
-- Forrest McConnell, chairman of NADA's Regulatory Affairs Committee, on a conflict between Chrysler Financial and GMAC that is threatening about 40 otherwise viable Chrysler, Jeep and Dodge dealerships, Detroit Free Press, Oct. 27
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 attending 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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