JULY 22, 2009


IN THIS ISSUE

DEALER NEWS & INFORMATION

Automotive News at a Glance

 

REGULATORY & LEGAL UPDATES

Beware of Auto-Renewal Clauses in Vendor Contracts

Cash For Clunkers Updates


LEGISLATIVE UPDATE

Grassroots Works!

 

ALLIED MEMBERS

CADA Welcomes Allied Member Colorado Auto & Parts Inc.

 

UPCOMING SEMINARS

Upcoming Seminars

Cash for Clunkers Seminar

Automotive Internet Marketing Seminar

"Close More Sales Now" Seminar

Employment Law Webinar: Reducing Lawsuit Risks of Terminations and Staff Reductions; Archive Now Available!

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

Dealer Management and Leadership Summit

CADA Annual Member Golf Event


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

Share Your Accomplishments


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.


*** TRAINING SEMINAR SCHEDULED FOR MONDAY, JULY 27TH ***

Monday, July 27th at
10:30am

Denver

CADA will HOST this NADA Webinar—audio and presentation will be projected onto screen/speakers here

CLICK HERE for more information!

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 task force under fire on dealer closings
    The Detroit News, July 22
    The House Judiciary Committee's subcommittee on commercial and administrative law is reviewing the decision by Chrysler and GM to shutter more than 3,000 dealers.
  • Porsche-Volkswagen Deal Hits Potholes
    The Wall Street Journal, July 22
    Tax Question, Demand by Qatar Make It Unlikely VW Will Acquire Car Operations Soon
  • Administration opposes aid to auto dealers
    The Washington Times, July 22
    President Obama's new auto task force chief told Congress on Tuesday that proposed legislation to aid closed auto dealers would hamper the government's ability to recoup money invested in General Motors Co. and Chrysler Group LLC.
  • Aid for Auto Dealers Gains Traction on Hill
    The Washington Post, July 15

    Now that the Obama administration has spent billions of dollars on the bailouts of General Motors and Chrysler, Congress is considering making its first major management decision at the automakers.
  • Auto dealers slated for closure ask Congress for relief
    Cleveland, July 14
    Car dealers from Ohio and around the country descended on Capitol Hill this morning to lobby against widespread dealership closures resulting from the Chrysler and General Motors' bankruptcies.
  • Testing the Tesla Roadster
    The Wall Street Journal, July 13

    An autos aficionado takes the electric sports car on a 460-mile journey
  • Feds want auto task force data
    The Detroit News, July 18
    The House Financial Services Committee unanimously approved a measure asking the Obama administration to turn over communications from the auto task force in regard to GM and Chrysler.
  • Report: Chrysler, General Motors market shares will decline
    Detroit Free Press, July 19
    Even now that it has a dynamic new partner in Fiat SpA, Chrysler will become a smaller player in the U.S. auto market, investment firm Bank of America-Merrill Lynch predicts in its annual "Car Wars" report.
  • Obama may throw like a girl, auto dealers say he's more of a Czar
    Denver Examiner, July 15
    Rush Limbaugh said President Obama "throws like a girl, he has a girly throw," on his radio broadcast Wednesday, July 15, 2009.
  • USA Today, Open Road
  • …more news articles are included at the end of this issue.

    * * * * * * * *


BEWARE OF AUTO-RENEWAL CLAUSES IN VENDOR CONTRACTS
Don't Get Caught:   ALWAYS Read A Contract Before You Sign
By Bill Walters, CADA Legal Counsel

While dealers must be careful how they make disclosures and disclaimers to consumers, vendors are not subject to the same level of scrutiny when contracting with a dealer.   Often, dealers do not have the time to fully review the contract language and rely upon the vendor's representative to describe the terms and conditions of the agreement.    Unfortunately, once the agreement is signed, the dealer is presumed to have read and understood the agreement.    Key provisions which should always be scrutinized include:

  • the services or products to be delivered;
  • the price of the products;
  • damages (if any) and termination/cancellation.   

But there are other provisions which may create a trap for the unknowing dealer.    One recent dealer encountered what are sometimes referred to as "evergreen" or "rollover" clauses in contract law.   Essentially, these provisions state that the agreement will automatically renew for another term unless one or the other party provides notice of intent not to renew the agreement.  Typically that notice is some specified time period before the contract expires.  Agreements with longer terms are often forgotten until the dealer decides he or she wants to change vendors.    Upon reviewing the contract, the dealer discovers the agreement has just renewed for another full term—which could be three to five years or longer.   Such provisions are enforceable under the laws of most states---including Colorado.  Especially in tough economic times, dealers should expect vendors to enforce such terms.

Beware of these provisions; don't get caught by a contract term that you did not notice at the time of signing.

* * * * * * * *

CASH FOR CLUNKERS UPDATES

NHTSA is expected to issue final rules this Friday, July 24th; until then, dealers are still at their own risk offering these rebates before knowing the final requirements.  Other recent updates / key information:

  • There is now a “Dealers” section of the official government web site, www.CARS.gov.  Information now posted includes the following:
    • Marketing Materials: 
      • CARS: Advertising Usage Guidelines
      • CARS: Radio Spots Guidelines
      • CARS: Usage Guidelines Retail Pop, Advertisement and Web Banners
    • A PDF document outlining generally how the process will work is now available.  CLICK HERE to view
  • NHTSA official hotline: (866) CAR-7891  [866-227-7891]

*** TRAINING SEMINAR SCHEDULED FOR MONDAY, JULY 27TH ***

Monday, July 27th at
10:30am

Denver

CADA will HOST this NADA Webinar—audio and presentation will be projected onto screen/speakers here

CLICK HERE for more information!

* * * * * * * *

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 WORKS!!
By Melissa Kuipers, Vice President of Government Relations & Communications

After several trips to DC and countless calls from CADA member dealers to Washington DC, we are pleased to report that seven out of seven of the members of Colorado's delegation to the US House of Representatives are not only supporting HR 2743, but all are signed on as co-sponsors!  You, our active and passionate dealers, are the key to our success on Capitol Hill and here in Denver at Colorado's state capitol.  Thank you for all of your efforts!

Sen. Mark Udall is also supporting and co-sponsoring the Senate version of this bill, S. 1304.  Right now, the only remaining Federal legislator from Colorado that has not agreed to support or co-sponsor this bill is Sen. Michael Bennet.  Please call Sen. Bennet's office and ask for his support on this critically important dealer legislation.

Sen. Michael Bennet: 202-224-5852.  When you call, please ask to speak with Layth Elhassani.  He is Sen. Bennet's Legislative Director and met with CADA staff and dealers last week in Washington DC.

For talking points on HR 2743 and S. 1304, please click here

In other news, I was in Atlanta these last few days for the annual American Legislative Exchange Council (ALEC) meeting.  Newt Gingrich delivered the keynote address and several Colorado legislators were in attendance.  I had a fantastic dinner on Friday night with Sen. Nancy Spence (R-Centennial), Sen. Mike Kopp (R-Littleton), Sen. Bill Cadman (R-Colorado Springs) and Rep. Kent Lambert (R-Colorado Springs).  All of these legislators were highly interested in the state of our industry.  Rep. Lambert even mentioned doing a resolution at ALEC relative to the manufacturer bankruptcies that would aim to prevent automakers from circumventing state franchise laws if they ever filed for bankruptcy again in the future.  I am working with Rep. Lambert to provide him the background information necessary to do such a resolution.

This week, I am in Philadelphia for the annual meeting of the National Conference of State Legislatures (NCSL).  Several Colorado legislators are expected to attend, including House Speaker Terrance Carroll (D-Denver) and possibly Senate President Brandon Shaffer (D-Longmont).  CADA has a one-on-one dinner with the Speaker scheduled for Wednesday night, along with a lunch with CADA, the Speaker, and Damon Lester, President of the National Association of Minority Automobile Dealers on Thursday. 

I will also be traveling to Washington DC on Tuesday and Wednesday of this week to attend the House Judiciary hearings on the state of the automotive industry which will include discussion of dealer rights and terminations.

* * * * * * * *

Questions or Comments?  Please contact:


ALLIED MEMBERS

CADA WELCOMES ALLIED MEMBER COLORADO AUTO & PARTS INC.

CADA welcomes its newest allied member Colorado Auto & Parts Inc.  Dedicated to efficient removal and reuse of automotive parts.  Colorado Auto & Parts purchases any year, make, model or condition end of life vehicle (ELV) while protecting the environment!

For more information on Colorado Auto & Parts Service contact:

Alice Corns, President
303.761.0112
alice@coloradoautoandparts.com


a

CASH FOR CLUNKERS SEMINAR

Monday, July 27th at
10:30am

Denver

CADA will HOST this NADA Webinar—audio and presentation will be projected onto screen/speakers here- in addition to the following:

  • Final regulations and the latest information will be printed and provided for you at this session
  • CADA is gathering materials and information from salvage companies and auto-recyclers who intend to participate in the CARS program – to be provided at the session
    • If you have a salvage company / crusher that you recommend, please refer them to us
  • This “hosted option” is offered in order to make this program more affordable and accessible to dealers
  • Don’t worry about technology issues or ensuring you can find the latest information—we will gather and assemble all of it for you!

NADA Webinar Description:
This NADA webinar will provide timely information on the final rules to participate in the program. 

  • NHTSA has indicated that final rules will be issued on July 24th
  • Staff from the National Highway Traffic Safety Administration (NHTSA) and NADA will review the CARS program details and suggested compliance strategies
    • All rules must be followed in order to ensure reimbursement under the program; dealers carry the risk because the rebate must be provided at the time of the sale.
  • All participants will receive a link to an archive version of the session after completed

CLICK HERE for registration and information!

* * * * * * * *

AUTOMOTIVE INTERNET MARKETING SEMINAR

Wed., Aug 5th, 2009
8:00 am to 9:30am
Breakfast included

By Howard Polirer, Director of Industry Relations For Autotrader.com

This classroom presentation covers what's happening in the industry, today's automotive
consumer, emerging trends, and what's new with advertising and marketing on the Internet.

Topics covered:
• The changing context of automotive marketing
• Today’s automotive consumer
• Consumer-centric marketing
• Maximizing 0nline ad spending
• Online merchandising best practices
• In-store process

About the Speaker
Howard Polirer is Director of Industry Relations for AutoTrader.com, the ultimate automotive marketplace. He joined AutoTrader.com in 2003 as a National Dealer Trainer and has trained more than 8,000 dealers in over 200 major markets on the industry's best practices to reach automotive consumers. With over 30 years of experience, as one of the nation’s leading Internet automotive educators in the retail automotive business, he
has delivered programs for a wide breadth of OEMs and has spoken and conducted workshops at conventions and conferences for NADA, NIADA, NABD and many state and local dealer associations.

CLICK HERE for registration and information!

* * * * * * * *

"CLOSE MORE SALES NOW" SEMINAR

Wed., Aug 5th, 2009
12:00pm to 3:30pm
Lunch will be served

Advanced close training presented by: George Dans, top-rated NADA Speaker

This workshop will show you how to capture those sales by giving your
team real world, professional skills to overcome objections and close
throughout the sales process. The goal of this sales training is to
provide immediate improvement followed by long-term positive results.

Highlights of topics include:
• Why the road to sales is paved with the basics
• How to close like the world’s greatest closer - 5 closes
   to close anybody
• How to handle and overcome objections - master “I Need To Think About    It”
• How to network, follow up and not give up
• Professional selling skills for today’s informed customer
• How to increase your closing ratio roday

CLICK HERE for registration and information!

* * * * * * * *

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

www.coloradodealers.org/registration
Event Description
Date/Time
Location

Cash for Clunkers Seminar

Hosted by CADA


Mon., July 27, 2009
10:30am


William D. Barrow Building
CADA Headquarters
290 E. Speer Blvd (SW Corner of Grant/Speer), Denver, CO
Phone: 303.831.1722

CLICK HERE for registration and information

Automotive Internet Marketing Seminar

By Howard Polirer, Director of Industry Relations for Autotrader.com


Wed., Aug 5th, 2009
8:00am to 9:30am


Breakfast included

William D. Barrow Building
CADA Headquarters
290 E. Speer Blvd (SW Corner of Grant/Speer), Denver, CO
Phone: 303.831.1722

CLICK HERE for registration and information

"Close More Sales Now" Seminar

By George Dans, Automotive Sales Trainer


Wed., Aug 5th, 2009
Noon to 3:30pm


(lunch will be served)

William D. Barrow Building
CADA Headquarters
290 E. Speer Blvd (SW Corner of Grant/Speer), Denver, CO
Phone: 303.831.1722

CLICK HERE for registration and information

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

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


Archive of this webinar can be viewed any time

Session was completed June 18, 2009

Click here for a registration form and more information (login information and slides provided upon registration)

-Includes detailed Q &A by those linked in on June 18th

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

Dealer Management & Leadership Summit

 

 


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.

CLICK HERE for registration information

To register online, CLICK HERE!

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

For DEALER registration CLICK HERE

For ALLIED MEMBER registration CLICK HERE

To register online, CLICK HERE!

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.


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.coloradodealers.org