Oct. 18, 2019
Visit Us | Subscribe

Top Stories

GM Workers Staying on Strike as Members Vote on New Contract
The United Auto Workers will continue striking against General Motors Co. until a tentative deal is ratified by members, extending its walkout for at least another week. Voting on the proposed contract will begin Oct. 19 and ballots will be due by Oct. 25, Brian Rothenberg, the UAW’s spokesman, said during a press conference Thursday in Detroit. The strike began Sept. 16 and has cost GM an estimated $2 billion. GM shares fell 0.5% to $36.02 in late trading. The stock is down about 7% since the strike began.
Source: Bloomberg

UAW-GM Tentative Agreement Lays Tough Pattern for Ford, FCA
The United Automobile Workers' proposed tentative agreement with General Motors Co. is expected to set the "pattern" for the automaker's crosstown rivals to follow, and the framework laid Thursday—if ratified—would be expensive for the other two Detroit automakers. Both Ford Motor Co. and Fiat Chrysler Automobiles NV have signaled they want to cut costs during contract negotiations.
Source: The Detroit News

Many CPO Shoppers Also Considering New—But It Depends on Vehicle
That certified pre-owned shopper on a dealership lot may be willing to shift over to the new-car department. The number of people shopping for CPO vehicles is 25% higher than it was three years ago, and many of them haven’t ruled out buying new, according to a Shopper Trends Snapshot from Cox Automotive. But whether or not a CPO shopper will consider looking at a new vehicle too may depend on the category, segment and/or model he or she is browsing. Sixty-eight percent of overall CPO intenders said they are open to buying a new vehicle, Cox Automotive said, and the rate is even higher (73%) among luxury shoppers.
Source: Auto Remarketing

Auto Industry's D.C. Agenda Hinges on Trump-Pelosi Relationship
Automakers' hopes for congressional approval of President Donald Trump's proposed replacement for the North American Free Trade Agreement are resting on a Capitol gripped by a looming impeachment fight setting aside partisan bickering long enough to compromise on a trade pact. Democratic leaders have suggested that they can work with Trump on the trade pact, known as the United States-Mexico-Canada Agreement, or USMCA, even as they attempt to impeach him. But labor leaders have attempted to pump the brakes and most observers are skeptical that Democrats, who control the U.S. House of Representatives, will want to give the president a win heading into an election year.
Source: The Detroit News

Quotable

“In taking a closer look at model-level cross-shopping, there are varying degrees of CPO to new alternate version cross-consideration. On average, CPO truck shoppers are more likely to shop the new alternative, whereas CPO sedan shoppers are less likely to shop the new model version.”

– Cox Automotive, in the company’s Shopper Trends Snapshot report, Auto Remarketing, Oct. 17

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

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

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

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