For optimal viewing through your web browser or PDA, click here.

SPONSORED BY
Click Here
NADA.org
Thursday, Jan. 14, 2010 RSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training
Top Stories
Rebuilding Floorplan Financing
Mulally Says Ford Must Continue Dealer Consolidation
Chrysler CEO: Sales Won't Improve Until June
U.S. Needs More Cash for Clunkers Boost?
Committed to Community: Shepherd Joins Ford in Scholarship Program
Top Stories
Rebuilding Floorplan Financing

Between the push to restore dealers’ rights, efforts to loosen up consumer financing, and what’s happening on the financial reform front, there is a campaign underway to restore a key industry lifeline: dealership financing. On the frontlines of this push are Doug Greenhaus and Paul Metrey. Greenhaus, (NADA) director of environment, health and safety, is at the forefront of the industry’s attempt to reopen dealer financing through the Small Business Administration (SBA), a federal agency that came to the industry’s aid during the 1980s recession. Metrey, director of regulatory affairs for the NADA, is leading the industry’s charge to reopen the asset-backed securities market, a key source for funding for many of the major players in the industry. He and his team were instrumental in making sure retail, lease and dealer financing were included in the Term Asset-Backed Securities Loan Facility (TALF), which was created in late 2008 and began making loans last March.

NADA’s effort to educate policy makers about the dealer business is the immediate goal, but the ultimate objective is to restore lender confidence in the auto business. As plans to restart auto finance began to materialize last fall, the NADA quickly deployed a strategy to keep dealers in the government’s attempt to rescue GM and Chrysler — efforts that went public when it testified before Congress last December. And while the association was successful in getting auto financing included in the TALF program, the impact of those efforts haven’t been felt until recently.
Source: F&I Magazine

Editor's note: "NADA has worked tirelessly to ensure that TALF money is available for floorplan and auto retail securitizations, and we're pleased to report these efforts have proven to be very successful," says Andy Koblenz, NADA vice president of legal and regulatory affairs. From August through December 2009, the TALF provided $2.6 billion to private investors for the purchase of floorplan ABS. During the period March through December 2009, the TALF also provided $11.8 billion to private investors for the purchase of auto retail ABS. In addition to providing these direct funds, the TALF loans were leveraged by private investors to purchase an additional $1.8 billion in floorplan ABS and an additional $31.1 billion in auto retail ABS during these periods. This massive infusion of liquidity into an extremely contracted credit market has allowed several finance sources to continue purchasing retail installment sales contracts from, and continue floorplan lending to, franchised car and truck dealers. 

Regarding the SBA pilot program, on November 16, NADA met with the SBA Administrator to discuss its recommendations and SBA indicated an intent to make some program modifications in the near future. The topic was also discussed at a small business credit summit hosted on November 18 by Treasury Secretary Geithner and SBA Administrator Mills. NADA continues to counsel many dealers on the SBA loan guarantee pilot program and has put on two Webinars, one designed for lenders and the second for prospective borrowers.

[back to top]

Mulally Says Ford Must Continue Dealer Consolidation

DETROIT -- Ford Motor Co. CEO Alan Mulally says the company still must work on dealership consolidation in metropolitan areas to complete the automaker's turnaround plan. Mulally did not give specifics as to how many dealerships Ford still needs to wind down to get the dealer body to the right level. At the end of last year, Ford says it had 3,553 dealerships in the United States vs. around 4,400 stores three years ago. The decline has come largely because of dealers cooperating to sell their stores or consolidate stores in various markets where there were too many dealerships. Mulally says that kind of cooperation must continue so that Ford's dealers are all more profitable.
Source: Automotive News

[back to top]

Chrysler CEO: Sales Won't Improve Until June

DETROIT -- Chrysler Group LLC's sales will continue to slump until around June when compared with last year's numbers because the company used big incentives early in 2009 to move cars and trucks as it headed toward bankruptcy protection, the company's CEO said Wednesday night. But Sergio Marchionne, who also is CEO of Italy's Fiat Group SpA, said Chrysler will survive until its product lineup is refreshed with new designs because it has $5 billion to $6 billion in cash reserves and is being frugal. "You know the concept of hibernation Canadian bears use?" he asked when fielding a question about how the company will make it through a sales slump with no new products coming in the immediate future.
Source: The Associated Press

[back to top]

U.S. Needs More Cash for Clunkers Boost?

DETROIT -- The U.S. needs a comprehensive manufacturing strategy and another auto sales boost that could be achieved by launching a more generous "cash for clunkers" program immediately, billionaire investor and supplier magnate Wilbur Ross said Wednesday. Ross, who has bought a number of suppliers to create International Automotive Components, said he would implement a new clunker trade-in incentive program tomorrow if he could. But it would be simpler with fewer time and other restrictions on the vehicles that can be traded in and would have to ensure dealers are paid promptly, he said at the Automotive News World Congress.
Source: The Detroit News

[back to top]

Committed to Community: Shepherd Joins Ford in Scholarship Program

Shepherd Team Auto Plaza President David Shepherd announced last week that the dealership will join Ford Motor Company in its ongoing commitment to the National FFA (youth) organization, (formerly known as the Future Farmers of America.) Ford has committed to a 13th year of the Built Ford Tough -- FFA collegiate scholarship program, which will award $1,000 scholarships to hundreds of FFA members, each co-sponsored by Ford Dealers such as Shepherd Team Auto Plaza. "We're pleased to be able to support the local chapter and Ford Motor Company in its strong commitment to the National FFA," Shepherd said. "Visit any local farm and you can see that trucks ... play an integral role in the agricultural industry. We want to help these future leaders succeed ..."
Source: The Fort Scott Tribune

Editor's note: If you have a story about involvement in your community, send it to publicaffairs@nada.org.

[back to top]

 
Quotable
 
"NADA has worked tirelessly to ensure that TALF money is available for floorplan and auto retail securitizations, and we're pleased to report these efforts have proven to be very successful."

    -- Andy Koblenz, NADA vice president of legal and regulatory affairs, on the association's efforts to improve auto financing, NADA Newswire, Jan. 14
2010 Convention
 


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

Did you know?

Pre-Registration Ends in 1 Day!

Register today! For more information, contact expo@nada.org.

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

CLICK HERE FOR MORE CONVENTION STORIES.


 

Get More from Your Technology in 2010 with HP

• 5% off select desktop, notebook, and workstation purchases over $299
• 10% off select desktop, notebook, and workstation purchases over $999
• $1,000 in free solutions, services, and software with every hardware purchase
• 0% HP financing -- keep your cash and still update your technology

And, for a limited time, upgrade to free two-day shipping. Offer expires Jan. 31. Terms and conditions apply. To learn more about these and other specials offered to NADA members, visit NADA's PC Purchase Program site (member log in required).



Savings from Lenovo

Lenovo is inviting NADA members to start the new year with feature-rich, high-quality Lenovo notebooks designed for the way dealerships work. NADA members and and their staff can save up to 35% on Lenovo notebooks, and 10% on select ThinkPad laptops, such as the new Lenovo ThinkPad Edge. To learn more about these and other specials offered to NADA members, visit NADA's PC Purchase Program site (member log in required).

Click Here
Search Back Issues | Unsubscribe | Subscribe | Manage your subscription | email us
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.