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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
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& Legal Articles from the Open
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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.
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Registration section of the
Colorado Dept. of Revenue,
Motor Vehicles Division.
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Department of Labor &
Employment website.
Visit us at www.coloradodealers.org.
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If you have trouble viewing any of the links or documents in this e-newsletter, please CLICK HERE to access the web-based version.
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.
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
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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.
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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.
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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
 
"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
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Questions or Comments? Please contact:
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 Environme ntal Toxicology from the University of California at Davis in California.
CLICK HERE for registration and information!
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| Event Description |
Date/Time |
Location |
FREE WEBINAR:
Environmental Considerations for the Value of your Business
Presented by
Eric Schmitz, Registered Environmental Assessor
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Tuesday August 11, 2009
9:00am - 10:00am Mountain Time |
CLICK HERE for registration and information!
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Employment Law WEBINAR:
Reducing Lawsuit Risks of Terminations and Staff Reductions
By Todd Fredrickson, top Denver employment attorney, Fisher & Phillips, LLP
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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
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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!
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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)
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CADA Virtual Seminar: Employer Requirements for New COBRA Subsidy
Speaker: Penny Wofford, Ford & Harrison LLP
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Archive of this webinar can be viewed any time
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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
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| Event Description |
Date/Time |
Location |
Dealer Management & Leadership Summit
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Thursday, Aug. 13
8 a.m. to 7:30 p.m
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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
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Monday, August 24, 2009
12:00 Noon Shotgun Start
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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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