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Industry News & Events
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'Happy days' return for domestic car dealers
As we've been reporting, at GM dealerships the effects from last week's loosening of credit were unmistakable. Here's more evidence of the changing outlook -- a DealersEdge summary of the upbeat news reported across the country. Richard Roy summed up the festive mood as customers streamed into Quirk Chevrolet in Manchester, NH, days after GMAC loosened tight lending restrictions, notes the Manchester Sunday News. "Happy days are here again," Roy said between rounds of escorting shoppers around the dealership. And the Central Michigan Morning Sun reports that General Motors dealers in central Michigan say the loosening of credit requirements by GMAC Financial Services has prompted an increase in traffic to their showrooms.
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Senator to push for tax credits for car buyers
The push is on to extend tax credits to car buyers as part of a broad economic stimulus package, aiming to lift vehicle sales out of a precipitous slump, Dow Jones reports. A new proposal would mirror a bill introduced in the Senate in November, a spokeswoman for Sen. Barbara Mikulski, D-Md., a member of the Appropriations Committee, said Monday. Under that bill, interest payments on car loans would be tax deductible, as would sales and excise taxes on cars. The program would apply to new vehicles purchased through the end of 2009. A spokesman for the National Automobile Dealers Association said Monday that tax incentives for consumers would be a top priority of the association in the coming Congress.
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How to endure, survive and even thrive in tumultuous times
Is that what you and your store(s) need at this very moment? The knowledge of how to endure in these tumultuous times? The ability to survive in these tumultuous times? And can you imagine…a plan to even thrive in these tumultuous times?
[FULL STORY]
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Ford's F-Series still reigns
For the 32nd year in a row, Ford's F-Series is America's best-selling truck with 2008 sales of 515,513. Ford Motor Co. reported that the F-series outsold its nearest truck rival by more than 50,000 units. In addition, for the 27th year in a row, F-Series is once again America's best-selling vehicle of any type -- car, crossover, SUV, truck or van. The automaker also told Detroit Free Press that the redesigned F-150, which is the top-selling model in the lineup, is helping Ford gain market share.
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GM, Ford gain in reliability
A new analysis by Consumer Reports magazine shows that two of Detroit's automakers -- Ford Motor Co. and General Motors Corp. -- are making "real progress" against foreign rivals while Chrysler LLC continues to lag behind the rest of the industry, The Detroit News reports. The report featured in the magazine's February issue shows that Ford now offers several cars with reliability "on par with Japanese models" and says it is now "in front of the class." Newer GM models also have performed well in Consumer Reports' testing, but the magazine said "the reliability of some still falls short."
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Treasury to give GM second loan of $5.4 billion Jan. 16
The U.S. Treasury said Monday it will grant General Motors Corp. a second loan totaling $5.4 billion on Jan. 16 as part of the $13.4-billion rescue of the ailing automaker, the Detroit Free Press reports. The second loan, following the $4-billion loan issued last week, was disclosed in an update on the Treasury's spending of money from the $700-billion financial industry bailout. Chrysler LLC won its $4-billion loan last week as well. With the GM and Chrysler aid plans, and the $6-billion infusion into GMAC, the Treasury cannot lend the additional $4 billion it pledged to GM without tapping the second half of the bailout fund, something Congress has vowed to block until after the Obama administration takes office.
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6th Digital Dealer Conference & Exposition announced for Spring
The 6th Digital Dealer Conference & Exposition will be held at the Mirage, Las Vegas, April 19-20, 2009. The last spring conference in Orlando in April drew over 1,000 attendees and featured 60 exhibitors in almost 100 booth spaces. Combined, the last two Digital Dealer Conferences drew almost 1,000 registered dealers, GMs, Internet Sales Managers, e-Commerce Directors and BDC/CRM Managers, and unlike the NADA Convention & Exposition, every one of them was there to learn more about Internet and technology-related issues, both from speakers and from exhibitors. 6th Digital Dealer Conference & Exposition
[FULL STORY]
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New president to ride in style in GM limo
President-elect Barack Obama is getting a new ride to go with his new address on Jan. 20. General Motors Corp. recently delivered to the U.S. Secret Service a brand new presidential limousine, replacing the 2006 model Cadillac DTS presidential limousine that President George W. Bush has used, the The Detroit News reports. The new limousine, dubbed the 2009 Cadillac Presidential Limousine, makes its debut on Inauguration Day. It's the first presidential limousine not to carry a specific model name, said GM spokesman David Caldwell. GM declined to say how many it was building for the U.S. government, but it's believed to be fewer than 25.
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Hyundai return policy is first for industry
Hyundai Motor America has a new program offering buyers some protection against the involutary loss of income for the first year of a lease or purchase with a voluntary return program that allows owners to walk away from the deal without fear of damaging their credit. The "Hyundai Assurance Program" expands the protection offered through "The Hyundai Advantage: America's Best Warranty," which has provided 10-year, 100,000-mile powertrain protection to Hyundai owners for a decade.
[FULL STORY]
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For federal aid, GMAC agrees to end deal with GM
The auto financing giant GMAC relinquished its exclusive right to provide financing to people buying General Motors vehicles in exchange for up to $6 billion in federal aid, The Washington Post reports. The deal abruptly ends a 10-year contract between GM and GMAC, according to the lender's filing with the Securities and Exchange Commission yesterday. In the past, whenever GM offered vehicle financing and leasing specials, such as below-market interest rates, it did so through GMAC. The lender paid an annual fee to GM for the exclusivity and was required to meet sales targets. Now, over the next two years, GM can offer incentive programs through other lenders under certain requirements, the filing said. After that period, the terms will gradually loosen until 2013, when GM will have the right to offer programs through any lender -- including GMAC -- without any restrictions or limitations.
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Compliance Corner
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Create a compliance test
by Gil Van Over
Applicants for both Sales and F&I Manager positions will claim during the interview process that they believe in .jpg?i=010609113907) compliance…because they think it is what you want to hear. If you want to determine the applicant’s compliance quotient, give her a test. You can create a simple test to administer during the interview process that will tell you how compliant the applicant really is.
[FULL STORY]
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Dave Anderson Quote of the Week
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One of a dealer’s greatest mistakes is to overestimate the leadership ability of his or her managers. Just because someone can close a deal doesn’t mean they’re qualified to recruit, train, coach and build a great team.
- Dave Anderson, Learn to Lead, Inc.
Order Dave Anderson's new DVD: "How to Tighten Up, Toughen Up and Stay Up in Down Times"
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In Dealer magazine
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Seeking additional revenue
by Greg Gilmore
Given our current economic landscape, dealers are falling into one of two groups. The first includes the .jpg?i=010609113907) dealer who is continuously preparing the dealership to weather a decline in sales and gross profit. As a matter of survival, these dealers have eliminated and continue to cut extraneous expenses while looking to move into next year with a much leaner operation. Once expenses are minimized to a level where the dealership can remain effective, these dealers are striving to maximize revenue streams. Some are also seeking creative ways to consolidate existing franchises. The second group includes dealers actively pursuing exit strategies. These dealers are looking to move on and find buyers for their dealerships. Both camps are vital to the survival of each other. Dealership sellers need buyers with capital and proven management experience and buyers obviously need a supply of fixable dealerships. Read more
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What is my dealership worth today?
by Erin Prinn Kerrigan
Facing .jpg?i=010609113907) a credit crisis, many dealers are reviewing their personal financial statements and wondering, what is my dealership worth? Gone are the hopes of high blue sky multiples. Today, it is very difficult to figure out how much your business may be worth without a pending transaction. As I mentioned in my November article, I am going to devote this article to what some would argue is the best form of business valuation, discounted cash flow (DCF). Read more
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Dealer Online
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