MAY 27, 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

Vendor Fee Eliminated as of July 1, 2009

 

LEGISLATIVE UPDATE

Grassroots lobbying - YOU are our most effective tool at the Capitol!

 

UPCOMING SEMINARS

Upcoming Seminars

Employment Law WEBINAR

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

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.


Need Acrobat Reader
to view linked
documents?
CLICK HERE for a FREE
download from Adobe.


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.

  • Bondholders Push GM to Brink of Bankruptcy
    The Wall Street Journal, May 27
    General Motors Corp.'s board will meet later this week to decide the ailing auto maker's next move after bondholders dashed its best hope of avoiding a filing for bankruptcy protection.
  • GM bondholders turn down debt swap
    Detroit Free Press, May 27
    General Motors failed in its attempts to trade bondholder debt for shares in the automaker, the company announced this morning.
  • Chrysler restructuring hits swift pace
    Denver Post, May 27
    A bankruptcy judge is expected to rule today on the deal with Fiat.
  • U.S. Expected to Own 70% of Restructured G.M.
    The New York Times, May 26

    In better times, many employees of General Motors called their company “Generous Motors” because of its rich benefits. Now G.M. may stand for something else: Government Motors.
  • Dealerships are not the problem at GM, Chrysler
    The Post and Courier, May 26
    As Chrysler and General Motors are being forced to cut costs by restructuring, a question: What are cost savings in Chrysler firing 789 dealers and GM 1,100?
  • Now might be the perfect time to buy a car
    MSNBC, May 21
    With industry auto hurting, savvy consumers may be able to take advantage
  • Bankruptcy for G.M. Would Tax the Experts
    The New York Times, May 25
    The decline of General Motors may be putting thousands of auto workers and managers out of work, but it will be putting a lot of lawyers to work.
  • GM's Chapter 11 is inevitable
    The Detroit News, May 21
    The voice on the other end of the line put it simply: Don't expect anything before June 1.
  • White House offers $50M to auto communities
    The Detroit News, May 21
    The Obama administration said today it would set aside $50 million in federal stimulus money for worker retraining in communities hit by auto industry layoffs.
  • Stabenow bill trades cash for gas-guzzlers
    Detroit Free Press, May 21
    Sen. Debbie Stabenow of Michigan introduced cash-for-clunkers legislation today that would provide vouchers of up to $4,500 toward the purchase of a more fuel-efficient car or truck.
  • The Cars You'll Drive In 2014
    Forbes, May 20
    Everybody knows the auto world has shifted. The trick is divining which brands have got the gumption to last.
  • Reborn Camaro keeps fast-lane spirit
    Detroit Free Press, May 21

    I have driven the 2010 Chevrolet Camaro, and one thing I know: This is not an automaker that deserves to die.
  • UAW: Tentative deal with GM, Treasury
    The Detroit News, May 21
    The United Auto Workers has reached a tentative deal with the U.S. Treasury Department and General Motors Corp. on modifying a 2007 labor agreement and restructuring payments into a union-run health care trust.
  • USA Today, Open Road
  • …more news articles are included at the end of this issue.

    * * * * * * * *



VENDOR FEE ELIMINATED AS OF JULY 1, 2009

The Colorado General Assembly passed (SB 09-275), which eliminates any amount that vendors such as automotive retailers/dealers can deduct from state sales tax collections as part of covering costs to provide this function for government.  Last month we alerted you to a reduction in the vendor fee, but this subsequent legislation eliminates it for a period of time until at least June 30, 2011. The Governor signed the bill on May 19th.    

This legislation was fought hard by CADA and many other business groups many times at the capitol this year, but ultimately passed.  The effective date is July 1st, and it applies to any return made on or after that date. The allowable vendor fee (also referred to as “service fee”) remains at the previously reduced 1.35% rate from March 1st - July 1st.

There is a hold-harmless that applies for any returns filed between July 1 and August 1, 2009.  So if the vendor fee is withheld, the adjustment can be made following month

Other clarifications:

  • This is an elimination of the vendor fee for state sales and use tax, it does not affect local vendor/service fees
  • There is no change to the state sales/use tax rate which remains at 2.9 percent.

Visit the March 18, 2009 Open Road, Regulatory & Legal Updates, Reduction in State Sales / Use Vendor Fee Applies Immediately for more information on the prior change and for a link to the DRP 1002, Colorado Sales/Use Tax Rates chart.  

* * * * * * * *

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


aa

GRASSROOTS LOBBYING - YOU ARE THE MOST EFFECTIVE TOOL AT THE CAPITOL
By Melissa Kuipers, Vice President of Government Relations & Communications


It's a safe bet that nearly every Colorado legislator has at least one automobile dealership in their legislative district. Some even have as many as 10 or more.  There are only 65 members of the House of Representatives and 35 members of the Senate, for a total of 100 members of the General Assembly.  Since there are 270 automobile dealerships in the state, not only is it a safe bet that nearly every legislator has an automobile dealership in their district, but they likely know each of you by name. 

Automobile dealers are fabulous assets to their respective communities. You sponsor little league teams.  You buy t-shirts for the high school basketball team.  You invest in your employees and give them careers, not just jobs.  You donate to local police departments when they need vehicles.  You take care of your customers and their families year after year.  Your collective charitable contributions were over $6.1 million in 2007 in the state of Colorado alone.

As members of CADA, you have a huge advantage over other associations that may have large amounts of members, but they may only be concentrated in specific urban or rural areas in Colorado.

CLICK HERE to continue reading!

* * * * * * * *

Questions or Comments?  Please contact:

Melissa Kuipers – VP of Government Relations and Communications

melissa.kuipers@coloradodealers.org, 303.457.5115


a

EMPLOYMENT LAW WEBINAR

Reducing Lawsuit Risks of Terminations and Staff Reductions

CLICK HERE for more information!

CLICK HERE to register online!

Thursday, June 18th
1:30 - 2:30 pm (may go to 3pm with Q&A)

Speaker: Todd Fredrickson
Top Denver employment attorney, Fisher & Phillips, LLP

Don't miss this upcoming online seminar!

The EEOC’s 2008 report shows a 15.2% increase over 2007 in charges against private employers, and the highest numbers to date.  In times of high unemployment, charges of discrimination tend to rise.

Many dealerships have been forced to downsize operations and/or may be contemplating further reductions. This session will show how to minimize the risk of claims and lawsuits stemming from terminations and reductions in force (“RIFs”) along with practical guidance to end employment relationships as amicably as possible.  Highlights include:

  • Avoidance of discrimination claims, layoff notification laws, laws covering severance agreements and when to use them, and various end-of-employment issues such as final pay, COBRA, and unemployment compensation.
    • Including the implications of recent and significant changes to the Americans with Disabilities Act (ADA) and the Family Medical Leave Act (FMLA)
  • Retaining essential talent as part of the RIF analysis, supporting those employees who are in transition, and effectively communicating with employees regarding terminations and workforce reductions
  • Checklists and plans to conduct proper and defensible terminations and RIFs
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

Employment Law WEBINAR:
Reducing Lawsuit Risks of Terminations and Staff Reductions

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


Thursday, June 18th

1:30 – 2:30pm (may go to 3pm with Q&A)

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.

CLICK HERE for more information and a registration form

CLICK HERE to register online!

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


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 will aid dealers, senator says
    Detroit Free Press, May 21
    Republican Sen. Kay Bailey Hutchison has dropped an amendment that would have blocked federal money from going to Chrysler or General Motors unless they ensured dealers about to be shed were given at least 60 days’ notice before being cut off.
  • GM, UAW Reach Crucial Cost-Cutting Pact
    The Wall Street Journal, May 22
    Agreement to Modify Work Rules, Trim Cash Obligation to Retiree Health Care May Pave Way for Quick Bankruptcy.
  • Fuel rules views mixed
    The Denver Daily, May 20
    Some praise Obama’s plan, but others say vehicles will cost more
  • General Motors as a nationalized auto manufacturer
    National Review Online, May 21
    The perils of a nationalized car maker.
  • Light Cars Are Dangerous Cars
    The Wall Street Journal, May 22
    And other unintended consequences of strict fuel-economy standards.
  • Labor leaders say Gov. Ritter sold them out
    Colorado Statesman, May 22
    In what many political insiders considered a surprise move, Gov. Bill Ritter vetoed House Bill 1170 late Tuesday afternoon, stopping a legislative action to give unemployment benefits to employees locked out during labor disputes.
  • Judge denies motion to postpone Chrysler sale
    The Detroit News, May 21
    A bankruptcy judge on Wednesday denied a motion from a pair of Indiana state pension funds and a state construction fund to delay the proposed sale of most of Chrysler's assets, saying the funds' plan to challenge the legality of the sale in another court wasn't enough of a reason to push back the proceedings.
  • Industry leaves auto dealers stranded
    Colorado Springs Gazette, May 22
    Recent actions by General Motors and Chrysler to jettison more than 1,700 of their franchised dealerships - including the oldest in Colorado Springs - has left dealers distressed, even depressed, but not surprised, said Tim Jackson, head of the state's dealer association this week.
  • Chrysler Dealers Make Case Against Closings
    The New York Times, May 22
    The calls from Chrysler officials were coming nearly every day, sometimes several times a day, right through the final weeks before the company filed for bankruptcy.
  • Obama auto bailout draws fire
    The Detroit News, May 23
    Members of Congress, who left GM and Chrysler on the brink of collapse five months ago, sought Friday to take control of the auto bailout, with dozens of lawmakers pressing claims for dealers, workers and lenders.
  • Questioning the light truck MPG standard
    The Detroit News, May 21
    When is a light truck a truck and what does it mean that the light truck fleet has to average 30 mpg by 2016?
  • Congressmen’s letter raises concerns about auto task force
    Detroit Free Press, May 22
    A group of Republican and Democratic congressmen – House Judiciary chairman John Conyers of Detroit among them – sent a letter to President Barack Obama today raising concerns over actions by his auto task force and the impending loss of thousands of jobs as Chrysler and General Motors shed dealers and plants.
  • Chrysler Dealers to Face Difficult Battle
    The Wall Street Journal, May 25
    As Objections Mount Over Closures Plan, Legal Costs Dissuade Many From Joining Court Fight

    * * * * * * * *


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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