FEBRUARY 18, 2009


IN THIS ISSUE

DEALER NEWS & INFORMATION

Automotive News at a Glance

 

REGULATORY & LEGAL UPDATES

Small Business Administration: New Motor Vehicle Dealer Loan Guaranty Campaign

New FTC Regulations on Automated Telemarketing Calls

 

LEGISLATIVE UPDATE

Senate Bill 212 - DEALER ACTION NEEDED!

Senate Bill 091 - Scheduled for 'Senate' Second Reading Vote

 

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

NADC 5th Annual Member Conference

Denver International Auto Show

Dealer Management and Leadership Summit

CADA Annual Member Golf Event


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

John "Jack" Maffeo Passes Away

Share Your Accomplishments


ARCHIVES

CLICK HERE for Open Road
e-newsletter archives.

CLICK HERE for an Index of Regulatory
& Legal Articles
from the Open
Road e-newsletter.

CLICK HERE for Bulletin archives.

CLICK HERE for Colorado Auto
Outlook
archives.

CLICK HERE for Denver Auto
Outlook
archives.


ONLINE REGISTRATION

CLICK HERE to register online
for various CADA seminars & events.


MEMBERSHIP RESOURCES

CLICK HERE for details on the
Speaker and Educational
Resources
.

CLICK HERE for a list of current
Endorsed Vendors/Programs
.

CLICK HERE for a list of current
Allied Members
.

CLICK HERE for an order form for
CADA forms
.

CLICK HERE for information on all member services.



www.nada.org

CLICK HERE for NADA
Regulatory Affairs information
.


STATE GOVERNMENT RESOURCES

CLICK HERE for the Auto Industry
Division
of the Colorado Dept.
of Revenue.

CLICK HERE for the Title and
Registration section
of the
Colorado Dept. of Revenue,
Motor Vehicles Division.

CLICK HERE for the Colorado
Department of Labor &
Employment
website.




Visit us at www.coloradodealers.org.


CADA Hours of Operation
Monday to Thursday, 7 a.m. to 5 p.m.
Friday, 7 a.m. to 4 p.m.


CADA STAFF

CLICK HERE for a CADA staff listing


If you have questions
or suggestions
regarding this
e-newsletter, please
contact Lauren Stadler at
lauren.stadler@coloradodealers.org

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ENDORSED VENDOR/PROGRAMS

CLICK HERE for information about the
Endorsed Vendors/Programs
.

 


If you have trouble viewing any of the links or documents in this e-newsletter, please CLICK HERE to access the web-based version.



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.

  • The details behind Clear Channel and 9News public-service announcements for car dealers
    Westword Blogs, February 13

    Yesterday morning, during one of his regular updates on KOA/850 AM's morning-news broadcast, Channel 9 business reporter Gregg Moss talked about a new series of public-service announcements for the automobile industry that would begin running immediately on Clear Channel stations like KOA, as well as on Channel 9 and its sister station, Channel 20 -- and he wasn't exaggerating.
  • Obama Backs Off 'Car Czar' to Oversee Detroit
    The Wall Street Journal, February 16
    The Obama administration has abandoned the idea of naming a "car czar" to help oversee the U.S. auto industry's restructuring, instead creating an inter-agency task force to deal with the issue, according to senior administration officials.
  • Geithner to lead auto panel
    The Detroit News, February 15
    The White House on Monday will announce it is forming a task force led by Treasury Secretary Tim Geithner to oversee the restructuring of the auto industry -- one day before General Motors Corp. and Chrysler LLC are required to file viability plans.
  • VIDEO: Is Detroit making what US buyers want?
    Denver Post Media Center, February 11

    Click on the link above to watch the video!
  • Pelosi has eye on automakers
    The Detroit News, February 12
    House Speaker Nancy Pelosi is keeping close tabs on the efforts of General Motors Corp. and Chrysler LLC to file restructuring plans by Tuesday.
  • Ex-EPA official worried about Michigan dioxin cleanup
    Detroit Free Press, February 12
    Federal and state regulators hope a “good-faith offer” from Dow Chemical Co. will trigger a long-sought cleanup of dioxin pollution along a 50-mile swath of waterways and floodplains in central Michigan.
  • Honda slashes new graduate hiring as slump bites
    The Detroit News, February 12
    Honda Motor Co. will cut the number of new graduates it hires next year by 40 percent amid a prolonged slump in the global auto market, it said Thursday.
  • Auto dealers praise tax break in stimulus bill
    The Detroit News, February 12
    The nation's auto dealers on Thursday praised a slimmed-down version of a tax break for new car buyers as part of a $789.5 billion stimulus bill.
  • Nissan, Chrysler plan hits hurdle
    The Detroit News, February 13
    Nissan Motor Co. and Chrysler LLC said Thursday that they may scuttle two agreements to build vehicles for each other because of the severe global downturn.
  • VIDEO: Ann Telnaes Cartoon- President Obama Signs the Stimulus Bill
    The Washington Post, February 16

    Ann Telnaes, who was awarded the Pulitzer Prize for editorial cartooning in 2001, has published her work in newspapers and magazines around the world.
  • Facing a Loss, Toyota Offers Job Buyouts, Ends Bonuses
    The Wall Street Journal, February 13
    Toyota Motor Corp. is offering widespread job buyouts to its U.S. workers for the first time and cutting the workweek at some of its American plants by 10% to contend with falling sales.
  • GM Offers Retirement Incentives to 22,000
    The Wall Street Journal, February 12
    General Motors Corp. is offering retirement incentives to 22,000 of its 62,000 United Auto Workers union members as part of a turnaround plan it must present to the U.S. government by Tuesday.
  • Ford Brings Back Taurus SHO
    The Wall Street Journal, February 11
    Ford introduced a redesigned version of the Taurus sedan in January at the Detroit auto show.

    * * * * * * * *



SMALL BUSINESS ADMINISTRATION: NEW MOTOR VEHICLE DEALER LOAN GUARANTY CAMPAIGN

SBA Loan Program Launched for dealers...but Floor Planning Exempt From Program

The New Motor Vehicle Dealer Loan Guaranty Campaign was recently launched by the Small Business Administration (SBA). Dealerships with total annual receipts of less than $29 million are eligible for the SBA-guaranteed loans.Dealers impacted by the spiraling economy may benefit from the Program, particularly if they are unable to obtain credit on a conventional basis. The SBA has indicated the loans can be used for “any worthwhile purpose,” including working capital or refinancing of existing debts. Financing a dealership’s total change in ownership is permissible if the aim is to preserve the dealership or promote its development.The one major exemption is that the SBA loans cannot be used for inventory floor planning. A list of lenders participating in the SBA’s Preferred Lenders Program can be found at the following website:

http://www.sba.gov/services/financialassistance/7alenderprograms/plp/index.html

CLICK HERE for an overview of the program (PDF file). 

Questions regarding the Program can also be directed to the NADA Hotline at 888.672.5147.

* * * * * * * *

NEW FTC RESTRICTIONS ON AUTOMATED TELEMARKETING CALLS
Starting September 1 2009, an “Existing Business Relationship” Will Not Be Enough

In 2008, the FTC adopted an amendment to the Telemarketing Sales Rule (“TSR”) that, among other things, prohibits pre-recorded telemarketing calls without a consumer’s express written agreement to receive such calls.  Some changes went into effect December 1, 2008; others September 1, 2009.

As of December 1, 2008, sellers (including dealers that make such calls) and telemarketers were required to provide a key-press or voice-activated opt-out mechanism promptly at the outset of any prerecorded message call. This requirement applies to calls delivering prerecorded messages, whether answered by the recipient in person, or answered by an answering machine or voicemail service, and requires that any prerecorded message call promptly disclose at the outset a toll-free number that a consumer may use to assert a request not to receive such calls. The rule also requires that automated calls allow the telephone to ring for at least fifteen seconds or four rings before disconnecting an unanswered call.

Under the new rule, sellers and telemarketers may, for the time being, continue to place calls that deliver pre-recorded messages to consumers based on an existing business relationship (“EBR”) with that customer -- provided they do so in compliance with the new requirement that prerecorded message calls include an automated interactive key-press or voice-activated opt-out mechanism.

However, as of September 1, 2009, sellers and telemarketers may not make such prerecorded calls unless they have a prior express written agreement from the recipient to receive such calls. That written agreement:

(1) cannot be required (directly or indirectly) of customers as a condition of purchasing any good or service;
(2) must “evidence the willingness” of the recipient to receive such calls; and
(3) must include the recipient’s telephone number and signature (although such signature may be electronic in compliance with ESIGN).

Visit the prior FTC release on this topic below for more information:
http://www.ftc.gov/opa/2008/08/tsr.shtm

* * * * * * * *

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.


SENATE BILL 212
DEALER ACTION NEEDED!

Senate Bill 212 was read across the Senate desk (introduced) Monday of this week and was heard in the Senate Appropriations Committee hearing Tuesday afternoon.

Colorado Legislative Council  - Summary of Legislation

This bill is recommended by the Joint Budget Committee and is part of its budget balancing package for FY 2008-09.  It temporarily caps the amount of state and sales tax revenue a retail establishment (vendor) can retain (vendor fee) to compensate for tax collection expenses. The cap is set at $417 per month, or $5,000 annually.  The bill covers returns made on or after March 1, 2009, through June 30, 2012.  The cap is repealed July 1, 2013.

****Dealership Impact Response Requested***

Please respond to this email with the impact to your dealer operations should the vendor fee (paid at .0333 percent of state sales taxes submitted) be capped at $417 per month and $5,000 per year, per vendor (per dealership/corporation).

Amount of lost revenue per dealership, per month (or per year):_____________________ 

Dealership Name:_____________________ 

(please note if estimate provided is per month or per year)

Fax to:  303.831.9100 OR email as soon as possible to Lauren.Stadler@coloradodealers.org

* * * * * * * *

SENATE BILL 091 - SCHEDULED FOR 'SENATE' SECOND READING VOTE

The Senate Bill 091 (auto dealer franchise act improvements) reading was scheduled for Tuesday, February 17, 2009 but has been delayed due to President Barack Obama’s bill signing of the Economic Recovery Act.  The reading of SB-091 will now take place on Friday, February 20, 2009.

The session begins Friday at 9am, yet it is not expected that the votes will begin on second readings before 10:00am.

 If you are able to attend the second reading vote session, please contact Melissa Kuipers or Tim Jackson at 303.831.1722.  

We expect an amendment to be heard that is being worked on by the RV manufacturers' association and the RV dealers.  It is too early to tell if it is an amendment that we intend to support.

CLICK HERE for more information on the Senate Bill from last week's Open Road!


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

National Association of Dealer Counsel (NADC) - 5th Annual Member Conference

NADC is a nationwide professional organization of attorneys who represent automobile and other vehicle/vessel dealers

April 1-3

Four Seasons at Las Colinas

CLICK HERE
for more information!

Discount hotel block expires March 5th

Denver International Auto Show

Wednesday, April 1, 2009

thru  

Sunday, April 5, 2009

Colorado Convention Center

700 14th Street Denver 80202

 

Dealer Management & Leadership Summit

 

Save the Date

Thursday, Aug. 13

8 a.m. to 7:30 p.m

Marriott Denver South at Park Meadows Drive (I-25 and Lincoln in Douglas County)
More information on speakers/agenda will be posted online as finalized.

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


JOHN "JACK" MAFFEO PASSES AWAY

John "Jack" Maffeo died peacefully on February 9, 2009, at the age of 94. He is the father of Bill Maffeo with Medved Autoplex. He is survived by his wife of 61 years, Jeanne, three children, Linda Vance (Sam), Bill Maffeo (Sandy) and Joan Carras (Van); three grandchildren, Aaron Vance, Anthony Maffeo, and Vanessa Carras. Also survived by numerous other relatives. Private family services will be held in Arizona.

CLICK HERE to read condolences and shared memories from family and friends.

* * * * * * * *

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.


If you want to be added to our mailing list, please CLICK HERE.

To remove yourself from this list, click on this link.

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