December 19, 2007
Volume #1, Issue #51

  DEALER NEWS & INFORMATION
     -
Automotive News at a Glance

      

  LEGISLATIVE UPDATE

     - 35 MPG Rule Nears Reality

     - Election Year May Put Politics

       on Boiler Plate

     - U.S. Rep. Salazar Advocates the

       Needs of Automobile Industry

  REGULATORY & LEGAL UPDATES

     - Attorney General Suthers

       Re-Affirms D&H Assurance

       of Discontinuance

     - Revised Disclosure Form

       Approved by MVDB


 
CALENDAR OF EVENTS

     - Upcoming Events

 
DEALER MILESTONES,
     HIGHLIGHTS & TRANSITIONS

      - Cook Builds Empire on Broadway

      - Let Us Know About YOUR
        Accomplishments

 



   
ARCHIVES

       CLICK HERE
for Open Road
       e-newsletter archives.

 

       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 detail 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
.

 



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

 


If you have questions or
suggestions regarding this
e-newsletter, please
contact Nancy Burke at nancy.burke@cadaonline.org 

Click here or scroll to the bottom
of this page if you want to be
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Visit us at www.cadaonline.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

 

President

Tim Jackson

tim.jackson@cadaonline.org 

303.282.1448

 

Vice President

Tammi  L. McCoy

tammi.mccoy@cadaonline.org

303.282.1449

 

Vice President -
Public Policy & Communications

Nancy J. Burke

nancy.burke@cadaonline.org

303.457.5115

 

Bond Coordinator

Linda Toteve

linda.toteve@cadaonline.org

303.457.5122

 

F&I Resource Center -
Manager

Chad Julius

chad.julius@cadaonline.org

303.457.5119

 

Insurance Services

Account Manager

Deb Lay

dlay@cadaonline.org  

303.282.1453

 

Insurance Services

Account Manager

Bob Kogel

bobkogel@cadaonline.org

303.282.1457

 

F&I Resource Center/
Forms, Services Coordinator

Lauren Stadler

lauren.stadler@cadaonline.org

303.457.5123

 

Services Coordinator

George Billings

george.billings@cadaonline.org

303.457.5123

 


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--------------------------------

 

Attorney General Suthers re-affirms D&H Assurance of Discontinuance – CLICK HERE for more information...

 

 

AUTOMOTIVE NEWS AT A GLANCE

 

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

  • Colorado governor appoints aide to work on climate plan
    The Durango Herald, Dec. 16
    Gov. Bill Ritter rolled out a plan
    Nov. 5 to help Colorado cut back its greenhouse gas emissions. >

     

    Ritter hired Heidi Van Genderen to develop the Climate Action Plan, which relies mostly on incentives to get citizens and businesses to reduce their carbon dioxide output. The ultimate goal is to reduce Colorado's greenhouse gas output 20 percent by 2020 and 80 percent by 2050.
     

  • Energy bill hangs on to the myth that we can have our oil and guzzle it, too
    The Detroit News, Dec. 15

    We are being taken for a ride, the conclusion of which will leave us in an unhappy place if we allow Congress to continue treating us as children.

     

    I am referring to current congressional thinking on national energy policy, which is based on the Myth of Endless Growth and the Doctrine of Uninterrupted Joy.

     

    The myth assumes we can continue producing and consuming at eternally increasing rates without exhausting materials needed for production and consumption. It is based on the idea that there always is more of something from somewhere to be had in support of our greed.
     

  • GM tried to cut energy bill
    The Detroit News, Dec. 17

    Along with their lunch pails and safety goggles, General Motors Corp. line workers might want to add a warm sweater to the list of items they bring to work each day.

     

  • In U-turn, U.S. agrees to global warming deal
    cnn.com, Dec. 15

    In a dramatic reversal Saturday, the United States rejected and then accepted a compromise to set the stage for intense negotiations in the next two years aimed at reducing carbon dioxide emissions worldwide.

     

    The White House, however, said in a statement that it still has "serious concerns" about the agreement.

     

  • The value of communications
    Detroit Free Press, Dec. 16

    The new bosses at Chrysler LLC have made many good decisions so far -- hiring Toyota executive Jim Press, signing a cost-cutting labor deal with the UAW and moving to trim slow-selling models.

     

    It's got a chance to make another wise choice now, but the early signs are not good.

  • Luxury car sellers put on the ritz
    The Wall Street Journal, Dec. 18

     

    For many people, a trip to the auto dealer means a mind-numbing hour or two in a plastic chair with some tattered magazines and stale coffee.

     

    But some major auto retailers are starting to change that, at least for buyers and owners of luxury vehicles. In the past year or so, several dealership chains have begun giving their luxury-car showrooms multimillion-dollar makeovers. The goal is to create the look and feel of five-star hotels for customers, increase the dealerships' car allocations and even make it less likely that rival dealerships will pop up nearby.

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.


 

 

 

 


35 MPG RUle Nears Reality


Senate OKs pared down energy bill; House, Bush approval expected soon

The Detroit News, Dec. 14
By David Shepardson, Detroit News Washington Bureau

 

WASHINGTON -- Regulations that will fundamentally change the vehicles that Detroit's automakers build and sell were passed by the Senate on Thursday night by an 86-8 vote. The approval of the historic national energy bill increases fuel efficiency regulations for the first time in decades.

 

Fuel efficiency requirements will increase 40 percent to 35 miles per gallon by 2020. Automakers will have to meet the regulations starting in 2011.

 

The bill moves back to the House for a final vote, where it is expected to pass, and then goes to President Bush for his signature.

 

In addition to the fuel efficiency requirements, the legislation also pumps up ethanol use to 36 billion gallons a year by 2022 and imposes new requirements to promote efficiency in appliances, lighting and buildings. Left out of the legislation was the stipulation that fuel economy and auto emissions regulations set by the National Highway Traffic Safety Administration and the Environmental Protection Agency be consistent, so automakers don't have to play by two sets of rules.

 

CLICK HERE to read the entire article.

 

* * * * * * * * *

 

Election Year May Put Politics on Boiler Plate

The Denver Post, Dec. 15
Now might be a good time for Colorado Capitol watchers to take their Dramamine.

 

In 24 days, 100 politicians will crowd beneath a single gilded roof to drive the state toward its future. And just about everybody thinks this year will be a wilder ride than usual.

 

CLICK HERE to read the entire article.

 

* * * * * * * * *

 

U.S. Rep. Salazar Advocates the Needs of Automobile Industry

 

As a farmer and business man, U.S. Rep. John Salazar CD-3, spoke to a group of approximately 75 supporters last Saturday night in Denver. He emphasized the importance and necessity of distinguishing the different MPG standards between cars and light trucks that are outlined in the energy bill. Salazar also understands the need for ramp-up time for automobile manufacturers to adhere to the requirements of this bill. Don Hicks of Shortline Auto, Tim Jackson of CADA, Nancy Burke of CADA, Congressman John Salazar, U.S. Sen. Ken Salazar and Gov. Bill Ritter were among those in attendance.

U.S. Rep. Salazar also expressed that he has an opponent for the upcoming election, the Delta county commissioner. At CADA, we encourage you to support U.S. Rep. Salazar, as he steadfastly supports many of our needs for our industry. His congressional district covers most of the southern and western regions of our state.

 

For more information, please visit his website at: www.Salazar2008.com or you may mail in your contributions directly to:

Salazar for Congress
P.O. Box 13128
Denver CO 80202

  -------------------------------------------------------------------------------------------------------------------------

 

If you have questions on any legislative topic, please contact:


 

attorney general suthers re-affirms d&h assurance of discontinuance

 

CADA staff along with our outside Counsel, Bill Walters, met with Attorney General John Suthers recently to obtain a re-affirmation of the existing D&H Assurance of Discontinuance. This agreement, dating back to 1979, was originally negotiated between various dealerships, MDADA, and the attorney general at that time. Dealerships essentially agreed to provide prominent, specific disclosures to consumers regarding D&H fees and what they represented. 

The attached letter both recognizes the following: 

 

[T] he Office of the Attorney General acknowledges that it is appropriate for those dealers who executed the form Assurance, and even for those with notice of the terms of that form Assurance, to rely on the representation in that form Assurance that disclosure of D & H charges in compliance with that form Assurance would not result in an enforcement action by the Attorney General.

 

Motor vehicle dealers in Colorado may continue to rely on the form Assurance which remains in full force and effect and accurately sets forth the position of the Office of the Attorney General concerning the imposition and disclosure of D&H charges as described in the form Assurance. So long as motor vehicle dealers comply with the terms of the form Assurance, the Office of the Attorney General shall not seek to prosecute such dealers for violations of the Consumer Protection Act with respect to the disclosure of D& H charges as described in the form Assurance

 

This letter is certainly helpful, but there are some caveats—it is not a panacea.  It does not specifically address the “unauthorized practice of law” claim advanced in the current class action lawsuits.  What constitutes the unauthorized practice of law is still in the hands of the courts.  Until the appellate courts address these issues, dealers remain at risk for claims by plaintiff attorneys.  Until appellate courts address these issues, dealers are still at risk for claims by plaintiff attorneys. 

 

CLICK HERE to view a copy of the letter (also includes the 1979 form assurance as an  Exhibit). We strongly encourage you to forward this to your outside counsel as well.

 

* * * * * * * * *

 

REVISED DISCLOSURE FORM APPROVED BY MOTOR VEHICLE DEALER BOARD

required AS OF MARCH 1

 

The Motor Vehicle Dealer Board (MVDB) on Thursday of last week approved a final version of the new DR 2434 – Disclosures Required as Part of a Motor Vehicle/Powersports Vehicle Sales Contract (last revision date 11/19/07). The Board agreed to extend the planned effective date of Jan.1 to provide dealerships with time to transition and replace all inventory of the prior forms. Dealerships should switch to the new form as soon as possible, but use of this new form will be required as of March 1, 2008.

 

The primary reason the board undertook rulemaking on these disclosures was due to last year’s legislation which required a new disclosure to inform consumers about the existence of the MVDB. Previously, there was not an official state form—just the language and parameters of these disclosures were contained within the statutes and regulations. The Board and AID elected to develop an official form for use by all dealers. The final, approved form is attached. Key updates on these disclosures: 

  • The order of the Dealer/Agent’s Initials and the Buyer’s Initials has been reversed. 

  • Note that the lines on the left and right-hand columns are situated BELOW each letter (you will want to ensure that the bottom-most signature line for letter “E” is not missed).

  • Powersports has been added to the title to reflect that both industries are now covered.

CLICK HERE to view a copy of the new form.

 

è CADA EXPECTS TO HAVE AN INVENTORY OF THESE FORMS (PERFORATED, DUPLICATE COPIES) BY MID-JANUARY.  If you would like to place an order, please fill out and complete this order form; we will process your order and ship them to you as soon as they are available.  [NOTE – we do not anticipate a price change on this form; if there is any change, we will notify you to obtain your approval before processing your order].   Please contact us if you have any questions!

  -----------------------------------------------------------------------------------------------------------------

If you have questions on any legal or regulatory topics, please contact:

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.

 



 

Event Description Date/Time Location
Legislative Policy Committee (LPC) Meeting Jan 16, 2008
7:30 a.m.
William D. Barrow Building 290 E. Speer Blvd, 80203
(SW Corner of Grant/Speer)
All CADA members are invited to attend to hear an update on the state legislative session. 
For more information, contact Nancy Burke at 303.457.5115.
NADA 91st Annual Convention & Expo Feb. 9-12, 2008 Moscone Center,
San Francisco, CA
Denver International
Auto Show
March 26-30, 2008 Colorado Convention Center, Denver
CADA Golf Event

Monday, Sept. 8, 2008

Columbine Country Club
17 Fairway Lane
Columbine Valley, 80123


 


 


CooK Builds Empire on Broadway

The Denver Business Journal, Dec. 14

By Noelle Leavitt

 

Business is cooking for Jon Cook on South Broadway.

 

He's about to open Colorado's first Smart Car dealership, which sells fuel-efficient, two-passenger, European-style mini-Mercedes for around $16,000 and up.

 

The 5,750-square-foot dealership is on about one acre of land at 2855 S. Broadway. It will be called Smart Center Denver, a Kuni Company.

 

Cook also is developing a $3 million, 18,000-square-foot green building from the ground up called "Gateway" on an empty lot at the corner of Yale Avenue and South Broadway. The project will break ground in the first quarter of 2008.

 

Cook and partner Scott Farmer develop properties through their company Colorado Commercial Capital LLC.

CLICK HERE to read the entire article.

 

* * * * * * * * *

 

LeT US KNOW ABOUT YOUR ACCOMPLISHMENTS!!!

 

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 milestones@cadaonline.org.  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
www.cadaonline.org