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November 15, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Urgent Dealer Alert: Call Your Republican Senators TODAY
Early-Bird $100 Registration Discount for NADA Show Ends This Friday; Six Hotels Sold Out
Commerce Chief Says 'Some Sort' of NAFTA Deal Will Reach Trump
Ford Signals Cost-Cutting Will Avoid Layoffs, Plant Closures
Toyota Predicts End of Internal Combustion Engine by 2050
J.D. Power Ranks Ford Credit, Lincoln Automotive Financial Services Top Lenders in Customer Satisfaction
Empower Retirement Provides Investment Market Insight
Subaru, Volvo and Nissan Execs Slated for NADA / J.D. Power Conference in Los Angeles on Nov. 28
Top Stories
Urgent Dealer Alert: Call Your Republican Senators TODAY

Senate Tax Plan Severely Limits Deductibility of Floor Plan Financing

The Senate Finance Committee is debating its tax reform bill, which puts floor plan lending at risk.  The plan would limit the deductibility of business interest, including floor plan interest, to 30 percent of adjustable taxable income.  Imposing a rigid formula in the tax code is risky, especially when market rates are increasing from historic lows.

NADA has been working to have the Senate bill adopt the House language, which ensures that floor plan interest deductibility isn't repealed.  Late last night, a new version of the Senate tax reform bill was issued, and floor plan deductibility was still at risk.  

The Senate tax reform bill is expected to be voted on as early as Thursday.  Please call ASAP; Senators need to hear directly from you about the vital importance of floor plan financing to your business, customers and local community.

Floor plan financing should remain fully deductible in the senate tax bill because:

  • The business interest provision unfairly puts small businesses with high cost inventory at serious risk.  Floor plan financing is a specialized loan that helps provide affordable vehicle funding, and limiting its deductibility would disproportionately harm small-business dealers by substantially raising financing costs.

  • The bill treats dealers, generally closely held small businesses, the same as large corporations that choose debt over equity for tax purposes.  Franchised automobile dealers do not have access to equity markets and floor plan financing is a necessity, not a choice.

  • The bill as written is extremely damaging to small businesses and needs to be corrected to allow full deductibility of specialized loans such as floor plan loans.  The House tax reform bill (H.R. 1), recognizing that floor plan loans are different, limits business interest deductibility, but preserves full deductibility of floor plan financing for high cost inventory such as vehicles, farm equipment, etc.  This provision will exacerbate downturns in the business cycle.

Action Needed Now 

Call your Republican Senator(s) in Washington or their state office to ask them to urge Senate Finance Chairman Orrin Hatch (R-Utah) to ensure floor plan interest remains fully deductible.

To find your Senator, click here. 

For more information, contact Patrick Calpin, NADA Legislative Affairs, at 202.547.5500.
Source: NADA

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Early-Bird $100 Registration Discount for NADA Show Ends This Friday; Six 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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Commerce Chief Says 'Some Sort' of NAFTA Deal Will Reach Trump

U.S. Commerce Secretary Wilbur Ross said on Tuesday that he believes NAFTA negotiations will produce “some sort” of a deal for President Donald Trump to evaluate but repeated his warnings that the United States will walk away from the trade pact if key problems are unresolved.
Source: Reuters

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Ford Signals Cost-Cutting Will Avoid Layoffs, Plant Closures

When Ford Motor Co. went through its Way Forward restructuring a decade ago, it closed 14 plants and slashed tens of thousands of blue-collar jobs. But Joe Hinrichs, Ford's president of global operations, said Tuesday the company's latest effort to become more financially efficient won't involve any such actions.
Source: Automotive News

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Toyota Predicts End of Internal Combustion Engine by 2050

When it comes to the future of the internal combustion engine, Toyota has long been on the cutting edge. Consider how the company went out early and successfully with the Prius hybrid line of vehicles and how it has come to define the category with the largest market share by far of any hybrid model. Now, Seigo Kuzumaki, Toyota’s head of advanced R&D and engineering, is forecasting that the internal combustion engine will be dead as the principal form of vehicle power by 2050 and will power only about 10% of new vehicles as part of a hybrid system.
Source: Forbes

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J.D. Power Ranks Ford Credit, Lincoln Automotive Financial Services Top Lenders in Customer Satisfaction

Differences in the execution of the digital application process has contributed to a significant performance gap between top and bottom performing lenders, says J.D. Power’s latest U.S. Consumer Financing Satisfaction Study. The study measures overall customer satisfaction in the following categories: billing and payment process; onboarding process; phone contact; and website.
Source: Auto Remarketing

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Empower Retirement Provides Investment Market Insight

The third-quarter market commentary, courtesy of the NADA Retirement program from Empower Retirement, provides valuable insight into current market trends and general fund performance. Read the market commentary here. Learn more about the NADA Retirement program from Empower at nadaretirement.com.
Source: NADA

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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
"The Senate tax reform bill is expected to be voted on in committee as early as tomorrow. Senators need to hear directly from dealers about the vital importance of floor plan financing to their business and customers."

    -- Doug Knust, NADA Legislative Affairs Committee Chairman, Nov. 15

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