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November 14, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Vote in Committee on Senate Tax Reform Bill Expected This Week
Early-Bird $100 Registration Discount for NADA Show Ends Friday; Five Hotels Sold Out
Dealership Employees in Central Ohio Raise $17,440 for NADA Foundationís Emergency Relief Fund
A Multibillion-Dollar Bet on One Question: Who Owns the Future of the Automobile?
Cadillac Expands Monthly Car Subscription Service to Dallas and Los Angeles
Toyota, Mazda Said to Narrow Choice to N. Carolina, Alabama
Senate Approves Trump Transportation Department Nominee
Subaru, Volvo and Nissan Execs Slated for NADA / J.D. Power Conference in Los Angeles on Nov. 28
Top Stories
Vote in Committee on Senate Tax Reform Bill Expected This Week

NADA urges Senate to include 100% deductibility of floor plan interest

Yesterday, the Senate Finance Committee began debate on its version of tax reform legislation. The debate in committee is expected to continue all week, with a vote expected as early as Thursday. If tax reform is enacted into law, it will be the first comprehensive reform of the tax code since 1986.

NADA has major concerns with the bill’s limitation on the deductibility of business interest, which includes floor plan interest, to 30% of adjustable taxable income. NADA urges dealers to call their Republican Senator(s) today and ask their Senator(s) to urge Senate Finance Committee chairman Orrin Hatch (R-Utah) to preserve 100 percent deductibility of floor plan financing.

Dealers are urged to call their Senator(s) at 202.225.3121. A list of Republican Senators can be found here.

Or, click here to be connected directly with your Senator(s).

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

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

  • The limitation on interest deductibility is 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.

  • 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.

The House tax reform bill (H.R. 1) includes a provision to preserve floor plan interest deductibility. NADA urges the Senate to include a similar provision in its tax reform legislation.
Source: NADA

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Early-Bird $100 Registration Discount for NADA Show Ends Friday; Five Hotels Sold Out

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



The four-day NADA Show 2018 (formerly the NADA Convention & Expo) runs from Thursday, March 22, to Sunday, March 25, in Las Vegas. NADA member dealers and managers who register by Friday, Nov. 17 will receive a $100 early-bird registration discount from the onsite rate.

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

It's the final week for dealers and 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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Dealership Employees in Central Ohio Raise $17,440 for NADA Foundationís Emergency Relief Fund

COLUMBUS, Ohio – When dealership employees at Performance Columbus in Central Ohio found out that dealership employees in Texas, Florida, Puerto Rico and California were hit hard by the recent hurricanes and wildfires, they decided to help.

Nearly 100 employees from the dealership locations of Honda Marysville, Performance Chrysler Jeep Dodge Ram in Columbus, and Performance Chrysler Jeep Dodge Ram in Delaware and Toyota Direct in Columbus donated $8,720 from their paychecks to the NADA Foundation’s Emergency Relief Fund. That amount was matched by the dealership group bringing the total to $17,440.

"When we brought up the idea of a company/associate match program to our group, I had no idea that we would be able to collectively come up with this large of a donation and be able to help at this level,” said Dealer Principal Bruce Daniels.

Since Hurricane Harvey in September 2017, more than $2.5 million has been donated to the NADA Foundation’s Emergency Relief Fund. Click here for the full article.
Source: NADA

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A Multibillion-Dollar Bet on One Question: Who Owns the Future of the Automobile?

SoftBank Group Corp.’s bid to take a stake of as much as $10 billion in Uber Technologies Inc. is a high-stakes bet on the future of the car industry. SoftBank’s billionaire founder, Masayoshi Son, aims to build a global network of ride-hailing companies with a lock on important markets that in the next 20 or 30 years could control fleets of vehicles and help dictate how people move around, say people briefed on his strategy.

But not everyone shares Mr. Son’s grand vision, even within the companies in which SoftBank has taken a stake. Companies including Google parent Alphabet Inc. and car makers such as Toyota Motor Corp. and Nissan Motor Co. have different ideas of how the future will unfold.

“The traditional business of building cars and selling cars and owning cars will continue,” Carlos Ghosn, chairman of the alliance between Nissan, Renault SA and Mitsubishi Motors Corp., said at a conference last week when asked about ride-hailing versus car ownership. “A lot of people think this is substitution. It’s not: It’s addition.”
Source: The Wall Street Journal

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Cadillac Expands Monthly Car Subscription Service to Dallas and Los Angeles

Cadillac is expanding its subscription car service to Los Angeles and Dallas, the company said Monday. Cadillac launched the month-to-month subscription service, called BOOK, in New York City earlier in 2017. It is one of a growing number of all-inclusive subscription services launched by companies luring car buyers who want the benefits of owning a car without the hassles of buying, maintaining and selling them.
Source: CNBC

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Toyota, Mazda Said to Narrow Choice to N. Carolina, Alabama

Alabama and North Carolina are the final states in the running to win a prized Toyota Motor Corp. and Mazda Motor Corp. joint car factory worth $1.6 billion, according to people familiar with the negotiations. Mazda and Toyota plan to announce their final choice by early next year, Akira Marumoto, Mazda’s executive vice president, told reporters in Tokyo earlier this month.
Source: Bloomberg

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Senate Approves Trump Transportation Department Nominee

The U.S. Senate voted Monday to approve a senior Transportation Department nominee and advance another nomination, after Republicans accused Democrats of blocking some nominees to push for funding of a New York area infrastructure project. Derek Kan, who was previously an official at San Francisco-based ride services company Lyft Inc., won confirmation to be undersecretary of transportation for policy on a 90-7 vote.
Source: Reuters

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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.

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
"When tragedy strikes, the entire dealer family comes together."

    -- NADA President and CEO Peter Welch, in an email thanking the dealership employees at Performance Columbus in Central Ohio, which raised nearly $17,500 for the NADA Foundation's Emergency Relief Fund, NADA Blog, Nov. 14

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