Industry news, dealer interviews and professional articles.

A friend who owns a few stores on the east coast just emailed in a request for help, and since the government loaning our industry money affects everyone, we thought it made sense to share.  If you support the government helping our industry, this is particualrly for you.

There is a simple form to fill out, on Congress.org, that will publish and send your message to the Politicians in DC who are making the decisions about providing loans to our industry. Dealers around the country who support government help are soliciting as many voices as possible to send a quick 2 sentance note of encouragement to the White House.  If you support this cause, please act now.  DrivingSales members are on both sides of the argument, but one thing is certain, the governments actions (or inactions) will affect us all.

I encourage you to make your voice heard. Follow this link, complete the form (it takes about 30 seconds) and get your message to the decision makers.

http://www.congress.org/congressorg/issues/alert/?alertid=12313996&type=ML

Here is a sample message that one dealer wrote:

"My father has been an automobile dealer since 1976 and my grandfather for 30+ years before then. More than 280 employees depend upon our family for a paycheck every Friday. I am merely one of 23,000 automotive dealers in the United States that will be adversely affected if anyone of the big 3 declares for bankruptcy. Each state depends upon us to collect sales tax revenue on the sale of new and used vehicles, the maintenance repairs of consumers needs and the collision repairs for their accidents.

The House and the Senate won’t help Detroit survive this economic crises, but the President can. If he does not act, we all fail, because the rippling effect throughout our economy will be devastating.
Thanks for your support.”

Please take 30 seconds and let your voice be heard, this affects you:

http://www.congress.org/congressorg/issues/alert/?alertid=12313996&type=ML

PS: if you support this cause and would like this announcement to continually be bumped to the top of the home page please leave a comment of your support below.  Each comment will bring the post back to the top.  You must be a logged in member to comment.  If you are not registered do so here.

Technorati Tags: auto industry crisis, Bailout, GM Bankrupcy

General Motors announced today that it would delay incentive payments to dealers by 7-14 days to conserve cash. The move could save them quite a pretty penny, but it could also cost dealer dearly as they too are penny pinching. Its a sad day when the auto manufacturers have to say, “its them or us.”

Where will it end? If they delay incentive payments 1-2 weeks, will they do the same for warranty receivables soon? Will the 2 weeks turn into 3? Its a slippery slope, who knows where it will end. In what is somewhat of a fair comparison, can you imagine if you called GMAC and told them you couldn’t pay off your flooring on your next few vehicles and you needed an extra two weeks and all would be fine? They would have auditors in your dealership before you could hang up the phone to collect every downpayment check or cash receipt your store brought in. Its a sad day when you cant even trust your manufacturer. I hope this gets figured out soon.

Here is the letter GM sent to their dealers:

To All Dealers:

I am writing to you to update you on changes we are going to implement with regard to the incentive payment schedule.

As I discussed in the IDL last week, one of the biggest issues facing General Motors is our liquidity. That is the cash we have on hand to pay for our regular operating expenses.

In this cash crunch, we have examined every aspect of our business in an effort to improve cash flow, including our relationships with all of our key stakeholders, like suppliers, agencies, employees and dealers. In this regard, we are implementing minor changes to incentive payment timing. So, what does this mean for you? Basically we are delaying the payment of the incentives by two weeks. Here is the new schedule that will be in effect until further notice:

· Incentive applications previously scheduled to be paid on November 28th and December 4th will be delayed to December 11th and December 18th respectively. Please see the attached payment schedule.

· Weekly incentive payments will continue thereafter reflecting one week of dealer application activity. On average, payments will be made approximately 2 - 3 weeks after a valid dealer application has been processed by GM. Effectively this is a 2 week delay from the current schedule.

· As a result of this retiming you will not receive any incentive payments on November 28th and December 4th.

This liquidity crisis has an obvious effect on all of us. As you are aware we are asking the federal government for some temporary relief. I need your continued help in talking to Congress. There are three things you need to ask your congressional delegation for:

· First, ask the government officials to approve a new $25 billion loan package to help us deal with our current liquidity crisis.

· Second, while the rules for the distinctly separate and already approved $25 billion loan package for investments in technology and enhanced fuel efficiency have been issued, we’d like to see that program move as fast as possible, so we need to encourage the government to minimize red tape and act on loan applications as quickly as they can.

· Third, the automotive industry needs some additional government support to stimulate retail sales, like making interest on car loans tax deductible, etc.

We’ve set up a website that will assist you in making your voice heard in Congress and to help spread the message. Please visit www.gmfactsandfiction.com. If you have not already done so, please call and e-mail your congressional representative.

This is a critical time for our industry, your dealership, and General Motors. Please continue to do what you do best, selling vehicles one customer at a time. Please make every effort to integrate your promotions with the recently announced Red Tag sales event.

Together we can work through this crisis. As always, thank you for all of your hard work and effort.

Good Selling.

Mark R. LaNeve

source:http://www.autonews.com/apps/pbcs.dll/article?AID=/20081117/ANA02/811170253/1142

Technorati Tags: bail out, general motors, GM

Car Shoppers on innovative Web2.0 automotive website can see when dealers are available to answer questions and connect instantly, even from work.

www.contactatonce.com

WASHINGTON – Top Republican senators said Sunday they will oppose a Democratic plan to bail out Detroit automakers, calling the U.S. industry a “dinosaur” whose “day of reckoning” is coming. Their opposition raises serious doubts about whether the plan will pass in this week’s postelection session.

Technorati Tags: automaker bailout, chrysler bailout, ford bailout, gm bailout

As Detroit’s crumbling auto industry asks Congress for a bailout, Chrysler is in the awkward position of paying about $30 million in retention bonuses to keep top executives while the company cuts thousands of jobs.

Source: Detroit Free Press

Technorati Tags: auto industry woes, chrylser bailout, executive compensation

Technorati Tags: job search, myspace hiring, social media

LIVE X AUTO EXCHANGE™ TO LAUNCH FIRST AUTO TRADING PLATFORM
Exclusive pilot brings experiential auto retail platform to Walmart customers

PHOENIX, Ariz. – (October 7, 2008) – LIVE X Auto Exchange™, an all-new online trading platform dedicated to the automotive category, today announced the launch of its first concept stores inside select Walmart Supercenter locations in the Phoenix metropolitan area. In an exclusive pilot program with Wal-Mart Stores, Inc., LIVE X Auto Exchange will begin to offer electronically enhanced auto trading services that bring an entirely new retail experience to consumers.

Patrick Dial, founder of LIVE X Auto Exchange and a 20-year veteran of the live entertainment industry, said, “Our Walmart-based Trading Floors are essentially marketing centers for pre-owned vehicles, auto-related products and services, as well as for the all-new LIVE X brand. Walmart customers who visit a LIVE X store can not only expedite the process of buying and selling a vehicle, but also enjoy a fun, easy, and altogether different experience in the process. And, they already know they’ll get a great price. Given today’s economic environment, I believe this is exactly the promise of value that car buyers everywhere have been looking for.”
Using LIVE X’s specially-designed interactive technology, customers inside stores can sign up for a free LIVE X Online Personal Trading Account that will provide them ongoing access to a vast electronic auto trading system. LIVE X Trading Assistants are also stationed at each store to help customers navigate the system, post their vehicles for sale (using fair market assessment tools), offer trade-ins, and help find the just right vehicle to purchase.

“We help customers leverage the power and efficiency of the Internet so buyers and sellers can find each other faster and without the normal cost structures of middlemen or the overhead of a dealership,” said Dial. “The LIVE X trading system puts control back in the hands of consumers and will change the way people think about the auto trading experience.”

LIVE X offers a “No Haggle, One-Price” pricing structure on most of the vehicles in its online inventory. Additionally, LIVE X provides access to a wide range of strategic partners to help customers find competitive vehicle financing and auto insurance. LIVE X breaks the traditional vehicle buying and selling mold by automating a free-market trading process, simplifying vehicle pricing, leveraging “just-in-time” inventory flow and providing a one-stop shop for value-added products and services.
LIVE X’s initial two Phoenix-based pilot stores will be located in Chandler, Ariz. near Loop 202 and Arizona Ave. and in Mesa, Ariz. at Greenfield Road and I-60. The first phase of the LIVE X rollout is scheduled to be complete by the end of October 2008.

About LIVE X Auto Exchange™

LIVE X and its parent corporation, Intelligent Service Group, LLC, are in a unique and exclusive relationship with Walmart Corporation. LIVE X is an all-new online trading platform dedicated to the automotive category. Stores are located exclusively at select Walmart Supercenters in the greater Phoenix area and function as marketing centers where customers can Sell a car for more, Buy a car for less and Save on everything from auto insurance to GPS systems and satellite radio. For more information, please visit www.livexautoexchange.com.

Technorati Tags: live x auto exchange, wal mart selling cars

Identity theft, phishing, viruses – oh my! Online users face many challenges in protecting their finances and privacy.

Q: What is identity theft? How does it happen?
Identity theft is a fraud committed or attempted using the identifying information of another person without authorization. Using someone else’s identity to make unauthorized charges or bank transfers, open new accounts, take out loans, send email, or file taxes; these are all examples of identity theft.

Q: How often does it happen?
Last year approximately 10 million people were victims of identity theft.

Q: What should I do to protect myself?
Monitor your accounts frequently - the longer a breach goes undiscovered, the more costly it can become. Check your bank and credit card balances often, and choose unique passwords for your accounts.

Q: What should I do if I think my identity has been stolen?
Close any compromised account, and contact your bank or credit card company, as well as your local law enforcement. Also contact the three major credit bureaus – Equifax, Experian and TransUnion – and ask them to place a fraud alert on your account.

Q: How can I protect my computer?
Install all security patches as soon as they’re available, run antivirus software frequently, and set up a firewall to keep intruders out.

Q: What are spoof and phishing?
Spoof and phishing (pronounced "fishing") are terms for emails or websites that look like they’re from a legitimate company, but are actually from identity thieves. The emails warn of account problems to trick you into entering your information either in the email or on a spoof website. Here is PayPal’s Spoof Tutorial to learn how to identify fraudulent emails.

Q: Does being phished or getting a spoof email mean my identity was or is going to be stolen?
No – as long as you didn’t enter any information, your identity probably wasn’t stolen.

Technorati Tags: email fraud, identity theft, spoofing

The social web is no longer a buzz word it is a way of life.  People from all walks of life are engaging online each other.  From grandparents keeping up with long distance grandchildren to business associates keeping tabs on each other at sites like www.linkedin.com. 

Social web applications are built to encourage communication among people.They serve one of more of the following purposes:Courtesy wikipedia.com

• Identity: who are you?
• Reputation: what do people think you stand for?
• Presence: where are you?
• Relationships: who are you connected with? who do you trust?
• Groups: how do you organize your connections?
• Conversations: what do you discuss with others?
• Sharing: what content do you make available for others to interact with?

Using the social web as a marketing channel can be identified in two forms.  Advertising and engagement. 

Advertising can be accomplished using PPC advertising targeted at specific sites, buying traffic at sites like stumbleupon.com and demographic targeting at sites like facebook.com

Engagement is connecting with the users on various social networking sites and establishing yourself as a point of reference in your areas of expertise while also providing value and freindship to your connections.

Here is what a Boston cab driver had to say about Web 2.0 and how he uses it: Courtesy Hubspot.com

Web 2.0 Quotes from a Boston Cab Driver

• I got a new 3G iPhone because I am in my cab all day and it is like a laptop for my cab.
• I use Classmates.com a lot to catch up with people from school and find old friends.
• I forgot my phone today and I am going crazy without it.  Usually I am chatting on MSN with my friends all day.
• The new Apple store in Boston is beautiful, I love it.  I love everything Apple does.
• Have you heard of Hi5? I am from Cape Verde and all my friends are on it.  I have also met new people there.  It’s great. 
• Have you gone to AppleRumor.com?  I always check it out to find out what new stuff Apple might be doing.
• I can live without TV.  I cannot live without the Internet.  I am addicted to it.

Stay connected with auto industry professionals at DrivingSales and get involved on the social web.

Technorati Tags: social networking, the social web

As Troubled Lenders Head for the Sidelines, Credit Unions are Leveraging New Strategies for Growing Market Share and Managing Portfolio Risk

ALAMO, Calif. and LOS ANGELES (October 14, 2008) – A new partnership announced today will make it easier for credit unions to increase the size and scope of their auto lending business and more effectively and efficiently manage portfolio risk.

An agreement between Global Debt Network Automotive (www.gdnauto.com) and CU Lending Solutions, LLC, (www.culendingsolutions.com) opens the door for credit unions to expand their auto loan business into fast-growing non-prime segments and extend their reach and income stream beyond their local geography by selling and buying seasoned auto loan portfolios.

More than 40 million used cars are sold in the U.S. each year, with some 8 million of them to low- and moderate-income car-buyers, according to the Consumer Task Force for Automotive Issues.  That number is expected to increase dramatically as a struggling economy and higher gas prices drive car-buyers to purchase less expensive, more fuel-efficient used cars.

As the new-car lending market declines, credit unions increasingly are seeking ways to serve this fast-growing segment of car-buyers.  A recent study by the National Credit Union Foundation affirms that, “Non-prime auto lending represents a substantial nearby opportunity for not-for-profit credit unions to expand their markets, build net income, and attract new loyal members by giving them a substantially better deal.”

“As more Americans seek out used vehicles, dealerships need new financing partners to help them serve a much larger universe of customers and offer a far more diverse set of loan products than they have in the past,” said Mike Sheridan, founder and president of GDNAuto, the first nationwide online loan portfolio transaction platform.  “At the same time, credit unions and finance companies are discovering there are ways they can serve this population and do so quite efficiently and profitably by selling their seasoned loans or balancing their risk by purchasing loans from other geographies.  Global Debt Network a convenient online marketplace where dealerships and lenders and investors can turn to help meet their business goals.” 

CU Lending Solutions works with credit unions and finance companies custom-develop, build and operate auto lending businesses that deliver sustained value.

“Increasingly, credit unions are more comfortable reaching out to serve this population of borrowers because they have access to an array of tools, services and resources that help them connect with new dealerships and better manage the financial and operational risk associated with indirect, non-prime loan portfolios,” said Frank Mercer, president and CEO of CU Lending Solutions LLC.  “This partnership extends the market reach of both companies and provides auto dealers and lenders with an efficient way to originate more loans and convert the seasoned loans they have originated into cash to fund their operations.”

Developed and tested in collaboration with automobile dealers, dealer associations and portfolio buyers, GDNAuto uses an innovative dashboard-style control panel that enables loan originators to list and price the seasoned loans they want to sell to pre-screened banks, credit unions and other investors.  Using GDNAuto, dealers can take control of their seasoned portfolio sales by setting their preferred terms, selecting the buyer with the purchase terms that match a dealer’s needs, and monitoring the status of the entire process – instantly.  GDNAuto even helps dealers manage the due diligence paperwork and facilitates closing and funding – all within a confidential, secure environment.

Banks, credit unions, hedge funds and other pre-qualified investors use their own secure GDNAuto filtering tool to specify the types of loans they want to buy. Investors can review dealership portfolios, select the loans they want and submit a bid for consideration.  Once approved, GDNAuto expedites the due diligence process and tracks every aspect of closing and funding to ensure a seamless transaction.  Since GDNAuto was launched in June 2008, more than 90 buyer and seller members have registered and more than $60 million in auto loans have been listed.

For more information or to create a GDNAuto account, visit www.gdnauto.com or call 1-866-559-4339.  For details about CU Lending Solutions, LLC, visit www.culendingsolutions.com.

About Global Debt Network, Inc.

Based in California with offices in Alamo, Calif. and Los Angeles, Global Debt Network, Inc. is a privately held company that simplifies auto finance by offering GDNAuto, the first nationwide online loan portfolio marketplace where automobile dealers, banks, credit unions, hedge funds and other financial institutions can come together to securely evaluate, price, sell and purchase asset-backed debt.

About CU Lending Solutions, LLC

CU Lending Solutions is a premier lending strategy and operations firm that helps credit unions and finance companies develop, build and operate strong auto lending businesses that deliver sustained value.  The privately held company is based in San Diego and has offices in Tampa, Fla.

Technorati Tags: credit union automotive lending, cu lending solutions, global debt network automotive