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October 10, 2016 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Dealers Deliver Mandate to Cadillac
Oct. 20 Webinar: Proposed IRS Regulations Seek to Limit Stock Values
VW Relief Package: It's Something
Keith Crain: Tesla Should Play by the Rules
Automaker's Success May Doom Push for Regulatory Break
Carmakers Prepare for More Aggressive Self-Driving Regs
Oct. 12 Webinar: CPO: The 'New' Used
Top Stories
Dealers Deliver Mandate to Cadillac

Nearly all of Cadillac's 925 U.S. dealerships signed up for its Project Pinnacle incentive program, giving brand chief Johan de Nysschen a strong mandate to revamp the retail network, even as significant opposition lingers under the surface. Dan Creed, Cadillac's vice president of sales operations, said dealers representing 98.7 percent of the brand's retail volume enrolled by the Sept. 30 deadline. The program, which changes the way dealers are paid for achieving sales targets and establishes tiers of performance requirements that vary depending on the dealership's size, begins Jan. 1.

Brian Maas, president of the California New Car Dealers Association, said dealers he spoke with about Project Pinnacle felt like they had to sign up to avoid putting their businesses at a huge disadvantage. "It sounds like a Soviet election to me. You're all required to show up and vote, but we only have one candidate," Maas said. "I think there are lots of Cadillac dealers in California and across the country who would say, "We did it under protest.'"
Source: Automotive News

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Oct. 20 Webinar: Proposed IRS Regulations Seek to Limit Stock Values

The IRS in August 2016 issued proposed regulations under IRC section 2704 that are intended to disallow or significantly curtail many valuation discounts used in estate planning. Learn about the impact of the new regulations on valuation reports and on intra-family transfers of dealership stock.

Explore actions to consider (with assistance from legal advisors) to take full advantage of discounts available under the current law and estate planning strategies available after the regulations take effect.

Date & Time:  1 p.m. ET, Thursday, Oct. 20, 2016
Presented by:  Marvin Hills and Stuart McCallum from Crowe Horwath, LLP
Duration:  60 minutes

Click here to register.
Source: NADA

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VW Relief Package: It's Something

Dealers are satisfied, but long-term effect is unclear

More than $1 billion will soon begin coursing through the Volkswagen retail network to compensate dealers for the hardships caused by the automaker's diesel scandal. Individual stores will get six- or seven-figure checks and other benefits to help them rebuild after 12 months of falling sales and dwindling franchise values. Whether that will make them whole is hard to tell. But retailers say the compensation represents a much-needed boost as they labor to move beyond the crisis.
Source: Automotive News


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Keith Crain: Tesla Should Play by the Rules

I don't like blackmail in business. Tesla Motors CEO Elon Musk is attempting to blackmail the governor of Michigan into making an exception for him. Two years ago, Michigan's Legislature tightened a law that bans direct sales of vehicles to consumers. Now Tesla has filed suit in federal court and also is threatening to withhold building a future plant in Michigan. A company executive said late last month that states that have made it difficult to sell cars are poor candidates for plant consideration. Sorry, folks, but Tesla has to learn to play by the rules sooner or later. The Michigan franchise law should not be amended. Michigan's franchise law for automobiles is good for the consumer. There are plenty of dealers and plenty of competition. But most important, the Michigan consumer is served far better than if factories represented themselves.
Source: Automotive News

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Automaker's Success May Doom Push for Regulatory Break

Automakers are aggressively lobbying the government to pull back on future CAFE standards and greenhouse gas emission regulations adopted in 2012

Since embracing tough new fuel economy standards in 2012 automakers have spent billions to develop more fuel efficient vehicles and have been so successful at meeting tougher regulations they've become victims of their own success. The problem is that government regulators say automakers have proven over the past four years they're able to meet tougher future standards. Without changes, automakers say the industry could lose sales, profits, cut jobs, fail in their effort to sell vehicles that cost more to consumers and, ultimately, fall short of reaching the environmental benefits the government is trying to achieve. "We are bumping up against this affordability limit with the consumer," said Jeff Carlson, chairman of the National Automobile Dealers Association. "If we can't sell the cars, if we can't clear the fleet, we are never going to get to the fuel economy targets."
Source: Detroit Free Press

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Carmakers Prepare for More Aggressive Self-Driving Regs

Auto companies are preparing for a future in which cars drive themselves — and federal regulators have to make sure they’re safe before they ever hit the road. Proposed guidance released by the U.S. Department of Transportation last month calls for automakers to meet 15 guidelines before they can put self-driving cars on public roads. The pre-checks are a sharp departure from the federal government’s typical posture of largely waiting for automakers to self-report problems before recalls are issued.
Source: The Detroit News

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Oct. 12 Webinar: CPO: The 'New' Used

Participants will discover opportunities for more qualified inventory and sales growth. Howard Polirer from Cox Automotive will discuss findings from the annual Autotrader CPO study and assess buyer trends, perceptions and customer engagement. Click here to register.

Time & Date:  1 p.m. ET, Wednesday, Oct. 12, 2016
Duration:
  30 minutes
Source: NADA

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Past Articles
       
      Quotable
      "We are bumping up against this affordability limit with the consumer. If we can't sell the cars, if we can't clear the fleet, we are never going to get to the fuel economy targets."

          -- NADA Chairman Jeff Carlson, commenting on the impact of new fuel economy standards on vehicle cost, Detroit Free Press, Oct. 8 


       
      "It's closure. The settlement was a big step in restoring dealer confidence by understanding that the dealer has some financial support coming his or her way so he can reset."


          -- Alan Brown, a partner in Lewisville Volkswagen and chairman of the brand's dealer council, commenting Volkswagen's plan to compensate dealers for the hardships caused by its diesel scandal, Automotive News, Oct. 10

       
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