May 16, 2007
Volume #1, Issue #20


     - Cerberus Buys Chrysler Group
       for $7.45 Billion

     - New and Used Car Sales
       Up in Greeley

     - Capital Newcomers Showed No
       Hesitation In Getting in the Game

     - Avery: Grass is Always Greener
     - May Issue of Bulletin Available
     - Colorado Auto Outlook

     - Amendment 41 Under Heavy the Courts

Motor Vehicle Dealer
      Board Update

    - NADA Issues Guidance on
      Adverse Action Notices 

    - Lifeline to Profits
    - Controlling Workers' Compensation
    - Creating a Super Controller

Upcoming Events


CADA Speakers Available for
      Local Group Events and to
      Educate the Public 
    - Let Us Know About YOUR


    Click here for Open Road archives.

If you have questions or suggestions regarding
this e-newsletter, please
contact Tim Jackson at 

Click here or scroll to the bottom
of this page if you want to be
added or removed from our list.

Visit us at

   Need Acrobat Reader to view linked documents?  Click here for a FREE download from Adobe.

To save any of the files to your hard drive, right-click on them, select "Save Target As..." and save accordingly.



Learn How to Create a Lifeline to Profits…Gain the competitive edge you need at this dealer participation workshop!


Bernhard won't have role in Chrysler management,

Automotive News, May 14, 2007

MUNICH -- Private equity group Cerberus Capital Management will take control of the Chrysler group in a transaction valued at $7.45 billion (5.5 billion euros).

DaimlerChrysler AG announced the Cerberus deal this morning. An affiliate of Cerberus will acquire 80.1 percent of Chrysler, while DaimlerChrysler will retain 19.9 percent.

Most of the $7.45 billion outlay from Cerberus will go directly to the future new company, Chrysler Holding LLC. Chrysler's automotive business will get $5 billion, while the financial services business gets $1.05 billion. DaimlerChrysler will receive the balance of $1.35 billion. In addition, DaimlerChrysler will loan $400 million to the Chrysler automotive operation.

DaimlerChrysler will transfer the unit free of debt. Because of the cost of Chrysler's restructuring plan, the transaction will result in a cash outflow of $1.6 billion for DaimlerChrysler. DaimlerChrysler's net cash outflow resulting from the transaction will be $650 million.


CLICK HERE to read the entire article from Automotive News. For more press coverage of this event, click on the following links:


* * * * * * *


The Tribune, May 13, 2007


GREELEY--Despite continued concerns about a sluggish economy, area car dealers have some cause to celebrate.

Based on the city of Greeley's monthly sales tax report, sales of new and used cars in Greeley are up almost 12.5 percent through February, and sales of vehicles bought outside of Greeley but registered here are up almost 13 percent.


CLICK HERE to read the entire article.

* * * * * * *


Rocky Mountain News, May 14, 2007


The largest freshman class since statehood set off alarms that the 2007 session might be a little rocky, but instead it finished a record five days early.


Capitol veterans described the new lawmakers as bright and bold.


CLICK HERE to read the entire article.


* * * * * * *


The Daily Camera, May 14, 2007


BOULDER -- Clean energy advocates recently found themselves happily amazed at a recent Public Utilities Commission hearing, where Xcel Energy found itself arguing against including additional coal fire plants in its long-term plan to meet Colorado's electricity needs.


These developments over the past year rightly stoke optimism about clean energy and the Boulder area's presumed head-start on developing such a green industry.


CLICK HERE to read the entire article.


* * * * * * *


Several times a year, CADA distributes copied of the Bulletin newsletter to our members. Each issue contains industry information, dates of upcoming seminars and events,
and timely articles for auto dealers. The May issue was mailed last week, or you can
CLICK HERE to download a copy.


* * * * * * *


The Colorado Auto Outlook is filled with valuable, objective information on the state's new retail automotive market that can't be found anywhere else. According to the May 2007 issue, new retail car and light truck registrations are predicted to decline 0.5 percent in 2007, compared to the same periods in 2006. The market is expected to remain relatively flat through most of 2007--however, light trucks are expected to grab a larger share of the market this year with registrations out-performing car sales. Colorado's market is anticipated to begin improving in 2008. This newsletter will be mailed to CADA members today, or you can CLICK HERE to download an advanced copy.



CADA forwards news articles and opinion columns of interest through Open Road
to inform members of current events. These in no way reflect the views, opinions,
and/or positions of CADA or its member dealers. They are sent for informational
and educational purposes only.



The organized litigation effort by the First Amendment Council to oppose Amendment 41 began hearings this week in a Denver county court. Judge Christina Habas presided over the trial and was familiar with the nuances of Amendment 41, as she was the same judge who previously presided over the Boettcher Foundation Scholarship fund case.


Throughout the three-day hearing, the First Amendment Council utilized a four-pronged attack to expose the glaring flaws of Amendment 41, using former Colorado Supreme Court Justice Jean Dubowski, as well as Doug Freidnash, Susan Fisher, and John Tanner of Fairfield and Woods. Each specialized in precise portions of the hearing relating to key constitutional violations.


The First Amendment Council concentrated their attack on constitutional grounds, citing violations of pure free speech, freedom of association, and of the single-subject rule regarding the ballot initiatives. The single-subject rule requires an amendment to be narrowly focused and contain a singular topic to be specifically addressed by the amendment. Amendment 41 implemented a gift ban, created an ethics commission and developed a revolving door provision that prohibits legislators from lobbying for two years following their exit from office.


A decision by Judge Christina Habas is expected by May 18 as to whether to grant an injunction to stay Amendment 41 thereby halting its enforcement and moving the issue up to the Colorado Supreme Court to determine its constitutional impact and its ultimate fate.


  CLICK HERE to read this article by CAR lobbyist Jeremy Cottrell. 


The Motor Vehicle Dealer Board (MVDB) held its regular, monthly meeting on Thursday, May 10. There were a number of items covered in the New Business/Discussions topic typically included at the end of each meeting for general board discussion. Highlights are included below:

§          International Truck & Engine: Reconsideration of manufacturer's application
for a change of license classpan
. In light of the Court of Appeals ruling and that
“used motor vehicle dealers” are not included in the statutory prohibition against
manufacture ownership of a retail auto dealership, the board issued a used dealer license to International Truck.

CLICK HERE to review a March 14 Open Road article that also includes a copy of
the court’s ruling in that case

§          Motion to drop rulemaking process due to various new laws enacted in the
Sunset Bill (SB221)
The board had previously voted to undertake rulemaking for additional clarification on two issues that were changed in the sunset bill:

(a) The application of a few statutory provisions relating to: the definition of exclusivityand what types of businesses are included in the termsprincipal place of businessand “business incidental thereto." Auto Industry Division (AID) had begun denying dealer licenses to tow operators, crushers, and other businesses that are less directly in the auto retail business. However, this term will be defined in statute as noted below. Since this term is now defined more fully, the board will simply address any further clarifications in rulemaking for the sunset bill overall:


(b) Whether or not a Wholesaler can consign motor vehicles to dealers. The primary dispute was on the potential for abuse of consignments by manufacturer-owned wholesalers that would circumvent the franchise laws if applied broadly and included new cars. However, the primary driver of this issue was the International Truck case, so in light of the recent court ruling that now allows a manufacturer-owned wholesaler to consign used cars, but not new ones, the main controversy has been put to rest.

§          New rulemaking on whether a deferred judgment is considered a conviction. 
This remains on-hold, pending a draft from the Attorney General’s Office  

§         The following changes included in the sunset bill all require the board to promulgate rules.  Rulemaking is a formalized process that includes public notice, opportunity for the public and industry to comment, and review by the attorney general’s office before formal adoption. Rulemaking will occur on:

  • Consumer notice requirement:  The board is required to undertake rulemaking by Jan. 1, 2008. The disclosure’s purpose is to inform consumers about their rights in general and of the existence of the MVDB and its role.    

  • Revised Investigative and Compliance standards: This is a new requirement from the sunset bill; the board is required to undertaking rulemaking by Jan. 1, 2008. The board will discuss this topic at its regular July meeting (July 12, the second Thursday of the month). CADA and anyone interested can submit recommendations for revisions of these standards.

  CLICK HERE to review the last version of these standards
from November 2002.

  • Revised Salesperson licensing exam:  The board is required to undertaking rulemaking by Jan. 1, 2008. AID had developed a new-and-improved test over a year ago that was never released. A decision was made earlier this year, to put that on-hold, pending the sunset review process. The exam was at the risk of being eliminated, but instead the sunset bill strengthened it. The new statute requires the board to adopt a “psychometrically valid and reliable” exam that “measures the minimum level of competence necessary to practice.”  This was terminology advocated by DORA; the board must now figure out what it means in practice.  Industry will be given copies of the latest, revised exam to provide input on its improvement.  If you would like to see a copy and comment, or have ideas on what should be included in this exam, contact CADA staff.

  • Whether to increase financial fitness requirements in light of increased dealer bonds: The revised dealer bond amount is $50,000 (effective upon next renewal for existing dealers). The board will look further into what the typical financial fitness requirements by the bond companies will be (credit score, minimum net worth, etc.). The two should be somewhat in sync so those who will generally not qualify for a bond, will not waste time going through the application and licensing process.

§          Motion to pursue two legislative changes in the 2008 legislative session:

1.       Title delivery:  the board voted to put research and effort behind a legislative change to require for any lender who originates an auto loan in Colorado, that upon receipt of certified funds paying off such loan that the lender is required
to deliver title to whomever has made the payoff in ten business days. Other
states have enacted similar measures to address difficulties in obtaining titles
for trade-ins.

2.       Online temporary permits: The board voted to put research and effort behind
a legislative change to give dealers the tools needed to issue online, temporary
permits. CADA, working with Auto Industry Division, has held preliminary meetings and discussions with other states who have implemented similar measures.


CLICK HERE to access the Motor Vehicle Dealer Board section of the AID web site.  Agendas for upcoming meetings are posted here. These are public meetings--anyone can attend.


* * * * * * *


NADA will be sending to all members its latest publication
titled A Dealer Guide to Adverse Action Notices. The guide explains when dealers must issue an adverse action notice, what the notice must say, when dealers can rely on a finance source's notice, and many other important issues. It also contains a variety of scenarios to help dealers better understand their obligations in this complex and unsettled area of the law,
a one-page flow chart that generally explains when the notice must be issued, and a one-page simplified adverse action
notice template for dealers who engage in three-party financing. The guide should arrive at dealerships in the mail in June. 

CLICK HERE if you wish to receive the guide sooner by ordering a PDF version online. 




If you have additional questions on any legal or regulatory topics, please contact either Tammi McCoy or Tim Jackson:

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.



Wednesday to Friday, June 6-8, 2007

Denver (CADA Headquarters)


Is your dealership operating at peak performance? Are your current operations designed to capitalize on profit opportunities? In conjunction with the National Automobile Dealers Association (NADA), this Lifeline to Profits workshop is an outstanding opportunity to develop a strategy and action plan for maximizing your dealership’s profits.


NADA trainers will help you identify untapped profit opportunities in your dealership. You will take home a practical action plan specifically designed for you. This in-depth and intensive two and a half-day session will provide you the essential edge you need to more effectively compete in today’s competitive market.


In order to fully benefit from this exciting opportunity, it’s important to bring your numbers:

  • Financial statements

  • Repair orders

  • Parts stock order figures

  • Vehicle inventory and used vehicle appraisals


You’ll begin and end each day with a developmental session that refines a specific dealership action plan for you based on information covered in the workshop. You’ll discuss the most positive action, event or result your dealership has seen in the last six months.


In addition, you’ll be asked to provide trainers with information about a critical concern you’d like to identify as a key element in the improvement of your operation. Most important, be prepared to actively participate.


Specifically, the association’s Lifeline to Profits program “can help you meet any number of challenges, from having too much inventory to seeing our cash flow
trickle to a near standstill,”
said Dale Willey, Chairman of NADA.


We strongly encourage you and your key managers
to attend this valuable workshop.


 Space is limited so please enroll today!


DATE/TIME:   8 a.m. to 5:30 p.m., Wednesday, June 6, 2007 (breakfast, lunch & dinner)

                        8 a.m. to 5:30 p.m., Thursday, June 7, 2007 (breakfast & lunch)

                        8 to 11:30 a.m., Friday, June 8, 2007 (breakfast)


LOCATION:    William D. Barrow Building, CADA Offices, 290 East Speer Blvd., Denver


TRAINERS:     Brad Lawson, NADA Group 20 Team Leader

         Mark Rogers, NADA Dealership Management Consultant


  CLICK HERE for seminar flyer and to fax or mail your registration.


CLICK HERE to register online for this three-day seminar.

* * * * * * *



The key to lower workers’ compensation costs is an “effective” safety and loss prevention program. Workers’ Compensation is often your dealership’s second leading employment related expense! This May, CADA, Wells Fargo Insurance Services (formerly Acordia), and Pinnacol Assurance will present a safety seminar on Five Ways to Reduce Your Dealership Workers’ Compensation Costs.


Plan to attend this seminar and learn FIVE proven methods of reducing your cost. Members who earn the certification will be eligible for a discount on their premium but more importantly, it demonstrates your commitment to protecting the safety and welfare of your employees. Attendees will also learn about the following:

  • Develop an effective return to work program

  • Prevent slips, trips, and falls

  • Reduce strain and sprain injuries through ergonomics

  • Use accident investigations to prevent recurrences

This seminar will be presented by Dave Campbell, Wells Fargo Insurance Services
and Lonnie Garcia, safety consultant with Pinnacol Assurance. There is no charge
for participation in this safety seminar, as it is a required component of the CADA / Wells Fargo / Pinnacol workers’ compensation program.


  CLICK HERE to review the flyer for this event.    





Date / Time*


Five Ways to Reduce Your Dealership Workers' Compensation Costs

By Dave Campbell, Wells Fargo Insurance Services (formerly Acordia) and Lonnie Garcia, Pinnacol Assurance


Tuesday, May 22
10 a.m. to 1 p.m.

(lunch included)


Pinnacol Assurance Offices
(Hayden Pass Training Room)
7501 E. Lowry Blvd.
Denver, 80230

RSVP directly to Wells Fargo Insurance Services  at 719.785.8184.

Five Ways to Reduce Your Dealership Workers' Compensation Costs

By Dave Campbell, Wells Fargo Insurance Services (formerly Acordia) and Lonnie Garcia, Pinnacol Assurance

Grand Junction

Wednesday, May 23
10 a.m. to 1 p.m.

(lunch included)


Doubletree Hotel
743 Horizon Drive
Grand Junction, 81506

RSVP directly to Wells Fargo Insurance Services  at 719.785.8184.



* * * * * * *



Are you providing your dealer and managers with the reports they really need to make more money? Do you know what reports are crucial to monitoring your dealership and increasing profits?  In this dynamic half-day seminar, noted speaker, former super controller and consultant Sandi Jerome will give you the essential tools and information you need to answer these questions with a resounding yes!


Become a super controller and drive your dealership’s bottom line!


This is a must-attend event for general managers, office managers and CFOs who need to move from everyday “bean counting” methods to mastering super controller techniques that increase efficiencies, save time and drive profits.


In today’s competitive market, it’s critical that dealers have a “super controller” who’s focused on two things: maximizing profits and helping others streamline their processes. Don’t miss this opportunity to learn essential super controller secrets from Sandi Jerome, a sought-after speaker, former super controller, consultant and recognized expert in dealership internal controls.


Due to space constraints, this seminar

 is limited to the first 48 registrants.

Sign up today!






Thursday, July 26

8 to 11a.m.



William D. Barrow Building
(CADA/MDADA headquarters)
290 E. Speer, Denver,
SW Corner of Grant & Speer

CLICK HERE for seminar flyer and to fax or mail
        your registration.  

CLICK HERE to register online.



Friday, July 27

8 to 11a.m.



Doubletree Hotel, 743 Horizon Drive

CLICK HERE for seminar flyer and to fax or mail
        your registration.  

  CLICK HERE to register online.


upcoming events


Event Description



CADA Annual Golf Event

Monday, Aug.27

-Sponsor Welcome
11:30 a.m.

-Noon shotgun start

Valley Country Club

14601 Country Club Dr., Aurora


CLICK HERE for more details on Valley Country Club.

  CLICK HERE for a reminder flyer to save the date.

Regional Member Briefings


Fall 2007
Dates to be determined

Locations to be determined

MDADA Annual
Membership Meeting

Tuesday, Nov. 27

11 a.m. to 2 p.m.

Cherry Creek Country Club

(more details to follow soon)


CADA SPeakers AvailablE For Local Group Events
and TO EducatE the Public


CADA is ramping up to roll out information that can be used community-by-community and can provide local presentations at your community service groups, including:  Rotary Clubs, Kiwanis Clubs, Lions Clubs, Optimist Clubs, Sertoma, Exchange Clubs, local Chambers of Commerce and other local civic, social, business, professional and service organizations. Topics available:

  • Automotive Technology Offers Consumer Choice, Cost-savings and Alternative Power

  • Congress and Colorado General Assembly – Review of recent legislative action and what it means to you, your business and Colorado’s economy

  • Colorado’s Small Business – Powering Colorado’s economy with job creation and growth

  • Auto Fuel Source Emerging options to include Flex-Fuel (E-85), Hybrids, Clean Diesel, Hydrogen, Plug-in Electric

  • Colorado’s Constitution – Ease of change has brought on the opportunists and crazies!  How the easiest to change state constitution has hurt Colorado’s future                          

On many auto industry topics, the public is receiving only part of the story through the mainstream press. CADA is here to help answer some of their questions on topics the press is covering, including:

  • Congress is considering tougher than reasonable increases in CAFÉ (Corporate Average Fuel Economy) standards, while state-by-state, legislators consider standards than are tougher than the national standards.

  • Colorado’s General Assembly, just off a session that provided huge incentives for development of renewable energy, is now considering tougher carbon emission standards than Congress has enacted nationally.

  • Without doubt, fuel price increases are changing the way consumers purchase vehicles. But is the consumer informed of the fundamental changes in technology and diverse fuel and power sources the automotive industry has already developed?  Consumers, as they have done in every previous energy cost acceleration scenario, are moving toward industry-provided alternatives. Yet, the choices for consumers could become dramatically limited if Congress or the Colorado General Assembly overreach.

Speakers from CADA are ready to address all the topics and more! To schedule local presentations, please contact Tim Jackson, CADA President,, 303.282.1448.


* * * * * * *



Have you or anyone else at your dealership won an award recently? Has 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.

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


Copyright 2007 Colorado Automobile Dealers Association.  All Rights Reserved.