FEBRUARY 4, 2009


IN THIS ISSUE

DEALER NEWS & INFORMATION

Automotive News at a Glance

 

REGULATORY & LEGAL UPDATES

ALERT! New I-9 Form DELAYED Until April 3, 2009!

Reminder from Auto Industry Division Regarding Sunday Sales

Reminder of Full Use and Demo Plate Restrictions

Guest Column: Your Dealership's 2009" Employment To Do" List

 

UPCOMING SEMINARS

Upcoming Seminars

Employment Law Seminar: FMLA and ADA Acts- New Federal Regulations!!

Tough Tactics to Reduce Expenses in Tough Times
CALENDAR OF EVENTS
Upcoming Events

Denver International Auto Show

CADA Annual Member Golf Event


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

Congratulations to Doug Moreland

Share Your Accomplishments


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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.

  • Detroit Takes One (More) for the Team

    The Wall Street Journal, January 28
    Why kick the auto industry when it's down? Because it's down.
  • Ford reports record $14.6B loss
    The Detroit News, January 29
    Ford Motor Co. today posted a record loss of nearly $14.6 billion for 2008 and reported a fourth-quarter net loss of $5.9 billion.
  • GM idles Flint plant, Saturn Astra, Hummer H2 -- will any resume?
    Detroit Free Press, January 29
    General Motors has ended construction of the plant in Flint that would have built the backup engine for the electric-powered Chevrolet Volt, the Flint Journal reports.
  • A good time to meet in Detroit
    Detroit Free Press, January 29
    When Chris Ilitch, president and CEO of Ilitch Holdings, dreamed up the "Let's Meet in the D" initiative last May as a way to give Detroit's conference and convention trade a boost, he had no idea how good his timing was.
  • The Federal Bailout Hasn't Fixed Bank of America

    Business Week, January 28
    Bank of America's hasty Merrill takeover has put its future—and the federal bailout program—in question
  • Fixing Sprint May Take More Than Layoffs
    Business Week, January 27
    Job cuts will help reduce expenses, but what the wireless giant really needs to stem losses is a way to hold onto subscribers
  • Ready for Another Auto Bailout Yet?
    US News, January 28
    General Motors and Chrysler have received auto bailout funds from the federal government, but the auto industry hasn't been saved and it hasn't stopped asking for federal dollars.
  • NADA Convention to Host 21 Automaker-Dealer Franchise Meetings at Critical Time for Industry
    BNET Business Network, January 9
    Now that U.S. automakers are receiving emergency bridge loans to weather the economic crisis, attention has shifted to the National Automobile Dealers Association (NADA) Convention & Exposition in New Orleans Jan. 24-27 when dealers will meet face-to-face with their automakers' top leadership.
  • National Automobile Dealers Association Convention In New Orleans
    ABC 26, January 26
    At this year's version of the National Automobile Dealers Association convention, survival has passed maximizing profits as the focus of the annual event.
  • Post-NADA Updates on Automotive Revitalization: Facts, Figures and some Feelings
    Recession Busting Commerce, January 27
    In past NADA conventions, many in the auto industry have focused on maximizing profits and on brainstorming new manners and methods for driving sales. This year the tone was a touch different. Rather than innovation measures, survival measures were addressed and at times done so quite morosely.
  • Auto dealers' convention focuses on survival as sales drop and economy keeps buyers home
    KTLA.com, January 25
    At this year's version of the National Automobile Dealers Association convention, survival has passed maximizing profits as the focus of the annual event.
  • GM Ends Job Bank; Chrysler Warns Suppliers
    The Wall Street Journal, January 29
    General Motors Corp. and Chrysler LLC moved to reduce costs as required by the terms of the federal bailout loans they were granted earlier this month to keep both auto makers from running out of cash.
  • Rental-Car Firms Seek a Bailout
    The Wall Street Journal, January 28
    Ripple Effects From Auto-Sector Woes Include Credit Crunch, Fewer Customers
  • Lear Corp. reports $688.2 million loss
    The Detroit News, January 29
    Lear Corp. reported a fourth quarter net loss of $688.2 million or $8.91 a share on net sales of $2.6 billion.
  • Auto Dealerships Prepare for a Major Shakeout
    The Wall Street Journal, January 27
    As Sales Plunge and Big Three Face an Uncertain Future, Closures and Consolidation Loom for Many Franchisees
  • Deep cuts pain lawmakers

    The Colorado Statesman, January 30
    When Gov. Bill Ritter’s budget team told the Joint Budget Committee on Tuesday that his plan would cut $823 million from the 2009-’10 fiscal year, the hearing room packed with journalists, lobbyists and legislative staffers went stone still as everyone sharply inhaled and held their breath.
  • Suthers to seek re-election
    The Colorado Statesman, January 30
    “I love my job!” Colorado Attorney General John Suthers told a group of about 50 fans gathered at an El Paso County Republican Meet-up Group at the Valley Hi Golf Club’s Caddy Shack restaurant on Thursday, Jan. 22, three days before he would announce his decision to stay in Colorado.
  • Baumgardner bill gains agriculture committee support
    Craig Daily Press, January 31
    First-term House District 57 Rep. Randy Baumgardner is defending his attempt to get more money for energy impacted communities by going after one of the few pots of money that is growing while the economy is in a tailspin.
  • California's 'Green Jobs' Experiment Isn't Going Well
    The Wall Street Jouranl, January 31
    Mr. Schwarzenegger and his green supporters boasted that the regulations would steer California into a prosperous era of green jobs, renewable energy, and technological leadership. Instead, since 2007 -- in anticipation of the new mandates -- California has led the nation in job losses.
  • Bennet a Senate novice, not a novelty
    Star Tribune, January 31
    Picked over better-known Colorado politicians to fill a vacant seat, he's known as earnest and a fast learner.

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ALERT! NEW I-9 FORM DELAYED UNTIL APRIL 3, 2009!

At the eleventh hour, the US Citizenship and Immigration Services announced that it would delay implementation of the new I-9 until April 3, 2009.  The new form would have gone into effect Feb 2.  Until April 3, the correct form is the one with the Revision Date of 06/05/2007 and a 06/30/2009 Expiration Date

For more information on the new I-9 form, see our January 28, 2009 issue of the Open Road.

* * * * * * * *

REMINDER FROM AUTO INDUSTRY DIVISION REGARDING SUNDAY SALES

Please note the following article that appeared in the December, 2008 issue of Wheels, the Auto Industry Division’s quarterly newsletter:

All Colorado motor vehicle dealers are expected to comply with the Sunday closing law (CRS 12-6-301 through 303). In many respects, dealers cannot prevent people from coming onto their lots to look at vehicles on Sunday. However, the Board considers any incentive for, or encouragement of, Sunday visits to the dealership for the purpose of looking at motor vehicles, as a violation of the Sunday closing law.Incentives/encouragements that are violations include, but are not limited to, drawings for prizes, refreshments, and/or any advertising intended to bring people to the dealership to look at vehicles on Sunday. Violations of the Sunday closing law could jeopardize your license and are also Class 3 misdemeanors. (Please note that the Sunday Closing Law and the Board’s policy do NOT apply to the sale of boats, snowmobiles and boat/snowmobile trailers and off-road vehicles on Sunday.)

Click here to view the December 2008 issue.

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REMINDER OF FULL USE AND DEMO PLATE RESTRICTIONS

Please ensure that you are fully adhering to the laws and regulations that govern full use and demo plates. 

See these prior Open Road articles below for more information:

June 27, 2007     DEALER FULL USE PLATES ‐ LOANER AND COURTESY VEHICLES

June 20, 2007     REMINDERS ON APPROPRIATE USES OF DEALER FULL USE AND DEMO Plates


Feb. 28, 2007      DEALER OBLIGATIONS FOR MISSING FULL‐USE OR DEMO PLATES

* * * * * * * *

GUEST COLUMN: YOUR DEALERSHIP'S 2009 EMPLOYMENT "TO DO" LIST

By John Donovan, Fisher & Phillips, LLP

As we move into 2009, we are all hoping for the best but planning for the worst. Most dealerships have already cut their staff to the bone, reduced benefits, and even cut employees’ hours in an effort to bring down costs and conserve cash. Dealers are now turning their attention to finding ways to bring customers back into the showroom and the service department.  This is obviously important if a dealer is going to survive this downturn.

But the poor economy and difficult business conditions have caused many dealers to forget about the importance of making sure that their house is in order when it comes to employment matters. Dealers should realize that one employee lawsuit or Department of Labor investigation can cost thousands of dollars, and quickly off set other cost-saving efforts. While most discrimination claims are covered by insurance, you will still have to pay the deductible, still face the bad publicity that accompanies such claims, and still have to deal with the distraction of a lawsuit, when the business requires your full attention.

In this issue we are listing the ten areas where dealers experience most of their employee claims.  Focusing on these areas and taking effective preventative steps, can significantly reduce or even eliminate your exposure to employee claims.        

CLICK HERE to continue reading.

* * * * * * * *

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.


a

EMPLOYMENT LAW SEMINAR: FMLA AND ADA ACTS - NEW FEDERAL REGULATIONS!!

Tuesday, March 10, 2009

Presented by Todd Fredrickson, top Denver employment attorney

In January of 2009, the federal government saddled employers with new laws, regulations and obligations under the Americans with Disabilities Act (ADA) and Family Medical Leave Act (FMLA).  Workplace law experts expect these new laws will generate an increase in lawsuits against employers—especially in the current economic downturn as downsizing is occurring.   

  • The U.S. Dept. of Labor announced new FMLA regulations in November, 2008, the first significant changes to the regulations since 1995.  Changes effective January 16, 2009 – key changes include:
    • Implements two new forms of military family leave created earlier this year
    • Expands employer's notice requirements to include a general notice about the FMLA; an eligibility notice; a rights and responsibilities notice; and a designation notice.
    • Defines serious health condition
    • Changes to medical certification process, fitness for duty evaluations, substitution of paid leave
  • The ADA Amendments Act require almost all human resource professionals, managers, and business owners to adopt new policies and procedures in dealing with accommodation requests, as well as greatly impact employment litigation claims.
    • Overview of what has changed and how to comply; what is “disabled”?
    • What this means to employers and who will be affected
    • The risks and penalties of non-compliance; effective date, Jan. 1, 2009.

Todd Fredrickson,  Attorney, Fisher & Phillips, LLP, http://www.laborlawyers.com/
Todd Fredrickson is the managing partner of the Fisher & Phillips' Denver office. Specifically, he has defended employers against claims of discrimination, harassment, and retaliation. Todd has represented clients in both federal and state courts, the United States Department of Labor, the National Labor Relations Board, the  Equal Employment Opportunity Commission, the Colorado Civil Rights Division, and the Colorado Department of Labor.  Todd regularly counsels clients on a spectrum of personnel management issues, with the goal of avoiding litigation altogether. To that end, he advises employers on developing and enforcing proper application and interview policies, employee handbooks, and employment and compensation agreements. Todd counsels employers on compliance with federal and state wage and hour laws. Much of his practice focuses on training.

A CLICK HERE for more information
on this
training session.

* * * * * * * *

TOUGH TACTICS TO REDUCE EXPENSES IN TOUGH TIMES

March 24-25, 2009

Presented by Steve Lane, management instructor at the NADA/ATD Dealer Academy. Steve has more than 30 years’ experience in the automotive industry as a controller, director of internal audit and financial analysis, and as a regional CFO.

About the Topic:

Effectively controlling a dealership's expenses is crucial in order to maximize the profitability of the business.  In today's challenging and difficult economy, it is of paramount importance to the survival of a dealership!  "Tough Tactics to Reduce Expenses in Tough Times" will show you how, on a step-by-step approach, to eliminate wasteful spending, and get your
expenses in line with NADA profiles and guides.

Who should attend:

  • Dealers
  • General Managers
  • Department Managers
  • Controllers
  • Office Managers

How You will Benefit:

  • Learn how to review your general ledger comparative expense detail to identify and eliminate "wasteful" expenses.
  • Learn how to review your DMS expense trend report (a powerful tool).
  • Learn how to use custom-built franchise specific Excel templates to quickly review your expenses and compare your results against NADA profiles.

What You will Cover:

  • Your Three Largest Expenses - These must be effectively controlled if you want to be profitable.
  • The Power of the Pay Plan - Personnel expense is a dealership's largest expense.  Pay plans must be crafted to achieve the vision of the Dealer.
  • How to effectively manage your floor plan expense.
  • How to effectively manage your advertising expense.  
A CLICK HERE for more information
on this
training session.

* * * * * * * *

aTO REGISTER ONLINE FOR ANY CADA
SEMINAR OR EVENT, PLEASE VISIT:

www.coloradodealers.org/registration
Event Description
Date/Time
Location

Employment Law Seminar:
FMLA and ADA – NEW FEDERAL REGULATIONS!!

CO Springs

By Todd Fredrickson, top Denver employment attorney

Tuesday, March 10, 2009,

Noon to 2:30pm

 

Phil Long Collision Repair Center, 4045 Sinton Road., Colorado Springs, 80903,

Colorado Springs dealers should register with CSADA, Ann Winslow, 719.473.1465 or abwinslow@comcast.net

For more information Click Here

Tough Tactics to Reduce Expenses in Tough Times

Location: Denver (site to be determined)

Presented by: Steve Lane, management instructor at the NADA/ATD Dealer Academy

March 24-25, 2009,

(1.5 days)

Click here for a course description.

This session will show you how, on a step-by-step approach, to eliminate wasteful spending, and get your expenses in line with NADA profiles and guides.

Registration flyer coming soon!


Event Description
Date/Time
Location

Annual CADA Legislative Reception

Thursday, February 12, 2009

5:00 to 7:30 pm

William D. Barrow Building
(CADA/MDADA Headquarters)
290 East Speer Blvd, Denver

More information coming soon!

Denver International Auto Show

Wednesday, April 1, 2009

thru  

Sunday, April 5, 2009

Colorado Convention Center

700 14th Street Denver 80202

 

CADA Annual Member Golf Event

Monday, August 24, 2009

12:00 Noon Shotgun Start

Glenmoor Country Club
110 Glenmoor Drive
Cherry Hills Village, 80113
303.781.3000

www.glenmoorcc.org


CONGRATULATIONS TO DOUG MORELAND

Congratulations to Doug Moreland on his recent purchase, Centennial Chrysler Jeep Located at 9980 East Arapahoe Road, Centennial 80112.

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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.


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Colorado Automobile Dealers Association
290 East Speer Boulevard Denver, CO 80203
Telephone: 303.831.1722 | Facsimile: 303.831.4205
www.coloradodealers.org