Dealer News

Ford Builds CARS

By John Horner
June 29, 2009

Ford is jumping on the recently-signed Car Allowance Rebate System (a.k.a. Cash for Clunkers) to lure customers into the showroom. Ford’s home page includes a highlighted link to the “Recycle Your Ride” program. A prospective Ford buyer can enter details about their current vehicle into a drop-down menu system and quickly see if it qualifies for scrappage. They can also discover which Ford models earn the $4500 or $3500 federal voucher against the crusher candidate. So far the Dodge, Chevrolet, Honda and Nissan websites have nothing. Toyota and Volkswagen both offer primitive informational pages, but nothing to match the sophistication of Ford’s effort. You would think the government-owned auto companies would be all over the government-run incentive program. But no. And get this: KBB’s man tells the New York Times that the consumers might be better off without the vouchers . . .

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The New York Times »

Posted in Dealer News | News Blog | 25 comments

Clunker Plan Enters Regulatory Hell

By Edward Niedermeyer
June 25, 2009

Or is that regulatory purgatory? Automotive News [sub] screams “Dealers decide who gets discounts,” confirming that America’s very own scrappage scheme is not going to be the quick eco-nomic (geddit?) stimulus the fans predicted. Of course, AN was getting a bit histrionic; the headline was just their wacky way of explaining that NADA is advising dealers to wait for regulations to publicly endorse the deal. The big news is the regulations. Now that the congressional pomp is over, the folks behind Government Motors are finding that the incentive game isn’t always easy. In fact, “It’s complex and not like anything we’ve ever run before,” admits the NHTSA’s Rae Tyson. “We’re starting from scratch.” What could possibly go wrong?

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Automotive News [sub] »

Posted in Dealer News | Government | Incentives | News Blog | 13 comments

GMAC Rubbing Out Chrysler Dealers

By Robert Farago
June 24, 2009

We’ve said it before: both Chrysler and GM have been using GMAC as their “bag man”: withdrawing credit from dealers to kill them without messy political blowback. This despite the Small Business Administration’s new federal loan guarantee program for beleaguered car dealers. The Wall Street Journal reports that where the feds giveth, GMAC is still taking away. “GMAC LLC is suspending wholesale financing for certain Chrysler Group LLC dealers it considers to be too risky to lend to, GMAC and Chrysler confirmed Wednesday. The move could ultimately push more Chrysler dealers out of business and hurt the company’s ability to sell vehicles.” That last bit’s pretty funny—providing you’re not a Chrysler dealer. Anyway, the WSJ runs the numbers or at least tries . . .

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Posted in Chapter 11 | Dealer News | News Blog | 14 comments

Cashforguzzlers.net Cleans Up Its Site

By Robert Farago
June 24, 2009

Robert,

Thank you for taking the time to speak with me today. Our website www.cashguzzlers.net has been following the story for months and of course we were concerned when our site was referenced along side of a website that looks like a phishing scam. Our website was created to provide information and clarity to consumers and also to help create a greater awareness of the program to sell more cars.

Your suggestions were very helpful because the goal of the website is to provide good information about the CARS program and to allow consumers to have the choice to have a local dealer contact them about buying a new car. We also have been answering hundreds of emails and calls for free to help consumers and also to help our automotive clients have a successful launch of this program. We are taking the following steps to ensure that the public is aware that our site is a consumer website and not a government website:

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Posted in Dealer News | News Blog | 14 comments

DOT Builds CARS

By Robert Farago
June 22, 2009

The Department of Transportation (DOT) has fired-up its Cash4Clunkers website. I would have thought the bill’s nickname would have been ideal for the job, but then I’m not a public servant. And so the feds present its brand new website with a new name: CARS (Car Allowance Rebate System). Definitely a case of not leaving well enough alone. To wit: a button on cars.gov asking “How will CARS work”. Apropos of nothing, the site also has a strange FAQ: “I don’t drive an American car but I would like to trade in my old car for a newer, more fuel efficient one. Is this program only for American cars?” Now why would anyone think that? More CARS after the jump.

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Posted in Dealer News | News Blog | Taxes | 17 comments

Hammer Time: Witch Croft?

By Steven Lang
June 22, 2009

Cory02 writes:

Something interesting happened with my nearest former Chrysler/Dodge/Jeep dealer (Dave Croft Motors in Collinsville, Illinois): they appear to be selling new Chrysler products again. In the days approaching the “drop-dead” date for the culled dealers, I thought it was odd that they not only kept the large “Chrysler/Dodge/Jeep” signs on their building but also kept them lit at night (I would have personally taken them down out of spite). The owner went through the motions of crying to the media, proclaiming that he would stay in business as a used dealer, and then moved all the new cars to the very back of the lot and put them in neat rows to await pickup and delivery to another dealer after June ninth.

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Posted in Dealer News | Hammer Time | News Blog | 10 comments

Welcome Back, My Friends . . . NE AG in Car Dealers’ Pockets

By Robert Farago
June 18, 2009

Earlier today, we reported that Nebraska Attorney General Jon Bruning was mounting a legal challenge to GM’s dealer cull via anti-trust regulations. I pointed out that Bruning’s zeal probably had a little something to do with GM and ChryCo car dealers in his patch. A bit of Googling adds the words “and how” to that supposition. Campaignmoney.com lists contributions to the “Friends of Jon Bruning” Political Action Committee. It has to be said: Jon’s not lacking for friends in the car biz. Number two on the list: Craig “Ugliest Web Site in History” Cox of Cox Chevrolet. Baxter Chrysler Jeep Dodge clocks-in at number six. A diligent member of our B&B points out that many of the “homemakers” on the list are attributed to “Anderson.” Talton “Tal” Anderson and his family own a slew of dealerships in NE and western IA, and AZ (and maybe elsewhere). Over on opensecrets.org, we learn that Jon Bruning is number 11 on the list of top recipients of car dealer contributions. Hey! Hillary’s number one! And there’s Joe Biden! Say it ain’t so, Joe! Anyway, nothing illegal here. But it helps to have a scorecard to know why the playa is playin’.

Posted in Dealer News | News Blog | 6 comments

Nebraska Attacks! NE AG Sues GM for Dealer BS

By Robert Farago
June 18, 2009

GM’s dealer cull is taking flak from its flanks, as Nebraska Attorney General Jon Bruning has launched a lawsuit to stay the bankrupt automaker’s quivering, zombie hand [download press release here]. In his letter to other state AGs asking for their support, Bruning is not happy with GM’s request that its dealers waive their rights under state law. Specifically, the bit that says “No law of any state or other jurisdiction [go Puerto Rico!], including any bulk sales law or similar law, shall apply in any way to the transactions contemplated by the 363 Transaction, the MPA, the Motion, or this Order.”

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Posted in Dealer News | News Blog | 11 comments

Automobile Dealer Economic Rights Restoration Act of 2009

By Robert Farago
June 18, 2009

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Posted in Dealer News | News Blog | 14 comments

GM Veep LaNeve: “Nearly” 60 GM Dealers Get Reprieve

By Robert Farago
June 18, 2009

Hmmm. One wonders about the veracity of LaNeve’s excuse for allowing “nearly” 60 dealers to avoid termination. Who created the “incorrect or inaccurately reported dealership financial data” upon which their second lease on life was—allegedly—based? Given that dealers fighting for their survival wouldn’t under-report their financial data, common sense suggestd GM’s auditors are responsible for the, dare I say it, mistake. So, how did GM screw it up for “nearly” 60 dealers? And surely that boner throws doubt on the rest of the dealer appraisals (view criteria here). Fuel for the fire for H.R. 2743. In short, GM is still run by the Gang That Couldn’t Shoot Straight. Make the jump for official dealer com from Dr. Death. [Thanks to you-know-who-you-are for the email.]

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Posted in Chapter 11 | Dealer News | News Blog | 14 comments