The legislation to restore franchise rights to dealers who lost them in the Chrysler and GM bankruptcies picked up a head of steam this week as the number of co-sponsors in the House of Representatives has grown to 163 and, just yesterday, June 18, a companion bill was introduced in the Senate (S. 1304) by Sen. Chuck Grassley (R-Iowa.). The Senate action, taken together with the growing support in the House, significantly enhances the chances of passing the legislation, which is only two weeks old. [FULL ARTICLE]

The culmination of numerous dealer meetings with most members of Congress over the past 60 days and countless inter association conference calls between new auto dealer associations across the country has resulted in legislation in the House of Representatives to restore rights to Chrysler and General Motors dealers who lost their franchise in the bankruptcy reorganization of the two OEMs no less than those invited to go forward.
[FULL ARTICLE]

The WANADA leadership held a reception for Washington Mayor Adrian Fenty at the Georgetown Club on Thursday to show appreciation for the mayor's ongoing support of The Washington Auto Show and his help in positioning the event as "The Automotive Policy" show. Joining the mayor at the event was former mayor Anthony Williams who himself was instrumental in raising the image of the show during his terms in office. [FULL STORY]

Congressman Chris Van Hollen (D-Md) is joined by WANADA Chairman Tamara Darvish and Immediate past chairman Jack Fitzgerald in announcing the introduction of The Automobile Dealer Economic Rights Restoration Act of 2009 at a rally in front of the Capitol this afternoon, Wed. June 10.[FULL STORY]

Since our member briefing yesterday on the Chrysler and GM bankruptcies and related turmoil in the industry, a bill has been introduced in Congress to restore dealer rights and protections that have been sidestepped by Chrysler and General Motors in their respective bankruptcy reorganizations.

[ FULL RELEASE | CLICK HERE FOR ADVISORY ]

Dealers being dropped and going forward with the new Chrysler or the reorganized GM are pushing on multi-fronts to get clarity on the requirements and amend some to make them more realistic. Chrysler and GM say they are taking the "take it or leave it" approach to rapidly size their dealer networks for maximum profitability and efficiency and with the aim of having their dealers compete against other brand dealers rather than each other, but dealers argue many of the conditions of the dealer network restructuring are needlessly strict and harmful to their businesses, whether they are leaving or going forward. GM dealers in particular are concerned that they are losing state franchise law protection both in winding down their business and going forward through October 2010.[FULL ARTICLE]

As June rolls onto the calendar it appears a certainty that WANADA dealer members holding GM franchises will join their colleagues holding Chrysler franchises and begin the summer with a partner they never expected in their wildest dreams: the U.S. government. (GM is expected to file Chapter 11 bankruptcy as soon as this Monday, June 1.)[FULL RELEASE]

Analysts, pundits and, yes, even the Obama administration’s Auto Task Force, who suggest that reducing the new car dealer count for Chrysler and GM is critical to the reemergence of these companies, have failed to learn the lessons of history and, worse yet, have not comprehended what effect a dramatic reduction in the dealer population will have on current and future owners of Chrysler and GM products.[FULL RELEASE]

Chrysler LLC entered bankruptcy as The Bulletin went to press this week and if all goes as planned, a new Chrysler will emerge in 30 to 60 days according to the administration's Auto Task Force that put it there. The bankruptcy/ reorganization is being characterized as a "quick rinse," which will rid Chrysler of a huge debt load, allow for a merger with Fiat, put in place an entirely new board and management team and streamline its product line-up. It will also allow for the elimination of as many as 1,600 to 2,000 dealerships, which the auto task force suggested were unnecessary.[FULL STORY]

Montgomery County is offering county dealers an opportunity to provide work experiences for youth 14-24 for six weeks at no cost to you.  The county will pay wages through the Reinvestment and Recovery Act dollars.   The program kicks-off July 7 and will run from July 12 through August 21. If you are interested, please contact Janelle Cauthen, the Director of the Maryland Multicultural Youth Center at janelle@layc-dc.org, Phone: 301-495-0441 Ext. 223 or Fax: 301-585-0115.

Confirming what area dealers have long known, R.L. Polk Company released its year end registration numbers last week and the picture for sales in the region was not pretty. New car registrations declined a comparatively minor 14.7% in all of 2008, but total truck sales took a hefty 30.8% hit. Overall, sales declined to 218,409 units in 2008 from 279,808 in 2007.[FULL STORY]