CADA Open Road eNewsletter

Wednesday, August 15 ~ 9 am to 8 pm

Marriott Denver South ~ Park Meadows Drive

Speakers and Presenters Include:

Jim Ziegler, Ziegler SuperSystems

Shawn Mitchell, State Senator

Bill Walters, Walters Law Firm

Todd Fredrickson, Otten Johnson

Rob Cohen, Auto Advisory Services

Jim Minnis, NADA Legal Office

Aaron Jacoby, Venable LLP

Jack Tracey, NADC Association

Laura Udis, Colorado UCCC

Annette Sykora, NADA

Dick Bruso, Heard Above

Attorney General John Suthers

Michael Dommermuth, McGloin, Davenport, Severson and Snow, PC

Tom Hudson, Hudson and Cook, LLP, Author of
CARLAW Raising the Compliancy Bar at your Dealership

Each participant will get a complimentary copy of CARLAW!

CLICK HERE for more details!

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CAR DEALERS SOMETIMES RUN OVER YOU AND ME

CADA is preparing to answer this ill-informed opinion piece that appeared recently
in the Colorado Statesman by the otherwise generally-accurate, well-respected,
longtime curmudgeon and former legislator, Jerry Kopel.

Do you remember the “old neighborhood?” Well, the Motor Vehicle Dealer Board is somewhat like the “old neighborhood.”

It was supposed to protect consumers from the bad guys, but in my opinion it mostly
protects car dealers from consumers. When the board comes up for Sunset review, The Dept. of Regulatory Agencies (DORA) often issues a scathing report and recommends
policy changes.

The 2006 Sunset report was such a report even though it was issued under a Republican governor and a former Republican legislator as DORA director. It pulls no punches (but did
it with diplomacy).

Along with recommending continued licensing and oversight of car dealers, DORA urged changes, some of which were essential to ensure protection of consumers.

CLICK HERE to read this article by Jerry Kopel of The Colorado Statesman.

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WHAT ARE THE DINOSAURS OF DETROIT THINKING?

The Big 3 have opposed increased fuel economy standards. Do they know something the rest of us don’t?

USA Today, July 2007

So you want to be an opinion columnist for a national newspaper? All right. Here's your mission, should you

choose to accept it: Write a 900-word piece, defending the

CEOs of General Motors, Ford and Chrysler, who continue to argue against legislative initiatives to increase auto fuel efficiency by 40%. The standards haven't really budged since the mid-1970s, and crude oil recently topped $75 a barrel.

Yet the rapidly fading Detroit auto executives have remained steadfast in their opposition to higher fuel economy standards —which, by the way, the Senate has voted to raise and the House is contemplating. Your mission: Explain what the Dinosaurs of Detroit are thinking. Begin writing immediately before the U.S. auto industry self-destructs.

CLICK HERE to read the entire article.

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BUYERS KEEP CROSSING OVER TO CROSSOVERS

Analysts expect strong U.S. sales of the vehicles in July, a bright spot amid general market decline

Detroit News, July 28, 2007

GRAND RAPIDS, Mich. -- Ever since the debut of the Toyota RAV4 in 1996, U.S. car buyers have been crossing over to crossovers.

The success of crossover vehicles, which resemble sport utility vehicles but are smaller
and built on car instead of truck frames, has been one of the few bright spots in recent
years for the troubled domestic automotive industry.

Analysts and auto executives say that trend likely will continue when automakers release
July U.S. sales figures Wednesday, although the general market decline is likely to continue.

CLICK HERE to read the entire article.

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FUEL EFFICIENCY BILLS HAVE ONE CLEAR WINNER

Detroit News, July 27, 2007

Multiple pieces of fuel efficiency legislation are making their way through Congress,
but only one is realistic and worthy of consideration. The Hill-Terry bill sets reasonable
standards for increased gas mileage and is best positioned to protect jobs and the
American auto industry.

By contrast, a Senate bill that passed earlier this year that would increase fuel economy standards to 35 miles per gallon by 2020 and a House bill sponsored by U.S. Rep. Ed Markey, D-Mass., don't fairly deal with the challenges facing the domestic auto industry.
Nor are they attainable without significant costs to consumers.

Markey's bill in particular is a disaster. It's unrealistic in its expectations of the Big Three automakers and is based entirely on the expansion of the failed Corporate Average Fuel Economy standards.

CLICK HERE to read the entire article.

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..

ANNUAL MEMBER GOLF EVENT

Make plans to join us for CADA's

Annual Member Golf Event

on Monday, Aug. 27—

space is limited, so CLICK HERE

to register online!

This year's event will take place at the Valley Country Club at 14601 Country Club Drive
in Aurora, which boasts the Essence of Colorado Tradition. A special thanks to our title sponsor, GE Money Warranty Services. We are also collecting 'goodies' for our goodie
bags. If you are interested in donating, please contact Lauren Stadler at 303.831.1722.
Note that there will be two hole-in-one $10,000 cash prizes, awards for 1st/2nd/3rd place
plus valuable door prizes! There will also be a professional photographer on-site.

MARKEY DEFENDS BY RETREAT

By CAR lobbyist Jeremy Cottrell

In response to harsh criticism from automakers and industry representatives, U.S. House Rep. Ed Markey (D-Mass.) has softened his original fuel economy standards bill. While Markey’s bill currently has 149 cosponsors, the alternative bill offered by Rep. Baron Hill
(D-Ind.) and Lee Terry (R-Neb.) has gained strong momentum and popularity on Capitol Hill. By steamrolling from roughly 50 to 124 cosponsors in two weeks, the Hill-Terry bill is seen as a realistic and fair proposal to both auto manufacturers as well as the American public.

House Speaker Nancy Pelosi (D-Cal.) will have to soon determine whether or not to allow
a fuel-economy debate on the floor during a broader painted issue of an energy bill expected by as early as late this week.

Markey’s backpedaling indicates there may be trouble for the bill in the House. The requisite votes may not be there for Markey who has seen many of his cosponsors jump aboard the Hill-Terry bill. However, by delaying his bill by shopping changes to it, Markey risks continued momentum of the Hill-Terry bill.

Some of the noted changes Markey has proposed involve making special categorical exceptions for large work trucks, extending the deadline for the change to 2019, and leaving further fuel-economy changes to federal regulators.

Without the changes, there is a major gap between the Senate and House versions of the
bill that many recognize cannot co-exist. The alterations to the Senate’s outright 35 m.p.g. standard will be imposed universally by 2020.

The compromise within the two houses of Congress may continue for quite some time.
On a recent trip to Washington D.C. House, minority leader John Boehner (R-Oh.) notified CADA representatives that he believes this debate will serve as an important presidential platform for the 2008 election. In that case, the issue may be heavily debated until the November election and tabled until a new president takes office.

SALESPERSON LICENSE APPLICATION: REVISED FORM AND TRANSFER PROCESS

Auto Industry Division (AID) has released an updated salesperson license application
form (DR2115, revision date of 5/15/07) that reflects the requirement implemented earlier
this year for proof of lawful presence. [CLICK HERE to access the Jan. 3, 2007 Open Road issue explaining those new requirements.] This form can now also be completed
electronically and printed.

As a reminder, as of last spring this form does not contain an option to transfer a license
if a salesperson changes employment from one dealership to another. The Division’s preferred method of processing a license transfer is for the salesperson to use the
Change of Employer Notification (DR2132) that is contained at the bottom of the salesperson’s license. The cost for the reissue using the DR2132 is $55. Additional clarifications on this process are below:

When a salesperson leaves a dealership’s employment, Colorado law requires
the dealership to “confiscate and return” the salesperson’s license to the board.
[See C.R.S. 12-6-116 (3)]
A salesperson license is issued for a particular dealership, so is considered to
be the dealer’s responsibility.
The bottom part of the license (Change of Employer Notification, DR2132) is considered the salesperson’s responsibility and allows the salesperson to transfer their license to another dealership. The bottom part can be separated and stored
in the personnel file and given to the salesperson upon departure, or it can be
given to the salesperson immediately at the time of hiring. Additionally, the salesperson should receive both copies (AID and Cashier) of the “Change of Employer Notification” portion of the license. Otherwise, the process in the next paragraph will need to be followed. Some dealerships have been requiring terminated salespeople to sign and affirm receipt of the bottom part of their license
to avoid disputes over subsequent transfer costs.

If the salesperson does not have or cannot locate the bottom portion of their license,
it will cost $110. He or she will need to complete an original application (DR2115; CLICK HERE for this form and mark it at the top as a “REISSUE.”) The cost for the reissue is $55. The Division will then re-print the license and the salesperson can then complete the bottom part of the license (form DR 2132). However, there will be an additional $55 dollars
for then processing the change of employer and issuing the license a second time under
the new dealership/employer.

Question #15 on this form is “Have you ever been licensed as a salesperson
in Colorado. If yes, provide license number”. Make sure this question is also completed with the prior license number.
The request for the reissue to obtain the prior license and the DR 2132 form
can be completed by mailing in the original application (DR2115) as described
above, or in person by going to the Dealers window at AID offices in Denver
(1881 Pierce St., Lakewood, 80214). Additionally, the Division representative in Colorado Springs can print reissues as noted in the most
recent issue of Wheels (June 2007):
As a convenience to dealers in Southern Colorado, Cheryl Morrison from
the Colorado Springs office has the capability to print duplicate salesperson licenses, accept and print salesperson license transfers, and accept new salesperson applications with issuing a Temporary Salesperson License.
Please contact Cheryl Morrison at 719-594-8704 to make an appointment.

All Auto Industry Division forms and additional information can be found on the AID
web site at http://www.revenue.state.co.us/dlr/home.asp.

CLICK HERE for the latest version (5/15/07) of the salesperson license application
(DR2115).

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

Tim Jackson, President, tim.jackson@cadaonline.org, 303.282.1448
Tammi McCoy, VP, tammi.mccoy@cadaonline.org, 303.282.1449

Or e-mail questions to regulatory@cadaonline.org to reach both.

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.

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