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NOVEMBER 3, 2009
IN THIS ISSUE
 DEALER NEWS & INFORMATION
– Automotive News at a Glance
REGULATORY & LEGAL UPDATES
– NADA Releases Fact Sheet Regarding Clunkers Scrap Value
– UNICAP - Looming Tax Issue For Dealers
– 4th Postponement: Red Flags Enforcement Delayed (again) until June 1, 2010
LEGISLATIVE UPDATE
– Gov. Ritter Closes $270M Shortfall in FY09-10
– Senate Dems Announce Committee Appointments For 2010 Session
– Be A Part of CADA's Grassroots Efforts!
– Please Save the Date For These Future Fundraisers at CADA!
ENDORSED VENDOR
– Preparing For a Pandemic Is Serious Business
UPCOMING SEMINARS
– Upcoming Seminars
– Reducing Risk of Lawsuits from Terminations and RIFS
– Dealer Rights and Protections Seminar
– Dealer Management System (DMS) Training
– Designated Risk Management Seminar: The Key To Cuttings Costs is Controlling Losses
– CADA Regional Member Briefings!
CALENDAR OF EVENTS
– Upcoming Events
– Colorado Legislator Meetings
– CADA Regional Member Briefings
– Denver MDADA Annual Membership Meeting/CADA Regional Meetin
– NADA Convention and Exposition
– Denver Auto Show
– CADA 2010 Annual Golf Tournament
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
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ENDORSED VENDOR/PROGRAMS
CLICK HERE for information about the
Endorsed Vendors/Programs.
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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.
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.
NADA RELEASES FACT SHEET REGARDING CLUNKERS SCRAP VALUE
NADA 60-Second Email, October 30, 2009
Press reports regarding a recently filed lawsuit have generated several inquiries on a “Cash for Clunkers” (CARS) issue – specifically, disposition of the sales proceeds (“scrappage value”) for clunkers “traded-in” under the CARS program. As explained in the attached document, NADA believes that a proper reading of both the CARS statute and NHTSA’s interpretations of that statute is that the disposition of any scrappage value over $50 was subject to negotiation between the customer and the dealer.
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UNICAP - LOOMING TAX ISSUE FOR DEALERS
A complex Internal Revenue Service (IRS) Code provision known as UNICAP could become all too familiar to dealers in the next few months. Many dealers could be required to speed up federal income tax payments as they could be forced to capitalize and not currently deduct a number of expenses as in the past. While a tax payment timing issue, the change could cause dealers to pay tens of thousands of dollars of federal income tax sooner than expected and require extensive accounting changes. Terri Harris, the IRS' Motor Vehicle Technical Advisor, told participants at the recent ATAE Legal Conference that most dealers' historic accounting methods are improper and will have to be changed. On September 15, the IRS agreed to suspend the examination of dealerships for UNICAP compliance until January 1, 2011, to allow time for compliance. It is not clear what will happen to audits that are already underway.
CADA plans to offer educational programs for dealership accounting personnel on the issue. Dealers are encouraged to consult with their outside accountants to make certain that they are informed about upcoming changes to UNICAP.
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4TH POSTPONEMENT: RED FLAGS ENFORCEMENT DELAYED (AGAIN) UNTIL JUNE 1, 2010
The Federal Trade Commission announced Friday that it will grant another seven months to comply with the FTC's Red Flags Rule. The extension marks the fourth delay in implementing the Rule, originally scheduled to take effect Nov. 1, 2008.
Note that in prior delays, the FTC has been clear that these are enforcement delays only – once enforcement does begin, it is still expected that entities should have been in compliance by Nov. 1, 2008. Also note that the purpose of this delay was because members of Congress had requested it due to new questions and legislation regarding the coverage of other industries; none of which affect automotive dealerships:
At the request of several members of Congress, the Federal Trade Commission (the
“FTC” or “Commission”) is extending its deferral of enforcement of the Identity Theft Red
Flags Rule (“Red Flags Rule” or “the Rule”)1 until June 1, 2010. . . .
On October 20, 2009, the House of Representatives unanimously approved HR 3763, a bill which would exempt from the coverage of the Red Flags Rule any health care, accounting, or legal practice with twenty or fewer employees, as well as certain other businesses. For that reason, on October 29, 2009, certain members of Congress requested that the Commission further delay enforcement in order to allow Congress to finalize legislation. The Commission believes that such delay is warranted so that it does not begin to enforce a regulation that
Congress plans to supersede.
For the FTC news release announcing the enforcement postponement, click here.
Regardless of yet another enforcement delay, all dealerships are strongly encouraged to implement Red Flags immediately if they have not already.
Visit these prior Open Road issues for more information on Red Flags:
October 29, 2008, Red Flags Rule Compliance Date Delayed by FTC; But Dealerships May Still Need to be in Compliance by Nov. 1st
October 22, 2008, Reminder: New Federal Red Flags & Address Discrepancy Rules: Compliance Deadline is November 1st
October 1, 2008, Reminder: New Federal Red Flags & Address Discrepancy Rules: Compliance Deadline is November 1st
Includes the following links as well as information on how to request sample materials from NADA:
CLICK HERE for an overview of the ten key steps, as outlined in NADA’s compliance guide.
CLICK HERE for a list of the 26 illustrative ‘red flags’ from the Red Flags rule.
NADA ‘s “A Dealer Guide to the FTC Red Flags and Address Discrepancy Rules: Protecting Against Identity Theft”
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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
 
GOV. RITTER CLOSES $270M SHORTFALL IN FY09-10
Gov. Bill Ritter today presented the legislature's Joint Budget Committee with an updated balancing plan that closes a $271.4 million, recession-induced shortfall in the state's current Fiscal Year 2009-10 budget. Over the past year, the Governor and legislature have now addressed budget gaps of $2.1 billion.
CLICK HERE to continue reading.
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SENATE DEMS ANNOUNCE COMMITTEE APPOINTMENTS FOR 2010 SESSION
On October 28th, the Senate Democrats announced the committee
assignments for the next legislative session.
CLICK HERE for details.
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BE A PART OF CADA'S GRASSROOTS EFFORTS!
In large part, CADA’s legislative success is due to the active and meaningful participation of our member dealers in grassroots activism. We are in the process of scheduling 30 meetings across Colorado between now and when the General Assembly convenes for the 2010 Session on January 13th. To see a current list of the meetings we have confirmed, please click here and RSVP to Lauren Stadler at lauren.stadler@coloradodealers.org if you plan to attend. We can’t wait to see you at these very important and educational meetings!
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PLEASE SAVE THE DATE FOR THESE FUTURE FUNDRAISERS AT CADA!
Thursday, November 5th, Scott McInnis for Governor (R-Grand Junction) (5:00 – 7:00 p.m.)
Tuesday, November 10th, Rep. Max Tyler (D-Golden) (5:30 - 7:00)
Tuesday, November 17th, Rep. Dickey Lee Hullinghorst (D-Boulder) (5:30 -
7:00)
Wednesday, November 18th, Rep. Joe Rice (D-Littleton) (5:00 – 7:00 p.m.)
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Questions or Comments? Please contact:
ENDORSED VENDOR
PREPARING FOR A PANDEMIC IS SERIOUS BUSINESS
Can you imagine what would happen at your business if ten percent of your employees were too ill to come to work on the same day? Now imagine if twenty-five percent of them were absent for three months or more. Then imagine all businesses are facing these same absentee rates at the same time.
CLICK HERE to continue reading.
DEALER RIGHTS AND PROTECTIONS SEMINAR: KNOW YOUR RIGHTS; RECOGNIZE YOUR OBLIGATIONS!
Presented by William E. Walters, Kelly Garnsey Hubbell + Lass, LLC
~ IN SEVEN CITIES ACROSS COLORADO! ~
CADA spearheaded and passed significant new franchise law protections for dealers in 2009:
- Dealership Rights: make sure you understand these new rights in order to fully assert them—and to ensure you are not signing them away without recourse!
- Colorado Motor Vehicle Dealer Act (“Franchise Law”) – NEW protections:
- Limits the look-back period for warranty and sales incentive audits; prevents unreasonably short time periods to submit claims
- Exclusivity mandates prohibited; dealer notice requirements
- Pricing variance limitations
- Site control / facility upgrade mandate restrictions; facilities assistance
- Manufacturer requirements/duties for market withdrawal or termination; inventory repurchase requirements
- Buy/sell, transfer/relocation, or change of management – approval requirements
- Re-cap of existing protections, and manufacturer relations generally
- Lessons learned in GM/Chrysler bankruptcies
- Dealer Obligations: Keep your dealership out of the cross-hairs of regulators, lawyers, and consumers!
- State regulatory requirements and dealer investigations
- Risks and penalties of various violations and/or lawsuits
CLICK HERE for a registration form and more information!
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REYNOLDS & REYNOLDS: DMS SYSTEM TRAINING
You spend a small fortune on your Dealer Management System– make sure you are getting the most you can from it!
Presented by Ellie Dilbeck (Ranes), former R&R employee.
DENVER
Tuesday, Nov. 17th, 2009
8:00am to 12:00pm (noon)
Breakfast included
William D. Barrow Building (CADA Headquarters)
290 E. Speer Blvd (SW Corner of Grant/Speer), Denver, CO
Phone: 303.831.1722
This training will provide training on key areas of the R&R DMS
system that many dealerships overlook, may not fully utilize, or may just benefit from more training
on how to use effectively. Tentative topics to be addressed include*:
- Custom reports: understanding how to create custom reports utilizing Report Generator/QueryBuilder
- Custom docs/custom financial statements – how to view in Excel to analyze financials & trending
- How to combine names and clean up duplicate names in your database to market more effectively
- How to use/implement the new “We Owe” enhancements (utilizing technology for communication between
sales and service as to what is “owed” or “due” on the vehicle) streamline this process to improve CSI and prevent cost of sales mistakes
- Modifying op-codes to auto-map to certain G/L accts (i.e. tracking quick lube dept, detail shop, extended
warranties, etc.)
CLICK HERE for a registration form and more information!
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| Event Description |
Date/Time |
Location |
Reducing Risk of Lawsuits from Terminations and RIFS
FREE Webinar
By Compli, CADA Allied Member |
November 4, 2009
10:00 AM-11:00 AM Mountain
|
Click here for registration and information! |
Dealer Rights and Protections Seminar
Know Your Rights; Recognize Your Obligations!
Presented by William E. Walters, Kelly Garnsey Hubbell + Lass, LLC |
Presented in Seven Cities Across Colorado!
|
Click here for registration and more information! |
Designated Risk Management Seminar: The Key To Cutting Insurance Costs is Controlling Losses
By Federated Insurance |
November 9-11, 2009
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Click here for more information! |
Reynolds & Reynolds:Dealer Management System (DMS) Training
Presented by: Ellie Dilbeck (Ranes), former R&R employee |
Tuesday, Nov. 17th, 2009
8:00am to Noon
Breakfast included
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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
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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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| Event Description |
Date/Time |
Location |
Legislator Meeting
Representative Brian Delgrosso
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Monday, November 16, 2009
10:30 a.m., Coffee |
Dazbog Coffee, 556 N. Lincoln Avenue, Loveland 80537
CLICK HERE for a full list of meetings or to register to attend! |
Legislator Meeting
Representative BJ Nikkel |
Monday, November 16, 2009
12:00 p.m., Lunch |
McGraff’s Restaurant, 1602 E. Eisenhower Blvd, Loveland, 80537
CLICK HERE for a full list of meetings or to register to attend! |
Legislator Meeting
Senator Kevin Lundberg |
Monday, November 16, 2009
2:00 p.m., Coffee |
Dazbog Coffee, 556 N. Lincoln Avenue, Loveland, 80537
CLICK HERE for a full list of meetings or to register to attend! |
Legislator Meeting
*Fundraiser*
Representative Joyce Foster
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Thursday, November 19, 2009
12:00 p.m., Lunch |
Tavern Lower, 7401 E. 1st Avenue, Denver, 80230
CLICK HERE for a full list of meetings or to register to attend! |
MDADA Annual Membership Meeting/CADA Regional Meeting
Denver |
Tuesday, Dec. 1
11 a.m.- Lunch Meeting (General Session)
Plan to arrive by 10:45 a.m. |
JW Marriott Denver at Cherry Creek
150 Clayton Lane
Denver 80206
Attendees can register through CADA via Phone: 303.457.5123, FAX: 303.831.9100, or E-mail: rsvp@coloradodealers.org
Complimentary valet parking
CLICK HERE to register online! |
| NADA Convention & Exposition |
Feb. 13-15, 2010 |
Orange County Convention Center, Orlando FL
CLICK HERE for more information from the official website. |
Denver Auto Show
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Wednesday, April 7, 2010
thru
Sunday, April 11, 2010 |
Colorado Convention Center
700 14th Street Denver 80202
CLICK HERE for more information. |
CADA 2010 Annual Golf Tournament
SAVE THE DATE! |
August 30, 2010
11:00am-11:45am Registration/Practice
12:00 Noon – Shotgun Start |
Lakewood Country Club
6800 W. 10th Avenue
Lakewood, CO 80214 |
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
- White House adviser defends auto bailout, new aid to GMAC
The Detroit News, October 29
A top White House economic adviser today defended the government's $80 billion bailout of the auto industry and its plans to inject a third round of government capital into GMAC.
- GM idles Delta Township plant, cuts Warren plant shift
The Detroit News, October 29
A parts shortage caused by a strike at an Indian supplier is forcing General Motors Co. to temporarily idle a Lansing-area factory and cut a shift at a Warren transmission plant.
- Launch of GM's Cruze delayed 3 months
The Detroit News, October 29
General Motors Co. said it has delayed the launch of its Chevrolet Cruze small car about three months until the third quarter of 2010 to ensure a flawless launch.
- Senate committee calls Delphi's salaried pensions 'devastating'
The Detroit News, October 29
A Senate committee criticized the disparate treatment of the pensions of Delphi Automotive LLP's hourly and salaried retirees and demanded more information on how the decisions were made by the Obama administration.
- GMAC in talks for 3rd loan from bailout fund
Detroit Free Press, October 29
As talks continued over an additional loan of up to $5.6 billion to GMAC Financial Services Inc., the Obama administration's involvement in the turnarounds at General Motors Co. and Chrysler Group LLC deepened and raised questions about how much more taxpayer aid will be needed to stabilize the automakers' retail businesses.
- Politicians Butt In at Bailed-Out GM
The Wall Street Journal, October 30
Montana Rep. Denny Rehberg was no fan of the $58 billion federal rescue of General Motors Co., saying he worried taxpayer money would be wasted and the restructuring process would be vulnerable to "political pressure." Now the lawmaker says it's his "patriotic duty" to wade into GM's affairs.
- Ford lauded for 'world-class' reliability
The Detroit News, October 28
Ford Motor Co. is the most reliable domestic automaker, and continued quality improvements have brought its vehicles almost bumper to bumper with its Japanese competitors, Consumer Reports magazine said Tuesday.
- GM CEO calls executive pay cuts 'tough'
The Detroit News, October 28
General Motors Co. president and CEO Fritz Henderson said Wednesday the decision by the Treasury Department's special master to cut his salary by 25 percent and other GM executives was "tough" but "fair."
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and "implausible."
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