MAY 6, 2009


IN THIS ISSUE

DEALER NEWS & INFORMATION

Automotive News at a Glance

 

REGULATORY & LEGAL UPDATES

Chrysler Bankruptcy Filing

Pontiac Dealer Alert: A Road Map for Dealers

CADA Virtual Seminar: Manufacturer Bankruptcy: Now Available in Pre-Recorded Format!

Red Flags: Enforcement Deadline Delayed Again

 

LEGISLATIVE UPDATE

SB 281 - Pinnacol Interim Study and Ongoing Audits

HB 1331 - Governor Ritter's Alternative Fuel Source Tax Incentives.

SB-150 Closes Bankruptcy Loophole

HB 1230 Hold Harmless for Dealers

SB 296 - Primary Seatbelt Enforcement

Legislative Tidbits

 

UPCOMING SEMINARS

Upcoming Seminars

CADA Virtual Seminar: Manufacturer Bankruptcy: What it Means and Proactive Steps- Now Available in Pre:Recorded Format!

CADA Virtual Seminar: Employer Requirements for New COBRA Subsidy; Archive Now Available


CALENDAR OF EVENTS
Upcoming Events

Dedication of the "Bud Wells Board Room"

Dealer Management and Leadership Summit

CADA Annual Member Golf Event


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

Share Your Accomplishments

 

THE AFTERFACT

All the News That's Fit to Email!


ARCHIVES

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& Legal Articles
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Road e-newsletter.

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www.nada.org

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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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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.

  • Plan Offers $5,000 For Your Old Car
    7News Denver, May 4
    The Bill, H.R. 1550, rewards owners of cars that are nine years old or older if they turn those cars in for something more fuel efficient and emits less pollution.
  • Chrysler Sifts Its Dealer Network
    The Wall Street Journal, May 6
    Auto Maker Studies Condition of Its About 3,200 Sales Outlets, Seeking to Get Rid of Hundreds of Them
  • Chrysler bankruptcy filing likely to mean Colorado dealer shutdowns
    Denver Business Journal, April 30
    Chapter 11 bankruptcy filing Thursday — to stave off creditors while the nation’s third-largest auto manufacturer reorganizes — is expected to shut down Chrysler dealerships in Colorado.
  • Where Are the Republican Hybrid Buyers?
    The Wall Street Journal, May 2
    Unless you are willing to buy a windmill, the biggest green purchase out there is buying a hybrid car.
  • Chrysler Pushed Into Fiat's Arms
    The Wall Street Journal, May 1
    President Barack Obama pledged to give Chrysler LLC "a new lease on life" by ushering the storied auto maker into a bankruptcy reorganization that will empower its union and put Italy's Fiat SpA in charge while elbowing aside its creditors.
  • The History of Chrysler
    The Wall Street Journal, April 30

    One of America's most storied automakers has filed for bankruptcy, 85 years after the first Chrysler car hit the road.
  • Engines of Main Street
    The Washington Post, April 30
    You Can't Help Detroit if You Hurt the Dealers
  • Chrysler bankruptcy judge is no stranger to gigantic cases
    FOX 31, April 30
    For Chrysler's sake, it needs a judge who can move it quickly through the Chapter 11 bankruptcy process. By most accounts, Arthur Gonzalez is the right judge.
  • Chrysler files for Chapter 11 bankruptcy
    The Detroit News, April 30
    The filing in U.S. Bankruptcy Court in New York is an effort to quickly wipe clean Chrysler's balance sheet, backed with $8 billion in U.S. government financing, in the hopes that the company will emerge in 30 to 60 days.
  • Fiat, Chrysler Will Still Join Forces
    Forbes, April 30
    Chrysler will file for Chapter 11 bankruptcy protection but that won't stop a deal with Fiat.
  • Chrysler files for bankruptcy
    Detroit Free Press, April 30
    Chrysler LLC plans to close eight U.S. factories employing about 6,500 workers, including three in the Detroit area, by December 2010 under its bankruptcy plan filed today.
  • GM's small bondholders rally in Warren
    The Detroit News, April 29
    Small individual bondholders of General Motors Corp. rallied today in Warren and voiced their opposition to the automaker's offer to swap debt for equity, arguing the proposal would rob senior citizens of their life savings.
  • Obama praises autoworkers
    Detroit Free Press, April 29

    President Barack Obama said today he did not know whether a deal preventing a collapse of Chrysler LLC would be done before Thursday's deadline, and praised American autoworkers for their sacrifices to the industry's survival.
  • …more news articles are included at the end of this issue.

    * * * * * * * *



CHRYSLER BANKRUPTCY FILING

NADA has provided the a list of Questions and Answers regarding the Chrysler Chapter 11 bankruptcy filing. 

Filings and court documents can be found at the following:

www.chryslerrestructuring.com

For dealerships seeking recommendations for their own bankruptcy attorney in this process, please contact CADA for a listing of attorneys in Colorado. 

* * * * * * * *

PONTIAC DEALER ALERT: A ROAD MAP FOR DEALERS
Guest column, Myers & Fuller, April 29, 2009  

General Motors announced on Monday, April 27, 2009, that it had changed its plan to maintain Pontiac as a “niche” brand and instead will discontinue the brand by year’s end. With elimination of the Pontiac brand confirmed, what are dealers to do?

CLICK HERE to review this article in full.   

* * * * * * * *

CADA VIRTUAL SEMINAR: MANUFACTURER BANKRUPTCY: WHAT IT MEANS AND PROACTIVE STEPS
Understand your rights and responsibilities in a bankruptcy proceeding
NOW AVAILABLE IN PRE-RECORDED FORMAT!

CADA completed this webinar on Friday of last week; it was presented by a team of legal experts.  However, it is not too late to benefit from this session—a fully archived version of the session will be available for the next six months!  You can register to listen to and view all presentations and Q&A that were addressed.   

CLICK HERE to register (you will receive login instructions after your registration is processed)

* * * * * * * *

RED FLAGS: ENFORCEMENT DEADLINE DELAYED AGAIN
Dealers should still ensure compliance for their own protection

The FTC issued an announcement on Thursday of last week extending (yet again) the enforcement deadline for Red Flags until August 1, 2009.  Keep in mind, compliance is still technically required; this delay is only on their active enforcement.  It is still in a dealerships’ best interest to take all steps possible to prevent ID theft—lenders will require dealerships to buy back any paper on an ID theft case, and you will be left sorting out the legalities, paying in full for any loss upfront, and filing a claim with your insurance carrier.  A link to the FTC's notice on this topic follows:

http://www2.ftc.gov/opa/2009/04/redflagsrule.shtm

See below for some helpful, prior Open Road articles  on Red Flags:

October 29, 2008

RED FLAGS RULE COMPLIANCE DATE DELAYED BY FTC; BUT DEALERSHIPS MAY STILL NEED TO BE IN COMPLIANCE BY NOV. 1ST

Address Discrepancy Rule still takes effect on November 1, 2008

October 8, 2008

REMINDER: NEW FEDERAL RED FLAGS & ADDRESS DISCREPANCY RULES: COMPLIANCE DEADLINE IS NOVEMBER 1ST.

Includes link and helpful tip on Social Security numbers; first 3 digits link to where person resided when social security # was obtained

October 1, 2008

REMINDER: NEW FEDERAL RED FLAGS  & ADDRESS DISCREPANCY RULES: COMPLIANCE DEADLINE IS NOVEMBER 1ST

 -Overview of 10 key steps
-26 sample red flags from rule
- Link to NADA publication, L50

* * * * * * * *

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



~ Today is the last day of the Legislative Session for 2009!  Stay tuned for a full legislative briefing of the 2009 Session in next week’s Open Road! ~

SB 281 – PINNACOL INTERIM STUDY AND ONGOING AUDITS

SB 281, the only remaining viable bill relating to Pinnacol Assurance, would place Pinnacol clearly under state control, require an interim study to review its businss structure, and require ongoing audits of Pinnacol's financials.  SB 281 was heard in a conference committee late last week, where the bill was essentially turned into an audit of Pinnacol’s financials and an interim study that will review the political and legal structure of Pinnacol over the summer.  This revised bill has passed out of both chambers and will likely be signed by the Governor in the next few weeks.

* * * * * * * *

HB 1331- GOVERNOR RITTER'S ALTERNATIVE FUEL SOURCE TAX INCENTIVES

HB 1331 is sponsored by Rep. Sara Gagliardi (D-Arvada) and Sen. Betty Boyd (D-Lakewood).  The bill provides tax incentives for efficient motor vehicles.  Vehicles covered by this bill are light-duty passenger, truck and medium duty truck diesel-electric hybrids, hybrid conversions, CNG, and installation of idling reduction technology.  This bill is from the Governor’s office and part of his legislative agenda.  Originally the bill included CAL-LEV compliant vehicles, but CADA successfully stripped that language out of the bill. 

The bill has passed out of the House and was passed by the Senate on 2nd reading late yesterday.  The bill is set to be heard on third and final reading today, after which time it will head back to the House for concurrence of Senate amendments.  Presuming the House concurs on the bill, it will head to the Governor for his signature. 

* * * * * * * *

SB-150 CLOSES BANKRUPTCY LOOPHOLE

This bill closes a bankruptcy loophole often abused by consumers and protects security interest of dealers and lien holders. CADA worked to amend this bill to provide a thirty (30) day timeline under which dealers can perfect liens and still receive benefits from the bill which originally had a twenty (20) day timeline. SB-150 passed out of the House of Representatives and the Senate concurred with the House amendments.  The bill was signed into law by Governor Ritter on April 22, 2009.

* * * * * * * *

HB 1230 HOLD HARMLESS FOR DEALERS

This bill provides a hold harmless for dealers on address discrepancies provided by consumers and refers sales tax jurisdictional issues to the Transportation Legislation Review Commission for their review over the summer. The bill has passed out of the House and Senate unanimously, a rare testament for any bill, and the House concurred with the Senate amendments last week.  The bill was signed by Governor Ritter on Monday, May 4th.

SB 296 - PRIMARY SEATBELT ENFORCEMENT

SB 296 changes the traffic infraction of failure to use a seatbelt from a secondary offense to a primary offense.  Under current law, drivers may only be pulled over by law enforcement for reasons other than their failure to wear a seatbelt.  This bill would change that. 

The bill is sponsored by Sen. Betty Boyd (D-Lakewood) and Rep. Su Ryden (D-Aurora).  Not only would this bill reduce the incidence of traffic fatalities, as evidence by the data collected from states that have passed primary enforcement laws, but if Colorado passes SB 296 this Session, the state is eligible for $12M-$14.4M in federal grants for the Colorado Department of Transportation.

Unfortunately the bill was killed in the House Appropriations committee on Monday by a 7-6 vote.  It is unlikely that the bill will be revived this Session.  More to come on this issue in next week’s Legislative wrap-up.

* * * * * * * *

LEGISLATIVE TIDBITS

HB 1344, sponsored by Rep. Christine Scanlan (D-Summit) and Sen. Betty Boyd (D-Lakewood), was supported by the Colorado Trial Lawyers Association and attempted to raise the caps on non-economic damage awards in medical malpractice cases. The bill would also require the Colorado Division of Insurance to approve any rate increase over 5% for physician liaiblity insurance.  The bill was gutted by the sponsor in the House Judiciary committee, where Rep. Scanlan removed the cap increase for fear that she did not have the votes to get the bill out of committee  The bill passed out of committee 7-5, but later died on the House floor the next day by a vote of 39-26.

HB 1273, sponsored by Rep. John Kefalas (D-Fort Collins) and Sen. Joyce Foster (D-Denver) would have created a single payer health care system in Colorado.  The bill died on the House floor at the request of its sponsor, Rep. Kefalas, because he did not have the votes to pass it. 

* * * * * * * *

Questions or Comments?  Please contact:

Melissa Kuipers – VP of Government Relations and Communications

melissa.kuipers@coloradodealers.org, 303.457.5115


a

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

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

CADA Virtual Seminar: Manufacturer Bankruptcy: What it Means and
Proactive Steps for You to Prepare

Understand your rights and responsibilities in a bankruptcy proceeding

NOW AVAILABLE IN PRE-RECORDED FORMAT!

Archive of this webinar can be viewed any time

Session was completed May 1, 2009
-Includes detailed Q &A by those linked in on May 1st

Click here for a registration form and more information (login information and slides provided upon registration)

CADA Virtual Seminar: Employer Requirements for New COBRA Subsidy

Speaker: Penny Wofford, Ford & Harrison LLP


Archive of this webinar can be viewed any time

Click here for a registration form and more information (login information and slides provided upon registration)

Session was completed April 7, 2009
-Includes detailed Q &A by those linked in on April 7th


Event Description
Date/Time
Location

Dedication of the "Bud Wells Board Room"

 


Wednesday, June 10

12 - 1:30 p.m.

William D. Barrow Building
290 E. Speer Boulevard
Denver, CO 80203

RSVP to Lauren Stadler
303.457.5123
lauren.stadler@coloradodealers.org

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


* * * * * * * *

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.


THE AFTERFACT

  • Top lawmaker wants mileage-based tax on vehicles
    The Detroit News, April 29
    A House committee chairman said Tuesday that he wants Congress to enact a mileage-based tax on cars and trucks to pay for highway programs now rather than wait years to test the idea.
  • Unhappy UAW members urge 'no' vote on Chrysler contract
    The Detroit News, April 29
    United Auto Workers continue to vote today on a tentative contract with Chrysler LLC.
  • Obama unsure if Chrysler will meet deadline
    The Detroit News, April 29
    President Barack Obama said Wednesday that it's not clear whether Chrysler LLC will be able to meet a Thursday deadline to complete a tie-up with Fiat SpA.
  • Role of credit default swaps debated in GM's bankruptcy risk
    Detroit Free Press, April 29
    As if Wall Street didn't already have an unsavory reputation for its role in the global economic meltdown, now we have the financial markets' version of a protection racket -- the credit default swap -- rearing its head in the General Motors drama.
  • Key Lenders Agree to Chrysler Debt Swap
    The Wall Street Journal, April 29
    Chrysler LLC moved a step closer to a historic reorganization after key banks and lenders agreed in principle to a debt-for-cash swap two days before a government-imposed deadline.
  • GM Dealers Await Word on Deeper Cuts
    The Wall Street Journal, April 29
    General Motors Corp.'s move to eliminate the Pontiac and Saturn brands and reduce costs will mean the end of about 42% of its 6,200 U.S. dealers, on average winnowing its dealer ranks by about 130 outlets a month for the next 20 months.
  • Economy Falls Into Spring
    Forbes, April 29
    GDP data for the first quarter shows an increase in personal consumption could not offset collapsing spending from businesses.
  • Plunging Sales At Renault
    Forbes, April 29
    French carmaker says sales fell by 31.0% in the first quarter.
  • If Chrysler Is Saved, Then What?
    Forbes, April 28
    Surviving for now does not mean it will survive.

    * * * * * * * *


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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