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Top Stories
Lawmakers Agree on Arbitration Plan for Rejected Dealers
NADA/ATAE Issue Joint Statement Supporting Dealer Rights Compromise
Congress Seeks Compromise on GM, Chrysler Dealers
Congress Plans Remedy in GM, Chrysler Dealer Dispute
NADA Issues Call-to-Action on Consumer Finance Legislation
Auto Exemption Stirs CFPA Debate
NADA Marketplace
NADA Offers Dealers an Extra Incentive to Attend Upcoming Convention
Follow NADART on Twitter
Top Stories
Lawmakers Agree on Arbitration Plan for Rejected Dealers

NADA, ousted retailer group support proposal
WASHINGTON -- House and Senate leaders agreed to a legislative proposal to give rejected General Motors Co. and Chrysler Group dealers access to third-party arbitration under criteria broader than that planned by the automakers. House Majority Leader Steny Hoyer, D-Md., and Assistant Senate Majority Leader Dick Durbin, D-Ill, said late Tuesday that the bill would require arbitrators to balance the economic interests of dealers, the companies and the public. Dealers who appeal their termination and win in arbitration would receive a letter of reinstatement from GM or Chrysler within seven business days of the arbitrator’s decision, the joint statement said. The bill -- whose enactment is now virtually assured -- is to be attached to a ... measure and considered by a conference committee of congressional leaders this week. It then will be submitted for final votes by the House and Senate before going to the White House for President Barack Obama’s signature.

The agreement was praised by the National Automobile Dealers Association and the Committee to Restore Dealer Rights ... NADA said in its statement that the bill would “provide a fair process to address dealer concerns about the recent closure of General Motors and Chrysler dealerships.” The legislative agreement contains no compensation for rejected dealerships.
Source: Automotive News

Editor's note: Click here for the press release from the Office of the Majority Leader Steny Hoyer, "Hoyer, Durbin Announce Plan to Resolve Disputes with Terminated Auto Dealers."

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NADA/ATAE Issue Joint Statement Supporting Dealer Rights Compromise

WASHINGTON -- The National Automobile Dealers Association (NADA) and the Automotive Trade Association Executives (ATAE) support the compromise agreed to (Tuesday) evening by House and Senate leaders in conference committee negotiations on an auto dealer rights' amendment, sponsored by Steve LaTourette, R-Ohio, which will provide a fair process to address dealer concerns about the recent closures of General Motors and Chrysler dealerships.

The compromise agreement will give affected dealers transparency and the right to arbitrate to regain their dealerships. The arbitrator will balance the interests of the dealer, the manufacturer and the public to reach a decision about whether the dealer should be added to the dealer network. 

NADA and ATAE extend their appreciation to Rep. LaTourette, who authored the original amendment, as well as Senate Majority Whip Richard Durbin, D-Ill.; House Majority Leader Steny Hoyer, D-Md.; Sen. Chuck Grassley, R-Iowa; Rep. Chris Van Hollen, D-Md.; Rep. Frank Kratovil, D-Md.; and Rep. Dan Maffei, D-N.Y., who have pursued dealer rights legislation for the past several months. 

These Members of Congress and their staffs have devoted substantial time and interest on behalf of the dealers. NADA and ATAE support prompt passage of the legislation which contains the revised LaTourette Amendment.
Source: NADA Newswire

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Congress Seeks Compromise on GM, Chrysler Dealers

House and Senate leaders proposed a compromise plan Tuesday to give shuttered General Motors and Chrysler dealers an appeals process to keep their showrooms open. Congressional aides said ... the bill would include language providing 789 Chrysler dealers closed in June and more than 1,350 GM dealers expected to be shut down next year an improved binding arbitration process to challenge the automakers' decisions. A compromise developed by Illinois Sen. Dick Durbin, the Senate majority whip, and House Majority Leader Steny Hoyer, D-Md., would require the arbitration panels to consider a broad range of circumstances, giving some car dealerships a better chance of surviving. "Closed dealerships across the country deserve a transparent review of their termination and the right to get back in business if they were terminated on faulty grounds," Durbin said in a statement.
Source: The Associated Press

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Congress Plans Remedy in GM, Chrysler Dealer Dispute

WASHINGTON -- General Motors and Chrysler would be forced to resolve disputes arising from their plans to close more than 2,000 dealerships, under a Congressional proposal agreed late on Tuesday. The congressional plan goes further than either company proposed last week in an effort to head off a legislative remedy. But lawmakers said they were careful not to undercut efforts by GM and Chrysler to return to profitability. Representative Chris Van Hollen, who helped spearhead the measure in Congress, told reporters that the initial proposals submitted by the companies did not go far enough, requiring lawmakers to intervene. "Profitable dealerships that were closed for possibly unfair reasons deserve the opportunity to hear why they were closed and discuss the merits of reopening with an independent arbitrator who can make a binding decision," (Rep. Steny) Hoyer said.
Source: Reuters

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NADA Issues Call-to-Action on Consumer Finance Legislation

WASHINGTON -- The U.S. House of Representatives may consider amendments, sponsored by either Rep. Mel Watt, D-N.C., or Rep. Bob Filner, D-Calif., to strip the auto dealer exemption from the Consumer Financial Protection Agency (CPFA) Act and replace it with language that would subject every auto dealer to CFPA regulation. The House Rules Committee is deciding today whether to allow a vote on the Watt or Filner amendments. NADA’s legislative office is urging dealers to call their Representatives today at (202) 225-3121 and ask them to oppose the Watt and/or Filner amendments.
Source: NADA Newswire

Editor’s note: Click here for the key arguments against the Filner or Watt amendments to H.R. 4173.

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Auto Exemption Stirs CFPA Debate

The debate over financial reform legislation at times can seem impenetrable to anyone without a finance degree, dealing as it does with arcane issues and terminology ... But there are still plenty of good old-fashioned lobbying fights under way. One of the most intense dust-ups involves auto dealers seeking to be exempt from oversight by the proposed consumer financial protection agency, which would police consumer financial products such as mortgages, bank accounts and credit cards. Represented by the National Automobile Dealers Association, the dealers are a powerful local force, and they flexed serious muscle to win an exemption in the House version of the CFPA bill, over the opposition of the committee’s powerful chairman, Rep. Barney Frank, D-Mass.

Dealers ... argue that they don’t underwrite loans, and the oversight by CFPA would be inappropriate. “We don’t underwrite loans; we facilitate the loans,” said Michael Harrington, chief legislative counsel at NADA. He likened a dealers’ role in financing to Lending Tree, an online service that connects borrowers with multiple lenders. In many cases, a dealer will send a customer’s application to six or seven lenders to get the best deal, a practice that is good for competition, Harrington argued.

The fight rages in the House and the Senate. In the House, the larger package of financial reform legislation heads to the floor this week. In the Senate, negotiations over the bill are ongoing, and no one’s quite sure what the consumer protection piece will look like. But NADA is already working with Sen. Jon Tester, D-Mont., a member of the Banking, Housing and Urban Affairs Committee, on an amendment to carve out auto dealers from the CFPA. NADA also argues that auto dealers had nothing to do with the financial crisis that has spurred the new legislation and thus should not be subjected to its rules.
Source: Politico

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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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Follow NADART on Twitter

Did you know that NADA Retirement Administrators, Inc. (NADART) is on Twitter? NADART provides its followers with the latest information that will benefit the administration of any type of retirement plan, as well as assist plan participants as they save for their future. Join in on the latest discussions concerning 401(k) and retirement savings plans and follow recent updates involving DOL and IRS regulations, new government initiatives, savings tips, available plan features and industry news by visiting www.Twitter.com/NADART.

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Quotable
 
"Closed dealerships across the country deserve a transparent review of their termination and the right to get back in business if they were terminated on faulty grounds."

   
-- Sen. Dick Durbin, D-Ill., the Senate majority whip, referring to a compromise plan Tuesday to give shuttered General Motors and Chrysler dealers an appeals process to keep their showrooms open, The Associated Press, Dec. 8


"It is imperative for both auto dealers and auto companies to have a transparent process that gives dealers a chance to make their case for remaining open, while respecting the companies need to return to profitability. This is a fair process that protects the rights of both sides."

   
-- House Majority Leader Steny Hoyer, D-Md., on the issue of reinstating terminated dealerships, Bloomberg, Dec. 9



The bill would "provide a fair process to address dealer concerns about the recent closure of General Motors and Chrysler dealerships."

    -- NADA, in a statement in support of the compromise measure, Automotive News, Dec. 9
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.


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