MARCH 18, 2009


IN THIS ISSUE

DEALER NEWS & INFORMATION

Automotive News at a Glance

The Voices of Experience Speaker Series Presents: The Toyota Approach to Business

 

REGULATORY & LEGAL UPDATES

Reduction in State Sales / Use Tax Vendor Fee Applies Immediately

Other Regulatory / Legal Reminders: Upcoming Effective Dates

Denver Auto Show- Off-Site Permits Required

 

LEGISLATIVE UPDATE

SB-091 - CADA's Franchise Bill Ready for Signature by Governor Ritter

HB 1230 - Hold Harmless for Dealers Passes out of House Transportation Committee

 

DENVER AUTO SHOW

Auto Show Coupon!

 

UPCOMING SEMINARS

Upcoming Seminars

Tough Tactics to Reduce Expenses in Tough Times

Virtual Seminar: A Deeper Dive Into the FTC Red Flags Rule


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
In Down Times, Hispanic Market is Booming


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

2009 National Automotive Technology Competition

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

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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.

  • Detroit flexes its muscle: Mustang, Challenger, Camaro face off again
    The Detroit News, March 16

    For the first time in 26 years, the Ford Mustang, Chevrolet Camaro and Dodge Challenger will face off head-to-head-to-head as new models.
  • Capitol Hill Drives Foreign Cars, Not American
    US News & World Report, March 15
    Sorry, Motown, but there appears to be a pretty severe bias against American cars
    on Capitol Hill.
  • Auto dealer loyalty fading
    Examiner.com, March 13
    Would you take your car back to the selling dealer for service? Not many of your neighbors would.
  • GM dealers balk at ordering new autos
    The Detroit News, March 13
    General Motors Corp. dealers say vehicles are stacking up on their lots and they are reluctant to order more, especially with the future of the Hummer, Saturn and Saab brands, and additional government aid, in question.
  • Sirius: 2009 bad year for car sales
    The Detroit News, March 13
    Sirius XM Radio Inc. Chief Executive Officer Mel Karmazin said 2009 will be a terrible year for U.S. car sales, the satellite-radio provider's biggest single source of new subscribers.
  • How the West was lost; and why Republicans should care
    National Review Online, March 15
    The day before Barack Obama accepted the Democratic nomination at Invesco Field in Denver, a group of progressive activists gathered nearby to discuss what Democrats call the “Colorado miracle.”
  • Toyota U.S. hybrid sales surpass million mark
    The Detroit News, March 12
    Toyota's hybrid sales in the U.S. have surpassed the 1 million mark, the Japanese automaker said Thursday, underlining the rising popularity of the ecological vehicles.
  • GM says it doesn't need $2B right now
    Detroit Free Press, March 13
    General Motors Corp., which has warned for months that it was running low on cash to operate, did a surprising about-face Thursday and said it would not need $2 billion before the end of the month after all.
  • Auto industry expert: Government must act quickly to prevent collapse of suppliers
    Detroit Free Press, March 12
    North America’s automotive parts supply base faces an imminent collapse over the next 30 to 90 days unless the federal government provides at least $10 billion in immediate funding, Grant Thornton LLP partner Laura Marcero said today.
  • 200C Concept could be the hit Chrysler needs
    Detroit Free Press, March 15

    Chrysler's hanging by a thread, its future dependent on loans from the U.S. government and the alliance it's negotiating with Fiat.
  • China aims to put more vehicles in countryside
    Detroit Free Press, March 16
    China will reimburse up to about $730 on farmers' purchases of light trucks and minivans, according to a plan aimed at boosting vehicle sales in the countryside to help counter an economic slowdown, the Finance Ministry said.
  • UAW members say geography complicates cuts in breaks
    Detroit Free Press, March 15
    Why would UAW members at Ford consider voting against a proposed labor agreement because of a provision that would cut their break time from 48 minutes per 8-hour shift to 40 minutes?
  • Treasury not bound by March 31 deadline to decide on GM, Chrysler
    Detroit Free Press, March 16
    Treasury officials and management experts began combing through General Motors’ turnaround plan in Detroit last week to determine whether more government aid could make the company viable or whether the better choice is a managed bankruptcy.
  • Small-Car Tweaks Pay Off
    The Wall Street Journal, March 14
    One of the auto industry's biggest challenges is that it takes seemingly forever to bring products to market.
  • European Car Sales Fell 18% in February
    The Wall Street Journal, March 14
    The European car market continued to contract in February, shrinking 18% as sales skidded in all major markets except Germany, which saw an incentive-driven 22% rise.
  • Ford Pact To Even Out Labor Costs With Toyota's
    The Wall Street Journal, March 12
    Ford Motor Co. expects to cut its hourly labor costs to the levels of Toyota Motor Corp. and other foreign rivals with U.S. plants in two years thanks to union contract changes ratified this week.

    * * * * * * * *

THE VOICES OF EXPERIENCE SPEAKER SERIES PRESENTS: THE TOYOTA APPROACH TO BUSINESS

Monday, March 30th, 2009

6:00pm-8:00pm

The Toyota Way Approach to Business

Jim Lentz – President, Toyota Motor Sales, U.S.A., Inc.

Gates Hall at the Newman Center for Performing Arts, DU Campus

Toyota Motor Sales President and DU Alumnus Jim Lentz shares his insights into The Toyota Way, a set of values, beliefs and business practices developed over 75 years that have become Toyota's source of competitive strength in the automotive industry. Lentz discusses how these core values were formed and provides real-life examples of how they move Toyota's business forward. During periods of economic turmoil such as these, core values and ethics, he believes, help companies weather turbulent times and thrive in good times.  To read more about this program and Mr. Lentz, please click here

Please RSVP!

CLICK HERE for an event invitation

CLICK HERE for a parking permit

CLICK HERE for a parking map

Remember! Continuing Education Credits!

This event has been approved for 2 hours of CLE credit (2 General credits and 1.2 Ethics credits), NACD credits (2 credits), & CPE credit (Code A)  



REDUCTION IN STATE SALES / USE TAX VENDOR FEE APPLIES IMMEDIATELY

The Colorado General Assembly passed Senate Bill 212 (SB 09-212), which reduces the allowable amount that vendors such as automotive retailers/dealers can deduct from state sales tax collections as part of covering your costs to provide this function for government. While many of you likely saw CADA alerts on this legislative battle, all members should be aware that the final law has now been signed and is effective immediately. 
The allowable vendor fee (also referred to as “service fee”) has been reduced from 3.33% to 1.35%.

  • This change is effective for sales and use tax returns filed on or after March 1, 2009 through December 31, 2011.
    • NOTE:  there is a hold-harmless until April 1st given the quick application of this change, so if the lower rate was not applied this month, the adjustment can be made next month.  The language of the bill is below:

“ON ANY RETURN MADE ON OR AFTER MARCH 1, 2009, BUT PRIOR TO DECEMBER 31, 2011. FOR ANY RETURN MADE PRIOR TO APRIL 1, 2009, A VENDOR SHALL NOT BE LIABLE FOR ANY INTEREST OR OTHER PENALTY IMPOSED AS A RESULT OF AN ERROR MADE IN CONNECTION WITH THE IMPOSITION OF A MAXIMUM AMOUNT OF SALES TAX REVENUES THAT MAY BE RETAINED IN ACCORDANCE WITH THE PROVISIONS”

  • This is a reduction in the vendor fee for state sales and use tax, it does not affect local vendor fees
  • There is no change to the state sales/use tax rate which remains at 2.9 percent.
  • This rate reduction applies to monthly, seasonal, irregular and thirteen-month filing frequencies. The service fee remains the same for quarterly and annual state sales and use tax filers.
  • Attached is a copy of the latest state DRP 1002 which summarizes all Colorado sales/use tax rates. 

Visit the March 4th CADA Open Road, Legislative Updates, SB 212 – Vendor Allowance Fee for more on the background of this recently enacted bill:  www.cadaopenroad.org (for all prior archives)

CLICK HERE for a downloadable copy of the CADA memo on this topic.  

* * * * * * * *

OTHER REGULATORY / LEGAL REMINDERS: UPCOMING EFFECTIVE DATES

Keep in mind the following upcoming deadlines – both are extensions in the effective dates of previously announced regulatory changes: 

1. A revised federal I-9 form originally scheduled to take effect Feb. 2, 2009, was delayed and still is scheduled to take effect April 3, 2009.

  • See January 28, 2009 issue of Open Road, Regulatory & Legal Updates, New I-9 Form Released

2. The Red Flags Rule new enforcement deadline is May 1, 2009

  • Keep in mind the rule was effective January 1, 2008, but a “mandatory compliance” deadline after which active enforcement was to begin had been set for November 1, 2008 but was extended to May 1, 2009.
  • Note that the FTC’s Address Discrepancy Rule which is somewhat related to the Red Flags Rule, did take effect on November 1, 2008, with no delay on enforcement or mandatory compliance.
    • See October 29, 2008 issue, Regulatory & Legal Updates, Red Flags Rule Compliance Date Delayed by FTC; But Dealerships May Still Need to be in Compliance by Nov. 1st
  • See October 1, 2008 issue, Regulatory & Legal Updates, Reminder: New Federal Red Flags & Address Discrepancy Rules (also includes information on how to request copies of electronic forms from NADA).

* * * * * * * *

DENVER AUTO SHOW- OFF-SITE PERMITS REQUIRED

The upcoming Denver Auto Show provides dealers the opportunity to market to new customers and show off the latest and even futuristic, concept cars.

If your sales staff plan to work the show, please be aware of the off-premise permit needed to comply with the state’s guidelines for off-site sales activity. Additionally, off-premise permit applications must be made to the Auto Industry Division before the start of the overall show (Wednesday, March 26). 

CLICK HERE for the off-premise permit application. CLICK HERE for a CADA Memo with more details on off-site permits.

* * * * * * * *

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 - CADA'S FRANCHISE BILL READY FOR SIGNATURE BY GOVERNOR RITTER

After a quick concurrence by the Senate last week to a minor amendment made in the House, SB-091 has passed through both chambers of the legislature and is now ready for signature by Governor Ritter.  We have asked the Governor's office for a bill signing ceremony and will advise of the details when we have them.  If you would like to see a copy of the bill that will become law upon signature by the Governor, please click here.

* * * * * * * *

HB 1230 HOLD HARMLESS FOR DEALERS PASSES OUT OF HOUSE TRANSPORTATION COMMITTEE

HB 1230 would provide a hold harmless for dealers who rely upon address information provided by a consumer, that turns out to be inaccurate, relative to sales tax collection.  In order to qualify for the hold harmelss, dealers must get a signed affidavit from the consumer where the purchaser affirms that the address they are providing to the dealer as their primary address is true and correct.  If the dealer complies with this component of the statute and a taxing jurisdiction later determines that the consumer's information was inaccurate (whether knowingly OR unknowingly on the part of the purchaser), the dealer is held harmless of any fees or penalties associated with the incorrect tax collection.

CADA also amended the bill to ask the Transportation Legislation Review Committee (TRLC) to review the inaccuracies of the state approved tax databases for vendors this summer during interim committee meetings.  The bill would require the TRLC to study the accuracy and availability of state approved sales tax databases, how often these databases are updated, the efficiency of the collection of sales tax on the sale of motor vehicles by home rule counties and municipalities, and the number of occurrences in which motor vehicle registrations and titles are returned to the dealer due to sales tax discrepancies.  The committee would then make recommendations for a bill to be filed during the 2010 Legislative Session to address these issues.  Strategically, this study was the best option for CADA to achieve substantive reform in this area, especially with the misinformation being circulated at the Capitol by opponents of this bill. 

The bill passed unanimously out of the House Transportation Committee by a vote of
11-0.  The bill will now be heard by the full House of Representatives, likely by the end of this week.  If you have any questions on this legislation, please contact me at melissa.kuipers@coloradodeaers.org or Tammi McCoy at tammi.mccoy@coloradodealers.org.

* * * * * * * *

Questions or Comments?  Please contact:

Melissa Kuipers – VP of Government Relations and Communication

melissa.kuipers@coloradodealers.org, 303.457.5115


DENVER AUTO SHOW

AUTO SHOW COUPON!

Use this coupon in your marketing campaigns for dealer customers! 

Click on the coupon for a printable version!


a
TOUGH TACTICS TO REDUCE EXPENSES IN TOUGH TIMES

NEXT WEEK!!

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

Bad habits are formed in good times! Good habits are formed in bad times!
   What are the habits of your employees in this challenging and difficult economy?

Your Three Largest Expenses - Personnel, Advertising and Floor Plan...     Control them, or they will control you!

  • Are your compensation plans crafted to achieve your vision for the dealership?
  • How much are you spending on advertising to "drive" traffic to your dealership in this market?
  • Are you controlling your floor plan interest espense?
    • What is your days supply of new vehicles? Are you at or near NADA benchmarks?
    • Are you "working" your Floor Plan Assistance Program properly, or is it costing you money?

Overview:

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!
A CLICK HERE for more information
on this training session.

* * * * * * * *

VIRTUAL SEMINAR: A DEEPER DIVE INTO THE FTC RED FLAGS RULE

CLICK HERE for more information!

March 26, 2009
1:00 p.m. to 3:00 p.m. ET

Speaker: Paul Metrey
Attorneys from the FTC's Division of Privacy and Identity Protection and Paul Metrey

NOTE: Please have the publication A Dealer guide to the FTC Red Flags and Address Discrepancy Rules with you during the presentation. A copy has been mailed to all NADA members. If you need to purchase the guide, CLICK HERE.

About the Topic:

With the FTC's revised May 1, 2009 enforcement date for the FTC Red Flags Rule rapidly approaching, dealers should ensure their required Identity Theft Prevention Programs incorporate all of their covered accounts, include all relevant Red Flags, contain effective response and detection procedures, address all of the rule's other requirements, and are appropriately tailored to their particular operations. This can be challenging as the Red Flags Rule contains general provisions that apply to all types of financial institutions and creditors, not just dealers. To assist you in understanding how the Red Flags and Address Discrepancy Rules apply to dealership operations, NADA has arranged for attorneys from the FTC's Division of Privacy and Identity Protection (which drafted and enforces the Red Flags Rule) to join NADA Regulatory Affairs Director Paul Metrey in a virtual seminar that will examine implementation considerations for dealers. After briefly recapping the required elements of the Red Flags and Address Discrepancy Rules, NADA will open the phone lines so you can present questions directly to the FTC attorneys. Don't miss this valuable opportunity!

What You Will Cover:

  • Identity theft prevention programs
  • Indicators of identity theft (Red Flags)
  • Training requirements
  • Service provider oversight
  • Involvement required of the dealership's board of directors

How You Will Benefit:

  • Construct a preliminary risk assessment and a written identity theft prevention program
  • Identify, detect, and respond to indicators of identity theft (Red Flags)

Who Should Attend:

  • Dealers
  • General Managers
  • CFO's
  • Controllers
  • Finance managers
  • Sales managers
  • IT managers
  • Outside compliance professionals

Registration Fees: The system will automatically determine a registration fee based on your membership status at the time of login:
NADA Member: $199.00

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

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.

Virtual Seminar: A Deeper Dive Into the FTC Red Flags Rule

Speaker: Paul Metrey

March 26, 2009,

1:00 p.m. to 3:00 p.m. ET

Click here for more information.

Click here to register online through NADA.


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!

The Voices of Experience Speaker Series presents:

The Toyota Way Approach to Business


Monday, March 30

6:00 mm – 8:00 pm

Please RSVP!

CLICK HERE for an event invitation

CLICK HERE for a parking permit

CLICK HERE for a parking map

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

IN DOWN TIMES, HISPANIC MARKET IS BOOMING

With more than 46 million people, Nuevo Hispania is the 27th-largest nation on Earth and the fourth largest in the Western Hemisphere. Its residents wield $1 trillion of buying power in the marketplace. Even as the rest of the economy contracts in the global recession, Nuevo Hispania remains a thriving, even booming, market that’s expected to grow by 48 percent in the next four years.

And it’s not even a real country.  Click here to read the full article.

Click here to read Hola Denver and find out what’s happening in the Hispanic market today!

Brought to you by Entravision.  For more information on the Hispanic market in Denver please contact Jamie Moreno at 303.318.6205 or jmoreno@entravision.com


2009 NATIONAL AUTOMOTIVE TECHNOLOGY COMPETITION

The 19th annual National Automotive Technology Competition sponsored by the Greater New York Automobile Dealers Association will be held Monday, April 13 through Wednesday, April 15, 2009 at the Jacob K. Javits Convention Center in New York City.  For the second year in a row the Colorado Automobile Dealers Association will be sponsoring a team from Smokey Hill High School in Aurora, CO.

 

Team members include instructor Brian Manley and students Patrick Newell and Lucas Nogueira.  During the competition the students will be working on the 2009 Ford Edge.  Recently, several local dealers volunteered to help our team prepare for the competition.  Special thanks goes to Chris Cleavenger at Burt Ford in Parker and Blaine Anderson at Mike Naughton Ford in Aurora for taking the time to help our team become familiar with the 2009 Ford Edge and for providing them access to the special tools used by technicians in the service department today.

* * * * * * * *

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