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APRIL 27, 2010
IN THIS ISSUE
 DEALER NEWS & INFORMATION
– Automotive News at a Glance
REGULATORY & LEGAL UPDATES
– New Export Provision In Colorado Franchise Law
LEGISLATIVE UPDATE
– Legislators Rally Late In Session to Introduce Second Dealer Rights Bill
– Business Groups Defeat Visa Bill on the Floor of the Senate
UPCOMING SEMINARS
– FREE WEBINAR: Employee vs. Independent Contractor: How to Tell the Difference
– Are You Prepared to Service Hybrid Vehicles?
CALENDAR OF EVENTS
– Upcoming Events
– CADA 2010 Annual Golf Tournament
DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS
–Share Your Accomplishments
THE AFTERFACT
–All the News That's Fit to Email!
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& Legal Articles from the Open
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Outlook archives.
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STATE GOVERNMENT RESOURCES
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Registration section of the
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Motor Vehicles Division.
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Department of Labor &
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AUTOMOTIVE NEWS AT A GLANCE
Listed here are several articles pertaining to the
auto industry in general that appeared recently in newspapers and other media outlets across the nation.
- Chrysler sues Colorado over dealer law
Denver Business Journal, April 26
Chrysler Group LLC has sued the state of Colorado, claiming a new law that gives terminated dealers the right of first refusal if automakers want to reopen franchises that were closed in bankruptcy is unconstitutional.
- Obama hails auto industry turnaround in radio address
Detroit Free Press, April 24
President Barack Obama heralded signs of recovery at General Motors and Chrysler in his weekly radio address today, saying their rescues show the need for the financial reform bill that will come up for debate in the U.S. Senate this week.
- Obama: Auto bailout unpopular but right
The Detroit News, April 24
President Barack Obama touted the progress that General Motors Co. and Chrysler Group LLC have made in defending the government's $85 billion auto industry bailout.
- Buick shows star power in China
The Detroit News, April 23
The brand struggles with image problems at home, but Buick has been crucial to General Motors Co.'s success in China.
- Ford takes urban driving down a size
The Detroit News, April 23
The Ford Start Concept was designed with city dwellers and features the newest member of Ford's turbocharged, direct injection EcoBoost family: a 1-liter, three-cylinder inline engine.
- Ford ready to launch its funky Fiesta this summer
Detroit Free Press, April 26
With a tremendous amount of momentum on its side, Ford is preparing to launch a Fiesta subcompact this summer that completes a successful overhaul of the automaker's car lineup and aims to steal back the hearts of young buyers, many of whom drive Asian models.
- Dealers, Pentagon square off
Detroit Free Press, April 25
Car dealers have had great success over the years lobbying in state capitols and Washington, but they're up against a new opponent in their latest fight over regulation.
- Chevy breaks from longtime ad firm Campbell-Ewald
Detroit Free Press, April 24
In another painful blow to Detroit's advertising community, Chevrolet is ending its 90-year relationship with Campbell-Ewald, the agency that drummed "See the USA in Your Chevrolet," "Baseball, Hotdogs, Apple Pie and Chevrolet" and "Like a Rock" into the national consciousness.
- USA Today, Open Road
 
…more news articles are included at the end of this issue.
NEW EXPORT PROVISION IN COLORADO FRANCHISE LAW
Plus further guidance / guest article on this topic
Dealerships are often hit with charge-backs by manufacturers when a car they sold is later taken out of the country, often unbeknownst to the dealership. A new provision in the Colorado Franchise Act passed this current legislative session gives dealerships more protection in this area. Those new protections took effect March 22, 2010.
Now, if dealers sell a vehicle that is ultimately exported outside of their Area of Responsibility (A.O.R.), the manufacturer must prove that the dealer knew the vehicle was going to be exported prior to imposing any penalties. Additionally, there is now a presumption in the statute that the dealer did not have knowledge that the vehicle might be exported. Visit the April 6, 2010 Legislative Summary on HB10-1049 for more information.
A recent article by a well-respected dealership attorney provides more guidance on this topic:
Vehicle Exports – Protecting Your Dealership
By: Michael Charapp is an attorney with the McLean, VA firm of Charapp & Weiss, LLP, www.cwattorneys.com. The firm specializes in representing auto dealers and dealer trade associations.
Sales of new vehicles that wind up being exported are a continuing problem for dealers. Generally, franchisors prohibit the sale of new vehicles for export within a specified time period following sale. Penalties for violating these policies can be expensive. New vehicles that wind up as exports can lead to chargebacks for fees and for holdback, incentives, and similar amounts paid or payable to a dealer. Also, where allocations are an issue, a sale followed by an export can lead to loss of allocations.
Some states have passed statutes designed to give dealers protection in the event that they sell a new vehicle in good faith to a domestic buyer, but the vehicle winds up being exported. Where the dealer has taken steps to reasonably satisfy itself that new vehicles it sold were not intended for export, the dealer should not be penalized. Generally the laws require the franchisor to prove that the dealer had reason to know about the plans for export and that the dealer didn’t use appropriate due diligence.
These laws are designed to protect dealers against occasional sales where they had no knowledge of buyers’ plans to export. They are not complete insulation from liability if vehicles are exported. Instead, they are protection against a franchisor’s chargeback to a dealer for an export where the dealer used due diligence and did not have knowledge of the intention to export.
Even in states where these laws are in place, dealers must still recognize the need to comply with franchisors’ export policies. Here are some things to consider. . . .
CLICK HERE to review the entire article.
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If you have questions on any legal or regulatory topic, please contact:
DISCLAIMER: CADA is not authorized to dispense legal advice.The information contained in this weekly email is intended to provide important updates and reminders regarding statutes, litigation, and regulations. CADA always advises that dealers should consult legal counsel on the specifics of any laws or regulations to ensure proper compliance
 
LEGISLATORS RALLY LATE IN SESSION TO INTRODUCE SECOND DEALER RIGHTS BILL
On Friday afternoon, Sen. Shawn Mitchell (R-Broomfield) and Sen. Chris Romer (D-Denver) introduced a late filed piece of legislation that would substantially increase penalties against automakers that do not comply with HB 1040, CADA's dealer legislation passed earlier this year. The new legislation, SB 201, would provide authority for the Executive Director of the Department of Revenue to impose fines between $10,000 and $25,000 per day on any automaker who refuses to honor Colorado statutes specific to dealers terminated in bankruptcy. This legislation was assigned to the Senate Business, Labor and Technology committee and is expected to be heard this week. The bill is being sponsored in the house by Rep. David Balmer (R-Centennial) and Rep. John Soper (D-Federal Heights). To view a copy of SB 201, please CLICK HERE.
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BUSINESS GROUPS DEFEAT VISA BILL ON THE FLOOR OF THE SENATE
SB 188, sponsored by Sen. Josh Penry (R-Grand Junction) and Sen. John Morse (D-Colorado Springs), prevented the imposition of surcharges on consumers who use debit cards. The bill was defeated on the floor of the Senate last week. While the bill sounded benign, the trouble was it did not regulate Visa and Mastercard's ability to impose and increase these very same surcharges on retailers who, based on the popularity of debit cards, have no choice but to accept them. Had the bill passed, it would have put the squeeze on all Colorado retailers who would have been forced to absorb any similar fees imposed by the card issuing financial institutions. CADA worked in conjunction with the Colorado Retail Council, Verizon, Wal-Mart and various liquor store owners to defeat this harmful legislation.
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Questions or Comments? Please contact:
ARE YOU PREPARED TO SERVICE HYBRID VEHICLES?
Overall Objective: To teach automotive technicians basic safety for handling hybrid batteries and working with hybrid vehicles.
Target market – Automotive technicians in the western region of the U.S. wishing to train on hybrid vehicles.
Anticipated class size – limited to 12 students per class
Anticipated duration of training – course will run for 40 hours (see dates and times on attached advertisement)
Learning Objectives and Hands on Training Includes:
- Demonstrate safety when dealing with hybrid batteries
- Describe and demonstrate methods of approaching high-voltage systems
- Describe steps to evaluate if vehicle is safe to touch or work on
- Be able to locate high-voltage wires in hybrids and all electric vehicles
- Conversion of hybrid vehicles to longer-range electric vehicles
Where: Arapahoe Community College – 5900 South Santa Fe Drive, Littleton, CO 80120 - Automotive Department
Cost: $299
Registration – Call 303.734.3701
CLICK HERE for more information!
Participants that complete the 40 hours will receive a certificate from Arapahoe Community College Corporate Learning Division. * * * * * * * *
| Event Description |
Date/Time |
Location |
FREE WEBINAR
Employee vs. Independent Contractor: How to Tell the Difference
Presented by
John Boggs, ESQ.
|
Thursday, April 29
10:00am - 11:00am MNT |
CLICK HERE for registration and information! |
Are You Prepared to Service Hybrid Vehicles?
Littleton
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Trainings Available May through August! |
Arapahoe Community College – 5900 South Santa Fe Drive, Littleton, CO 80120 - Automotive Department
CLICK HERE for more information! |
If you have a particular area of interest or would like to suggest a training seminar topic, please contact Lauren Stadler at 303.457.5123 or lauren.stadler@coloradodealers.org
| Event Description |
Date/Time |
Location |
CADA 2010 Annual Golf Tournament
SAVE THE DATE!
|
Monday, August 9, 2010
11:00am-11:45am Registration/Practice
12:00 Noon – Shotgun Start |
Lakewood Country Club
6800 W. 10th Avenue
Lakewood, CO 80214 |
LET US KNOW ABOUT YOUR ACCOMPLISHMENTS!
Have you or anyone else at your dealership won an award recently? Have you or your dealership provided any outstanding community service? We want to recognize such accomplishments. Please send us a brief write-up of the award or event along with any other information to milestones@coloradodealers.org. Also include your contact information for further follow-up.
THE AFTERFACT
- Daimler, BYD Plan Electric Car for China
The Wall Street Journal, April 25
Daimler AG and Chinese battery and auto maker BYD Co. will establish a new brand of electric cars for the Chinese market, according to the German company's technology chief.
- Ford Recalls 33,256 Vehicles for Seat Problem
The Wall Street Journal, April 23
Ford Motor Co. said Friday it is recalling 33,256 vehicles to fix a problem with front-seat recliners in some of its 2010 models of Fusion and Mercury Milan sedans as well as several Explorer, Explorer Sport Trac and Mercury Mountaineer SUVs.
- Hiring will be autos' sure sign of recovery
Detroit Free Press, April 25
More than repaying taxpayer loans, increased sales or profits, hiring will be the most credible evidence that automakers are recovering, and two respected sources foresee the industry adding about 88,000 jobs over the next year.
- Ford's $1B profit could be start of good year
Detroit Free Press, April 25
Four years after launching its Way Forward turnaround plan and hiring now-lauded CEO Alan Mulally, Ford Motor stands at the threshold of what could be its comeback year.
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