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November 7, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Video: The NADA Visits Autoline
GOP Tax Bill Gets Modest Changes
Floor Plan Financing Should Remain Fully Deductible
Toyota Quarterly Profit Rises 10% as Currency Gains Offset Weaker U.S. Business
BMW Continues Drive to Win Premium Car Market Race
NADA / Junior Achievement Issue Call for Dealership Volunteers
Subaru, Volvo and Nissan Execs Slated for NADA / J.D. Power Conference in Los Angeles on Nov. 28
Expo at NADA Show 2018 in Las Vegas is Sold Out
Register Today for NADA Academy Seminar on Advanced Parts Management from Dec. 4-8
Top Stories
Video: The NADA Visits Autoline

 

Mark Scarpelli, 2017 chairman of the National Automobile Dealers Association, makes his annual pilgrimage to the Autoline THIS WEEK studio near Detroit to talk about sales, product, customers and how things look for 2018. The panel included Autoline host John McElroy, Steve Finlay from WardsAuto and Adrienne Roberts from the Wall Street Journal.
Source: Autoline

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GOP Tax Bill Gets Modest Changes

House Republicans on Monday again rejected President Trump’s push to use their tax bill to repeal a critical piece of the Affordable Care Act, instead making only modest changes to their legislation as they attempt to move it closer to a vote on the House floor. House Ways and Means Committee Chairman Kevin Brady (R-Texas) offered an amendment that would tweak the way the bill would tax the earnings of investment managers, cross-border transactions by multi-national corporations and the endowments of private universities.

The amendment did not make other, more costly changes to business taxation or repeal the Affordable Care Act’s insurance mandate, which requires most Americans to obtain some form of health insurance. The Senate Finance Committee is expected to unveil its version of a tax bill Thursday once the House committee’s proceedings end, according to multiple aides familiar with the plans, setting up its own markup next week.
Source: The Washington Post

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Floor Plan Financing Should Remain Fully Deductible

The House Ways and Means Committee markup of H.R. 1, the “Tax Cut and Jobs Act,” continues today.  NADA has concerns regarding a provision in H.R. 1 that caps interest deductibility at 30 percent of adjusted taxable income.  Because dealers rely exclusively on floor plan loans to buy expensive vehicle inventory from auto manufacturers, limiting business interest deductibility would make floor planning more expensive, which would negatively impact dealers, consumers, the auto industry, and the general economy.  The limitation on interest is apparently designed for companies that choose debt over equity for tax purposes.  This tax profile does not apply to the majority of dealers who are closely-held companies that use floor plan financing to fund vehicles and do not have access to public equity markets. 

In addition, the proposed small-business exemption of $25 million in receipts does not work for most dealers.  While most dealerships are family-owned small business, the average dealership has gross receipts of approximately $60 million annually because of the high cost of automobiles.  NADA continues to work with the Ways and Means Committee leadership to emphasize the importance of preserving full deductibility for dealer inventory financing.
Source: NADA

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Toyota Quarterly Profit Rises 10% as Currency Gains Offset Weaker U.S. Business

Toyota Motor's operating profit climbed 10 percent in the latest quarter as windfall gains from favorable foreign exchange rates offset weakening business in the key U.S. market, where rising incentives and falling wholesale volume dented regional profitability. In the U.S., Toyota struggled with a flood of vehicles coming off lease, rising incentives and a rush of consumers away from passenger cars toward to crossovers, SUVs and pickups.
Source: Automotive News

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BMW Continues Drive to Win Premium Car Market Race

Heavy investment in new technology weighs on profits in bid to stay ahead of rivals

German luxury car maker BMW AG raised its full-year earnings outlook Tuesday, despite stagnant revenue and a drop in earnings, as it invests in electric vehicles and self-driving car technology. BMW is competing in a tight race for global leadership of the premium car market with rivals Mercedes-Benz, owned by Daimler AG, and Volkswagen AG’s luxury unit Audi.
Source: The Wall Street Journal

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NADA / Junior Achievement Issue Call for Dealership Volunteers

Junior Achievement is hosting National Entrepreneurship Month (November 2017). It’s a time to honor and celebrate entrepreneurs all over the country. Junior Achievement, a partner with NADA’s Financial Literacy Program, is inviting dealer principals or designated dealership representatives to meet with high school students in the classroom in their community to share their story and inform students about entrepreneurship and career opportunities in the retail-automobile industry. The program requires one hour in the classroom, but could provide a lifetime impact in a student’s life.

To get involved with this initiative in your hometown community, contact Deb Stevens at dstevens@nada.org. To learn about other ways to volunteer through Junior Achievement and NADA’s Financial Literacy Program, visit www.nada.org/BeAHero.
Source: NADA

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AutoConference LA News
Subaru, Volvo and Nissan Execs Slated for NADA / J.D. Power Conference in Los Angeles on Nov. 28

Tom Doll, president and chief operating officer for Subaru of America, Anders Gustafsson, Volvo Cars USA’s new president and CEO and senior vice president for the Americas, and Jeremy Tucker, vice president of marketing communications and media for Nissan North America, are among the industry speakers at AutoConference LA on Tuesday, Nov. 28, 2017.

Doll

Gustafsson

Tucker

AutoConference LA, hosted by NADA and J.D. Power, will be held at the InterContinental Los Angeles Downtown, the tallest U.S. building west of Chicago. The half-day conference precedes media days at the Los Angeles Auto Show.

Other speakers include Mark Scarpelli, NADA chairman, Finbarr O’Neill, CEO and president of J.D. Power, as well as a panel discussion the future of autonomous vehicles and an analysis on auto retailing in the California market.

The conference starts with a noon luncheon and ends with a networking reception on the 73rd floor of the hotel, which offers unparalleled views of the cityscape and skyline of downtown Los Angeles. For the complete agenda or to register, visit www.autoconferencela.com.
Source: NADA

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NADA Show News
Expo at NADA Show 2018 in Las Vegas is Sold Out

Early-bird $100 registration discount for dealers and managers ends Nov. 17

More than 500 companies occupying 700,000-plus square feet in two halls at the Las Vegas Convention Center will be exhibiting at NADA Show 2018. The show runs from Thursday, March 22, to Sunday, March 25. For the full list of exhibitors, click here.

In addition, the sold out Expo includes the NADA Pavilion – showcasing all of NADA’s key member services; NADA 2018 Live Stage – broadcasting real time interviews and programs; NADA Social Connection Zone – offering daily mini sessions on the best digital tools and practices; Expo Theater – featuring live Las Vegas style entertainment; and NADA’s Lifestyle Program – featuring three pavilions: Relax, Explore and Excite.

Keynote speakers are Mark Scarpelli, 2017 NADA chairman, and Nick Saban, head coach at The University of Alabama (Friday’s general session); Wes Lutz, 2018 NADA chairman-elect, and John Krafcik, CEO of Waymo LLC (Saturday’s general session); and Robert O’Neill, team leader at Naval Special Warfare Development Group (Sunday’s inspirational session).

The NADA Show also offers educational training and networking opportunities for both dealers and their managers as dealer-franchise meetings.

Online registration for dealers and their managers, which includes an early-bird discount and hotel selection, is open. The early-bird $100 registration discount ends Nov. 17. Learn more at www.nadashow.org.
Source: NADA

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NADA Academy News
Register Today for NADA Academy Seminar on Advanced Parts Management from Dec. 4-8

The NADA Academy will be hosting a weeklong Advanced Parts Management seminar at Northwood University in Midland, Mich., from Dec. 4-8, 2017. Attendees will learn how to transform their parts department into a profitable operation by improving inventory, as well as discuss important topics like parts turn and fill rates.

Participants will analyze and discuss their dealership’s performance and walk away with the tools to make significant improvements. The key areas covered include: perfecting the mix, profit-centering, understanding customer needs, a deep DMS dive, case study and SWOT analysis, sharing best practices and more.

Space is limited. To register, click here. (NADA member log-in is required for registration.) For more information, call 800.557.6232 or send an email to academyseminars@nada.org.
Source: NADA

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Quotable
"We're car dealers. We build relationships."

    -- NADA Chairman Mark Scarpelli, Autoline THIS WEEK, Oct. 26

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