DECEMBER 24, 2008



Automotive News at a Glance



Colorado Minimum Wage: Annual Increase Effective January 1, 2009

Guest Column: Out of the Frying Pan, Into the Fire

Guest Column: The Harsh Impact on Dealers of a Detroit Meltdown



Employment Law Seminar: FMLA and ADA Acts - New Federal Regulations!!

Red Flags Rule Compliance Seminar

Tough Times, Tougher Dealers Webinar

Upcoming Events

Annual Colorado Dealers Legal Counsel Lunch and Issues Briefing

NADA Convention and Exposition

Denver International Auto Show

CADA Annual Member Golf Event


CADA in Washington D.C

Tim Jackson Speaks at the Lakewood Rotary Club

NADA 2009 Convention and Exposition

Share Your Accomplishments


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Listed here are several articles pertaining to the
auto industry in general that appeared recently in newspapers and other media outlets across the nation.

  • Chrysler closing all 30 plants for one month
    9 News, December 17
  • Auto experts and local dealership: plant closings needed
    9 News, December 17
  • Hawaii Chevrolet dealer crushes auto competition
    Denver Post, December 20
    A Hilo Chevrolet dealer who tried to crush his Asian auto competition found the stunt a little harder to pull off than expected.
  • Consumer confidence is key for Big 3
    The Detroit News, December 22
    Automakers plan to slash costs while hoping Obama's stimulus plan spurs economy, sales.
  • A sigh of relief from car dealers
    Rocky Mountain News, December 22
    Colorado car dealers expressed relief after the Bush administration announced a $17.4 billion rescue package for the troubled automakers, but the news out of Washington eases only part of their concerns.
  • A Real Auto Bailout: Escape Your Car
    The Wall Street Journal, December 22
    Whether you drive a hybrid or an SUV, your car is a cash-guzzler. Families trying to save real money should consider going without.
  • Auto Bailout Caps Flawed Relationship
    The Wall Street Journal, December 22
    The news of the once-mighty Big Three auto makers getting a financial lifeline from the federal government is a fitting climax to the long and rocky relationship between Detroit and Washington.
  • Wagoner: GM can meet loan conditions
    The Detroit News, December 22
    A relieved Rick Wagoner, CEO of General Motors Corp., said he is pleased with the amount and the terms of the federal loan announced Friday.
  • Banks unable to say how they're spending bailout
    Detroit Free Press, December 22
    It’s something any bank would demand to know before handing out a loan: Where’s the money going? But after receiving billions in aid from U.S. taxpayers, the nation’s largest banks say they can’t track exactly how they’re spending the money or they simply refuse to discuss it.
  • Americans support latest auto loans, but reject further aid
    Detroit Free Press, December 22
    When automakers first came to Congress, Americans overwhelmingly opposed making loans to General Motors Corp. and Chrysler LLC to help them through their cash crisis. However, a new poll shows that by the time President George W. Bush approved $13.4 billion in automaker loans on Friday, the nation had changed its collective mind.
  • Oil rises slightly on U.S. auto bailout, rate cut
    The Detroit News, December 22
    Oil prices rose slightly Monday in Asia as investors looked for signs that U.S. interest rate cuts and a government bailout of two key automakers could help cushion what may be the worst recession in decades.
  • Ohio workers face final days at GM plant
    The Detroit News, December 21
    General Motors Corp.'s financial woes have GM workers around the country worrying about what life without GM might be like.
  • UAW to ask Obama to remove 'unfair' labor rules
    Detroit Free Press, December 19
    The UAW today said it is pleased that the Bush administration approved bridge loans to prop up General Motors Corp. and Chrysler during the economic downturn but is concerned that the restructuring conditions outlined in the terms of the loan unfairly single out hourly workers, and said it will work with the Obama administration to remove conditions it views as unfair.
  • The breakdown: Who will get what when?
    Detroit Free Press, December 19
    This is the schedule as planned to give bridge loans to General Motors Corp. and Chrysler LLC.
  • Other details: How long are the loans for?
    Detroit Free Press, December 19
    Some details of the auto rescue plan.
  • Ford details fuel-efficient vehicle plans
    Detroit Free Press, December 19
    Ford Motor Co. expressed relief this morning following President George W. Bush’s announcement that the federal government will provide bridge loans to Ford’s competitors, General Motors Corp. and Chrysler LLC.
  • Fact sheet: See the White House's terms
    Detroit Free Press, December 19
    The following is a statement released by the White House on the terms required in the bridge loans provided today to General Motors and Chrysler.
  • U.S. Throws Lifeline to Detroit
    The Wall Street Journal, December 20
    The Bush administration said it would lend $17.4 billion to General Motors Corp. and Chrysler LLC, buying them a few weeks of financial relief but leaving the biggest decisions about the industry's future to President-elect Barack Obama.
  • Auto Rescue May Be a Bridge to Nowhere
    The Wall Street Journal, December 20
    Sometimes, hard choices have to be forced. That is a beauty of bankruptcy court, where a judge can require investors, creditors, employees and management to reach difficult compromises.
  • Auto Bailout: Money Now, Cuts Later
    Business Week, December 19
    Bush announces a $17.4 billion financing package to keep GM, Chrysler alive to March. But the toughest conditions are still to be hashed out
  • Ford Will Likely Benefit From Bailout
    The Wall Street Journal, December 19
    As the lone Big Three auto maker passing on a federal bailout, Ford Motor Co. won't have to undergo an intrusive government review of its books and its business plans to become a viable company in order to qualify for --and keep -- the low-interest loans authorized by the Bush Administration Friday.
  • Dow Slips on Week; Bailout Lifts GM 23%
    The Wall Street Journal, December 20
    Many banking and commodity stocks, including Citigroup and Potash of Saskatchewan, fell Friday as initial enthusiasm for the government's bailout of car makers gave way to betting against an economic recovery.
  • Auto Rescue Won't Jump Start Sales
    The Wall Street Journal, December 19
    The Bush administration's $17.4 billion rescue package delivered some holiday cheer for Detroit, but car dealers said it's only the first step to resuscitating vehicle sales that have slumped in the face of tight credit and sinking consumer confidence.
  • Car Makers Face Wrenching Change
    The Wall Street Journal, December 19
    General Motors Corp. and Chrysler LLC convinced the Bush administration to give them enough cash to survive into next year, but the companies now face months of painful restructuring that will include more job cuts and pressure to prove they can stay alive on their own.
  • Credit Crisis Catches Up With Germany
    The Wall Street Journal, December 19
    Germany has been pretty smug about avoiding the addiction to cheap credit that has done in the U.S. and U.K. economies. But getting hooked to the foreign demand for industrial goods and luxury cars which were a direct consequence of the U.S. and U.K. habit is proving no smarter. The German economy is about to pay for its own drug dependency.
  • Jobless Claims Fall but Remain High
    The Wall Street Journal, December 19
    The number of U.S. workers filing new claims for jobless benefits declined last week but remained at high levels consistent with steep employment declines, as companies shed workers amid falling demand and the credit crunch.
  • Auto industry’s loan needs result of perfect storm
    The Villager, December 4
    As General Motors goes, so goes America. 

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The Colorado minimum wage will increase to $7.28 per hour effective January 1, 2009. As a result of changes made to the Colorado Constitution in 2006 (Amendment 42), the state minimum wage is now adjusted annually for inflation, based on a Colorado Consumer Price Index. The inflation adjustment is based on the Consumer Price Index for All Urban Consumers (CPI-U), All Items, for the Denver-Boulder-Greely combined metropolitan statistical area as published by the United States Bureau of Labor Statistics (BLS). The CPI-U increased 3.7 percent from the first half of 2007 to the first half of 2008, which results in the new minimum wage of $7.28 per hour.  

Visit the Colorado Department of Labor, Minimum Wage pages for links to revised posters and Minimum Wage Order Number 25.

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By John Donovan, Fisher & Phillips, LLP

As the economy shows no immediate sign of recovery, dealers continue to look for ways to reduce their expenses. One area that they usually focus on is labor costs. Most dealers have already trimmed their workforces by not replacing employees who have left, or by out-and-out layoffs or reductions-in-force. Some dealers have also revised or restructured employee pay plans to reflect the current economy.

But you should be aware that some of these “cost-saving” steps can have unintended consequences. In fact, the changes you think you are making to save money can wind up costing far more than anything you might have saved if an employee complains to the Department of Labor or to an attorney. Here are three areas where dealers can unwittingly find themselves jumping out of the frying pan and into the fire.

CLICK HERE to read the entire article.

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(The What-ifs of a Franchisor Bankruptcy or Government Bailout. A Call for GM, Chrysler and Ford to Take Bold, Forward-Looking, Imperative Action)
By Eric L. Chase, Esq.

This article, written earlier this month contains commentary on the crisis facing the auto industry—and also provides some insights on bankruptcy in general as well as some advice regarding what dealers should and should not do, given the still-existing possibility of a bankruptcy.   CLICK HERE to review the entire article; or SELECT the links below to go directly to that section of the article.

Eric Chase’s article was published in the December, 2008 issue of The Defender, the bulletin of the National Association of Dealer Counsels (NADC).   We continue to encourage all dealer defense attorneys to join this organization; the information provided in bulletins and publications, the list-serve, and conferences is invaluable.

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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.


Presented by Todd Fredrickson, top Denver employment attorney

Tuesday, Jaunary 6, 2009 (Denver)
Wednesday, January 7, 2009 (Colorado Springs)

Next month, the federal government will saddle employers with new laws, regulations and obligations under the Americans with Disabilities Act (ADA) and Family Medical Leave Act (FMLA).  Workplace law experts expect these new laws will generate an increase in lawsuits against employers—especially in the current economic downturn as downsizing is occurring.   

  • The U.S. Dept. of Labor announced new FMLA regulations last month, the first significant changes to the regulations since 1995.  Changes are effective January 16, 2009 – key changes include:
    • Implements two new forms of military family leave created earlier this year
    • Expands employer's notice requirements to include a general notice about the FMLA; an eligibility notice; a rights and responsibilities notice; and a designation notice.
    • Defines serious health condition
    • Changes to medical certification process, fitness for duty evaluations, substitution of paid leave
  • The ADA Amendments Act will require almost all human resource professionals, managers, and business owners to adopt new policies and procedures in dealing with accommodation requests, as well as greatly impact employment litigation claims.  
    • Overview of what has changed and how to comply; what is “disabled”
    • What this means to employers and who will be affected
    • The risks and penalties of non-compliance; effective date is  Jan. 1, 2009
A CLICK HERE for more information
on this
training session.

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

Friday, Jaunary 9, 2009

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.

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Tuesday, Jaunary 13, 2009

Presented by attorney Michael Charapp, of Charapp & Weiss, LLP, and CPA Bradley Nicklin, of Beers + Cutler,

This webinar focuses on the issues facing almost every dealer today, such as:

  • Cash Management
  • Expense Control
  • Franchise Rights

Participants will also learn how to deal with bankruptcy—both at the manufacturer and dealership levels—as well as franchise terminations, brand terminations, and the legal ramifications of reducing a workforce.

The registration fee for the virtual seminar is only $50 per computer connection.

"Tough Times, Tougher Dealers" will also be a workshop at the 2009 NADA Convention & Exposition in New Orleans. The workshop will be held twice—11 a.m. on Saturday, Jan. 24, and 8:30 a.m. on Monday, Jan. 26. In addition, the convention will offer more than 40 other workshops, many of which are designed to tackle today’s tough economic issues head-on, such as maintaining dealer profitability, improving cash flow, surviving the credit crunch and driving customers back to dealerships. For more information, visit

CLICK HERE to register online!

Event Description

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

Tuesday, January 6   Denver, 7:30 – 10am  Breakfast Included

Wednesday, Jan 7 – Colorado Springs, Noon-2:30pm Lunch

William D. Barrow Building 290 East Speer Blvd, Denver, 80203 Phone: 303.831.1722

Antlers Hilton Hotel
4 South Cascade Avenue   Colorado Springs, 80903 Phone: 719l955.5600

For more information Click Here

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


By Paul Metrey, NADA Regulatory Affairs

Friday, January 9, 2009,


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


Tough Times, Tougher Dealers: Saving Your Dealership’s Assets



Presented by attorney Michael Charapp, of Charapp & Weiss, LLP, and CPA Bradley Nicklin, of Beers + Cutlers

Tuesday, January 13, 2009,

1:00 - 3:00 pm


The registration fee for the virtual seminar is only $50 per computer connection.

For more information or to register, visit!

Event Description

Annual Colorado Dealers Legal Counsel Lunch and Issues Briefing

This is for attorneys working with dealers and dealer principals.

Friday, January 9, 2009



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

Baur’s Restaurant
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


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


CADA goes to Washington to support legislation to aid the automotive industry!

(Above) Jeff Carlson, Melissa Kuipers, John Schenden, John Medved

(Above) Jeff Carlson, John Schenden, John Medved, Melissa Kuipers, Congressman John Salazar.  This photo was taken in the Congressman's office in Washington D.C.

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Tim Jackson (above), President of CADA, speaks to a group at the Lakewood Rotary Club on December 11. Tim was invited to speak by Dean Dowson of Empire Lakewood Nissan, a member of the Lakewood Rotary Club as well as a CADA member. During his 30 minute presentation to members, Tim spoke about general trends in the automotive industry, the Clear the Air Foundation, and answered questions from club members.

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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:

CLICK HERE to register!

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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 Also include your contact information for further follow-up.

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

To remove yourself from this list, click on this link.

Colorado Automobile Dealers Association
290 East Speer Boulevard Denver, CO 80203
Telephone: 303.831.1722 | Facsimile: 303.831.4205