AUGUST 12, 2009


IN THIS ISSUE

DEALER NEWS & INFORMATION

Automotive News at a Glance

 

REGULATORY & LEGAL UPDATES

CARS Act - Update on Audit Process

CARS Act - Updated Q&A From NADA


LEGISLATIVE UPDATE

Andy Kerr 2010 Campaign Kick Off Party!

The Post-Mortem on Chrysler and GM Dealers - Hope is Alive

 

UPCOMING SEMINARS

Upcoming Seminars

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

CADA Regional Member Briefings

Denver Auto Show


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.


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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.


 

IT'S NOT TOO LATE TO REGISTER! CALL TODAY TO
RESERVE YOUR SPOT!
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

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.

  • A stimulus program that works
    Denver Post, August 10
    While costing just a tiny sliver of the total amount of the total stimulus package, CARS has produced immediate and dramatic results.
  • Dealers praise ‘clunker’ extension
    The Denver Daily News, August 10
    While Colorado automotive dealers say the “cash-for-clunkers” program has been far from perfect, they are enthusiastic over the U.S. Senate’s vote late last week to extend the auto incentive rebate program.
  • Clunker Class War
    The New York Times, August 5
    This is old fashioned stimulus of a sort that Republicans have always advocated, using financial incentives to change behavior.
  • Recycling Clunkers To Clean Up Colorado Air
    CBS4 Denver, August 4

    Is the Cash for Clunkers program really helping to clear Colorado's air as intended?
  • New GM plans to go public in July 2010
    Denver Post, August 9
    General Motors Co., the new automaker majority-owned by the U.S. Treasury, said it intends to make an initial public offering of stock by July 10, 2010, the first anniversary of its bankruptcy exit.
  • Cash For Clunkers The "Trigger" For Increase In Consumer Confidence
    The Huffington Post, August 11
    In addition to the thousands of consumers who took advantage of the Cash for Clunkers auto trade-in deal, the Economic Policy Institute reports this week that the program has been a boon to consumption in the recession economy and a boon as well for the environment, moving gas guzzlers off the roads.
  • Colorado Auto Dealers president would turbo-charge Cash for Clunkers
    The Colorado Independent, August 10
    They believe we were pulling sales forward, as we say in the industry, selling cars now that we would have sold in the fall… There’s no way to know for sure, but I think maybe we were making up for lost sales
  • Commentary: Why 'Cash for Clunkers' works
    CNN.com, August 10
    Cash for Clunkers is now working in more than 10 countries around the world.
  • USA Today, Open Road
  • …more news articles are included at the end of this issue.

    * * * * * * * *


  • Doing the ‘Clunker’ Calculus
    The New York Times, August 7

    The “cash for clunkers” program will be back in full swing this weekend after President Obama signed a program extension on Friday.

CARS ACT - UPDATE ON AUDIT PROCESS

While many dealerships are still struggling to obtain reimbursement for CARs, aka “Cash for Clunkers”, transactions, be advised that the audit process for this program is beginning as well.  CADA was contacted last week by the person designated with audits in Colorado.    Participating dealers will likely start to be contacted right away.  Do not be alarmed at this point, the CARS program / NHTSA will be auditing dealers as a standard part of this program.  Leslie Nelson-Taullie  will be the CARs Enforcement Specialist for Colorado as well as five other states (North Dakota, South Dakota, Wyoming, Utah, and Nevada) in her region.  There will be three levels to the audit process, and their goal will be to complete each level for all dealers before moving to the next level.   

Level  1 = Basic check to verify the dealerships’ eligibility as a licensed new car dealer.   The auditor will need to verify your franchise agreement, state dealer license, and will review some completed deals to ensure the documentation is in order.  

Level 2 = Audit of the paper trail from the dealership to the salvage/recycling company, to ensure the mandated key components of the clunkers have been properly destroyed.

Level 3 = This level of investigation will only take place if there is any evidence of fraud, and would be handled by law enforcement officials from the Officer of the Inspector General. 

If dealerships have any questions on the audit process, please contact CADA.  We can contact Leslie in order to address questions, and advise all dealerships of responses.  Note the following from NADA Q&A:

Q. Must dealers keep records?

A. Dealers shall keep records of all transactions under the CARS Act and regulations there under for a period of five calendar years from the date on which they were generated or acquired.

* * * * * * * *

CARS ACT - UPDATED Q&A FROM NADA

NADA Regulatory Affairs staff is in ongoing contact with NHTSA/CARs officials --- continue to check back for updated Q&A.  Some key Q&A updates are excerpted below; click on the link below to review ALL Q&A.
http://www.nada.org/legislativeaffairs/economy-financial/cash-clunkers/FAQ.htm

Q. How should I put the “JUNK AUTOMOBILE CARS.GOV” on the title?  Handwritten? Type? Label?


A. Although not specified in its rule, NHTSA wants it handwritten and has reportedly rejected typed submissions.

Q. If a title is labeled as “JUNK AUTOMOBILE CARS.GOV” and submitted into the CARS system and later the deal is unwound, what happens to the vehicle’s title? 

A. If such a situation occurs and cannot be approved under the CARS program, NHTSA claims they will work with individual state DMV to issue the consumer a new clean title.  

Q: If the EPA mileage for the clunker qualified prior to July 24, does the transaction still qualify under the program? (Is there a grandfather clause for the EPA mileage adjustments)?

A. Certain customers and dealers relied on EPA’s fuel economy figures to qualify dealers prior to EPA changing the data for at least 76 models. If you have a specific case and NHTSA is rejecting it because of EPA's changes, please email help@cars.gov and it will be examined on a case-by-case basis. 

Q. How long will it take NHTSA to approve or reject an application for payment?

A. NHTSA must approve or reject a complete application for payment within 10 days of submission. However, note that registration and reimbursement application systems have experienced difficulties and delays and may continue to do so.

Q. Can a consumer trade-in a Class 3 truck and purchase a passenger car under the CARS program?

A. No.

Q. May clunkers have salvage titles? What about outstanding bank or government liens?

A. Yes, clunkers may have branded titles, but must be free of liens and encumbrances and must be drivable. A lien payoff document accompanying the title will suffice.

Q. May dealers disable the trade at the buyer (dismantler/crusher/shredder or auction)?

A. Yes, as long as the vehicle is in the control of the dealer at all times.

Q. If the dealer is not disposing of the vehicle at time of claim submission, but will later, does the dealer attach the disposal certification form to the invoice?

A. No. These forms typically will be provided to dealers when clunkers are transferred. They may be attached to deals not yet submitted for reimbursement. Otherwise, dealers have 7 days following receipt to e-mail completed forms to disposal@cars.gov

Review all Q&A:
http://www.nada.org/legislativeaffairs/economy-financial/cash-clunkers/FAQ.htm

* * * * * * * *

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

ANDY KERR 2010 CAMPAIGN KICK OFF PARTY!

Tonight at 6:00 p.m., State Representative Andy Kerr (D-Lakewood) will be holding a fundraising event in Lakewood at 240 Union, a fantastic restaurant in Lakewood.  Rep. Kerr is currently serving as the Assistant Majority Leader in the Colorado House of Representatives and is expected to continue on the House leadership path.  Additionally, Rep. Kerr was an early co-sponsor of SB 91, CADA’s Franchise Bill, and was instrumental in passing this legislation and keeping bad amendments (including Sunday sales) off of the bill.

Please join us tonight in support of Rep. Kerr!  Below are the details:

Andy Kerr 2010 Campaign Kick Off Party!

Wednesday August 12, 2009
from 6:00 p.m. until 8:00 p.m.
at "240 Union", 240 Union Blvd., Lakewood, Colorado

Also in attendance will be the following supporters:  Congressman Ed Perlmutter, Senate President Pro Tempore Betty Boyd, Rep. Max Tyler, County Commissioner Kathy Hartman, Lakewood Mayor Bob Murphy, CU Regent Monisha Merchant, State Board of Education Member Jane Goff, Lakewood City Council Member Diana Allen, Lakewood City Council Member Sue King, Lakewood City Council Member Adam Paul, Lakewood City Council Member Tom Quinn, West Metro Fire Director Pam Feeley, Water District Board Member Michele Wiechman, and CADA Contract Lobbyist, Mike Feeley.

Contributions should be made payable to “Citizens for Andy Kerr”

* * * * * * * *

THE POST-MORTEM ON CHRYSLER AND GM DEALERS - HOPE IS ALIVE
By: Richard N. Sox, Esq.

Now that New Chrysler and New GM are up and running and the dust is settling on Old Chrysler and Old GM, what is the status of Colorado dealers’ franchise rights?

CLICK HERE to continue reading.

Richard Sox is a Partner with the law firm of Myers & Fuller, P.A. whose sole practice is the representation of automobile dealers in franchise disputes with manufacturers, consumer litigation and regulatory matters.  The Firm regularly advises the Colorado Auto Dealers Association on issues critical to our member’s dealerships.

* * * * * * * *

Questions or Comments?  Please contact:


a

* * * * * * * *

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

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. 

Denver Auto Show



Wednesday, April 7

thru  

Sunday, April 11, 2010

Colorado Convention Center

700 14th Street Denver 80202

CLICK HERE for more information.


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

  • Some Olds dealers lose again
    The Detroit News, August 8
    First, Oldsmobile dealers lost the brand. Now, some are losing big bucks.
  • At Fox and MSNBC, Hosts Refire the Insult Machines
    The New York Times, August 7
    Executives at two of the country’s largest media companies are still trying to salvage what was essentially a cease-fire between MSNBC and the Fox News Channel.
  • Loveland auto dealer to break ground
    Coloradoan, August 5
    The new Mini of Loveland auto dealer will break ground on its new showroom from 10 a.m. to noon Aug. 26 at the Motorplex at Centerra, I-25 and Crossroads Boulevard.

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

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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