MAY 13, 2009


IN THIS ISSUE

DEALER NEWS & INFORMATION

Automotive News at a Glance

 

REGULATORY & LEGAL UPDATES

Guest Column: Lily Ledbetter Fair Pay Act - New Federal Amendments to Discrimination Laws

Record Number of Discrimination Charges in 2008: Can 2009 be Far Behind?

Title and Registration: Form Reminders from the State

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

 

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

CADA welcomes new General Manager’s, Chris Staton of Cherry Creek Dodge and Rob Edwards of Vista Colorado.

Share Your Accomplishments

 

THE AFTERFACT

All the News That's Fit to Email!


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
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Friday, 7 a.m. to 4 p.m.


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or suggestions
regarding this
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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.

  • VIDEO: Wall Street shows some relief as bank stress tests released
    9News Denver, May 7

    Of the 19 largest U.S. banks that underwent the stress tests, the Obama economic team is expected to announce nearly all have enough capital to weather the recession and that the banking system is recovering.
  • Energy Department plans to award $10B in auto retooling loans in '09
    The Detroit News, May 7
    The Obama administration plans to award an estimated $10.1 billion in advanced technology retooling loans to the auto industry this year.
  • Michigan car dealers, suppliers will get loans from U.S., auto recovery chief announces
    The Detroit News, May 7
    President Barack Obama's auto industry recovery czar launched a two-day trip to auto-downturn-ravaged Michigan today and announced an expanded loan program that will aid state auto dealers and suppliers and give more than $10 million to Michigan for the redevelopment of old manufacturing sites.
  • Chrysler will pick dealer cuts by Thursday
    The Detroit News, May 9
    Chrysler LLC dealers are expecting to learn their individual fates by Thursday as the automaker chooses which dealerships will be part of a new and leaner company that emerges from bankruptcy.
  • VIDEO: Ann Telnaes Cartoon
    The Washington Post, May 6

    Articulate conservativism.
  • Detroit's Troubles Lure World of Bidders
    The Wall Street Journal, May 7
    Foreign bidders are lining up to pick off parts of General Motors Corp. as the contraction of the U.S. auto industry sets the stage for a global reshuffling.
  • Chrysler Starts Dealer Payments
    The Wall Street Journal, May 7
    Chrysler LLC on Wednesday began paying some of the hundreds of millions of dollars it owes its dealers, although some said they hadn't yet received payments.
  • BMW Posts Loss as Unit Sales Fall 21%
    The Wall Street Journal, May 7
    BMW AG swung to a first-quarter net loss as demand for luxury cars stalled amid the recession, and said it is still impossible to give a reliable forecast for the full year because of market volatility.
  • Ford seeks new union talks
    Detroit Free Press, May 7
    Ford Motor Co. wants to talk to the UAW about additional modifications to its labor agreement, a Ford vice president said Wednesday, even though UAW members just ratified new cost-saving changes in March.
  • Dealership insignia aren't required
    Examiner, May 6
    Why must local car dealers put decals or medallions advertising their dealerships on the backs of the cars they sell?
  • Price of GM stock too high, experts say
    Detroit Free Press, May 7
    As General Motors Corp. approaches a June 1 deadline to restructure, stockholders -- including thousands of company retirees and workers in Michigan -- are facing yet another painful hit, regardless of whether GM avoids bankruptcy.
  • Challenges align for GM
    The Detroit News, May 7
    General Motors Corp. is expected to release an eighth-consecutive quarterly loss today, a key day for the automaker as it also restarts concession talks with the United Auto Workers.
  • GM posts $6 billion loss for first quarter
    The Detroit News, May 7
    General Motors Corp. posted a $6 billion net loss in the first quarter, and revenue plummeted 47 percent amid a global economic downturn and low sales that have helped push the automaker to the brink of bankruptcy.
  • USA Today, Open Road
  • …more news articles are included at the end of this issue.

    * * * * * * * *



GUEST COLUMN: LILY LEDBETTER FAIR PAY ACT- NEW FEDERAL AMENDMENTS TO DISCRIMINATION LAWS

Who In The Heck Is Lilly Ledbetter?
By John Donovan, Fisher & Phillips, LLP

In recent weeks, there has been a lot of media attention given to the new “Lilly Ledbetter Fair Pay Act.” Who is Lilly Ledbetter and what, if anything, does this Act mean for dealerships? 

Key excerpts from this article:

  • It amended all of the major discrimination laws – Title VII, the Age Discrimination in Employment Act, the Americans with Disabilities Act and the Rehabilitation Act – to provide that the charge-filing period would be triggered each time an employee is “affected” by the application of a discriminatory compensation decision or practice.
  • Note that the new Act is not limited to gender-based pay disparities.
    • It applies to any individual who is claiming discrimination in compensation on any basis: race, sex, religion, age, national origin, disability, etc.
  • The bigger danger that we see is that the law has focused new attention on the issue of pay discrimination and this will no doubt lead to an increase in claims and lawsuits against employers across the country.
  • We recommend that dealerships take a close look at job categories which are particularly susceptible to wage discrimination.
    • Finance Managers and Finance Assistants
    • Service Writers/Service Advisors
    • Parts-counter employees
    • Porters, car wash and get-ready employees
  • Audit your pay plans for each of the positions listed above as well as any other position where you have more than one incumbent performing the same duties. Make sure that you have a legitimate – and provable – basis for any pay disparity you find.

CLICK HERE for the full article. 

* * * * * * * *

RECORD NUMBER OF DISCRIMINATION CHARGES IN 2008: CAN 2009 BE FAR BEHIND?
Hot Topics, Mountain States Employers Council, May 4, 2009

Every year the Equal Employment Opportunity Commission (EEOC) publishes a Performance and Accountability Report, which provides statistics about discrimination issues handled by the agency. Recently, the fiscal year 2008 report was released. It shows 95,402 discrimination charges against private employers in 2008, a 15.2% increase from 2007, and the highest numbers yet.

The largest increase was in age-related claims. This may be due to the larger number of older employees in the workforce. Currently, 40% of employees in the workforce are over age 55 in contrast to 32% of workers over age 55 working in 2000.

2009 promises to provide more charges for the EEOC to review. In a time of rising unemployment, charges of discrimination tend to rise. Because of even higher unemployment and new laws, we may have an even larger increase. Be aware of new legislation which has passed. This includes the Genetic Information Non-Discrimination Act, the Lilly Ledbetter Fair Pay Act and the ADA Amendments Act. There have also been changes to the FMLA regulations.   

* * *

CLICK HERE for more information on Mountain States Employers Council (MSEC) – all CADA members have access to basic-level support from the teams of employment attorneys on staff at MSEC.  Additionally, you can obtain an id/password to access their web site by contacting MSEC directly and identifying yourself as a CADA member.  There is a wealth of information and resources available on their web site.

* * * * * * * *

TITLE AND REGISTRATION: FORM REQUIREMENT REMINDERS AND CHANGES FROM THE STATE

The following reminders were provided by the Department of Revenue - Titles and Registration:

CLICK HERE to review.

* * * * * * * *

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 281 – PINNACOL INTERIM STUDY AND ONGOING AUDITS

SB 281, the only bill passed relating to Pinnacol Assurance, has been severely watered down to only 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, and the revised bill has passed out of both chambers and will likely be signed by the Governor in the next few weeks.  Pinnacol has asked the Governor to veto this bill.  We will be asking the Governor to veto SB 281 as well, along with several other business groups.

* * * * * * * *

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 passed out of both chambers and is expected to be signed by Governor Ritter this week.

* * * * * * * *

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.

* * * * * * * *

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


CADA WELCOMES NEW GENERAL MANAGERS, CHRIS STATON AND ROB EDWARDS

CADA welcomes new General Manager’s, Chris Staton of Cherry Creek Dodge and Rob Edwards of Vista Colorado.

* * * * * * * *

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

  • For Most Banks, Not Too Stressful
    Forbes, May 7
    Federal regulators have determined that after a relatively successful first three months of 2009, the largest 19 banks only need to raise $75 billion to remain well-capitalized through a prolonged downturn.
  • Looking Past Auto Earnings
    Forbes, May 7
    GM appears bankrupt, Toyota rides out a storm.
  • In Search of a Clean Machine: Testing Four Car-Wash Chains
    The Wall Street Journal, May 7
    Washing your car to remove dirt, road salt, tree sap and bird droppings -- which can damage its finish -- can help it extend its life and maintain its value. That's increasingly important as people hold on to their cars longer in a difficult economy.

    * * * * * * * *


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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