MARCH 4, 2009


IN THIS ISSUE

DEALER NEWS & INFORMATION

CADA F&I Resource Center

Dealer Participation Needed: NADA Compensation and Benefits Survey

Automotive News at a Glance

 

REGULATORY & LEGAL UPDATES

Making Work Pay: Employee Tax Rebates in Recent Federal Stimulus Bill

Review DMS Contract Changes: Action Required! Guest Article, Paul Gillrie

 

LEGISLATIVE UPDATE

SB 91 to be Heard by House Business Affairs and Labor Committee TODAY!

SB 108 - Faster

SB 212 - Vendor Allowance Fee

HB 1230 - Motor Vehicle Registrations

 

DENVER AUTO SHOW

Save The Date

 

UPCOMING SEMINARS

Upcoming Seminars

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

Special NADA Legislative Seminar: Responding to Organized Labor-Defending Workplace Democracy

Tough Tactics to Reduce Expenses in Tough Times


CALENDAR OF EVENTS
Upcoming Events

Statewide Green Car Convoy Across Colorado

Green Car Parade

Rocky Mountain Automotive Summit

Green Tie Charity Preview Event

NADC 5th Annual Member Conference

Denver International Auto Show

Dealer Management and Leadership Summit

CADA Annual Member Golf Event

 

ALLIED MEMBERS

CADA Welcomes Northwestern Electrical Corporation


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

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

CLICK HERE or scroll to the bottom
of this page if you want to be
added or removed from our list.


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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.


CADA F&I RESOURCE CENTER

What can the CADA F&I Resource Center do for you?  Michelle Chavez, manager of the CADA F&I Resource Center explains: It has come to our attention that many of our member dealers around the state are unsure what the CADA F&I Resource Center is and how we can help you reach greater profitability.  This is to introduce you to the CADA F&I Resource Center “Who and Why”.

CLICK HERE for more information!

Michelle Chavez
303.319.8039
michelle.chavez@coloradodealers.org

* * * * * * * *

DEALER PARTICIPATION NEEDED: NADA COMPENSATION AND BENEFITS SURVEY

NADA sponsors an annual dealership compensation survey; we strongly encourage you to participate in this nationwide survey designed to collect compensation and benefits data for key dealership employees.  This survey will provide overview information for the Mountain region and also show key compensation metrics in comparison to the rest of the country.   

In 2007 more than 2,500 dealers from 71 state and local associations participated in this survey and the results were published in the NADA Management Guide “PF15 Paying to Motivate Update ‘07”.  The results of this year’s survey, published as “PF16 – Paying to Motivate Update ‘09”, will be mailed to you from NADA for free if you decide to participate!* This publication will also be sold to non-participating members for $150 each and will be available in late summer.  Additionally, Colorado state-specific reports will be provided to all participants; CADA will mail those reports when available.

To complete the survey online click here:  www.nada.org/survey

To obtain a paper copy of the survey CLICK HERE

* * * * * * * *


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.

  • VIDEO: Newspapers Feel Economic Pressure
    Denver News 7, February 27
    How to access video: When you go to the site, there are a list of videos to the right of the article. Click on the one titled "Newspapers Feel Economic Pressure."
  • Wisconsin Car Dealership Hiring Despite Times
    NPR, March 3
    A Milwaukee area car dealer says, believe it or not, people are buying his GM cars.
  • Plunging auto sales could hit low point in February or March
    USA Today, February 28
    Auto sales continue to collapse this month, but less sharply than forecasters said only a week ago, suggesting to some that the end of the market decline is in sight.
  • Auto sales plunge 40%
    CNN Money, March 3
    Dismal sales reports from GM, Ford and Toyota cause the industry to have its worst month in 27 years.
  • Rocky Mountain News Folds Amid Ad Slump
    The Wall Street Journal, February 27
    The Rocky Mountain News on Thursday became the largest-circulation daily to close its doors in the newspaper-industry crisis, after publisher E.W. Scripps Co. failed to find a buyer for the 150-year-old Denver paper.
  • Germany's 'Scrap' Bonus Fuels Car Sales
    The Wall Street Journal, February 27
    Around the world, some economists and governments have their doubts about whether costly fiscal-stimulus measures will work. But in Germany, one measure already is a roaring success.

    * * * * * * * *



MAKING WORK PAY: EMPLOYEE TAX REBATES IN RECENT FEDERAL STIMULUS BILL

Most workers will receive up to a $400 rebate in 2009.  Employees who make more than a certain amount will not be eligible for the rebate.  Unlike the rebate in 2008, the government will not send out checks, but will give the rebate through adjusted payroll withholding tables that were published on 2/19/09. The payroll withholding table takes into account the amount an employee makes, and thus those who are ineligible will not get the adjusted withholding.

From an operational standpoint, you should not have to do anything if you have a 3rd party payroll service, but I strongly recommend you check with your payroll service and make sure you are set up to make the change.  If you do payroll in-house, I would recommend you download the new tax withholding tables http://www.irs.gov/pub/irs-pdf/n1036.pdf and make the changes as soon as possible.  You can start issuing the rebate as soon as you want, but no later than April 1, 2009.  You just have to be sure that the full amount of the rebate is in the workers’ hands by the end of 2009. 

Employees will not have to fill out new W-4s or make any changes in order to get this rebate, unless they want to change their withholding/deductions. 

CADA members can contact MSEC directly for additional information at the link below:
http://www.coloradodealers.org/mem_employmentlaw_hr.php

* * * * * * * *

REVIEW COMPUTER VENDOR CONTRACT CHANGES: ACTION REQUIRED!
Guest Article, Paul Gillrie

Paul Gillrie of The Paul Gillrie Institute, a well-known and widely respected consultant has distributed the following article to warn dealers of contract changes being instituted by some computer vendors. Dealerships are advised to carefully review all letters regarding contract changes. Key points below:

  • Many dealers have received a seemingly innocuous letter (The Trojan Horse) that notifies them of changes to their master contract. No details of the changes are included in this letter, leading most dealers to treat it simply as a courtesy announcement.
  • The changes are comprehensive and, in almost every case, they improve the vendor’s position at the dealer’s expense. The vendor has acted unilaterally - no dealer would ever opt to alter the contract in this fashion.
  • Dealers! Read the new terms and respond immediately by certified letter to your computer vendor. If you do not agree to the changes, it is imperative that you respond quickly as outlined in the new master contract.
  • Some dealers are writing their vendors a short letter and saying “all the new changes are simply unacceptable”.

CLICK HERE to review the full article.

* * * * * * * *

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



SB 091 TO BE HEARD BY HOUSE BUSINESS AFFAIRS AND LABOR COMMITTEE TODAY AT 2PM!!

SB 091 to be heard by House Business Affairs and Labor Committee TODAY!

CADA’s seven-point franchise bill, SB 091, passed out of the Senate last week by a vote of 33-one, with one absent.  In addition to our fabulous Senate sponsor, Sen. Chris Romer (D-Denver), who has done an amazing job as our advocate on this bill, 16 other Senators signed on to co-sponsor this compelling piece of legislation that protects Colorado’s automobile, powersport and RV dealers from undue influence by manufacturers.  The impressive roster of co-sponsors of SB 091 are as follows: Senate President Peter Groff (D-Denver), Senate Minority Leader Josh Penry (R-Fruita), Sen. Bill Cadman (R-Colorado Springs), Sen. Joyce Foster (D-Denver), Sen. Dan Gibbs (D-Silverthorne), Sen. Ted Harvey (R-Highlands Ranch), Sen. Rollie Heath (D-Boulder), Sen. Mary Hodge (D-Brighton), Sen. Jim Isgar (R-Durango), Sen. Ken Kester (R-Las Animas), Sen. Keith King (R-Colorado Springs), Sen. John Morse (D-Colorado Springs), Sen. Linda Newell (D-Littleton), Sen. Nancy Spence (R-Centennial), Sen. Al White (R-Hayden), Sen. Suzanne Williams (D-Aurora). 

The bill has been introduced in the House of Representatives and Speaker Terrance Carroll (D-Denver) has assigned SB 091 to the House Business Affairs & Labor Committee, which is chaired by the bill’s House Sponsor, Rep. Joe Rice (D-Littleton).  The committee is scheduled to hear SB 091 this afternoon in the Old Supreme Court Chambers, located on the second floor of the Capitol and several dealers are lined up to testify in support of the bill.  We will provide updates after today’s hearing!

CLICK HERE If you would like to view the bill!

* * * * * * * *

SB 108 - FASTER

Governor Ritter’s transportation package, SB 108, dubbed "FASTER", passed out of the House on Wednesday, Feb. 25th by a vote of 34-31.  This bill was opposed by every Republican and four Democrats, including the House Majority Leader, Paul Weissman (D-Louisville).  The other three Democrats opposing the bill were Rep. John Soper (D-Thornton), Rep. Dennis Apuan (D-Colorado Springs), and Rep. Wes McKinley (D-Walsh).  The Senate ultimately concurred with the amendments added to the bill in the House (discussed below) and Governor Ritter signed this bill into law at a press conference on Monday, March 2nd.  The bill takes effect immediately. 

FASTER, a revenue generator for 126 structurally deficient bridges and countless road and transit projects, ultimately raises vehicle registration fees by $41 for the average car — an amendment passed in the House phases in the fee increase over three years instead of two — generating more than $250 million a year for road and bridge fixes. The bill will also charge a $2-per-day fee on rental cars and will give local governments the authority to put tolls on existing roads if the governments get the buy-in of all communities that would be impacted by the tolls.  Rep. Ed Casso (D-Commerce City) proposed an amendment to remove the tolling provision, arguing that imposing tolls on roadways that are already paid for is bad public policy and fundamentally unfair, but the amendment failed after heated debate.  The bill also gives the Regional Transportation District (RTD) the authority to go to the voters directly to ask for a tax hike, without first having to seek approval from Legislature.

If you would like to view SB 108, please CLICK HERE.

* * * * * * * *

SB 212 - VENDOR ALLOWANCE FEE

SB 212 may hold the record this Session (at least so far) for the quickest path to the Governor’s desk for signature.  Since it was introduced on February 17th, this bill flew through the Senate, was passed by the House and ultimately sent to the Governor on February 26th.  That’s nine days from start to finish, and based on how the bill started and how it finished is a testament to the work of several business groups that mounted formidable opposition to the introduced bill in that short 9 day period.  The original bill discriminated against large retailers – auto dealers included – by only providing them with a $417/month vendor fee allowance for collecting state sales tax ($5000 per year).  This reduction would have been a multi-million dollar reduction in revenue to CADA members over the next three years.  The original bill still allowed smaller businesses with less retail sales to collect the full 3.3 percent vendor fee without limitation.  Thanks to intensive lobbying by CADA, CACI, Colorado Retail Council and others, the vendor fee allowance has been reduced to 1.35 percent for large vendors (auto dealers included) and the arbitrary monthly cap has been eliminated.  Small vendors can still collect the full 3.3 percent.  This bill went into effect on March 1st and will sunset on December 31, 2011.

If you would like to view SB 212, please CLICK HERE.

* * * * * * * *

HB 1230 - MOTOR VEHICLE REGISTRATIONS

HB 1230 would prevent county clerks from “bouncing” title and/or registrations for motor vehicles if there is a discrepancy over the taxes collected by the dealer at the time of sale.  The bill would also provide a "hold harmless" provision for dealers if they collect inaccurate taxes based on address information provided by buyers that turns out to be erroneous.  This provision would be especially critical in the event of an audit.  This bill is scheduled to be heard Thursday, March 5th (tomorrow!) in the House Transportation & Energy committee. If you wish to testify in favor of HB 1230, please contact Tammi McCoy or me at 303-831-1772. 

Thursday, March 5

Upon recess

Room 0107 Transportation & Energy

HB 1284 Levy--Corridor Capacity Strategic Planning

HB 1277 Labuda--Electric Utility Customer Info Fuel Mix

HB 1261 Swalm--Limit Wholesale Telecom Tariff

HB 1187 Swalm--Allow Tolling Of Existing Toll-free Hwys

HB 1230 Summers--Motor Vehicle Registration

* * * * * * * *

Questions or Comments?  Please contact:

Melissa Kuipers – VP of Government Relations and Communication

melissa.kuipers@coloradodealers.org, 303.457.5115


DENVER AUTO SHOW

SAVE THE DATE


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.

All participants will receive an updated copy of the NADA “Dealer Guide to the Family and Medical Leave Act” (January 2009 version). 

  • 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.

* * * * * * * *

SPECIAL NADA LEGISLATIVE SEMINAR: RESPONDING TO ORGANIZED LABOR-DEFENDING WORKPLACE DEMOCRACY

Thursday, March 12, 2009
1:00 - 3:00 pm

NADA Speakers: D. Gerald Coker, Ford & Harrison LLP and Ivette Rivera, executive director, Legislative Affairs

About the Topic:

This virtual seminar will provide an overview of the Employee Free Choice Act (EFCA), and will discuss how this proposed legislation could lead to increased union membership. The speakers will describe the process for union organization and collective bargaining under federal law and analyze how EFCA will affect union-organizing strategies in dealerships.

What You Will Cover

  • How EFCA will modify current labor laws pertaining to union organization
  • Processes for collective bargaining under current federal law
  • 10-point strategic action plan for facing the challenges imposed by EFCA

How You Will Benefit:

  • Reduce potential vulnerability to union organization
  • Improve employee relations
A CLICK HERE for more information
on this training session.

* * * * * * * *

TOUGH TACTICS TO REDUCE EXPENSES IN TOUGH TIMES

CLICK HERE for a registration/flyer form!

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.
http://www.nada.org/trainingevents/dealeracademy

About the Topic:

This session will show you how—using a step-by-step approach—to eliminate wasteful spending, and make sure your expenses are in line with NADA profiles and benchmarks.

  • 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 could be of paramount
    importance to dealership survival!

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

Special NADA Legislative Seminar:
Responding to Organized Labor-Defending Workplace Democracy

Speakers: D. Gerald Coker and Ivette Rivera

March 12, 2009

1:00 – 3:00pm

Virtual Seminar

CLICK HERE for more information.

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 registration flyer/form.

Click here to register online through NADA.

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.


Event Description
Date/Time
Location

Statewide Green Car Convoy Across Colorado Ending at the Colorado State Capital

 

Thursday, March 26th through Sunday, March 29th

CLICK HERE for more information!

Green Car Parade

 

 

Sunday, March 29th

At the circle drive in front of the Colorado State Capital

CLICK HERE for more information!

Rocky Mountain Automotive Summit

Monday, March 30

10:00 am – 3:00 pm

Colorado Convention Center (open to the public)

CLICK HERE for more information!

Green Tie Charity Preview Event

Benefits the Clear The Air Foundation

Wednesday, April 1

4:00 pm – 6:00 pm

Colorado Convention Center

CLICK HERE for more information!

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 Auto Show



www.greencardenver.org

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


ALLIED MEMBERS

CADA would like to welcome its newest allied member North Western Electrical Corporation.  North Western is a service oriented contractor specialzing in electrical, communication and lighting installation, in addition to these services they offer a 24 hour maintenance service.  For more information about North Western Electrical or its products contact Henry Vera at 303.452.8576 or jvera@northwesternelec.com


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