As a result of the challenging economy, VADA Dealer Members face “collateral” challenges. These include the impacts of tightening credit (for consumers and dealers), rumored merger talks between GM and Chrysler, increased strong-arm tactics by manufacturers, and more.
Your Association remains vigilant in assessing these potential threats and has been proactively seeking ways to help you through them.
The Credit Crunch
Over the past year VADA has been as alarmed by the credit crisis as our dealers have been. We have been working with media outlets to first and foremost get the message out that credit is still readily available for consumers who want to purchase vehicles. Often the media will hear something that is very narrow in focus (such as the GMAC decision on significantly tightening their lending requirements for car buyers) and will paint our entire industry with the same brush.
We have been successful in getting our message out in many subsequent follow-up stories to help combat this.
Team VADA is also working with media providers, including newspaper, radio and cable television, to develop public service announcements to highlight the availability of credit. We are developing our own PSAs with the industry which will be available in coming weeks and working with the media trade associations to get them out.
Team VADA has also been meeting with the Virginia Bankers Association and the Virginia Credit Union League to marshal their members to our cause. These trade associations are working closely with us to help their members forge closer working relationships with our dealers and to open up new sources of credit, both for dealers and consumers
The GM/Chrysler Merger Rumors
It does appear that GM and Chrysler are in serious discussions about a possible merger. We understand clearly that this will impact many of our Virginia dealers.
Fortunately, in the wake of the Oldsmobile closure, VADA was able to champion legislation in Virginia to protect dealers’ investments. And we are developing new legislation which would strengthen these laws even further during the 2009 session of the Virginia General Assembly. We will need your help to see this legislation passed.
We are also scheduling VADA “Town Meetings” around the Commonwealth to provide you with an opportunity to share you insights and to help us develop effective responses.
VADA is monitoring all developments and considering various courses of action. We will keep you in the loop as we move forward.
Increased Strong-arm Tactics By Manufacturers
We are aware that as things get tougher on manufacturers, they are getting tougher on you. While we have powerful laws already in place to combat much of this (as your watchdog, we used the protections to challenge the programs of six manufacturers this summer), we are developing new legislation to strengthen these protections further.
Once again, we will need your support in order to see them enacted into law. Our annual “Assault The Hill” event will be held the morning of Wednesday, January 21, 2009. Please add it to your calendar now!
65 Years Of Fighting By Your Side
At our October Board Meeting we celebrated VADA’s 65th Anniversary. Your Association was formed on Oct. 28, 1943. Sixty-five years later we are still fighting by your side.
Team VADA remains committed to meeting dealer needs. In the past year we have held three legal seminars which were free of charge to our dealers (two dealt with simplifying Red Flag Rule implementation), have done a complete analysis and approval of 13 forms necessary for dealerships and negotiated reduced costing with ADP, and have focused on reducing dealer expenses in various other programs and in our insurance agency.
Please let us know what we can do for you. We are here to serve you.