OCTOBER 29, 2008


IN THIS ISSUE

DEALER NEWS & INFORMATION

Automotive News at a Glance

NADA News

 

REGULATORY & LEGAL UPDATES

Red Flags Rule Compliance Date Delayed by FTC; But Dealerships May Still Need to be in Compliance by Nov. 1st

 

UPCOMING SEMINARS

Designated Risk Management Seminar

Red Flags and Safeguards/Privacy Training


CALENDAR OF EVENTS
Upcoming Events

Dealer Day at SEMA NEXT WEEK!

MDADA Annual Membership Meeting, Denver

Annual Colorado Dealers Legal Counsel Lunch and Issues Briefing

NADA Convention and Exposition


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

Jane "Peachy" Wilcoxson Passes Away at 81

Weld County Garage Turns 100

NADA 2009 Convention and Exposition

Share Your Accomplishments


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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.

  • Governor Ritter stays busy on election season issues
    The Pueblo Chieftain, October 24
    Gov. Bill Ritter's to-do list has gotten rather lengthy in recent weeks.
  • Shares of Volkswagen rocket on Porsche plans
    The Detroit News, October 27
    Shares of Volkswagen AG soared nearly 80 percent on Monday, bolstered by Porsche's announcement of plans to lift its stake in the automaker to 75 percent by 2009.
  • Porsche's Owners Will Support VW Purchase
    The Wall Street Journal, October 25
    Porsche Automobile Holding SE said Friday the rift between its owners, the Piëch and Porsche families, has been resolved, and both families now fully support Porsche Chief Executive Wendelin Wiedeking's plan to take over Volkswagen AG.
  • Chrysler's Woes Are Partly The Result of Poor Quality
    The Wall Street Journal, October 27
    Chrysler's woes arise from many mistakes, compounded by bad turns of luck.
  • GM says no timetable for Chrysler deal
    The Detroit News, October 27
    General Motors Corp. Vice Chairman Bob Lutz said this morning there is no timetable to strike a deal to acquire rival Chrysler LLC and he declined to address most other questions about a potential deal between the two Detroit auto companies.
  • Chrysler, GM deal confronts obstacles
    The Detroit News, October 20
    Federal regulators, dealers and UAW could try to delay or prevent merger of Detroit rivals.
  • Michigan Sweats GM-Chrysler Talks
    The Wall Street Journal, October 20
    A merger of General Motors Corp. and Chrysler LLC would land a heavy economic blow on Michigan, a state already battered by waves of home foreclosures and the loss of tens of thousands of auto-industry jobs over the last few years.
  • Merger can get GM cash, leverage with UAW, analyst says
    Detroit Free Press, October 20
    General Motors Corp. could access the cash it needs and negotiate more labor savings with the UAW by completing a merger with Chrysler LLC, a JP Morgan auto analyst said today.
  • Big storm headed for Detroit 3
    Detroit Free Press, October 19
    Chrysler LLC will almost certainly disappear in the next few months, assimilated into General Motors Corp. or Renault-Nissan in a deal blessed, if not partially funded, by the U.S. government.
  • Are These Detroit's Darkest Days?
    The Wall Street Journal, October 27
    David Patton and Mathew Passy discuss whether these are the darkest months for the Detroit Three auto makers.
  • Station Owners Welcome Cheaper Gas
    The Wall Street Journal, October 23
    Gas prices have dropped by almost 90 cents at the pump the past month to a U.S. average of $2.858 for a regular gallon on Wednesday, according to auto group AAA.
  • Fuel-Efficient Vehicles Top Consumer Reports' Reliability List
    The Wall Street Journal, October 23
    Fuel-efficient vehicles topped Consumer Reports' annual list of the most reliable models sold this year.
  • Transmission manufacturer ends deal with Chrysler
    Detroit Free Press, October 19
    German manufacturer Getrag is without a primary customer for the transmissions it expected to make at a new factory in Tipton.
  • Auto news in brief: The evolution of auto ads on Web
    Detroit Free Press, October 19
    Automotive advertising on the Internet has evolved rapidly and will continue to evolve, Avinash Kaushik, author of Google Analytics, said in an interview with the Free Press last week.

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NADA NEWS

  • NADA Insurance announces that its hole-in-one insurance program, ACECO, will host a charitable golf tournament in conjunction with the 2009 NADA Convention in New Orleans, set for Jan. 24 to 27. The inaugural “Dealers for Charity Golf Tournament” is slated for Friday, Jan. 23, at TPC Louisiana, the only PGA TOUR golf course in the state. The challenging 7,300-yard, par-72, Pete Dye-designed course is set among bayous and old-growth cypress trees. Built in 2004, it is home to the prestigious PGA TOUR Zurich Classic of New Orleans. All proceeds from the tournament will benefit the Brees Dream Foundation, a charitable organization founded by New Orleans Saints quarterback Drew Brees and his wife Brittany. If you’re interested in a sponsorship, contact tournament director Alicia Rodriguez at 888.828.8540 for details. The tournament is open to NADA members only. Fees for the 144-person tournament are $300 per person or $1,200 per foursome. Register online at http://www.ACECOinsurance.com..


RED FLAGS RULE COMPLIANCE DATE DELAYED BY FTC; BUT DEALERSHIPS MAY STILL NEED TO BE IN COMPLIANCE BY NOV. 1ST

On October 22, 2008, the Federal Trade Commission (FTC) announced that it will delay enforcement of the Red Flags Rule until May 1, 2009.  The FTC along with various other federal agencies announced the Red Flags Rule in November, 2007, and while it was effective as of January 1, 2008, a mandatory compliance of November 1, 2008 was established by all agencies. 

The FTC's announcement notes that their delay does “not affect other federal agencies’ enforcement of the original November 1, 2008 deadline for institutions subject to their oversight to be in compliance.” To date, the other agencies responsible for enforcing Red Flags—Federal Reserve Board, National Credit Union Administration, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, and the Office of Thrift Supervision—have not announced a similar six-month delay.  Because of the provisions in the Red Flags rule regarding the responsibility to “oversee service provider arrangements effectively and appropriately,” dealerships doing business with any of the other institutions subject to the jurisdiction of other agencies who do not delay their mandatory compliance date may still be asked to sign contracts or agreements to affirm they are in compliance.   Since the primary reason the FTC stated for delaying implementation was because various entities not typically covered by the FTC were confused over whether they were covered, it is uncertain if the same areas of confusion are at issue at all with the other agencies. 

Additionally, the FTC’s Address Discrepancy Rule which is somewhat related to the Red Flags Rule still takes effect on November 1, 2008.  This rule requires dealerships to develop and implement policies and procedures to be followed when it receives a “Notice of Address Discrepancy” from a Credit Reporting Agency (CRA). The CRA’s are still required to begin issuing those notices as of November 1, 2008, and dealerships will need to be in compliance with this rule.  Many of the Red Flags programs and sample forms that dealerships may be using for Red Flags include the CRA notice as a “red flag” that triggers various extra, precautionary steps to ensure ID theft is not taking place. 

For both of these key reasons, dealerships are still advised to begin complying with the Red Flags rule and implement their programs by November 1st.  Aside from the reasons above, this will also provide an interim period in which to “try out” your plan, address any areas of confusion, and ensure employees are fully trained before the real mandatory compliance date.  

FTC Press Release Announcing Forbearance on Enforcement (October 22, 2008) 

* * * * * * * *

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.



DESIGNATED RISK MANAGEMENT SEMINAR

November 10-12, 2008

Colorado Automobile Dealers Association Members Profit Through Risk Management a

The Designated Risk Manager Training Program was developed to target specific risk management concerns for the auto dealer industry. Companies that are the most successful controlling losses have designated a key person as their risk manager. This person is supported by top management and is both responsible and accountable for identifying loss exposures and implementing risk management solutions.

Through CADA’s partnership with Federated Insurance, there is no charge to attend this training and you do not have to be a current Federated client. Attendees, however, are responsible for air and ground transportation to and from Owatonna, Minnesota, and lodging in Owatonna.

A CLICK HERE for more information
on this
training session.
* * * * * * * *


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

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

Designated Risk Management Seminar

Owatonna, MN

Presented by Federated Insurance

Monday, Nov 10th-Wednesday, Nov 12th

Through CADA’s partnership with Federated Insurance there is no charge to attend this seminar.  Attendees are responsible for their Air, Lodging and ground transportation.

For more information Click Here

Red Flags and Safeguards/Privacy Training

Denver

By Paul Metrey, NADA Regulatory Affairs

Friday, January 9, 2009,

7:30am

Breakfast meeting

Save the date; more details and registration information will be available soon!


Event Description
Date/Time
Location

Dealer Day at Specialty Equipment Market Association (SEMA) Show 2008

Next Week!

Wednesday, Nov. 5

Las Vegas Convention Center

Registration Link

MDADA  Annual Membership Meeting

Denver


Tuesday, Nov. 25

11 a.m.- Lunch Meeting (General Session)

JW Marriott Denver at Cherry Creek
150 Clayton Lane
Denver 80206
Attendees can register through CADA via Phone: 303.831.1722, FAX: 303.831.9100, or E-mail:rsvp@coloradodealers.org

Annual Colorado Dealers Legal Counsel Lunch and Issues Briefing


Friday, January 9, 2009

11:30-1:30

Lunch

Briefing / update on upcoming legislative session, compliance and regulatory matters, and Red Flags/Safeguards overview from Paul Metrey, NADA Regulatory Affairs

Baur’s Restaurant
www.baursdenver.com
1512 Curtis Street , Denver, CO 80202

More details and registration information coming soon!

NADA Convention & Exposition

Jan. 24-27, 2009

New Orleans Morial Convention Center
New Orleans, LA

CLICK HERE for more information from the official website.


JANE "PEACHY" WILCOXSON PASSES AWAY AT 81

Jane "Peachy" Wilcoxson was immortalized as a painted cowgirl on a famous World War II airplane, but she'll be remembered by those who knew her best as a woman who was dedicated to her family and her community.

Mrs. Wilcoxson died Monday at a local nursing home, where she had lived following a debilitating stroke. She was 81.

Her husband, well-known auto dealer and civic leader Gene Wilcoxson Sr., had spent most of every day since her stroke by her side.

Her children - Karen Wilcoxson, Gene Wilcoxson Jr. and Bill Wilcoxson - remember her as an entertaining hostess, whether the guests were their own friends gobbling cookies after school or a platoon of men in business suits.

CLICK HERE to read the entire article.

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WELD COUNTY GARAGE TURNS 100

As General Motors observes its 100th anniversary, so does Weld County Garage, the Buick, Pontiac and GMC dealer in Greeley. "We're so blessed," said Warren Yoder, co-owner of the dealership, "to be associated with many, many longtime customers and to be able to offer our large facility's automotive services to people from all over the region."

CLICK HERE to read the entire article.

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NADA 2009 CONVENTION AND EXPOSITION

aNew Orleans is now the eighth fastest growing metropolitan area in the United States, according to the U.S. Census Bureau. To show support for the rebirth of New Orleans, NADA is headed back to the Big Easy to hold its 92nd annual convention and exposition there Jan. 24-27, 2009.

“The theme for our New Orleans convention is 'Voice of the Dealer® ... Committed to Community.' What better way to show that commitment than for us to be there in full strength at one of NADA's favorite convention cities," said Annette Sykora, 2008 NADA Chairman. NADA has held its convention in New Orleans every few years for the past 30 years.

For more information, visit the following websites:
http://www.nada.org/TrainingEvents/Convention/
http://expo.nada.org/nada2009/public/enter.aspx

CLICK HERE to register!

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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.


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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