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Wednesday, Jan. 27, 2010 RSSSEND TO A FRIENDPRINT
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Top Stories
Toyota Stops Production, Sales of 8 Models for Gas Pedal Problem
Ford Net May Be $2.65 Billion as Mulally Achieves 'Impossible'
Rejected Dealer Arbitration Filings Reach 1,550; Cases Set to Begin
G.M. Enters Agreement to Sell Saab to Spyker
Top Stories
Toyota Stops Production, Sales of 8 Models for Gas Pedal Problem

Toyota took the extraordinary step Tuesday of suspending the manufacture and sale of eight of its most popular models because of an unresolved mechanical flaw that might cause the accelerator to get perilously stuck in the depressed position.  John McEleney, chairman of the National Automobile Dealers Association and operator of a Toyota dealership for 37 years in Clinton, Iowa, said the timing of the halt in sales is unfortunate, given the industry's slump. "The massive recall will have a lot of impact," McEleney said. "Not being able to sell the cars ... is going to be very challenging in the environment we're in. But Toyota buyers are pretty loyal ... and I think a lot will come back in March, April and May." Tuesday's recall and sales suspension covered the following models and model years: the 2009-10 RAV4, 2009-10 Corolla, 2009-10 Matrix, 2005-10 Avalon, 2010 Highlander, 2007-10 Tundra, 2008-10 Sequoia and certain 2007-10 Camry models.
Source: The Washington Post

Editor's Note: NADA was in contact with Toyota throughout the day yesterday urging the manufacturer to clarify the situation for its dealers. NADA is continuing to work with Toyota to identify a plan to help dealers get through this. In the meantime, NADA is encouraging Toyota dealers to check to see if they have business interruption insurance, more specifically Contingent Business Interruption. Such a policy is designed to provide coverage when you have to suspend your business operations as a result of a covered loss to your independent supplier.

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Ford Net May Be $2.65 Billion as Mulally Achieves 'Impossible'

Ford Motor Co. may report 2009 net income of $2.65 billion tomorrow after overcoming the worst U.S. auto market in 27 years and avoiding a federal bailout. An annual profit would be the first for CEO Alan Mulally and ratify his strategy of developing new models such as the Fusion hybrid while slashing the North American workforce by about 47 percent since he joined Ford from Boeing Co. in late 2006. “This is a company that absolutely bled money in the last five years,” said Bernie McGinn, president of McGinn Investment Management of Alexandria, Va., which owns 320,000 Ford shares. “Mulally has done what had been considered impossible in a very short amount of time.” Mulally, 64, reiterated yesterday to reporters in Washington that Ford won’t be “solidly profitable” on an operating basis until 2011, saying he’ll give “updated guidance” once earnings are out.
Source: Bloomberg

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Rejected Dealer Arbitration Filings Reach 1,550; Cases Set to Begin

WASHINGTON -- Dealerships filed about 1,550 notices of their intent to seek arbitration as of yesterday's midnight deadline, setting the stage for proceedings to begin with the case-by-case selection of arbitrators. The 1,550 filings exceed by more than 50 percent the number predicted as recently as a week ago ... “For many of these dealers it's not even about the money," said Rep. Steven LaTourette, R-Ohio, who sponsored legislation last summer to reverse dealership terminations. "It's about jobs, fairness, decency and a message to government that you can't just rob someone of their life's work."
Source: Automotive News

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G.M. Enters Agreement to Sell Saab to Spyker

Saab, the Swedish automaker that seemed destined for the junkyard a month ago after its owner, General Motors, said it could not find a buyer, won a new lease on life Tuesday when G.M. agreed to sell Saab to a tiny Dutch maker of high-end sports cars. The buyer, Spyker Cars, will pay G.M. $74 million in cash and $326 million in preferred shares from the new Saab-Spyker entity. The deal is set to close by mid-February.
Source: The New York Times

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Quotable
 
"The massive recall will have a lot of impact. Not being able to sell the cars ... is going to be very challenging in the environment we're in. But Toyota buyers are pretty loyal ... and I think a lot will come back in March, April and May."

    -- NADA Chairman John McEleney and operator of a Toyota dealership for 37 years in Clinton, Iowa, on Toyota's announcement Tuesday to suspend the manufacture and sale of eight of its most popular models, The Washington Post, Jan. 27
2010 Convention
 


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

Advance Registration Deadline Extended to Jan. 27

To provide dealers and their managers with more time to sign up for the convention, the advance registration deadline — which includes a $50-$75 savings — has been extended to Wednesday, Jan. 27. If you have not yet registered, now is the time. Click here to r
egister today.

CLICK HERE FOR MORE CONVENTION STORIES.




REGULATORY UPDATES


 

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



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Out with the old -- and in with Lenovo's Enhanced Experience PCs featuring Windows® 7 productivity tools. Start the new year with feature-rich, high-quality Lenovo notebooks designed for the way you work. NADA members can save up to an additional 10% on select Thinkpad laptops with the eCoupon USXNEWYEAR. Lenovo has also introduced the new ThinkPad Edge. No fluff, just clean lines and bold color options foreshadowing the robust ThinkPad performance inside. To learn more about these specials, visit NADA's PC Purchase Program site (member log in required).

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