JUNE 18, 2008


IN THIS ISSUE

  DEALER NEWS & INFORMATION

Automotive News at a Glance

 

  PUBLIC POLICY UPDATES

NADA Congressional Dealership Days


  REGULATORY & LEGAL UPDATES

Title Processing News/Updates

 

  UPCOMING SEMINARS

F&I Compliance Training

*New* Red Flags Rule & Privacy/ Safeguards Re-cap


CALENDAR OF EVENTS
Upcoming Events
Fall 2008 Regional Member Briefings


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

Fetters Named President of Federated

Tim Jackson to Ride the Rockies

Share YOUR Accomplishments

 


ARCHIVES

CLICK HERE for Open Road
e-newsletter archives.

CLICK HERE for 2008 Regulatory
& Legal Articles
from the Open
Road e-newsletter.

CLICK HERE for 2007 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
.



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.cadaonline.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

President
Tim Jackson
tim.jackson@cadaonline.org
303.282.1448

Vice President
Tammi McCoy
tammi.mccoy@cadaonline.org
303.282.1449

Vice President -
Public Policy & Communications
Nancy J. Burke
nancy.burke@cadaonline.org
303.457.5115

Bond Coordinator
Linda Toteve
linda.toteve@cadaonline.org
303.457.5122

F&I Resource Center -
Manager
Chad Julius
chad.julius@cadaonline.org
303.457.5119

Insurance Services -
Account Manager
Deb Lay
dlay@cadaonline.org
303.282.1453

Insurance Services -
Account Manager
Bob Kogel
bobkogel@cadaonline.org
303.282.1457

Executive Assistant/Member
Resources Coordinator
Lauren Stadler
lauren.stadler@cadaonline.org
303.457.5123

Services Coordinator
George Billings
george.billings@cadaonline.org 303.457.5117


If you have questions
or suggestions
regarding this
e-newsletter, please
contact Nancy Burke at nancy.burke@cadaonline.org

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ENDORSED VENDOR/PROGRAMS

CLICK HERE for a list of current
Endorsed Vendors/Programs
.
Click on any of the logos below to
to go directly to a vendor's webpage.


REYNOLDS AND REYNOLDS


Merchant Services

 


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.

  • Hybrid Vehicles Fly Off Dealer Lots, Supply Challenges Mount
    The Wall Street Journal, June 11
    Toyota Motor Corp.'s popular Prius hybrid may not be known as a sports car, but it certainly has been speeding off dealership lots in the era of $4-a-gallon gasoline.
  • Europeans Go to U.S. Dealers to Buy Cars From Home
    The Wall Street Journal, June 12
    The weak dollar is drawing a new group of Europeans to shop in the U.S. -- for European cars.
  • Swap SUV For Hybrid?
    The Wall Street Journal, June 8
    With gasoline at $4 a gallon, and no sign of relief as crude oil jumped more than $11 a barrel last week, a lot of people are looking to trade in their gas-guzzling SUVs for fuel-efficient hybrid cars.
  • It’s the greens, not the greenbacks
    The Washington Post, June 8
    U.S. auto executives are crunching numbers, trying to figure out which trucks to keep and which to junk. Their counterparts in Europe and Asia are reviewing product plans, looking at the possibility that North America might now be hospitable to micro-cars that have long been popular overseas.
  • Energy department grants $30M to plug-in vehicle projects
    The Detroit News, June 13
    The U.S. Energy Department on Thursday announced $30 million in funding over three years for a trio of plug-in vehicle projects -- a fraction of the financial support automakers have sought, but a step they praised nonetheless.
  • High fuel prices may slow demand for European clean diesel technology
    The Detroit News, June 12
    The rising price of diesel in the U.S. looks set to derail the long-awaited onslaught by German manufacturers, hoping to sell fuel-efficient fuel-sippers to Americans desperate for economic vehicles, as long as they're not gutless, dangerous minicars.
  • Ford exec: Plug-in hybrids must be a 'national priority'
    The Detroit News, June 11
    The federal government must make plug-in hybrid vehicles "a national priority" and substantially invest in the technology, Ford Motor Co. President of the Americas Mark Fields said Wednesday.
  • Ethanol stocks are set to refuel
    Barron's, June 9
    Next to cigarettes, few products are more vilified than ethanol. The corn-based alcohol used as a substitute for gasoline has been blamed for driving up food costs, leading to malnutrition and riots in the developing world. A top official of the United Nations has blasted ethanol as a "crime against a great part of humanity."



SAVE THE DATE!
Dealer Management
and Leadership Summit

Wednesday, August 13 ~ 8 a.m. to 7:30 p.m.
Marriott Denver South ~
Park Meadows Drive

John McEnerney, NADA Chairman for 2009, will be a dinner speaker at the 2008 Summit . Other speakers and informational programs are in the works. More information on speakers/agenda will be posted as finalized: www.cadaonline.org/summit


CADA forwards news articles and opinion columns of interest
through the Open Road to inform members of current events.
These in no way reflect the views, opinions, and/or positions
of CADA or its member dealers. They are sent for
informational and educational purposes only.


CLIMATE CHANGE COLLAPSE
A message from the NADA Government Relations Committee

During the upcoming July 4th Congressional recess (June 28-July 7), NADA will sponsor Congressional Dealership Days to encourage NADA members and ATAEs to invite their Representatives and Senators to a dealership for an informal visit. Since this is the first year, we wanted to reach out to NADA directors and ATAEs in advance to encourage your participation.

Most members of Congress are not familiar with the realities of automotive retailing. Congressional Dealership Days are simply an opportunity for you to build a long-lasting relationship with federal lawmakers to expand our effectiveness in the states and Washington, D.C. This is an opportunity to:

  • Educate elected officials about your business;
  • Explain your investments in your community;
  • Introduce them to your employees;
  • Discuss the challenges of running a successful dealership.

Dealership visits with members of Congress are simple and do not require extensive knowledge of NADA's public policy positions. Particularly in an election year, Senators and Representatives will be eager to visit, as this allows them to meet with a broad cross-section of their constituents.

Additional details and sign-up information will be shared during the upcoming board of directors meeting in Boston. To date, Chairman Annette Sykora, Vice Chairman John McEnerney and nearly all members of NADA's Government Relations Committee have agreed to participate.

We hope you will join us to make Congressional Dealership Days a success. If you have any questions or need additional information please contact the Legislative Office at 1.800.563.1556.

Thank you!
Ray Ciccolo
Chairman, NADA Government Relations Committee

________________________________________________________

If you have questions on any legislative topic, please contact:



TITLE PROCESSING NEWS/UPDATES

The Colorado Department of Revenue –Titles & Registrations Training section is forwarding their newsletter, which is primarily written for counties, along to CADA.  We are reviewing these newsletters for information that may be relevant and of interest to CADA members. Some highlights of their most recent newsletter (June 9, 2008) are below:

STATISTICAL INFORMATION

TOP 5 REASONS FOR REJECTS
1. Previous title error
2. VIN inspection incomplete
3. Odometer Disclosure
4. Lien Amount differs
5. Error in VIN

CURRENT PROCESSING TIME FOR STATE PRINTED TITLES:
Regular (RT) 2 days / CO to CO (CT) 2 days / Specials (ST) 1 day / Salvage (VT) 1 day / Bonds (BT) 2 days

MICROFILM  
PURGE DATE Nov. 9, 1995
MICROFILM REQUESTS 973
   
TITLE INVENTORY ACTIVITY  
May Beginning Balance  13,482
Applications Received 135,319
Applications Processed 136,568
May Ending Balance 12,233
Percent of Documents Examined 31.53%

NEW LAWS AFFECTING TITLE PROCESSING/REGISTRATION

HB 08-1136 – Verification that a Motor Vehicle has not been Stolen

  • Requires the Department of Revenue or its authorized agent [counties] to electronically verify that a vehicle has not been stolen with the Department of Public Safety when a person applies to register or title a motor vehicle.
  • Requires the Department to promulgate rules for procedures to notify the local law enforcement agency when a person attempts to title or register a stolen vehicle.
    - Signed May 21, 2008
    - Effective July 1, 2009
    CADA has received calls in a couple of instances over the past couple of years of cars that were still reported as stolen—unbeknownst to the dealer—that were taken in on trade, and re-sold to another consumer whose car was then impounded by law enforcement.  While dealers have no access to this information, the consumer wanted compensation from and was very upset with the dealer. This additional county step should avoid such occurrences.

TITLE PROCESSING TIPS

CLARIFICATION ON OUT OF THE COUNTRY LIEN FILINGS
When the supporting document being surrendered is an Out of Country title or registration, the applicant must include a DR 2394 Statement of Fact to indicate whether there are any outstanding liens against the vehicle. If there is an existing lien, the lien holder name and address must be disclosed and added to the record. The previous title will be ‘LIEN OC’ and the title will print as “Not Filed in Colorado”.

C-CORPORATIONS/SVID
A company does not need to supply SVID if they appear on the C-Corp log. The company name and address must be exactly as shown on the log in order for the SVID to be omitted on the application.

CLICK HERE for a prior memo on this topic from the state.

CLICK HERE to link to the Colorado Department of Revenue – Titles and Registration section.

________________________________________________________

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.



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

www.cadaonline.org/registration

F&I COMPLIANCE TRAINING

Compliance is a MUST in your F&I Department; don’t let your dealership be a lawsuit-waiting-to-happen!

  • This presentation will cover the F&I legal issues about which every dealership MUST be knowledgeable
  • Plaintiff attorneys and government regulators continue to successfully sue dealers locally and across the country.

Topics to be covered include the following:

  • Red flags rule requirements
  • Adverse action notices (even credit discussions can trigger)
  • OFAC Reporting – Do you have a written program?
  • How to handle negative equity
  • New state forms/requirements
  • Record retention rules
  • Proper sale of backend products
  • Payment packing
  • Proper treatment of bank acquisition fees
  • D&H fee class actions
  • Colorado GAP requirements
  • Used car buyers guide; what you probably don’t know
  • Advertising hot buttons
  • F&I Best Practices
  • Who’s getting sued and why
  • Update on various state and federal law changes that impact your F&I department
  • PLUS more—all with REAL WORLD examples!
CLICK HERE for more information
on this
training session.
Event Description
Date/Time
Location

F&I Compliance Training presented by Shawn D. Mercer, Myers & Fuller, P.A.
Montrose

Wednesday,
July 23
7:30 to 11:30 a.m.
BREAKFAST Session

Holiday Inn Express
1391 S. Townsend Ave.
970.240.1800
CLICK HERE to register for this event location.

F&I Compliance Training presented by Shawn D. Mercer, Myers & Fuller, P.A.
Denver

Thursday,
July 24
7:30 to 11:30 a.m.
BREAKFAST Session

William D. Barrow Building, CADA Offices
290 East Speer Blvd.
CLICK HERE to register for this event location.

F&I Compliance Training presented by Shawn D. Mercer, Myers & Fuller, P.A.
Fort Morgan

Thursday,
July 24
2 to 6 p.m.
DINNER Session

Comfort Inn
1417 Barlow Road
970.867.6700
CLICK HERE to register for this event location.

F&I Compliance Training presented by Shawn D. Mercer, Myers & Fuller, P.A.

Colorado Springs

Friday,
July 25
7:30 to 11:30 a.m.
BREAKFAST Session

Antlers Hilton Hotel,
4 South Cascade Ave.,
Colorado Springs, 80903 719.955.5600
*Colorado Springs dealers should register with CSADA, Ann Winslow, 719.473.1465

About the Presenter:  Shawn D. Mercer is a partner in the Myers & Fuller, P.A. law firm, www.dealerlawyer.com. His national practice is devoted solely to representing motor vehicle dealers, and he regularly works with dealers to address F&I matters, advertising compliance and consumer complaints. Mr. Mercer regularly represents dealers in disputes with manufacturers and consumers in mediations, arbitration proceedings and in state and federal court.

* * * * * * * * *

*NEW* RED FLAGS RULE COMPLIANCE SEMINAR:
PLUS: PRIVACY/SAFEGUARDS RE-CAP

Rob Cohen, auto industry compliance expert, will provide in-depth training on the new RED FLAGS rule
and a re-cap on Privacy/Safeguards Rules

Make sure you are aware of
these NEW compliance obligations:

Generally, the new regulations require automobile dealers to:

  1. Create and implement a written Identity Theft Protection Program with procedures designed to detect and respond to “red flags” indicating potential identity theft.
  2. Periodically review and update the written program to reflect changing risks.
  3. Train responsible staff members to follow the program.
  4. Oversee service providers (i.e., third party vendors).
  5. Involve senior management or owner(s) in approving the program and its administration.
  6. Prepare annual reports for senior management or owner(s).

Attendees will receive practical, step-by-step instruction on how to create and roll-out a Red Flags Program at your dealership.

Mandatory compliance date of Nov. 1, 2008

PLUS: Re-Cap of Safeguards and Privacy Rules: Dealers must have a Safeguards Program Coordinator, conduct a risk assessment, implement written safeguards to control risks, oversee service providers, and re-evaluate periodically.

CLICK HERE for more information
on this
training session.
Event Description
Date/Time
Location

*New* Red Flags Rule and Privacy/Safeguards Re-cap presented by Rob Cohen, Auto Advisory Services
Grand Junction

Monday,
Aug. 11
noon to 2 p.m.
LUNCH Session

Double Tree Hotel
743 Horizon Drive,
Grand Junction, CO 81506
970.241.8888
CLICK HERE to register for this event.

*New* Red Flags Rule and Privacy/Safeguards Re-cap presented by Rob Cohen, Auto Advisory Services
Denver

Tuesday,
Aug. 12
7:30 to 9:30 a.m.
BREAKFAST Session

William D. Barrow Building, CADA Offices
290 East Speer Blvd., Denver
CLICK HERE to register for this event.

*New* Red Flags Rule and Privacy/Safeguards Re-cap presented by Rob Cohen, Auto Advisory Services
Colorado Springs

Tuesday,
Aug. 12
noon to 2 p.m.
LUNCH Session

Antlers Hilton Hotel,
4 South Cascade Ave.,
Colorado Springs, 80903 719.955.5600
*Colorado Springs dealers should register with CSADA, Ann Winslow, 719.473.1465

About the Presenter:  Rob Cohen, Esq., President of Auto Advisory Services, is a sought-after speaker and trainer on a wide range of dealership sales and finance topics. Auto Advisory Services (AAS) has been providing assistance to automobile dealers since 1975. With over 550 dealership clients, AAS is the leader in dealership compliance issues.

Discount product offer to seminar attendees: AAS’s Information Safeguards and Identity Theft Manual is an in-depth tool for dealership compliance with the FTC’s Safeguard Rule and ID theft compliance and prevention. A new Red Flags Supplement is included as well. Over 1,500 copies have been sold nationwide. This “turn-key” manual makes implementing a dealership safeguards and ID theft program easy. It is regularly $325, but will be available for order at $199/copy at this seminar. See www.autoadvisory.com for more information.


Event Description
Date/Time
Location
Lighting 101 for Auto Dealers  from ENERGY STAR® Small Business NEXT WEEK!
Thursday, June 26
9:30 a.m. (Mountain Time)
FREE one-hour webinar training session on ways to save on your energy costs. CLICK HERE for more information. CLICK HERE to register for this online event.
ATAE (Automotive Trade Association Executives) Service Directors Meetings July 20-23 St. Julien Hotel, Boulder
CLICK HERE for a registration form. CLICK HERE to view sponsors. Contact Tammi McCoy for more details or if you are interested in sponsorship information.
Dealer Management & Leadership Summit

Wednesday,
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: www.cadaonline.org/summit
CADA Annual Member Golf Event Monday,
Sept. 8
Columbine Country Club
17 Fairway Lane
Columbine Valley, 80123
CADA Regional Member Briefings

Eleven meetings for dealers across Colorado

CLICK HERE for a full list of locations, dates and times.

Attendees can register through CADA via Phone: 303.831.1722, FAX: 303.831.9100, or E-mail: rsvp@cadaonline.org

* Please note different RSVP
for Colorado Springs and
Pueblo meetings. 



FETTERS NAMED PRESIDENT OF FEDERATED

Jeff Fetters has been named president of Federated Insurance Companies, one of the nation's largest and most financially secure mutual properties and casualty insurance companies. Federated Chairman-CEO Al Annexstad announced Fetters' appointment as part of a series of leadership changes designed to solidify the future success of the organization. CLICK HERE to read the entire press release.

* * * * * * * * *

TIM JACKSON TO RIDE THE ROCKIES

This week CADA President Tim Jackson will be on the road for the annual Ride the Rockies bicycle tour of Colorado. This 435 mile bike ride starts in Durango on June 15 and ends in Breckenridge a week later on June 21. On Thursday, during the normal ‘day-off,’ Tim will speak to a group of managers during the annual Colorado Society of Association Executives (CSAE) conference being held in Breckenridge. Follow the ride map at  www.ridetherockies.com/route.asp

* * * * * * * * *

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@cadaonline.org. Also include your contact information for further follow-up.


If you want to be added to our mailing list, please CLICK HERE.

To remove yourself from this list, click on this link.

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