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
of this page if you want to be
added or removed from our list.


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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.


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"

* * * * * * * *

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.

  • Dealers could be in for more trouble if General Motors files Chapter 11
    Denver Business Journal, May 19
    The head of Colorado's Automobile Dealers Association said last week's decision by Chrysler to cut off its affiliation with roughly a third of its Colorado dealerships "makes no sense."
  • Head of dealers association questions Chrysler's cuts
    KUSA 9News Denver, May 18
    The head of Colorado's Automobile Dealers Association said last week's decision by Chrysler to cut off its affiliation with roughly a third of its Colorado dealerships "makes no sense."
  • Chrysler dealers prepare legal fight
    Detroit Free Press, May 18
    Chrysler dealers will soon launch their legal opposition to the company’s plan to cut 789 dealerships in less than a month, arguing the company has asked for too much freedom from state laws protecting dealer agreements.
  • A Chrysler dealer looks ahead
    Denver Post, May 19

    The crew at Phil Long Denver Jeep Chrysler learned their franchise was being closed on an automotive-news website Thursday morning, 90 minutes before receiving a confirmation letter.
  • GM dealer asks customers to help fight cutoff
    Denver Post, May 19
    One Colorado car dealership on GM's closure list wants its customers' help to keep its franchise.
  • Chrysler dealers seek fewer closures
    Denver Post, May 19
    A group representing Chrysler dealers said Monday it is in talks with the automaker in hopes of getting it to scale back plans to terminate the franchise agreements of about a quarter of its dealers.
  • Fuel rules to get tough
    Denver Post, May 19
    President Barack Obama will announce tough new nationwide rules for automobile emissions and mileage standards today, embracing rules that California has sought to enact for years over the objections of the auto industry and the Bush administration.
  • GM fears U.S. control could hurt in long run
    Detroit Free Press, May 14

    While the federal government has at least temporarily rescued GM with billions in loans, the automaker warns that U.S. involvement could have a negative effect in the longer term.
  • List of Colorado Chrysler dealers targeted
    Denver Post, May 14
    Chrysler LLC filed a motion Thursday with the U.S. Bankruptcy Court in New York saying it wants to eliminate 789 of its 3,200 dealerships nationwide by June 9. The filing lists 12 Colorado dealerships.
  • 13 Chrysler dealerships in Colo. targeted for closure
    KUSA 9News Denver, May 15
    Chrysler LLC is targeting 13 Chrysler dealerships in Colorado for closure as part of its bankruptcy court proceeding.
  • At least 13 Colorado dealerships get bad news from General Motors
    Denver Business Journal, May 15
    Just after 789 U.S. Chrysler dealers were notified they would be dropped by the struggling automaker, including several Colorado stores, about 1,100 General Motors Corp. dealers are getting the same bad news.
  • Chrysler plans to close 789 dealerships, including some in Colorado
    Denver Business Journal, May 14
    Struggling automaker Chrysler LLC plans to eliminate 789 dealerships, or about 25 percent of its dealers, including at least 12 of its 44 dealerships in Colorado.
  • Chrysler bankruptcy filing likely to mean Colorado dealer shutdowns
    Conde Nast Portfolio, April 30
    Chrysler’s 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.
  • …more news articles are included at the end of this issue.

    * * * * * * * *



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. 

* * * * * * * *

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!

* * * * * * * *

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

Reduction in Force Legal Risks

By Todd Fredrickson, top Denver employment attorney, Fisher & Phillips, LLP


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

Controllers: Taxation issues and DMS Cost-Reduction

Bruce Nelson, CPA

Brad Bowers, CPA

Paul Gillrie, The Paul Gillrie Institute


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

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

Reception to Honor John Suthers

 


Wednesday, June 10

5 - 7 p.m.

CADA Headquarters
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


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

* * * * * * * *

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

* * * * * * * *

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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Colorado Automobile Dealers Association
290 East Speer Boulevard Denver, CO 80203
Telephone: 303.831.1722 | Facsimile: 303.831.4205
www.coloradodealers.org