Bulletin 50-08.pub - The Washington Area New Auto Dealers

WANADA Bulletin # 50-08
December 19, 2008
BREAKING NEWS!
Bush Comes Through for Domestic Auto Industry
$17.4 Billion to Bridge GM & Chrysler to March 31
President Bush this morning announced that the
administration will step in, where Congress did not,
and authorize emergency loans up to $17.4 billion to
General Motors and Chrysler to get the financially
troubled automakers the funds they say they require
now in order to continue operating and avoid bankruptcy.
The funds would come from the Troubled Asset
Relief Program (TARP) that was initially set up to
assist the ailing financial sector as opposed to fresh
funding that would have been available had Congress
passed the Auto Industry Funding and Restructuring
Act (H.R. 7321) that failed in the Senate last week.
Hot on the heels of the inaction by Congress last Friday, December 12, President Bush and Treasury Secretary Henry Paulson announced that the administration “stands ready to prevent an imminent failure” of
the auto industry, signaling that the funds would be
coming timely from the executive branch.
In taking this action before the opening bell on
Wall Street today, the president was conflicted with
views he shares with fellow Republicans that businesses should rise and fall of their own accord. But in
the face of the economic downturn, Mr. Bush said the
government had no alternative but to intervene.
“These are not ordinary circumstances. In the
midst of a financial crisis and recession, allowing the
U.S. auto industry to collapse is not a responsible
course of action,” Mr. Bush said.
Getting to this point, which was a week in the making for the administration, was predicated in large part
Inside…
AIADA Annual Meeting & Luncheon……...….....p.2
Ballou Students get ADEI Scholarships...……...p.3
State Farm is WAS Insurance Sponsor…….......p.3
Seasons Greetings from WANADA………….…..p.4
on the pivotal reality emphasized by NADA and its
dealer network that bankruptcy was not an option.
“Chapter 11 is unlikely to work for American automakers at this time,” Mr. Bush said this morning, saying that consumers wouldn’t buy vehicles from bankrupt manufacturers.
While Ford joined GM and Chrysler urging Washington to provide the industry with bridge loans, Ford
has said they won’t require assistance at this time,
leaving all the funds for use by GM and Chrysler.
(Continued on page 2)
CONVENTION UPDATE
NADA Convention to Focus
on Future of the Industry
Speakers Include Ford CEO Mulally and
Two Former Presidents
E
conomic turmoil and uncertainty necessarily
are part of the backdrop of the NADA Convention in New Orleans next month.
“This is a must-attend convention if there ever
was one,” said Steve Pitt, NADA vice president
of conventions and expositions. “The fate of the
industry is hanging in the balance. All of the top
manufacturer executives will be there. And we
are providing new ideas and information and a
series of workshops designed to help dealers
through these tough times,” he added.
The 2009 NADA Convention & Exposition,
which runs Jan. 24-27, is offering more than 40
workshops, many of which are designed to address today’s tough economic issues, such as
maintaining dealer profitability, improving cash
flow, surviving the credit crunch and driving
(Continued on page 2)
Page 2
WANADA Bulletin # 50-08
CONVENTION UPDATE
(Continued from page 1)
customers back to dealerships.
“Convention participants will learn what they
need to do back home at their dealerships for the
good of their businesses,” Mr. Pitt said. “The
convention will help dealers prepare for a year of
uncertainty.”
For the first time ever, two former U.S. presidents will take center stage at the NADA Convention. Former presidents George H.W. Bush
and Bill Clinton will deliver remarks during the
general session.
Ford Motor Co. President and CEO Alan
Mulally will present the industry keynote address. Inspirational speakers include Archie
Manning, former quarterback of the New Orleans Saints and the NFL’s Most Valuable Player
in 1978, and Christopher Gardner, whose life
formed the basis for the movie The Pursuit of
Happyness, will offer motivational talks.
Advance registration for the convention closes
today, Dec. 19, but regular registration proceeds
forward. Many hotel rooms are still available.
Airline flights to and from New Orleans have
been added and airfares have been reduced. Hotel
rooms can be booked through NADA’s housing
agency until next Tuesday, Dec. 23.
“This is our 92nd convention and, in many
ways, it’s the most important one ever,” says Mr.
Pitt. “If you’re a dealer, you have to be there.”
Register Online For AIADA's
Annual Luncheon
The American International Automobile Dealers Association will hold its 2009 Annual Meeting & Luncheon on January 26 in New Orleans.
Register today and be there for American
Honda Executive Vice President Richard
'Dick' Colliver's keynote address.
"As executive vice president of one the fastest
growing, most successful carmakers in America,
Dick has a unique perspective on what it takes to
succeed in today's economy," said AIADA President Cody Lusk. "Our members are excited to
hear his take on what the future holds for the international auto industry in the United States."
December 19, 2008
In addition to Mr. Colliver's remarks,
AIADA's Annual Luncheon will feature the passing of the gavel from current AIADA Chairman
Jim Hudson of South Carolina to Chairman Elect
Russ Darrow of Wisconsin. AIADA will also
present the David F. Mungenast Lifetime
Achievement Award to a deserving dealer. To
register, go to www.aiada.org and click on
“Register Today,” or call 1-800-GO-AIADA.
Bush Comes Through!
(Continued from page 1)
There is $13.4 billion available immediately, with
the prospect of another $4 billion in February. While
the deal between the government and the automakers is
expected to be signed this afternoon, the automakers
will have to agree to certain preconditions, similar to
those set forth in the failed congressional legislation.
GM and Chrysler will then have to persuade President
Obama by March 30, 2009 that the funds borrowed
have their companies tracking toward self sufficiency
and profitability, or the money would be due and payable.
The prospect of an auto czar to oversee loans will
be Mr. Obama’s call when he is president. For now,
President Bush has delegated oversight to Secretary
Paulson.
A spokesman for General Motors reflected relief:
“This action helps to preserve many jobs and supports
the continued operation of GM and its many suppliers
and dealers across the country that depend on us.”
Robert Nardelli, chairman of Chrysler, said his
company is prepared to make things work. “We intend
to be accountable for this loan, including meeting the
specific requirements set forth by the government,” Mr.
Nardelli said. “This loan means Chrysler will continue
pursuing its vision to build the fuel efficient, high quality cars and trucks people want to buy.”
Annette Sykora, chairman of NADA, praised the
president’s actions today as “the first step toward restoring consumer confidence.”
A fact sheet on the TARP funding plan for the auto
industry prepared by the Automotive Trade Associations and NADA is enclosed with this Bulletin.
WANADA commends President Bush for his statesmanship in hitting the auto industry part of the economic crisis head on and doing the right thing for
America. Whatever else, it brightens the holidays for
lots of people!
Stay tuned.
WANADA Bulletin # 50-08
December 19, 2008
Page 3
Ballou Students Gain ADEI Tech-Training Scholarships
Excellence is rewarded even in difficult economic times. Two students from the WANADA
supported Pre-Apprenticeship Training program at
Ballou High School in the District of Columbia
have received scholarships from WANADA’s
Automotive Dealer Education Institute.
Irving Henderson and Donnell Green, students
in the Ballou program, will begin their training as
part of the DARCARS Marlow Heights service
operation, effective immediately. They will start
class at ADEI’s NATEF Certified program at
Montgomery College in January, 2009.
ADEI was established by WANADA as a way
to bring qualified young adults into auto technology careers through a unique blend of on-the-job
training, classroom instruction, and regular mentoring that results in line technicians.
Candidates are screened by ADEI and offered
full-time, paying positions by participating dealerships. They work in the dealership with mentors
for four days per week and attend school one day a
week. The auto technology training curriculum
includes brakes, steering and suspension, electronics, engines and heating and air conditioning systems, all of which is expected to lead to successful
ASE testing in each of these areas.
Ballou auto tech students on a tour of DARCARS Chrysler-Jeep in Marlow Heights, MD, with Service Manager
Bill Amos.
ADEI students also study manufacturer-specific
repair material for one hour of each class day and
must pass benchmarks here as well. ADEI has
graduated some 200 technicians from its program
to date and guarantees participating dealers a successful candidate. For more information please
contact Bill Belew at WANADA 202-237-7200.
2009 WASHINGTON AUTO SHOW PREVIEW UPDATE
State Farm Re-Ups as WAS Insurance Sponsor
State Farm Insurance, recognized as a leader in environmentally friendly business practices, is once again the
official insurance industry sponsor of the 2009 Washington Auto Show. The show opens to the public Feb. 4, and
runs through Feb. 8 at the Walter E. Washington Convention Center in DC.
“We’re eager to continue our partnership with the Washington Area New Automobile Dealers and the Washington Auto Show. We share a commitment to many key concerns, including safety on our highways and the safeguarding of our environment. We welcome the chance to share these priorities with this important audience of
consumers, policy makers, and industry leaders,” said Victor Anger, vice president for State Farm.
“Having an auto insurer partner with such an up-front commitment to the environment fits perfectly with an
auto show like Washington, where environmentally friendly vehicle technology is so much a part of what’s on
display,” says John Ourisman of Ourisman Automotive, chairman of The Washington Auto Show.
State Farm was recognized by Automotive Fleet magazine in 2007 as having the third largest nongovernmental alternative-fuel commercial fleet in the United States. The company is also reducing its impact on
the environment by replacing its fleet of traditional gas vehicles with 3,166 bio-diesel, hybrid-electric, and flexfuel models. State Farm’s efforts to reduce consumption of fossil fuels and emissions also includes seeking the
opportunity to use E-85 fuel when possible. An active leader in all of the communities it serves, State Farm works
to promote driver and highway safety.
For more information, call WANADA at 1-866-WASH-AUTO or visit The Washington Auto Show online at
www.washingtonautoshow.com.
Page 4
WANADA Bulletin # 50-08
December 19, 2008
Happy Holidays!
The WANADA Staff wishes all association members and Bulletin
readers the warmth, joy and peace of the season!
Archie Avedisian, Bill Belew, Angelica Boiteux, Wil Desjardins, Trish Frisbee,
Ralph Frisbee, Immanuel Garcia, Isabel Garcia, Kristina Henry, Ellen Hicks, Jeff
Ho, Jake Kelderman
Joe Koch, Martha Kowalski, Gerry Murphy, Jackie Murphy, John O'Donnell, Katy
Orme, Kim Rahl, Dan Slaughter, Charlie Spiridopoulos, Margaret Tsai
...And a Special “Thank You” to Our Kindred Members!
WANADA extends a special thanks to our Kindred Members for their generous
support throughout the year. These service providers and contractors, many of which
have been WANADA members for years, consistently and reliably assist area dealer
success.
(See enclosure for a complete list of WANADA Kindred Members.)
NOTE: WANADA headquarters will be closed Thursday and Friday, Dec. 25-26,
and
Thursday and Friday Jan. 1– Jan. 2.
Thought for the Week…
Christmas is not a time or a season but a state of mind. To cherish peace and good will, to be
plenteous in mercy, is to have the real spirit of Christmas.
—Calvin Coolidge
Enclosures:
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Auto Industry Bridge Loan Fact Sheet
Kindred-Line Holiday Greeting