DECEMBER 10, 2008


IN THIS ISSUE

DEALER NEWS & INFORMATION

Automotive News at a Glance

 

REGULATORY & LEGAL UPDATES

Motor Vehicle Dealer Board Updates

Reminder: 10-Day Notice Requirement if Financing Cannot be Obtained

 

UPCOMING SEMINARS

Fixed-Ops Growth Strategies: ONLY ONE SESSION LEFT!

Red Flags Rule Compliance Seminar


CALENDAR OF EVENTS
Upcoming Events

FMLA New Rules Training Session

Annual Colorado Dealers Legal Counsel Lunch and Issues Briefing

NADA Convention and Exposition


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

Madonna Ruth (Merrifield) Jackson Passes Away

NADA 2009 Convention and Exposition

Share Your Accomplishments

 

ALLIED MEMBERS

CADA Welcomes Allied Member Terry and Company, PC


ARCHIVES

CLICK HERE for Open Road
e-newsletter archives.

CLICK HERE for an Index of Regulatory
& Legal Articles
from the Open
Road e-newsletter.

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CLICK HERE for Colorado Auto
Outlook
archives.

CLICK HERE for Denver Auto
Outlook
archives.


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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
.

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Allied Members
.

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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.




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Endorsed Vendors/Programs
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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.

  • House to vote on $14 billion bailout bill later today
    The Detroit News, December 10
    The House prepared to vote as early as this afternoon on a $15 billion bailout to rescue General Motors Corp. and Chrysler LLC from imminent collapse.
  • Experts support Big 3 loans
    The Detroit News, December 6
    The government must send a strong signal that it backs the American auto industry and stop quibbling over which agency or department should provide urgently-needed loans, expert economic witnesses told Congress on Friday.
  • The Big Three's real union problem
    Los Angeles Times, December 6
    Even if a deal for a $15-billion to $17-billion preliminary bailout comes together this weekend to keep carmakers afloat into 2009, they will continue to be dogged by their most significant competitive disadvantage: a high-priced, unionized workforce.
  • On Capitol Hill, Big 3 put on hard sell
    The Detroit News, December 4
    Executives from Detroit's Big Three automakers made a fast and furious pitch for $34 billion in emergency aid Wednesday, blanketing Capitol Hill to sell skeptical lawmakers on the restructuring plans they sent to Congress this week to justify federal help.
  • UAW to suspend maligned jobs bank
    The Detroit News, December 4
    Local leaders of the United Auto Workers agreed to suspend the program where laid-off workers can get up to 95 percent of their wages and benefits, a concept that came to symbolize the stereotype of overpaid, underworked factory workers.
  • Hundreds gather as UAW addresses domestic auto crisis
    The Detroit News, December 3
    Hundreds of United Auto Workers locals have converged at the Marriott Hotel in the Renaissance Center this morning, and many are prepared to be asked by top UAW leaders to reopen national labor agreements that will allow for a vast overhaul of the way autoworkers are paid, the health and retiree benefits they receive, and determine how many will hold on to their jobs.
  • Auto sales plummet to 26-year low
    The Detroit News, December 3
    U.S. auto sales fell 36.7 percent in November, their lowest level since October 1982.
  • UAW will alter jobs bank, might reopen contracts
    Detroit Free Press, December 3
    UAW President Ron Gettelfinger today said the union will suspend the jobs bank and delay the 2010 payment into a retiree health-care trust.
  • Detroit's New Bill: $34 Billion
    Business Week, December 3
    The three U.S. car companies delivered their overhaul plans to Congress on Dec. 2, and asked for a total of $34 billion to get them through the financial crisis.
  • The Downturn Hits Dubai
    Business Week, December 3
    With the Persian Gulf economy shriveling from the oil price drop, Dubai's push to become a global financial hub is in jeopardy.
  • Auto Makers Report Continued Sharp U.S. Sales Declines
    The Wall Street Journal, December 3
    U.S. auto makers continued to post sharp sales declines in November as General Motors Corp. reported a 41% plunge and lowered its fourth-quarter production forecast, underscoring why the struggling auto maker and its Detroit rivals are seeking federal assistance to help them through the current environment.
  • Ford tells Congress it may be able to go it alone
    9News, December 3
    Ford Motor Co., in far better shape than GM and Chrysler LLC, asked for a $9 billion "standby line of credit" to stabilize its business but said it didn't expect to tap the funds unless one of Detroit's other Big Three went bust.
  • Luxury Cars Sit As Both Money, Mood Slip Away
    The Wall Street Journal, November 28
    In past economic slumps, luxury-car makers have withstood the downturn better than their mass-market counterparts. Not so this year.
  • Ford tells Congress it may be able to go it alone
    9News, December 3
    Ford Motor Co., in far better shape than GM and Chrysler LLC, asked for a $9 billion "standby line of credit" to stabilize its business but said it didn't expect to tap the funds unless one of Detroit's other Big Three went bust.

    * * * * * * * *



MOTOR VEHICLE DEALER BOARD UPDATES

Off-Site Premise Permits Likely to be Subject of Rulemaking

In recent Motor Vehicle Dealer Board meetings (MVDB), many issues and problems related to off-site premise sales have come to light.  Members of the board recently proposed the idea of establishing an immediate moratorium on off-site sales.  Upon review with the Attorney General’s office, the board would be outside of its powers to issue such an immediate moratorium.  However, dealers can expect that the board will likely undertake rulemaking to make some significant changes to off-site premise sales.  Proposals that have been mentioned in meetings (all of which would require further discussion and study) include:

  • Increasing the fees for off-site premise sales significantly
  • Limiting the number of off-site sales allowed per dealership annually
  • Requiring AID staff to be in attendance to monitor sales activity
  • Disallowing out-of-state salespersons, who are employees of third-party companies, from obtaining licenses in the state only temporarily for the purpose of working at an off-site sale

Dealerships with opinions or input on the off-site premise sales should contact CADA to provide comment on proposed or needed reforms.   Note that any rulemaking process would take at least six months, and part of that process is an opportunity for public comment.

* * * * * * *

REMINDER: 10-DAY NOTICE REQUIREMENT IF FINANCING CANNOT BE OBTAINED

Given today’s extremely tight credit markets, more deals are falling apart due to financing problems.  Dealerships are reminded to make clear to consumers that even though they have signed the deal paperwork, it is still contingent on a lender financing the deal.  CADA has received a few consumer calls lately on this topic—despite disclosures in typical dealer contracts, and in the standard disclosures mandated by state law.  Also in light of the current credit crunch, it is extremely important to ensure adherence to the following timing requirement in the event financing does fall through (from the August 15, 2007 issue of Open Road):

A reminder to all dealerships that an affirmative duty exists to notify consumers within 10 calendar days if financing cannot be obtained. Colorado Revised Statutes (C.R.S.) provide that this notice be required within a “reasonable time period” and regulations promulgated by the Motor Vehicle Dealer Board (M.V.D.B.) define that reasonable timeframe to be 10 days. It is also important to note this requirement is calendar days; not business days.

C.R.S. 12-6-118(3)(v) Failure to give notice to a prospective buyer of the acceptance or rejection of a motor vehicle purchase order agreement within a reasonable time period, as determined by the Board, when the licensee is working with the prospective buyer on a finance sale or a consignment sale (effective March 9, 2004).

REGULATION 12-6-118(3)(v). A dealer shall give notice of rejection of financing to the prospective buyer within ten (10) calendar days from the date of the purchase order or agreement on a finance or consignment sale (effective Dec.1, 2004).

CLICK BELOW to view the full article:

August 15, 2007, REMINDER: 10-DAY NOTICE REQUIREMENT IF FINANCING CANNOT BE OBTAINED

* * * * * * *

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.


arrow up

FIXED-OPS GROWTH STRATEGIES NEXT WEEK!

Traditional thinking will not bring you new service customers

December 9-11, 2008; Six Sessions Across Colorado!
ONLY ONE SESSION LEFT!

A thought-provoking, information-packed, business-changing workshop by a highly renowned consultant: Don Tipton has presented for many
state dealer associations and 20-Groups.

IT IS TIME TO CREATE A NEW IMAGE AND FIND INNOVATIVE WAYS TO:

  • Provide service that will drive sales
  • Create an environment that attracts customers…instead of marketing to
    drive customers
  • Your service department may be perceived to be “High-Priced” and “Inconvenient”,
    especially by customers with older, high mileage, or out of warranty vehicles.
  • Traditional pricing and customer handling procedures tend to reinforce this
    perception.
  • Your old performance indicators and benchmarks may be getting in the way

Presented by Don Tipton, President-DTC Retail Consulting, www.dtcretailconsulting.com

Don Tipton, still an active dealership consulltany today, offers "In the Trenches" automotive experience combined with knowledge of proven management techniques. Don began in the automotive business at the age of 8, working for his father, a parts and service manager. Don has held management positions a both small single point stores and large multi-dealer operations at the corporate level. He spent a number of years with what was the largest automotive fixed operations consulting firm in the country, conducting training seminars and in-dealership consulting. He is passionate about this business and the success of dealers.

CLICK HERE to find your location and register online!

A CLICK HERE for more information
on this
training session.

* * * * * * * *

RED FLAGS RULE COMPLIANCE SEMINAR

PLUS: Privacy/Safeguard Recap and Overview of Frequently Overlooked Federal Compliance Obligations

Friday, Jaunary 9, 2008

By Paul Metrey, NADA’s Director of Regulatory Affairs
Make sure you completely understand the new Red Flags compliance obligations:

  • Create and implement a written ID Theft Protection Program with procedures designed to detect and respond to “red flags” indicating potential identity theft.
  • Periodically review and update the written program to reflect changing risks.
  • Train responsible staff members and oversee service providers (i.e., third party vendors).
  • Senior management or owner(s) must approve the program and review/monitor annual reports.

***Opportunity to ask questions, and delve into specific aspects of implementation***

Paul D. Metrey, Esq. is the Director of Regulatory Affairs in the Legal and Regulatory Group of the National Automobile Dealers Association (NADA). He represents dealer interests before, and educates dealers on, regulations promulgated by several federal agencies including the Federal Reserve Board, FTC, FCC, Department of the Treasury, and IRS. He reports on regulatory developments and has authored several NADA publications and frequently speaks to dealers, dealership compliance professionals, and other industry groups on regulatory topics, including recent developments in privacy, ID theft, telemarketing, consumer financing, and tax.

CLICK HERE to register online!

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

Fixed-Ops Growth Strategies!

Grand Junction

Presented by Don Tipton

Thursday, Dec. 11th

12:30 pm - 3:00 pm

Doubletree Hotel, 743 Horizon Drive, Grand Junction, CO  81506
Phone: 970.241.8888

For more information Click Here

REGISTER ONLINE!

Red Flags Rule Compliance Seminar
Plus: Privacy/Safeguards Recap and Overview of Frequently Overlooked Federal Compliance Obligations

Denver

By Paul Metrey, NADA Regulatory Affairs

Friday, January 9, 2009,

7:30am

Breakfast meeting

William D. Barrow Building (CADA/MDADA Headquarters)
290 E. Speer Blvd
(SW Corner of Grant/Speer)
Phone: 303.831.1722

For more information Click Here

REGISTER ONLINE!



Event Description
Date/Time
Location

Family Medical Leave Act & American with Disabilities Act (ADA) Regulatory Updates:

FMLA—new rules are effective January 16, 2009

By Todd Fredrickson, Fisher & Phillips LLP

www.laborlawyers.com

January 6 and 7th, 2009

11:30-1:30

Lunch

Dates / times to be announced!

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

CLICK HERE to register online!
CLICK HERE for more information!

NADA Convention & Exposition

Jan. 24-27, 2009

New Orleans Morial Convention Center
New Orleans, LA

CLICK HERE for more information from the official website.

Denver International Auto Show

Wednesday, April 1, 2009

thru  

Sunday, April 5, 2009

Colorado Convention Center

700 14th Street Denver 80202

 

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

www.glenmoorcc.org


MADONNA RUTH (MERRIFIELD) JACKSON PASSES AWAY

Madonna Ruth (Merrifield) Jackson, born December 10, 1930 passed away early Sunday, December 7, three days before her 78th birthday.

Mom suffered polio while in high school and spent all but one week out of her Junior year in the hospital.   When she recovered she had a fairly normal life though she walked most of her life with the aid of a cane or walker.  She was ambitious, energetic, steadfast and very resolute in everything she did.

She worked for the Caldwell County Department of Education early in her adult life.  In her spare time she learned the trade of being a professional cake decorator, baking and decorating birthday, anniversary, wedding, and other cakes for many special occasions.      

She was an activist, reliable and loyal member of her church and volunteered thousands of hours to support church programs and services.

She was the middle of three children; An older sister, Marjorie, resides in Lexington, Massachusetts.  A younger brother, Bobby, was killed in a head-on car collision in 1958, during his Junior year of high school.

She was preceded in death by my dad, her husband of 48 years, Jerrold, who passed away in 2001.

Growing up, our house was pretty much like Grand Central Station, with someone going or coming at all hours.  Mon had a countless number of friends and the services to memorialize her will see hundreds of who will remember “Madonna’ for her boundless optimism, energy and her propensity to always find a way to help others, even when she was often the one with the most need.

~Tim Jackson, President CADA

Funeral services were held today, Wednesday, December 10th (her
birthday) at 1:30pm at the Family Life Center, Hamilton UMC.

The Family Life Center
Hamilton United Methodist Church
201 W. Samuel Street
Hamilton, MO  64644

* * * * * * * *

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!

* * * * * * * *

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.


ALLIED MEMBERS

CADA WELCOMES ALLIED MEMBER TERRY AND COMPANY, PC

CADA would like to welcome its newest Allied Member Terry and Company, PC. Terry and Company, PC offers financial and operational analyses, cash flow improvement, crisis management, interim management, dealership valuations buy/sell agreements and operation transition.  Visit their website today for more information www.terryandcompany.com


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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