AUGUST 5, 2009


IN THIS ISSUE

DEALER NEWS & INFORMATION

Automotive News at a Glance

 

REGULATORY & LEGAL UPDATES

CARS Act, AKA "Cash for Clunkers" -- Latest NADA Updates

Consumer Assistance to Recycle and Save (CARS) Act of 2009 Taxability of Payments to Dealerships - IRS Advisory

Guest Article: Dealer Granted Summary Judgment in Unauthorized Practice of Law Case


LEGISLATIVE UPDATE

"Cash For Clunkers" a Big Winner With Consumers

 

UPCOMING SEMINARS

Upcoming Seminars

FREE Webinar: Environmental Considerations for the Value of Your Business

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

CADA Regional Member Briefings!


CALENDAR OF EVENTS
Upcoming Events

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

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for various CADA seminars & events.


MEMBERSHIP RESOURCES

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Speaker and Educational
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.

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Allied Members
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.

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.




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MARK YOUR CALENDARS FOR THE 2009 SUMMIT!
Thursday, August 13, 2009
Marriott Denver South at Park Meadows Drive

8:00 am to 8:00 pm
Continental Breakfast & Registration start at 7:30 am

*** Hotel rates of $149.00 per night are extended for *** reservations until Friday, August 7th!

Who Should Attend?
Dealer principals/owners, general managers, in-house legal counsel, outside corporate counsel, senior dealership managers and directors, controllers, F&I managers, sales leadership, risk managers, key dealership leaders and decision-makers.

Why Attend?
~ Most important day you’ll spend as a dealer or manager
~ Reduce costly liability, litigation risk, and overhead
~ Significantly improve sales leadership
~ Reduce operational costs and cut waste
~ Improve your bottom line

Watch the VIDEO with Dave Anderson, Learn to Lead, on the Dealer Management and Leadership Summit!

For more information, CLICK HERE

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.

  • 'Cash for Clunkers'
    KUSA 9 News Denver, July 29

    "Cash for Clunkers" a great success, but will it gain additional funding?
  • The Auto Industry’s Comeback
    The Wall Street Journal, July 29
    When new car sales hit 15 million in 2012, savvy companies will make a bundle.
  • Ford posts first monthly sales increase in 2 years
    The Detroit News, August 3
    Aided by the federal government's "cash-for-clunkers" program, Ford Motor Co. posted its first monthly sales increase in nearly two years Monday -- the first major automaker to do so this year.
  • Obama advisor talks vehicle development with automakers
    The Detroit News, August 3
    President Obama's top energy and climate change advisor said the federal government should be "technology neutral" when it comes to supporting and expanding legislation for research and development on advanced technology vehicles of the future.
  • Big Three take 47 percent of 'Cash for Clunkers' sales; Ford Focus top-seller
    The Detroit News, August 3

    Detroit's automakers accounted for 47 percent of the first 80,000 "Cash for Clunkers" sales, the Obama administration said today, and the Ford Focus is the top-selling vehicle in the program.
  • 'Clunkers' program boosts Ford
    The Detroit News, August 3
    As the federal government looks to add billions more to the "cash for clunkers" program, at least one Detroit automaker is attributing a boost in July sales to the popular effort.
  • Dealers question Michigan ban on Sunday car sales
    The Detroit News, August 3
    Some Michigan auto dealers are questioning whether the state's 56-year-old ban on Sunday car sales should be lifted to help struggling dealerships find buyers for their cars.
  • Clunker law gains traction: Ford sales jump; Chrysler, GM, Honda losses narrowed
    Detroit Free Press, August, 3
    Ford Motor Co.’s July sales rose 1.6% in July from a year earlier, while General Motors Chrysler, Honda and Mazda reported smaller year-over-year declines as the government’s cash-for-clunkers program pulled people out of aging gas-guzzling trucks and into small and midsize cars.
  • Dealers, buyers wonder about rebate's future
    KUSA 9News Denver, August, 3

    Car dealerships across Colorado and the rest of the country are debating whether to continue offering the government's new cash-for-clunkers rebate.
  • Video: How a Clunker is Killed
    Car and Driver, August 4
    We got a behind-the-scenes look at how it all works (or, more appropriately, stops working forever).
  • Auto dealers in Colorado hail 'cash for clunkers' program
    Colorado Springs Gazette, August 4
    The federal government’s “cash for clunkers” program has spurred thousands of new car sales in Colorado, a state that has seen such sales decline more than 41 percent over the past year.
  • USA Today, Open Road
  • …more news articles are included at the end of this issue.

    * * * * * * * *


CARS ACT, AKA "CASH FOR CLUNKERS" -- LATEST NADA UPDATES:

NADA Update: NHTSA Loosens Requirements for 'Clunkers' Program (8/1/09)
Responding to numerous dealer concerns, the National Highway Traffic Safety Administration last night made two changes to the Cash-for-Clunkers program advocated by NADA. These changes are effective immediately.

(1) Dealers may now choose to disable the engine of the trade-in vehicle after they receive payment from the government for the credit. In other words, dealers no longer must disable the engine before submitting a reimbursement claim. However, until the vehicle's engine is disabled, the dealer must store the vehicle at a location under the control of the dealership. Dealers must disable the engine within seven calendar days after receiving reimbursement. The certifications on the Summary of Sale form (See page 18 of attachment) have been amended, and the certifications on the electronic form submitted by the dealer will soon be changed.

(2) NHTSA will no longer require proof of insurance from Wisconsin and New Hampshire residents because these states do not require insurance.

NADA Latest Updates  (7/31/09)

  • The U.S. House of Representatives with support from the White House, today passed a bill (H.R. 3435) to transfer $2 billion in energy stimulus funds to the cash-for-clunkers program. 
  • The legislation—which passed by a vote of 316-109—would ensure that dealers with pending deals get reimbursed.    
  • The Senate is expected to take up the measure as early as Monday. NADA has sent a legislative alert today calling on dealers to contact their Senators as soon as possible seeking their support of the bill. (Click here for the legislative alert.)
  • NADA appreciates the Administration’s effort to continue this program and to continue helping consumers and the auto industry contribute to an economic recovery.
  • Regarding auto sales this weekend, one possible alternative is for dealers to take deposits in lieu of consummated sales with an eye toward legislative success next week.
  • NADA understands the extraordinary difficulties dealers are having registering for the program and filing reimbursement claims. We continue working with the White House, DOT, and key legislators to ensure these problems are corrected as soon as possible.
    The new form will be available for download at http://www.CARS.gov/dealersupport

* * * * * * * *

CONSUMER ASSISTANCE TO RECYCLE AND SAVE (CARS) ACT OF 2009 TAXABILITY OF PAYMENTS TO DEALERSHIPS - IRS ADVISORY

The IRS Motor Vehicle Division issued the following advisory alert on Friday of last week.  It states that the federal CARS, aka “cash for clunkers” rebates and any money received as scrap value are taxable to dealers – in addition, any expenses incurred in this type car deal are deductible.

Note that Automotive News last week had run an article indicating the rebates were not taxable to dealers.  Dick Heider of Heider, Tanner & Dirks, Inc. contacted Automotive News that this information may be incorrect, and subsequently forwarded this IRS ruling.  Thanks to Mr. Heider for his work on this, and his assistance on clarifying other aspects of CARs tax issues.  

CLICK HERE for the July, 2009, Motor Vehicle Technical Advisor, CARS, Taxability of Payments to Dealerships. 

Continue to visit www.coloradodealers.org and select the CARS logo for various tax and other resources regarding the CARS program. 

* * * * * * * *

GUEST ARTICLE: DEALER GRANTED SUMMARY JUDGMENT IN UNAUTHORIZED PRACTICE OF LAW CASE
Shelley B. Fowler, Managing Editor of Spot Delivery®

In our December 2008 issue, we wrote about the Baker case, one of many cases around the country in which dealers have been hit with class action lawsuits alleging that the dealers’ actions in completing legal forms, such as buyer’s orders and retail installment contracts, constitute the unauthorized practice of law...

Our thanks to Michael J. Dommermuth, with the law firm of McGloin, Davenport, Severson & Snow, PC, which represented the defendants in the case, for bringing this recent decision to our attention. He let us know that, back in December, at the request of Tim Jackson, President of the Colorado Automobile Dealers Association, the Colorado Attorney General modified a 1979 Assurance of Discontinuance to permit dealers to drop the disclosure language about the charge representing fees for “preparing documents related to the sale” in documents and in-store signage and to allow dealers to merely disclose that the dealer handling fee represents costs and additional profits to the dealer, without expressly itemizing cost items.

CLICK HERE to read the entire article.

* * * * * * * *

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

"CASH FOR CLUNKERS" A BIG WINNER WITH CONSUMERS

Just five days after the start of the CARS (a.k.a. Cash for Clunkers) program, the National Highway Transportation Safety Administration (NHTSA) made the announcement that the $1B in funds appropriated for the program had already been allocated.  No one could have predicted such a swift and immediate response by consumers to the CARS program.  On Friday, the US House of Representatives voted 316-109 to send an additional $2B to the CARS program, before they left for their August recess.  The fate of the CARS program now lies with the Senate, where it is expected to face significant challenges.  The Cash for Clunkers program passed the Senate by a mere one vote the first time. 

Please contact Sen. Udall and Sen. Bennet and encourage them to vote YES to additional funding for Cash for Clunkers!

Sen. Mark Udall: 202-224-5941

Sen. Michael Bennet: 202-224-5852

* * * * * * * *

Questions or Comments?  Please contact:


a

FREE WEBINAR: ENVIRONMENTAL CONSIDERATIONS FOR THE VALUE OF YOUR BUSINESS

Tuesday August 11, 2009
9:00am - 10:00am Mountain Time

Presented by Eric Schmitz, Registered Environmental Assessor

Concerned about past, current or future environmental contamination? Environmental issues now and in the future may significantly impact the value of your business. Federal Superfund law provides you legal protections if you follow certain procedures. Learn how you can protect your assets with simple processes and documentation.

About the Speaker
Eric is the Vice President of Product and Business Development at KPA. Prior to joining KPA, Eric worked as a field chemist and project manager for a hazardous waste disposalcontractor across the US. Eric earned his B.S. in Environmental Toxicology from the University of California at Davis in California.

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

FREE WEBINAR:
Environmental Considerations for the Value of your Business

Presented by
Eric Schmitz, Registered Environmental Assessor

Tuesday August 11, 2009

9:00am - 10:00am Mountain Time

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 to learn more!

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

CADA Regional Member Briefings

- FULL LIST of location dates and times

Eleven meetings for dealers across Colorado

For more information www.coloradodealers.org/regionals
Attendees can register through CADA via Phone: 303.457.5123, FAX: 303.831.9100, or E-mail:rsvp@coloradodealers.org
* Please note different RSVP
for Colorado Springs and
Pueblo meetings. 


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

  • Confessions of an Organization Man
    The Wall Street Journal, July 31
    I never thought I would say what I’m about to say. It’s so hard for me to believe it that even now I doubt myself.
  • Vouchers aid smaller models
    Detroit Free Press, August 3
    Chrysler Group LLC, which doubled the cash-for-clunker vouchers, sold 88,900 vehicles, down 9% from July 2008.
  • Sales of crossovers soar
    Detroit Free Press, August 3
    Ford Motor Co. reported sales of new cars and trucks edged up 1.6% in July from a year earlier, fueled by the government’s cash-for-clunkers program, the company said today.
  • Sales of Civic up
    Detroit Free Press, August 3
    Honda Motor Co.’s U.S. sales fell 17.3% in July compared to the same month last year.
  • Senate GOP Leader to Question 'Clunkers' Extension
    The Wall Street Journal, August 3
    A top Republican senator raised what appears to be a growing skepticism among GOP lawmakers about a $2 billion extension sought by the Obama administration for its popular "cash for clunkers" program.
  • Clunker Plan Gives Car Sales a Lift
    The Wall Street Journal, August 4
    U.S. auto sales in July climbed to their highest pace in 11 months, as customers rushed to showrooms amid uncertainty about the future of the federal government's "Cash for Clunkers" incentive program.
  • 'Clunkers' Rebates at Risk Unless Senate Acts
    The Wall Street Journal, August 3
    Transportation Secretary Ray LaHood said Sunday that unless the Senate approves $2 billion in additional funding, the Obama administration could be forced to halt as early as Tuesday the "cash for clunkers" program that has become one of the most visible and fast-acting of the government's economic-stimulus programs.

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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