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Tuesday, Dec. 8, 2009 RSSSEND TO A FRIENDPRINT
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Top Stories
House Leaders Craft New Bill for Rejected Dealers
Fight Over GM, Chrysler Dealer Closings Revs Up in D.C.
Analyst Questions Massive Dealership Closings
US House Ponders Range Of Changes To Financial Oversight Bill
EPA Is Preparing to Regulate Emissions in Congress's Stead
GM, Ford Gird for Small-Car Showdown as Consumers Shun SUVs
NADA Marketplace
NADA Offers Dealers an Extra Incentive to Attend Upcoming Convention
Top Stories
House Leaders Craft New Bill for Rejected Dealers

Measure would allow dealers to present any relevant information in arbitration
WASHINGTON -- House leaders crafted a bill over the weekend that would provide third-party arbitration for rejected General Motors Co. and Chrysler Group dealerships using criteria more favorable to dealers than those proposed by the automakers last week. The legislation, which is being forwarded to Senate leaders for consideration, would allow dealers who want to appeal their closures to “present any kind of relevant information during the arbitration,” a copy of the new bill shows.

The goal is to have both the House and Senate approve the final spending measure, with the dealer amendment attached, and send it to President Barack Obama by Christmas recess, a House aide said. Dealer advocates have criticized the automakers' criteria as circular and self-fulfilling and guaranteed to ensure that few franchises will be restored. House Majority Leader Steny Hoyer, D-Md., and Rep. Chris Van Hollen, D-Md., assistant to Speaker Nancy Pelosi, led the drafting of the new bill, a congressional aide said. “The revisions reflect the goals pursued by NADA for the past several months on dealer rights ...” NADA worked with House staff this weekend on crafting the new measure ...
Source: Automotive News

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Fight Over GM, Chrysler Dealer Closings Revs Up in D.C.

WASHINGTON -- The battle over the closing of more than 2,000 General Motors and Chrysler dealers isn't over yet. Rep. Steve LaTourette, R-Ohio, is working on an amendment to a financial services bill that would provide more favorable arbitration rights to dealers but take away compensation they had sought to help them wind down their operations. Dealers want independent arbitration panels to be able to consider more than what automakers propose. Chrysler CEO Sergio Marchionne said Monday in Washington that the company had offered as much as it could do. "It's a fair solution for what has been an unnecessarily thorny issue," Marchionne said at an appearance here, declining to comment on the new legislative proposal. The National Automobile Dealers Association supports the legislative efforts. "NADA supports this approach unless GM and Chrysler agree to an alternative that addresses dealer concerns," it said in a statement. "The revised amendment would give affected dealers transparency and the right to arbitrate. The arbitrator would balance the interests of the dealer, the manufacturer and the general public ..."
Source: The Detroit News

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Analyst Questions Massive Dealership Closings

In good conscience, David Cole says he can't just sit and watch what looks like the dismantling of the U.S. auto industry, at least where General Motors Co. and Chrysler Group LCC are concerned. Cole has become an advocate for dealer rights and restoring closed franchises, not an area in which he normally gets involved as a respected auto analyst, chairman of the Center for Automotive Research in Ann Arbor, Mich., and son of the late Ed Cole, a former GM president. "When I looked at (the auto makers') plans to reduce dealers, it didn't have any common sense to it," he says. He is especially concerned about the closings of midsize and rural dealers and the impact this will have on sales and market share. Cole says faulty logic is inherent in shuttering nearly 40% of GM's retail sales force and a significant portion of Chrysler dealers. "Brand elimination and dealer elimination will both prove to be negatives" in keeping or growing market share, he says. Hit by steep domestic industry losses, Cole believes GM and Chrysler are losing focus on smaller and midsize markets, and that will haunt them in years to come by eroding market share even further.
Source: WardsAuto.com

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US House Ponders Range Of Changes To Financial Oversight Bill

WASHINGTON -- U.S. House lawmakers on Monday submitted a host of amendments that, if enacted, would make fundamental changes to the financial regulatory overhaul legislation scheduled to be considered this week by the House of Representatives. Not all of the amendments being sought to the 1200-plus page bill will receive an up-or-down vote in the House of Representatives; a panel will meet over the next two days to determine which will actually be debated on the House floor. Both Democrats and Republicans are seeking adjustments small and large that could either broaden or reduce the ability of regulators to protect consumers, assess fees against certain firms, and deal with future financial crises. Other changes include carveouts for certain groups, such as credit unions, that are popular among many lawmakers.
Source: Dow Jones

Editor's note: The House is expected to debate the Consumer Financial Protection Agency Act (H.R. 4173) this week. Previously, dealers supported an amendment in committee offered by Rep. John Campbell, R-Calif., that excluded dealers from the jurisdiction of the new agency, and maintained regulation of auto dealers at the Federal Trade Commission and Federal Reserve Board. It is likely that an amendment to strip or nullify the Campbell amendment will be offered on the House floor by either Rep. Bob Filner, D-Calif., or Rep. Mel Watt, D-N.C. NADA strongly opposes the Filner and Watt amendments. Due to the speed at which the House is proceeding on this legislation, dealers should be on alert for notices from NADA regarding these potential amendments.

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EPA Is Preparing to Regulate Emissions in Congress's Stead

The Obama administration moved closer Monday to issuing regulations on greenhouse gases, a step that would enable it to limit emissions across the economy even if Congress does not pass climate legislation. The move, which coincided with the first day of the international climate summit in Copenhagen, seemed timed to reassure delegates there that the United States is committed to reducing its emissions even if domestic legislation remains bogged down. But it provoked condemnation from key Republicans and from U.S. business groups, which vowed to tie up any regulations in litigation. In Monday's much-anticipated announcement, the Environmental Protection Agency said that six gases, including carbon dioxide and methane, pose a danger to the environment and the health of Americans and that the agency would start drawing up regulations to reduce those emissions.
Source: The Washington Post

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GM, Ford Gird for Small-Car Showdown as Consumers Shun SUVs

Gone are the days of relying solely on boasts about towing capacities and horsepower to move the metal. Ford and Chevy dealers soon will start talking more about fuel economy and iPod outlets as the companies roll out new compact and subcompact cars. To prepare, the dealers are remodeling their stores to be more customer-friendly and are becoming more adept online, hoping to connect with car shoppers through social-networking campaigns and email.
Source: The Wall Street Journal

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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
 
"When I looked at (the auto makers') plans to reduce dealers, it didn't have any common sense to it. Brand elimination and dealer elimination will both prove to be negatives" in keeping or growing market share.

   
-- David Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich., WardsAuto.com, Dec. 8
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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