Oct. 17, 2019
Visit Us | Subscribe

General Motors Franchise Meetings to Take Place on Monday, Feb. 17

When scheduling travel for this year’s NADA Show in Las Vegas, General Motors dealers should take special note to plan to stay for General Motors franchise meetings, including Buick-GMC, Chevrolet and Cadillac, which will be held on Monday, Feb. 17, 2020. Learn the latest updates and changes happening with your franchise, talk directly to automakers about your concerns and get to know other successful dealers under your brand. See the exact times for each make’s meeting on the NADA Show website. Then, don’t miss General Motors Chairman and CEO Mary Barra, as she delivers the closing keynote address, “Building a Stronger Future for Customers, Dealers and General Motors,” on Monday at 2:30pm at the Las Vegas Convention Center. NADA Show 2020 takes place Friday, Feb. 14 through Monday, Feb. 17. Learn more and register today to secure your spot at the Auto Industry Event of the Year.
Source: NADA

Top Stories

GM Has a Deal, But End to UAW’s Strike Could Still Be Weeks Away
The good news is General Motors Co. has a tentative agreement with the United Auto Workers to end a 31-day strike that has cost the company an estimated $2 billion. The bad news is 48,000 striking workers could stay out during a ratification vote that could last another two weeks. On Thursday, the union’s local presidents and chairman—roughly 200 officials—will decide whether to put the tentative deal to a vote of the entire membership and if workers will return to their jobs before ratification.
Source: Bloomberg

Ally Gets Boost from Consumer Spending, Used-Vehicle Prices
Auto originations rose for Ally Financial Inc. in the third quarter, driven by demand for leases and for loans on new General Motors products. For the seventh consecutive quarter, used vehicles accounted for at least half of Ally's auto originations. Ally CFO Jenn LaClair said on a call with investors that steady interest rates, healthy consumer spending and strong used-vehicle prices helped maintain Ally's growth in the quarter.
Source: Automotive News

Ford Launches Two Major EV Charging Initiatives
Ford Motor Co. plans to offer customers of future electric vehicles access to the Electrify America network of charging stations and will partner with Amazon to install at-home outlets once its first long-range EV goes on sale next year. The automaker on Thursday laid out its charging infrastructure plans for the first time, roughly a month ahead of the planned introduction of a long-range EV crossover, expected to be called the Mach E.
Source: Automotive News

Volvo Reveals Its First Electric Car: XC40 Recharge SUV Makes Debut
Volvo revealed its first electric car on Wednesday as the automotive brand moves ahead with its plan to convert its entire lineup into electric or hybrid cars. The Swedish brand, which is owned by Chinese automaker Geely, debuted the Volvo XC40 Recharge SUV. If it looks familiar, that's because it's essentially a battery-powered version of the standard XC40. Another difference is a brand-new infotainment system using Google's Android operating system.
Source: USA Today

Ford Credit Launches Auto Insurance Discount Plan
Captive finance companies are joining the search for tools that leverage information about consumers' driving habits into discounts on auto insurance. Ford Insure, a product created by Ford Motor Credit Co., is being rolled out state by state, said CEO David McClelland. The product is underwritten by Nationwide Mutual Insurance and its affiliates.
Source: Automotive News

Quotable

“What you don’t want to happen is to end the strike, take the vote, lose the vote and go back out on strike. That’s a nightmare scenario for both sides, UAW and GM, because now you have no confidence as a bargaining team. So any new contract could be worse instead of better.”

– Arthur Wheaton, Cornell University Worker Institute director, Bloomberg, Oct. 16

Upcoming Seminars 

Advanced Service Management
Dec. 2-6
Tysons, Va.

Dealership Buy, Sell or Hold
Feb. 12-13
Las Vegas, Nev.

Upcoming Webinar

Using Radio to Sell More Cars
Nov. 13

DOL Issues Salary Changes to White Collar Overtime Exemptions

The U.S. Department of Labor has updated and revised the earnings thresholds necessary to exempt executive, administrative or professional (EAP or “white collar”) employees from the Fair Labor Standards Act’s overtime pay requirements. The new rule takes effect on January 1, 2020. The EAP exemption salary threshold will increase from $23,660 to $35,568 per year (or from $455 to $684 per week). The DOL will allow up to 10% of the new threshold to be satisfied by nondiscretionary bonuses or commissions. No changes were made to the EAP exemptions’ duties tests. In addition, the salary threshold for highly compensated employees (HCEs) will increase on January 1, 2020 from $100,000 to $107,432. The new rule will require that HCEs receive at least $684 per week in salary, but the remainder of their compensation may be in the form of nondiscretionary bonuses or commissions.

NADA’s Dealer Guide to Federal Wage and Hour, Child Labor and Wage Discrimination Compliance, available to NADA/ATD members only, has been amended to reflect these new changes. Please note that some state laws restrict how federal overtime exemptions may be applied. Questions may be directed to regulatoryaffairs@nada.org.
Source: NADA

Hyundai Global COO Jose Muñoz to Keynote AutoConference LA

NADA and J.D. Power are excited to announce a new addition to its keynote speakers for AutoConference LA. Jose Muñoz, Global chief operating officer of Hyundai Motor Company, will join this year’s lineup of C-suite speakers sharing insights on the future of the global auto industry. Also serving as president and CEO of both Hyundai Motor North America and Hyundai Motor America, Muñoz has more than 15 years of experience in the auto industry.
Source: NADA

NADA Announces Support for USMCA and Urges Swift Congressional Passage

If the USMCA is implemented, it will solidify a favorable trading relationship with Canada and Mexico and ensure the continuation of tariff-free exchanges of vehicles and auto parts across North America, the largest source of vehicles sold by U.S. dealers. Gilchrist praised the Trump administration for the framework it has negotiated with Canada and Mexico.
Source: NADA

Proposed Safeguards Rule Changes Aren’t the Right Path Forward for Dealers

The existing Safeguards Rule has afforded dealers the flexibility to employ data safeguarding tools that make sense based on the nature of our respective businesses. In contrast, the FTC’s proposed changes would dictate that all dealerships across the country implement all items on a long list of security tools and requirements.
Source: NADA