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MAY 20, 2009
IN THIS ISSUE
 DEALER NEWS & INFORMATION
– NADA Compensation and Benefits Survey
– Dedication of the "Bud Wells Board Room"
– Automotive News at a Glance
REGULATORY & LEGAL UPDATES
– Auto Industry Division Announces Significant License Fee Increase
LEGISLATIVE UPDATE
– Colorado Automobile Dealers Association 2009 Legislative Review
UPCOMING SEMINARS
– Upcoming Seminars
– Reduction in Force Legal Risks, Virtual Seminar
– Controllers: Taxation Issues and DMS Cost-Reduction
– 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
–Joe Rice Fundraiser Event
–Eco Motor Company Wants You!
–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
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
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ENDORSED VENDOR/PROGRAMS
CLICK HERE for information about the
Endorsed Vendors/Programs.
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If you have trouble viewing any of the links or documents in this e-newsletter, please CLICK HERE to access the web-based version.
DEALER PARTICIPATION NEEDED: NADA COMPENSATION AND BENEFITS  SURVEY
Extended Deadline! Surveys are DUE by May 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
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DEDICATION OF THE "BUD WELLS BOARD ROOM"
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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.
AUTO INDUSTRY DIVISION ANNOUNCES SIGNIFICANT LICENSE FEE INCREASE
The Motor Vehicle Dealer Board (MVDB) regular monthly meeting was last Thursday, May 14th. At that meeting, the Auto Industry Division announced that the Department of Revenue Executive Director had approved their request for a ninety percent increase in fees, effective July 1, 2009. At the prior board meeting in March, the board voted to allow an eighty percent increase. However, the dealer board simply recommends increases; the power to determine and set final fees lies with the Executive Director.
Over the past few months, AID has temporarily transferred about one-third of their staff, closed branch offices, and cut expenses as much as they believe possible while still allowing the department to be responsive to the public. However, a combination of events has led to such a significant increase at one time:
- Primarily, licensing revenues are down substantially due to the drop-off in the auto industry
- Unlike other industry boards in Colorado, the dealer board and AID have only one opportunity each year to set fees, so there is little opportunity to address changing economic conditions
- Last year's licensing fee increase was 3.5%, and was the first increase in several years
- As a cash funded agency in Colorado, supported by industry license fees, the Division must end the year with net-positive revenue over expenses
- An operating loan was also obtained for the rest of this fiscal year; that must be paid back as well
- This increase must be sufficient to also show a budget to the state controller that puts the Division in the black for the next fiscal year as well.
- This fee increase must also make-up for a continued, expected revenue drop-off in licensing revenue throughout the end of next fiscal year
- The Powersports industry licensing revenues were much lower than initially estimated—the expected number of licenses was way-overestimated. [Powersports was brought under ‘motor vehicles’ with the MVDB sunset bill in 2007]
- The Division has issued lay-off notices to all but a couple staff – depending on where May numbers fall, they may need to lay-off nearly all staff for the month of June. Layoff notice of state employees is required by state law; however, the Division is cautiously optimistic the mass layoff will not be necessary
- In times of economic downturn, there are many more out-of-trust situations, more consumer complaints, and in general complaints are more complex. In April there were 420 open cases, as of last week there were 615 at the Division
CLICK HERE for the Auto Industry Division fee schedule, effective July 1, 2009.
While we all realize this fee increase is difficult for dealerships in this current economic environment, it is necessary given the licensing revenue decreases and the factors noted above. CADA will be working closely with AID to pursue fee-setting authority that allows flexibility to changing economic conditions and other unforeseen circumstances. It is expected that the board will also look more closely at setting fees for various categories of licenses and services to more accurately reflect the cost of those particular classes of licenses / services.
If you have any concerns or questions, please contact us directly.
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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
 
COLORADO AUTOMOBILE DEALERS ASSOCIATION 2009 LEGISLATIVE REVIEW
By Melissa Kuipers, Vice President of Government Relations & Communications
Despite a down economy, manufacturer bankruptcy and dealer consolidation, the Colorado Auto Dealers made significant, if not historic, progress at the State Capitol this year.
CLICK HERE for this year's legislative wrap-up!
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Questions or Comments? Please contact:
Melissa Kuipers – VP of Government Relations and Communications
melissa.kuipers@coloradodealers.org, 303.457.5115
| Event Description |
Date/Time |
Location |
Reduction in Force Legal Risks
By Todd Fredrickson, top Denver employment attorney, Fisher & Phillips, LLP
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Thursday, June 18th
1:00 – 2:30pm (time tentative) |
WEBINAR / VIRTUAL SEMINAR
In down economic times, reductions in force and terminations can lead to costly lawsuits. This session will cover how to minimize the risk of employee claims and lawsuits, and also address relevant laws/regulations as well as tips on employee communications.
Registration information available soon
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Controllers: Taxation issues and DMS Cost-Reduction
Bruce Nelson, CPA
Brad Bowers, CPA
Paul Gillrie, The Paul Gillrie Institute
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Wednesday,
July 15, 2009
7:30am – Noon (time tentative) |
CADA Office, 290 East Speer Blvd, Denver
CPAs will review lessons learned from recent dealership tax audits, and advise dealerships on areas of risk in state/local tax audits as well as other sources of liability.
Paul Gillrie, national consultant and expert on DMS system negotiations, reducing monthly costs/billing analysis, and on the DMS market overall.
Registration information available soon
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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!
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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)
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CADA Virtual Seminar: Employer Requirements for New COBRA Subsidy
Speaker: Penny Wofford, Ford & Harrison LLP
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Archive of this webinar can be viewed any time
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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
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| Event Description |
Date/Time |
Location |
Dedication of the "Bud Wells Board Room"
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Wednesday, June 10
12 - 1:30 p.m.
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William D. Barrow Building
290 E. Speer Boulevard
Denver, CO 80203
RSVP to Lauren Stadler
303.457.5123
lauren.stadler@coloradodealers.org
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Reception to Honor John Suthers
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Wednesday, June 10
5 - 7 p.m.
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CADA Headquarters
William D. Barrow Building
290 E. Speer Boulevard
Denver, CO 80203
RSVP to Lauren Stadler
303.457.5123
lauren.stadler@coloradodealers.org
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Dealer Management & Leadership Summit
Save the Date
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Thursday, Aug. 13
8 a.m. to 7:30 p.m
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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
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Monday, August 24, 2009
12:00 Noon Shotgun Start
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Glenmoor Country Club
110 Glenmoor Drive
Cherry Hills Village, 80113
303.781.3000
www.glenmoorcc.org |
JOE RICE FUNDRAISER EVENT
The Joe Rice Fundraiser Event was held at CADA's William D. Barrow building on May 12th. 
John Schenden, Melissa Kuipers, Matt Tynan
Don Hicks, Rep. Joe Rice, Melissa Kuipers, Tim Jackson
George Billings, Rep. Joe Rice
Melissa Kuipers, Sen. Dan Gibbs, Rep. Joe Rice, Melissa Nelson
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ECO MOTOR COMPANY WANTS YOU!
Eco Motor Company a new car manufacturer based in Seattle will be distributing a three (3) wheeled vehicle that gets 60 plus miles per gallon beginning next month. Eco Motor Company is looking for dealers in Colorado who would be interested in purchasing a franchise. Dealers would receive a profit of $3,000 plus per vehicle.
Eco Motor Company was founded by an American family and what began as a summer project for company founder and CEO, David Joner and his two children has ignited into flame to bring you the EMC3 Commuter, a new breed of vehicle with the classification of a “motorcycle”, yet with side by side seating and the comfort of a car.
For more information on the EMC3 Commuter Click Here or visit www.ecomotorcompany.com
For franchise information contact Becky Marker at beckym@ecomotorcompany.com
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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
- Chrysler moves to eliminate 789 of 3,200 dealers
Denver Post, May 14
Chrysler LLC wants to eliminate roughly a quarter of its 3,200 U.S. dealerships by early next month, saying in a bankruptcy court filing Thursday that the network is antiquated and has too many stores competing with each other.
- Chrysler seeks to dump 789 dealers, including 14 in metro Detroit
The Washington Post, May 14
After years of struggling to reduce the number of its stores to match shrinking demand for its cars and trucks, Chrysler LLC said today it would slash nearly 800 dealerships, or 25% of its dealer network, by June 9.
- GM looks to China, the UAW looks to the Feds
Business Week, May 14
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.
- Green politics cause NHTSA nominee to withdraw
Detroit Free Press, May 14
Charles Hurley never had a chance. For he didn't march blindly in line with the activists who think cars and trucks are melting the planet.
- Bill Ford defends family's control of company, global strategy
The Detroit News, May 14
Ford Motor Co. Executive Chairman Bill Ford Jr. opened the company's 54th annual shareholders meeting by praising its board, defending the family's ownership and the company's executive compensation and answering questions from shareholders and others, including the Rev. Jesse Jackson.
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