CADA Open Road eNewsletter

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.

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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.

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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

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

Nancy Burke, Vice President - Public Policy and Communications, nancy.burke@cadaonline.org, 303.457.5115

Tim Jackson, President, tim.jackson@cadaonline.org, 303.282.1448

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.

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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!

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

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

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.

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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