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May 1, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
VW Diesel Deadline: Dealers Must Register by today, Monday, May 1
May 1 Deadline: IRS Notice 2016-66: Potential Pitfall for Dealerships in Captive or Reinsurance Programs
Despite Trump Uncertainty, So Far, So Good For Auto Sales
Auto Dealers Decide Cars Are Taking Up Too Much Prime Space
17 Million or Bust? Red Flags for Retailers
Ford's Hinrichs on How to Improve NAFTA
Two New Driven Guides Now Available at NADA University Online
Top Stories
VW Diesel Deadline: Dealers Must Register by today, Monday, May 1

The Federal Trade Commission has requested that NADA disseminate the following statement:

"The deadline for dealers to register for compensation under the Volkswagen diesel settlement is today, Monday, May 1, 2017. This applies to dealers that owned certain 3.0-liter Volkswagen, Audi and Porsche diesel cars as of September 18, 2015, or November 2, 2015, and sold them on or before January 31, 2017.
 
"Third-party "claims processing services" have contacted dealers with misleading – or false – information about the settlement. They claim to be able to get dealers more money or more favorable terms if dealers allow them to handle their claim(s). This is not true. Settlement amounts are determined by a court; so no one else can get a dealer a better deal. It's likely dealers will not get their money's worth from anyone promising to handle the claims process for them – and it may cost several thousand dollars to go through outside services.

"The claims process is straightforward. Dealers can register on their own at vwcourtsettlement.com. Again, dealers must register by today, Monday, May 1. If eligible dealers miss this deadline, they will not receive compensation."


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May 1 Deadline: IRS Notice 2016-66: Potential Pitfall for Dealerships in Captive or Reinsurance Programs
By Andy Weill

Important Non-Extendable May 1st Deadline Looms!

The Internal Revenue Service has been quite active with regard to perceived abuses in the area of microcaptive insurance. In particular, the IRS promulgated Notice 2016-66 in November 2016, designating certain microcaptive transactions to be “transactions of interest,” mandating certain reporting requirements. 

One of these reporting requirements has a non-extendable deadline of May 1, 2017. Counsel who know that their clients participate in captive or reinsurance programs should be mindful of this new development and advise clients accordingly. Click here for the full article.

Andy Weill is a principal with Weill & Mazer, a leading complex litigation firm in San Francisco. Weill’s practice includes complex business, tax and estate disputes across the nation.
Source: National Association of Dealer Counsel (NADC) Defender

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Despite Trump Uncertainty, So Far, So Good For Auto Sales

Despite uncertainty about where Trump Administration policies will ultimately shake out, U.S. GDP growth should increase this year, and that in turn should support strong auto sales, said Nariman Behravesh, chief economist for IHS Markit, at a recent auto industry conference. “The outlook is brighter, yet a lot more uncertain ... because of political and policy risks,” he said at the National Automobile Dealers Association/J.D. Power Automotive Forum [last] month, held in conjunction with the New York International Auto Show.
Source: Forbes.com

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Auto Dealers Decide Cars Are Taking Up Too Much Prime Space

Large chains opt to move merchandise to less-valuable real estate

AutoNation Inc., the largest seller of new vehicles in the U.S., is making a $500 million bet on the used-car business. To pay for it, the dealer chain is selling what has long been the industry’s most precious asset outside of the cars: property.
Source: The Wall Street Journal (Subscription required)

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17 Million or Bust? Red Flags for Retailers

Dealer execs wary of leasing, incentive, inventory levels

The industry has crossed the line into risky territory on automaker incentives, leasing levels and new-vehicle inventory, said AutoNation Inc. CEO Mike Jackson. His comments came as publicly traded dealership groups released mixed earnings results for the first quarter. While other executives didn't explicitly endorse Jackson's view, most indicated that incentives, leasing and new-vehicle stocks have reached or exceeded healthy limits.
Source: Automotive News

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Ford's Hinrichs on How to Improve NAFTA

Ford Motor Co. believes a modernization of the North American Free Trade Agreement should include protections against currency manipulation and a homologation of standards among the region's three countries.
Source: Automotive News

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Two New Driven Guides Now Available at NADA University Online

Driven guides are one of the most valuable complimentary benefits of NADA membership. These 100-plus publications discuss crucial aspects of dealership operations, as well as up-to-date legal compliance requirements. Two new guides have just been added to NADA University Online. Click the links below to access them.

Credit and Collection Checklists
(BM7)

How’s your bottom line? These checklists were designed to help dealers protect their dealerships’ financial health. They list sound practices to follow to get a grip on cash, checks, credit, billing and collection.

A Dealer Guide to Maintenance Menus
(SP15)

Using maintenance menus benefits dealerships and customers alike. Menus can make the service advisor’s job easier, increase revenues in the service department, and help customers become more informed about their vehicles. This guide covers printed and electronic menus, and the on-board diagnostics (OBD) system that service staff can use to access to provide customers with maintenance schedules specific to their vehicles.
Source: NADA Dealership Operations

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Quotable
"... we have three red lines that the industry in total is over on new vehicles."

    -- AutoNation CEO Mike Jackson, says the auto indutsry is in risky territory because of 30 percent leasing, incentives topping 10 percent of sticker prices, and inventories above a 70-day supply, Automotive News, May 1

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