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Top Stories
GM, Chrysler to Arbitrate Dealership Shutdown Appeals; NADA Balks
Ex-Auto Dealers May Get Reprieve
GM, Chrysler Propose to Resolve Dealer Claims
GM, Chrysler Agree to Reconsider Dealer Closings
Van Hollen: GM, Chrysler Efforts on Dealers 'Fall Far Short'
Automakers Reconsider Dealer Closings
NADA Statement on GM Plan to Address Dealer Closings
NADA Statement on Chrysler's Plan to Address Dealership Closings
House Votes to Make Current Estate Tax Permanent
NADA Marketplace
NADA Offers Dealers an Extra Incentive to Attend Upcoming Convention
Top Stories
GM, Chrysler to Arbitrate Dealership Shutdown Appeals; NADA Balks

Some retailers likely to be reinstated, GM says
WASHINGTON -- General Motors Co. and Chrysler Group said they plan to institute binding arbitration for rejected dealerships in an attempt to settle talks with dealer groups. GM said in a statement (Thursday) that this plan would likely lead to some reinstatements while saying that result would hinge on the halt of legislation to reverse dealer terminations. Both the National Automobile Dealers Association and a group of rejected dealers said the automakers' proposals were inadequate. “GM's announced plan to address the issue of dealership closings is a positive step, but we do not believe it establishes a sufficiently meaningful process that provides for a reasonable opportunity for dealer reinstatement,” NADA said.
Source: Automotive News

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Ex-Auto Dealers May Get Reprieve

But few GM, Chrysler stores expected to be revived
General Motors Co. and Chrysler Group LLC, facing pressure from Congress, offered Thursday to reconsider the closures of more than 3,000 dealerships, but the announcement inflamed an already-toxic distrust between the automakers and their former retailers. Beginning after Dec. 10, the automakers said they will let the rejected dealers plead their cases before an independent panel. The companies are to explain the criteria they used to decide who to reject. The dealer can rebut the finding. Only if the panel rules in the dealer's favor will the dealer have a chance to get the franchise back, but not necessarily at the former location. But dealers doubt the offer would restore more than a handful of stores. "I want to throw up," said Jeffrey Tamaroff, who was forced to close his family's Southfield Dodge dealership. "They want us to sit in front of a review panel, all of whom will be sitting there with folded arms waiting for us to finish, then they will say 'Next.' It is really cruel."
Source: Detroit Free Press

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GM, Chrysler Propose to Resolve Dealer Claims

WASHINGTON -- General Motors Co and Chrysler proposed steps on Thursday to resolve complaints from terminated dealerships and head off potential congressional intervention. A major dealer group, however, was not satisfied with the GM proposal and said Chrysler, which is now run by Italy's Fiat, needed to clarify aspects of its plan. "We (will) continue to work with Congress on the pending 'dealer rights' legislation in the event a non-legislative solution cannot be achieved," the National Automobile Dealers Association (NADA) said in a statement.
Source: Reuters

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GM, Chrysler Agree to Reconsider Dealer Closings

WASHINGTON — General Motors Co. and Chrysler will reconsider decisions to close thousands of dealerships as part of a compromise meant to stave off federal legislation that would require them to keep the showrooms open. Dealer groups and a key lawmaker questioned the automakers' latest plans, however, opening the possibility of Congress considering the dealer legislation anyway. Legislation appears to still be a possibility. A spokeswoman for House Majority Leader Steny Hoyer, D-Md., who helped set up the talks, said that GM and Chrysler must give dealers broad leeway to prove that their franchises should remain open.
Source: The Associated Press

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Van Hollen: GM, Chrysler Efforts on Dealers 'Fall Far Short'

General Motors and Chrysler are clashing with senior House Democrats over plans announced Thursday on how to close thousands of auto dealerships. Rep. Chris Van Hollen, D-Md., said the plans "fall far short of what is needed. "I intend to redouble my efforts to enact legislation that will give auto dealers a fair and reasonable opportunity to get back into business, put people back to work, and help pump money back into America's car companies," he said. The House passed a bill earlier this year forcing the car companies to restore dealerships, but the measure never moved forward in the Senate. However, a senior Democratic aide said on Thursday that "legislative action is likely unless the companies offer a more comprehensive arbitration process."
Source: The Hill

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Automakers Reconsider Dealer Closings

GM, Chrysler may fear congressional involvement
General Motors and Chrysler said Thursday that they plan to revisit their decisions this spring to close more than 2,000 dealerships, indicating that some of the targeted locations could be allowed to stay open. The move comes in response to protests by scores of targeted dealers, who have vigorously fought the proposed closings with the help of industry groups (led by the National Automobile Dealers Association, Automotive Trade Association Executives, National Association of Minority Automobile Dealers and the Committee to Restore Dealer Rights.) "We just could not in good conscience accept the GM or Chrysler plans when they rely so much on flawed criteria and would make a mockery of the arbitration process," the Committee to Restore Dealer Rights said in a statement. "Under their plans, a dealer would have a better chance of winning the Powerball lottery than getting back in business."
Source: The Washington Post

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NADA Statement on GM Plan to Address Dealer Closings

McLEAN, Va. -- The following statement was issued by the National Automobile Dealers Association on the dealer rights issue:

“NADA appreciates the good faith and constructive dialogue we have had with GM as we try to build a consensus to ensure that GM and its dealer network are as successful as possible. GM’s announced plan to address the issue of dealership closings is a positive step, but we do not believe it establishes a sufficiently meaningful process that provides for a reasonable opportunity for dealer reinstatement. Our hope is that we can work expeditiously with GM to improve its proposal. We will also continue to work with Congress on the pending ‘dealer rights’ legislation in the event a non-legislative solution cannot be achieved on this important issue which affects thousands of people’s lives and their communities. All the parties concerned have a mutual interest in strengthening the long-term viability of GM and its dealer network.”
Source: NADA Newswire

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NADA Statement on Chrysler's Plan to Address Dealership Closings

McLEAN, Va. -- The following statement was issued by the National Automobile Dealers Association on the dealer rights issue:

"As was the case with GM, we appreciate the good faith and constructive dialogue we have had with Chrysler on achieving a non-legislative solution to restoring Chrysler dealerships closed through the Chrysler bankruptcy. The Chrysler statement issued (Thursday) to offer a 'Binding Independent Review Process for Discontinued Dealers' is positive in its recognition of the need for an appeals process, but, as always, the devil is in the details as to the criteria considered and the standard for review. Also, the statement appears to suggest that dealers could only be reinstated as 'Genesis' dealers with all Chrysler brands (Chrysler, Dodge, Jeep). We look forward to working with Chrysler to further understand the proposal and to ensure any appeals process is a meaningful one providing a reasonable opportunity for reinstatement of affected Chrysler dealers. Again, as was the case with GM, we also will continue to work with Congress on the pending 'dealer rights' legislation in the event a non-legislative solution cannot be achieved on this important issue which affects thousands of people’s jobs and lives in their communities. All parties concerned have a mutual interest in strengthening the long-term viability of Chrysler and its dealer network."
Source: NADA Newswire

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House Votes to Make Current Estate Tax Permanent

The House approved Thursday a measure making the current estate tax rate permanent, overcoming the objections of an unusual coalition of liberal and conservative critics. The bill passed, 225 to 200, with 26 Democrats joining all Republicans present to vote no. It would make permanent the current estate tax rate of 45 percent, with an exemption of $3.5 million per individual. If Congress does not act, the estate tax would disappear altogether in 2010, then return in 2011 under the higher rates -- 55 percent and a $1 million exemption -- that existed before President George W. Bush took office. The Senate faces a Dec. 31 deadline to address the issue, but it's not clear when that chamber will find the time to do so in the midst of its marathon health-care debate. It's also unclear whether the House's approach on the estate tax could garner the 60 votes necessary to move forward in the Senate. Senate Majority Leader Harry Reid, D-Nev., said Thursday that he had met with House leaders to figure out a way forward on the estate tax and other end-of-session priorities. Sens. Jon Kyl, R-Ariz., and Blanche Lincoln, D-Ark., are pushing a measure that would reduce the estate tax rate to 35 percent, with an exemption of $5 million per individual.
Source: The Washington Post

Editor's note: NADA supports the efforts of Sens. Lincoln and Kyl to find a permanent solution to the estate tax issue by raising the exemption to $5 million and lowering the rate to 35 percent. Dealers should urge their Senators to support the Lincoln-Kyl estate tax proposal when the measure is considered on the Senate floor in the coming weeks.

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NADA Marketplace
NADA Offers Dealers an Extra Incentive to Attend Upcoming Convention

McLEAN, Va. -- As an added incentive to attend NADA's upcoming Convention & Expo, all dealers and their managers will receive a $200 voucher when they check in at the convention in Orlando. The $200 voucher can be used to purchase any product or service from any exhibitor on the expo floor during the three-day convention, February 13-15, 2010. "During these challenging times, this is our way of showing our support for dealers around the country and the future of their businesses," says Steve Pitt, NADA vice president of conventions and expositions.
Source: NADA Newswire

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Quotable
 
The GM proposal was a "positive step" but did not create "a sufficiently meaningful process that provides for a reasonable opportunity for dealer reinstatement."

   
-- NADA, on the dealer rights issue, The Associated Press, Dec. 3


"I intend to redouble my efforts to enact legislation that will give auto dealers a fair and reasonable opportunity to get back into business, put people back to work, and help pump money back into America's car companies."

   
-- Rep. Christopher Van Hollen, D-Md., a harsh critic of dealer cuts who said Thursday plans by GM and Chrysler to review the closures "fall far short of what is needed," The Hill, Dec. 3

Video Highlights
 

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


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



NADA's 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
 


NADA Chairman: Convention is the 'Must-Attend Event'

Did you know?

All dealers and their managers who attend the NADA convention in Orlando, Feb. 13-15, will receive a $200 voucher at registration for the purchase of any product or service from any exhibitor on the expo floor. During these challenging times, this is NADA's way of demonstrating support for your business future. Register today! For more information or questions, contact expo@nada.org.

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


'Black Friday' Specials from HP

The HP Compaq dx7500 Business Desktop is just $449 and the HP StorageWorks RDX320 Removable Disk Backup System is now just $319 (a savings of $110). NADA members and dealership staff can take advantage of these offers until Dec. 8 by visiting NADA's PC Purchase Program site (member login required).


Holiday Savings From Lenovo

Lenovo continues to provide NADA members and their employees with exceptional pricing during the holiday season. Save up to 42 percent on select PC products. Lenovo's systems are designed for the way you work. To take advantage of this offer, visit NADA's PC Purchase Program site (member login required.) This offer expires Dec. 17.

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