MARCH 25, 2009


IN THIS ISSUE

DEALER NEWS & INFORMATION

Dealer Participation Needed: NADA Compensation and Benefits Survey

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

 

REGULATORY & LEGAL UPDATES

City of Louisville - Mistake on USE Tax!

REMINDER: National Association of Dealer Counsel Conference NEXT WEEK!

 

LEGISLATIVE UPDATE

HB 1230 - Hold Harmless for Dealers Passes out of House of Representatives

SB-150 - CADA Working to Amend SB-150 To Close Bankruptcy Loophole While Still Protecting Dealers

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

 

DENVER AUTO SHOW

Auto Show Coupon!

 

UPCOMING SEMINARS

Upcoming Seminars

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

CADA Virtual Seminar: Employer Requirements for New COBRA Subsidy


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
Quick Lube - Loss Leader or Profit Center?


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

Share Your Accomplishments


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& Legal Articles
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.

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.

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.

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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.




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Endorsed Vendors/Programs
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DEALER PARTICIPATION NEEDED: NADA COMPENSATION AND BENEFITS SURVEY

Surveys are DUE by March 31st!

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.

  • EPA makes a move on emissions
    The Detroit News, March 24
    The Environmental Protection Agency wants carbon dioxide and other greenhouse gases declared a public health danger -- nearly two years after the Supreme Court gave it authority to regulate them.
  • VIDEO: Group hopes crushing cars will improve air
    KUSA 9News, March 20

    According to one Denver based nonprofit, 5 percent of the cars on the road are generating 75 percent of the pollution in the air. But thanks to a partnership between the Colorado Automobile Dealers Association and the Metro Denver Automobile Dealers Association old car owners now have some incentive to do something about it.
  • Auto Nation adopts payment protection plan
    Motor Trend, March 19
    New and used auto dealer chain AutoNation announced a payment protection plan today that waives six months of car payments for those who lose their jobs.
  • Supplier aid may be decided this week
    The Detroit News, March 18
    The Obama administration's auto team told key members of Congress on Tuesday it plans to make significant announcements on the future of the domestic automakers next week, and to their suppliers as early as this week.
  • Look up in down economy
    The Detroit News, March 18
    Hugh Hatch has had lots of people tell him he's going to be a millionaire. Only not enough people are buying his product and that's a problem.
  • A return of 'easy credit' may not be best for U.S.
    The Detroit News, March 18
    For two decades I have watched in wonder as America's economy boomed on the back of cheap credit and cheap imports...
  • Wagoner sounds alarm on suppliers
    Detroit Free Press, March 18
    General Motors Corp. Chairman Rick Wagoner warned Tuesday that the financial stability of U.S. auto suppliers was "getting more precarious," and that a GM bankruptcy could lead to the company's demise.
  • Wagoner: 2010 Camaro shows we're improving MPG
    Detroit Free Press, March 16

    Chief Executive Rick Wagoner says the V-6 version of the Camaro will get 29 miles per gallon on the highway, and a high performance SS model with a V-8 will get 25 miles per gallon.
  • Nardelli says more aid for financing would boost Chrysler sales
    Detroit Free Press, March 18
    Chrysler CEO Bob Nardelli called Tuesday for a second round of funding for the company's financial arm that would enable sales to customers who otherwise can't qualify for loans.
  • Officials tell AIG to repay bonuses
    Detroit Free Press, March 18
    With outrage swirling over $165 million in bonuses paid to employees of government-owned insurance giant AIG, Michigan lawmakers joined colleagues in calling for several steps against the company, noting the stark differences from the sacrifices demanded of union workers under the auto industry rescues.
  • 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?
  • Chrysler puts 2 important vehicles in its report to U.S.
    Detroit Free Press, March 17
    Chrysler LLC quietly revealed photos of two key vehicles -- its redesigned 2010 Jeep Grand Cherokee and the 2010 Chrysler 300 -- deep in the 177-page restructuring plan it submitted last month to the Obama administration.
  • 2009 VW Tiguan
    Business Week, March 17

    If you're in the market for a compact SUV and appreciate German engineering, consider the VW Tiguan
  • Ford Cuts Capacity in Europe
    The Wall Street Journal, March 17
    Ford Motor Co.'s European division is cutting production capacity because of shrinking demand, and it signaled it will take more steps to lower costs and foster profitability.
  • Consumer Prices Continue to Rise
    The Wall Street Journal, March 18
    U.S. consumer prices increased for a second-straight month to start the year for everything from clothing and new cars to medical care, raising the odds that the U.S. will avoid a protracted deflationary spiral of falling prices and spending.
  • Ross: U.S.-backed car loans needed
    The Detroit News, March 18
    Government should provide insurance on banks' credit for carmaker payments to suppliers, he says.
  • A heap of stimulus: 'Cash for clunkers' bill could jumpstart new auto sales
    The Detroit News, March 18

    A wide-ranging program that would give consumers turning in old clunkers cash vouchers worth up to $5,000 to buy new, more fuel-efficient vehicles was introduced Tuesday in Congress.
  • After 95 years, auto dealer awaits Chrysler's fate
    Reuters, March 23
    Randy is the fifth generation of his family to run the business and is waiting to see the fate of Chrysler LLC -- the automaker his family has partnered with for 76 years and which has become part of his family -- as it struggles to survive the worst auto industry downturn in almost three decades.
  • Nardelli says Chrysler needs answer on aid by March 31
    The Detroit News, March 17
    Chrysler LLC Chairman and CEO Robert Nardelli said the company needs a decision by March 31 on its request for $5 billion in additional government loans.
  • BMW's Push into Electric Cars
    Business Week, March 12

    The company is developing an all-new electric vehicle under its "Project i." But will battery prices fall enough to make the car a success?

    * * * * * * * *

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)  



CITY OF LOUISVILLE - MISTAKE ON USE TAX!

CADA has been advised by the City of Louisville there was a mistake made on the application of a recent local tax change.  On January 1, 2009, the City of Louisville (a home-rule, self-collected city), increased the city sales tax rate from 3.375% to 3.5%.   This change, however, only affected the sales tax rate, but not the use tax rate, which remains at 3.375%.  The DR 1002 publication that many dealerships utilize does not list use tax rates, but only sales tax rates for these self-collected municipalities.  In addition, the certified third party databases were incorrect and showed the new rate for both categories. 

Based upon the determination of the Louisville  City Attorney, in-City purchases should be subject to the 3.5% sales tax, but out-of-City purchases should be subject to the 3.375% use tax rate

 Both the counties and outside vendors have been notified; dealerships selling to residents of the City of Louisville should apply the use tax rate of 3.375% as soon as possible.   

* * * * * * * *

REMINDER: NATIONAL ASSOCIATION OF DEALER COUNSEL CONFERENCE NEXT WEEK!

The National Association of Dealer Counsel (NADC) is a nationwide professional organization of attorneys who represent automobile and other vehicle/vessel dealers.  The 5th Annual Member Conference is being held in Las Colinas (near Dallas) next week.

Dealership attorneys are encouraged to attend.
CLICK HERE for the program overview.

* * * * * * * *

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



HB 1230 HOLD HARMLESS FOR DEALERS PASSES OUT OF HOUSE OF REPRESENTATIVES

After passing out of the House Transportation Committee by a vote of 11-0, the full House of Representatives echoed the sentiments of the committee on Monday morning by passing HB 1230 by a vote of 64-0-1.  HB 1230 provides 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 harmless, 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 (including all non-home rule municipalities, cities, counties and the State) later determines that the consumer's information was inaccurate, the dealer is held harmless of any fees or penalties associated with the incorrect tax collection.

The second component of the bill, which was pursued by CADA, directs 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 also requires 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.  If you would like to see a copy of this bill, please click here.                                   

The bill will now be sent to the Senate and assigned to a committee for further hearing.  If you would like to testify in the Senate committee or if you have any questions on this legislation, please contact me at melissa.kuipers@coloradodealers.org or Tammi McCoy at tammi.mccoy@coloradodealers.org.

* * * * * * * *

SB-150 - CADA WORKING TO AMEND SB-150 TO CLOSE BANKRUPTCY LOOPHOLE WHILE STILL PROTECTING DEALERS

The Credit Union Association and the Independent Bankers Association asked Sen. Rollie Heath (D-Boulder) and Rep. Claire Levy (D-Boulder) to carry a bill that would prevent consumers from taking advantage of the bankruptcy laws to the detriment of dealers and lienholders.  As many of you know, consumers will purchase a vehicle only to declare bankruptcy days later before the dealer has been able to file the lien.  As drafted, the bill would have required dealers to perfect their liens within 20 days of consumers taking possession of the vehicle.  The bill would have also given a perfected purchase-money lien priority over a conflicting lien in a bankruptcy proceeding.  While CADA supported the intent of the bill, 20 days to perfect a lien was significantly shorter than the 30 days allowable under the Federal safe-harbor law.  CADA successfully lobbied the proponents of the bill and the bill sponsors to extend the perfection deadline to 30 days, while still keeping all of the benefits for creditors under the UCC, which was and is the original intent of the bill.  The bill will be heard on 2nd Reading in the House this Friday, and will be amended to improve some of the bill language to make certain that motor vehicle lien holders have priority over other creditors in a bankruptcy proceeding.  Special thanks goes to CADA’s Tammi McCoy, who was integral in drafting the amendment language, along with Tim Lamb, Esq. of Timothy J. Lamb, P.C. in Denver.  We will provide a copy of the revised bill in next week's Open Road.

* * * * * * * *

SB-091 - CADA'S FRANCHISE BILL AWAITS SIGNATURE BY GOVERNOR RITTER

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.

* * * * * * * *

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

NADA 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!

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.

* * * * * * * *

CADA VIRTUAL SEMINAR: EMPLOYER REQUIREMENTS FOR NEW COBRA SUBSIDY

Speakers: Penny Wofford, Ford & Harrison LLP

CLICK HERE for registration and more information!

Tuesday, April 7, 2009
10:00am to Noon (MST)

Location: This seminar is web-based (listen-in via telephone and view presentation slides and submit questions via your computer; access information will be provided after registration and in advance of the session)

About the Topic:
The American Recovery and Reinvestment Act, enacted on February 17, 2009 as an economic stimulus, provides a temporary government-funded subsidy of COBRA premiums for certain individuals beginning March 1, 2009. Employers are required to distribute notices to COBRA qualified beneficiaries and in most cases, absorb or pay for the subsidy in exchange for a credit toward the employer's payroll taxes. Employers are required to take prompt steps to comply with the Act.  

Employer action is required by April 17th, 2009

What You Will Cover:

  • The individuals eligible for the subsidy ("Assistance Eligible Individuals")
  • The notices employers are required to provide and the timing for distribution
  • The payroll tax credit for the subsidy
How You Will Benefit:
  • You will learn the steps to complying with the Act
  • You will understand how to coordinate administration of the subsidy with COBRA administrators, insurers, and other service providers

Who Should Attend:

  • Human resources managers
  • Benefits managers
  • Personnel responsible for the employer's group health plan(s)
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

NADA 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.

CADA Virtual Seminar: Employer Requirements for New COBRA Subsidy

Speaker: Penny Wofford, Ford & Harrison LLP

April  7, 2009,

10:00am to Noon (MST)

Click here for a registration and more information.


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

QUICK LUBE - LOSS LEADER OR PROFIT CENTER?
Article provided by: Brad Bowers, Terry and Company, P.C.

In a tough economy, dealers should look to their lube racks.  Are you managing your lube rack as the profit center it should be?  If not, sales are missed, and the independent fast lube operators are provided with a huge opportunity...

Click Here to learn more!

For more information contact: Brad Bowers, Terry and Company, P.C. at 866.831.0295 or bbowers@terryandcompany.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.

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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