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November 13, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
NADA Show 2018: New Name! New Dates! New Energy!
Floor Plan Interest Deductibility at Risk in Senate Finance Bill
Last Chance to Register for NADA Academy Seminar on Advanced Parts Management
Dealers Poised for Price-Fix Payments
Digital Auto Retailing Undergoing Another Transformation
Is Your Vehicle Under a Recall? Some Ideas for Getting the Word Out to Millions of Owners
Honda to Recall Vehicles with Improperly Installed Replacement Airbag Inflators
Supersize SUVs Fund EV, Self-Driving Car Development
Waymo Pushing Forward With Level 4 Self Driving Taxi Service
Subaru, Volvo and Nissan Execs Slated for NADA / J.D. Power Conference in Los Angeles on Nov. 28
Top Stories
NADA Show 2018: New Name! New Dates! New Energy!

The upcoming NADA Show in Las Vegas is an experience you can't get anywhere else.



Join us for the auto dealers' premier annual event from Thursday, March 22, to Sunday, March 25, in Las Vegas! The NADA Show 2018 will provide all of the opportunity and excitement of the NADA Convention and Expo, as it was formerly known. 

Register today and save $100; special "early bird" pricing ends this Friday, November 17.

We heard you: you love Las Vegas. That's why we're heading back there every other year. To get on the schedule for that popular destination, the show dates were moved from the regular January/February time frame to March/early April for a few more years. 

Here's what you'll experience at NADA Show 2018:

  • Revved-up digital program and focus on technology; 
  • Sold out Expo with more than 500 exhibitors with products and services;
  • More than 100 educational workshop sessions;
  • Exclusive dealer-franchise meetings with automaker executives;
  • Numerous networking opportunities; and
  • Dynamic lifestyle program.

It's the final week for dealers and their managers to receive the early-bird $100 registration discount. Rooms at the most popular hotels are filling up quickly. Five hotels in Las Vegas are already sold out. For more details or to register, click here.
Source: NADA

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Floor Plan Interest Deductibility at Risk in Senate Finance Bill

NADA urges Senate to include 100% deductibility, similar to H.R. 1

The Senate Finance Committee begins debate on its version of tax reform legislation today.  NADA has major concerns with the bill’s limitation on the deductibility of business interest, including floor plan interest, to 30 percent of adjustable taxable income.  NADA urges dealers to call their Senators today and ask for their Senator to urge Senate Finance Committee chairman Orrin Hatch (R-Utah) to preserve 100 percent deductibility of floor plan financing.  A similar provision to preserve full floor plan deductibility was included in the House tax reform bill (H.R. 1), which the House is expected to consider this week.  Dealers can call their Senator at 202.225.3121.  A list of Senate Finance Committee members can be found here.

Floor plan interest should remain fully deductible for the following reasons:

  • Automobile dealers contribute 18 percent of total retail sales nationally, so limiting the deductibility of floor plan interest could reduce growth and threaten jobs on Main Street.  Also, interest rates are increasing, and floor plan loan rates are not fixed.  Reducing interest deductibility of interest would exacerbate the negative economic consequences of any future downturn in the auto industry.

  • Almost 90 percent of the nation's franchised dealerships are closely held companies.  For these businesses, floor plan financing is a necessity, not a choice.  Without affordable floor plan loans, dealerships would not be able to finance sufficient inventory, because the average sales price of a new vehicle is more than $34,000.

  • The limitation on interest deductibility is apparently designed for companies that choose debt over equity for tax purposes, which is not the case for franchised automobile dealerships.  Most franchised automobile dealerships are family-owned small businesses and do not have access to public equity markets.

The House tax reform bill (H.R. 1), which the House is expected to consider this week, included a provision to preserve full floor plan deductibility for businesses – including car and truck dealers, RV dealers, motorcycle dealers, boat dealers and retailers or farm and manufacturing vehicles and equipment – that rely on floor plan financing to purchase expensive inventory for their showrooms.  NADA urges the Senate to include such a provision in its tax reform legislation.

A summary of the House tax reform bill of provisions affecting dealers can be found here.
Source: NADA

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Last Chance to Register for NADA Academy Seminar on Advanced Parts Management

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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Dealers Poised for Price-Fix Payments

Thousands of U.S. dealerships that overpaid for vehicles because of price fixing by suppliers are poised to receive a payoff. The dealerships will share in the settlements of an international investigation that snared 47 suppliers for rigging bids on parts over nearly two decades. But not all stores harmed by the scheme — which led to the largest antitrust investigation in U.S. history — will reap the benefits. About 8,000 dealerships in 29 states and the District of Columbia, representing every franchise, are eligible for compensation. More than 4,350 have filed claims to share in more than $335 million from about 50 supplier settlements, according to lawyers representing the dealerships.
Source: Automotive News

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Digital Auto Retailing Undergoing Another Transformation

For years, consumers have used the Internet to shop and research before going to the dealership. Now, industry people see the day coming soon when technology allows customers to readily do the full transaction – or something close to it – entirely online. That’s where auto retailing is headed. Just about all the industry players agree on that. But opinions vary as to the details, such as just how many consumers will want to buy a car on the Internet.
Source: WardsAuto

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Is Your Vehicle Under a Recall? Some Ideas for Getting the Word Out to Millions of Owners

Vehicle recalls are regularly in the news, warning of inadvertent airbag deployments, faulty door latches, even risks of fire, not to mention the ongoing Takata airbag recall that dwarfs all others. But the steady stream of recalls masks the fact that about 30% of recalled vehicles remain unrepaired on Amerca's roads, according to federal statistics.

Last year was a record for U.S. vehicle recalls — more than 53 million in 927 separate recalls — but those numbers are only the latest, with the total number of recalls increasing in each year back to 2011 when the number stood at 13.6 million, according to information from the National Highway Traffic Safety Administration.

The National Safety Council is working with Fiat Chrysler Automobiles and the National Automobile Dealers Association on a national outreach campaign to notify owners if their vehicles are under recall. The group has set up a website that redirects to the NHTSA web page where owners can check for recalls by entering their vehicle identification number.
Source: Detroit Free Press

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Honda to Recall Vehicles with Improperly Installed Replacement Airbag Inflators

Honda Motor Co. plans to inspect and replace or properly install replacement airbag inflators that have been improperly installed under an earlier recall, Automotive News has learned. The latest recall will expand on one issued in September in which replacement parts for Takata airbag inflators may have been improperly installed on 646 Honda vehicles. Both recalls affect only the passenger-side airbags.
Source: Automotive News

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Supersize SUVs Fund EV, Self-Driving Car Development

The death of giant, truck-based SUVs has been greatly exaggerated. On one hand, companies like Ford promote a narrative of the future with advanced EVs and robotic piloting. On the other hand, they are turning out ever-bigger SUVs. The reason is simple: Big SUVs are hugely profitable. And those profits finance development of advanced battery systems and robotic cars.
Source: The Detroit News

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Waymo Pushing Forward With Level 4 Self Driving Taxi Service

Waymo, the self driving arm of Alphabet which in turn is the parent company of Google, is feeling confident the autonomous cars it has created in cooperation with Chrysler are now ready for their first real world use without a human driver on board. After months of testing in and around Phoenix, Arizona, the company says it will soon be ready to begin allowing those cars to provide ride hailing services to paying customers in Chandler, a suburb of Phoenix.
Source: Gas2

Editor's note: Waymo CEO John Krafcik is scheduled to speak at NADA Show 2018 in Las Vegas next March. For more information or to register, click here.

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AutoConference LA -- Nov. 28
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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Quotable
"There is no one who could debate that the phase we’re in now with the Internet is transactional, as opposed to just shopping and educating before."

    -- Dale Pollak, founder of vAuto, a provider of inventory-management systems, WardsAuto, Nov. 10

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