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Wednesday, Jan. 6, 2010 RSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training
Top Stories
Ford, Toyota, Honda Post Gains
Buick Sales Up 37.4%
GMAC Expects to Post $5 Billion Loss
Ford to Sell Debt Through Fed as Program Nears March Expiration
Car Buyers Get Protection Against Rebuilt Wrecks
Opinion: Car Dealers Respond
NADA Convention & Expo
National Time Magazine 'Dealer of the Year' to be Named at NADA Convention in Orlando
NADA University Set to Launch at Convention in February
NADA Offers Dealers $200 Voucher as an Extra Incentive for Attending Convention
NADA Enhances Convention Experience Through Social Media
Top Stories
Ford, Toyota, Honda Post Gains

GM declines, but an industrywide increase would mark first quarterly improvement in three years
Ford Motor Co., Toyota Motor Corp. and Honda Motor Co. posted U.S. sales gains in December that beat analysts' estimates as the industry showed signs of stabilizing after its worst year in almost three decades. Ford sales soared 33 percent, and Toyota jumped 32 percent. An industrywide increase for December would cap automakers' first quarterly improvement since the last three months of 2006, after October and November totals were little changed. The recession and bankruptcies at the predecessors of Detroit-based GM and Chrysler ravaged 2009 sales. Honda said U.S. deliveries increased 24 percent, and Nissan Motor Co. jumped 18 percent. The results reshuffled the industry rankings in the U.S., with Honda climbing past ... Chrysler and into fourth place for the first time in full-year sales.
Source: Bloomberg

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Buick Sales Up 37.4%

General Motors saw U.S. sales fall 6.1% in December compared with a year ago, but sales of its four core brands continue to gain momentum, the company announced (Tuesday). In all, GM ended the year with a U.S. sales total of 2.08 million cars and trucks, a decline of 30.1% compared to 2008. While overall sales were down for the month, GM touted a 7% retail sales increase compared to a year ago. Furthermore, the four brands GM is keeping — Chevrolet, Cadillac, GMC and Buick — were up 13% for the month, GM said. According to the company: Buick sales were up 37.4%, Cadillac sales were up 11.4% and GMC was up 4.8%. Chevrolet was down 1.5%. The bulk of the December sales decrease came from the four brands GM is getting rid of — Hummer, Pontiac, Saab and Saturn.
Source: Detroit Free Press

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GMAC Expects to Post $5 Billion Loss

Troubled auto lender GMAC on Tuesday said it expects to suffer a fourth-quarter loss of about $5 billion, mostly because of struggles in its mortgage division. The company said in an investor presentation that the loss is driven by a $3.8 billon pre-tax charge that largely reflects the decline in the value of its mortgage-related investments, which GMAC said it intends to sell. Tuesday's announcement came a week after the Detroit-based company received an additional $3.8 billion in federal aid. The additional aid highlighted both the company's ongoing struggles and its importance to the administration's efforts to revive the auto industry. GMAC is the largest lender to General Motors and Chrysler dealerships and to their customers.
Source: The Washington Post

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Ford to Sell Debt Through Fed as Program Nears March Expiration

Ford Motor Co. is relying on a Federal Reserve program to market securities backed by auto-dealer payments, showing that borrowers may still need U.S. help to issue asset-backed securities as debt markets heal. Ford’s finance arm plans to issue $500 million of the so-called floorplan bonds, linked to loans that finance cars on dealer lots. Offering that kind of debt without U.S. aid may be a “trickier proposition” than selling traditional securities backed by consumer payments, according to Barclays Capital. The Fed’s Term Asset-Backed Securities Loan Facility, which helped fuel sales of $178 billion of debt backed by consumer loans last year, is set to expire on March 31. While the U.S. has breathed life into the asset-backed market, some types of the debt still need support, said Michael Wade, head of asset-securitization origination in the Americas at Barclays Capital. “We’ve come so far and to pull it back now would remove the backstop,” said Wade, who is based in New York. “To say it’s solved all the problems is a little premature.”

The National Automobile Dealers Association, a trade group representing car and truck dealers, has urged the Fed to extend TALF for floorplan financing through December 2010. As much as $5.4 billion of the debt is due to refinance this year, and the financing remains “very scarce,” the McLean, Virginia-based group wrote in a Dec. 11 letter to the New York Fed. In TALF sales, investors can take out loans from the Fed to purchase top-rated securities.
Source: Bloomberg

Editor’s note: As previously reported, since the outset of the financial crisis, NADA has been aggressively working to ensure that the TALF was available to restore securitizations backed by both retail and dealer floorplan loans. Support of the TALF has been the centerpiece of NADA efforts to repair the dysfunctional credit markets and to ensure that adequate credit is available at both the retail and wholesale levels. "The success of these efforts has been extraordinary," says Andy Koblenz, NADA vice president of legal and regulatory affairs. From March through December 2009, finance sources were able to sell nearly $43 billion of TALF-eligible auto retail asset backed securities (ABS), which is more than any other asset class in the TALF program. From August through December, floorplan finance sources were able to sell $4.4 billion in TALF-eligible auto floorplan ABS. To help continue increasing liquidity into the floorplan ABS market, NADA has urged the Federal Reserve Bank of New York to extend the TALF program for floorplan ABS beyond its planned March expiration date.

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Car Buyers Get Protection Against Rebuilt Wrecks

After 17 years, National Motor Vehicle Title Information System went into effect Jan. 1, but Illinois opts out of the system
On New Year's Day a new federal system aimed at protecting consumers from buying rebuilt wrecks took full effect, only 17 years after the law requiring it was enacted. The National Motor Vehicle Title Information System requires all states, insurance companies and junkyards to report vehicles that were stolen or so badly damaged they were written off. Consumers can then check that database before buying a used vehicle. About 2.5 million vehicles are "totaled" each year, but about 1.5 million of them are fixed and returned to the road, according to the latest study done for the Department of Justice in 2001. Full participation will make it far harder for someone to take a vehicle so badly damaged its title was marked as "salvage" to another state to get a "washed" title that does not show the evidence of its history, federal officials say. Illinois is one of four states not yet participating in the new system. Illinois officials say they are not convinced the program is necessary, considering consumers can get the information from commercial services such as Carfax or Experian AutoCheck. (The others are Kansas, Mississippi, Oregon and the District of Columbia.)
Source: Chicago Tribune

Editor's note: NADA has championed efforts to better track severely damaged vehicles and was instrumental in pressing the Department of Justice (DOJ) to make the NMVTIS information publicly available. To help strengthen the NMVTIS data, the DOJ implemented NADA's recommendations to close several loopholes which would have allowed insurers to avoid disclosure of all their totaled vehicles to dealers and consumers. NADA is pleased with the expansion of NMVTIS but wants government data to be combined with vehicle history reports, so that the data is more user-friendly and more accessible for dealers and the public.

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Opinion: Car Dealers Respond
By John McEleney

John McEleney, chairman of the National Automobile Dealers Assn., says pending legislation would hurt consumers
With regard to "Car Dealers Could Get a Pass" (New Business, December 28 & January 4): Dealer-assisted financing of vehicle sales is already regulated by the Federal Reserve Board, the Federal Trade Commission, and state attorneys general. Auto financing will continue to be regulated by these agencies. Auto financing had nothing to do with the financial crisis, and the legislation pending in Congress should not penalize dealers with overregulation that would add costs to consumers. Many in Congress believe that re-regulation should focus on actual problems and not be used as a means to expand federal oversight power unnecessarily. This is why the House of Representatives exempted auto dealers from the jurisdiction of the proposed new consumer-protection agency.
Source: BusinessWeek

Editor's note: BusinessWeek published the above letter-to-the-editor from NADA Chairman John McEleney in response to an article that criticized the auto dealer exemption in proposed financial oversight legislation.

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NADA Convention & Expo
National Time Magazine 'Dealer of the Year' to be Named at NADA Convention in Orlando

NEW YORK -- Forty-five new-car dealers from around the country have been nominated for the national Time Magazine Dealer of the Year Award. The award is presented by Time Magazine in partnership with Goodyear. This is the 41st annual Time award recognizing dealers who exhibit exceptional business performance combined with distinguished community service. It will be presented during the opening session of the NADA Convention & Expo in Orlando on Saturday, Feb 13. A panel of faculty members from the University of Michigan’s Graduate School of Business Administration will select the winner. Click here for the list of nominees.
Source: NADA Newswire

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NADA University Set to Launch at Convention in February

NADA University, an unprecedented online education and cutting-edge resource for NADA and ATD dealer members to enhance their business performance, will launch at the NADA Convention & Expo in Orlando, Feb. 13-15. Demos and access credentials will be provided on site at the NADA University booth (#1801) and the NADA University studio. The launch will include substantial training and free services for members. LightSpeed VT, a global leader in interactive-based training systems focused on the auto industry, will deliver NADA University to users in both online and classroom-based solutions. NADA University encompasses four "Automotive Centers of Excellence," which are the NADA/ATD Academy, Learning Hub, 20 Group and Resource Toolbox. Click here for more details.
Source: NADA Newswire

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NADA Offers Dealers $200 Voucher as an Extra Incentive for Attending Convention

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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NADA Enhances Convention Experience Through Social Media

Follow the latest convention developments and interact with attendees, workshop presenters and exhibitors on LinkedIn, Facebook, Twitter and YouTube
To enhance the experience for attendees, NADA—for the first time—has launched a social media campaign using the popular LinkedIn, Facebook, Twitter and YouTube platforms. “By using these social media sites, dealers and exhibitors can get a head start on what to expect at the convention,” says Steve Pitt, NADA vice president of conventions and expositions. “Attendees will receive breaking news announcements. Dealers and their managers will also be able to interact online with instructors before workshops begin and get a jump-start on reviewing exhibitor products and services that can improve their businesses.” To follow convention developments on the social media sites, visit www.nada.org/convention and click on the icons.
Source: NADA Newswire

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Quotable
 
"People are waking up and realizing the world didn't end and are starting to return to showrooms. It's way too early to say the trend is pointing north, but if it continues this quarter, it's a positive sign."

   
-- Aaron Bragman, a forecaster at IHS Global Insight in Troy, Mich., on the uptick of U.S. auto sales in December, Bloomberg, Jan. 5
2010 Convention
 


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

Did you know?

NADA’s new online matchmaking program networkNOW! can connect you to nearly 400 exhibitors in 30 product categories, set up appointments and even create your own floor plan route at the convention. Access networkNOW! with the “Ecode” and Web address you received after registering. Once your profile is submitted, networkNOW! works 24/7 to match you with products and services that can help improve your business. And don’t forget, dealers and managers will receive a $200 voucher to spend on the expo floor. Register today! For more information, contact expo@nada.org.

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


 

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NADA For more information on NADA, visit www.nada.org or contact NADA, 8400 Westpark Drive, McLean, VA 22102. This email may contain an advertisement of NADA products and services. Any opinions or statements contained herein do not necessarily reflect the views of NADA. Factual errors are the responsibility of the listed publication. If you are a franchised new-car or -truck dealer and would like to become a member of NADA, please visit the Join NADA section of www.nada.org. Questions or comments concerning NADA Headlines content may be directed to media@nada.org.