NADA to Dealers: Urge Senators to Support Efforts to Repeal New 1099 Reporting Requirements

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NADA Headlines (Nov. 29, 2010)

NADA to Dealers: Urge Senators to Support Efforts to Repeal New 1099 Reporting Requirements

Vote expected today

In a legislative alert sent to all NADA members this morning, the association's Legislative Affairs group urges dealers to contact their senators today to ask them to support the repeal of a 1099 reporting requirement in the health care reform law passed earlier this year. The Senate is expected to vote today on two amendments offered by Sens. Mike Johanns, R-Neb., and Max Baucus, D-Mont., which would repeal a provision in the health care reform law mandating that all businesses file "1099" forms with the IRS any time they purchase goods or services worth $600 or more. The two amendments to the food safety bill could face a high hurdle, as the Senate’s procedures will require a "super-majority" of 67 votes. "NADA strongly backs the Johanns and Baucus amendments, both of which completely repeal the new 1099 requirement," says David Regan, NADA vice president for Legislative Affairs. Senators can be reached through the Capitol switchboard at (202) 224-3121. Click here to read the Legislative Alert.

NADA Convention Set for Rebound in '11

With exhibit space sold out and registrations running ahead of 2010's pace, the National Automobile Dealers Association convention, set for San Francisco next February, seems on track to show the event's first attendance increase in four years. Slowly improving auto sales and dealers who are overdue to purchase equipment are boosting interest in the convention, said Jack Caldwell, a Toyota-Scion dealer in Conway, Ark., and chairman of NADA's convention committee. More than 4,400 dealers and dealership employees have paid to register for the event, 14 percent more than at this point last year. "We're much better than we were last year," Caldwell said, referring to the 2010 convention in Orlando. Even so, "It's almost like we're in unchartered waters because of the changes we've gone through." Caldwell credited better sign-up to a stabilizing economy and modest improvements in vehicle sales. Read more from Automotive News.

Next Hyundai Phase: Better Dealers

Although John Patterson has operated Tustin Hyundai in Tustin, Calif., only since March, he has already more than quadrupled the store's average monthly new-car sales, to 85. Patterson's success with Hyundai is being replicated around the country. Forty of Hyundai's 803 U.S. stores have changed hands this year, and the pace is heating up. Just since Sept. 1, 19 of those deals were completed. Dave Zuchowski, Hyundai Motor America's sales boss, said the new owners represent a welcome trend for the once-bargain-basement brand. "We're starting to get really, really good dealers that haven't been Hyundai dealers before coming in, buying franchises and paying good blue sky for a franchise," Zuchowski told Automotive News. "So now I don't add any more dealers. I get a good, experienced dealer in who gives us better facilities; he doubles sales, and I keep the same dealer count. It's a win-win situation." Read more from Automotive News.

Banks Buy $2.37 Billion More in GM Shares

General Motors inched further forward in its effort to repay taxpayers, announcing Friday that the banks backing its historic initial public offering had exercised their right to buy an additional block of shares in the restructured automaker. The banks' move expanded the auto giant's IPO by 15 percent to $23.1 billion, making it the largest in global history and bringing the company about $2 billion closer to returning the $49.5 billion spent on its bailout. The government still owns about one-third of GM. The stock price needs to hit around $50 a share for taxpayers to break even. GM debuted at $33 a share, and on Friday, in a holiday-shortened trading session, the stock closed at $33.80. It remains unclear whether taxpayers will recover all of their investment in the company, but Friday's announcement means the U.S. government has moved closer to that goal. Read more from The Washington Post.

Chevy Volt Tops Prius in Fuel Economy Rating

General Motors Co said on Wednesday its Chevy Volt plug-in hybrid will carry an overall fuel economy rating of 60 miles per gallon, topping the Toyota Prius, the industry's long-time fuel economy leader. GM has begun to assemble the long-awaited Volt at a Detroit-area factory, with initial sales expected in December. The EPA fuel-economy rating, which will be displayed on stickers on each Volt sold, was one of the last hurdles for a vehicle that GM has made the center of its effort to restart its reputation for technology and innovation. Capturing the fuel-economy leadership from Toyota Motor Corp's hybrid Prius will give GM bragging rights it has sought throughout the Volt development effort. The EPA gave the Volt a "miles-per-gallon-equivalent" -- or MPGe -- rating of 93 in all-electric mode, just below the rating of 99 for the Nissan Leaf assigned earlier (last) week. Read more from Reuters.

EBay is Showcase for Kia Dealers

Kia Motors America is showcasing dealers' new-vehicle inventory on eBay to create exposure for its vehicles and generate sales leads for dealers. Early last week, 345 of Kia's 725 U.S. dealerships had signed up to list their entire new-car inventories on a Web site set up by eBay. Kia began listing vehicles Nov. 1 and launched the program Nov. 22. Don Hobden, a partner in five Kia stores in Kentucky, Indiana and Alabama and chairman of the Kia National Dealer Council, says the program is a good deal for Kia dealers because it is funded completely by Kia. Dealers will pay a fee of about "$15 to $18" per lead, he says. "All of the cost of the logistics and set-up, Kia has borne. For dealers, it's a no-brainer," says Hobden. "EBay's name recognition comes at a premium. A lot of people across the country look for an automobile on eBay." The new vehicles are accessible on eBay by searching for a Kia vehicle or by going to www.kia.ebay.com. Read more from Automotive News.

Buoyed by EV, Mitsubishi Will Add 26 Dealerships

Mitsubishi plans to add 26 dealerships as it prepares to launch its "i powered by MiEV" electric vehicle in late 2011 and works to rebuild its shrinking U.S. retail network. The struggling automaker aims to fill points in cities where stores have closed in recent years, leaving Mitsubishi owners without a local dealership for service, spokesman Maurice Durand said. But some of the areas will be new for the brand. Seven of the new stores will be in California and three will be in Texas. The rest will be spread throughout 11 other states, mostly in the East or the far West. Read more from Automotive News.

Once Coveted, Now Orphaned

Last month was the end of the line for yet another American automotive brand. Assembly plants produced the final vehicles to carry the Mercury nameplate, an unceremonious end for a marque that had been introduced in 1939 as an upscale companion for basic Fords — but more recently allowed to atrophy to little more than a selection of lightly modified Ford sedans and S.U.V.’s. Still, Mercury leaves behind a history peppered with compelling and even innovative cars that at once conveyed a clear message: based on Fords, but better. Read more from The New York Times.