 |
Why NCT?
Executive Team
Merchant Services
Mission
History
Company Profile
FAQ's
Automotive
Building
Furniture
Heavy Equipment
Other Industries
Benefits
Available Positions
Submit Resume
Disaster Recovery
|
||||
From time to time we like to use this space to highlight important events in the lives of our clients. Recently, one of our clients, Penske Automotive, announced that it is opening a new MINI dealership in Arizona.
Here are the details:
Cash for Clunkers has been incredibly popular from a consumer standpoint, with 457,000 cars being traded in thus far for a total rebate of $1.9 billion. As the Cash for Clunkers program approaches $3 billion, however, the funding is running dry and the plug is being pulled.
Auto dealers take note: the deadline to submit any pending Cash for Clunkers deals, including all paperwork, is 8:00 pm ET on Monday, August 24th.
The Car Allowance Rebate System — better known by its nickname “Cash for Clunkers” — got underway yesterday with many auto dealers holding out high hopes that it could spurn better times. As expected, reviews for the program have been mixed.
We’ve compiled some of the up-to-date news about the C.A.R.S. program, with links and excerpts below. Additionally, to find out the list of dealers participating in the “Cash for Clunkers” program, follow the link to CARS.gov dealer locator.
We are checking in this afternoon with a quick update on the latest news in the ever-evolving auto industry landscape.
Saab Buyers Narrowed Down to Two
Saab recently announced that its list of potential buyers has been narrowed down to two. The two buyers purportedly are Swedish car maker Koenigsegg and the U.S.-based investment firm Renco Goup. Negotiations between the final two potential buyers for Saab are expected to begin this week with a decision expected sometime in the next two weeks.
The June 4th edition of Dealer Digest Daily provides some helpful hints, tips, and how-tos for improving an auto dealership. The article is written by Sherralyn Peterson, an automotive incentive specialist who contributes to Dealer Digest Daily.
Here are her 6 tips:
One of NCT’s most valued customers recently came out in support of the plan announced by GM to close many dealerships across the country. In a press release, AutoNation Chairman and CEO Mike Jackson called the dealership consolidation plan by GM a “difficult but positive step that will strengthen America’s dealer network and improve dealer profitability over the long term.”
From the press release detailing AutoNation’s support for GM’s dealership consolidation plan:
AutoNation, Inc., America’s largest automotive retailer, today announced that General Motors notified AutoNation that six of its dealerships were identified for potential closing by GM. The notification is part of GM’s communication today to approximately 1,100 dealers that GM does not expect to continue as GM dealerships past October 2010. The AutoNation stores potentially impacted by the consolidation plan represent 0% of AutoNation’s 2008 operating income. AutoNation does not believe that any one-time charges that may be associated with these actions will be material to its continuing operations or debt covenants.
With Chrysler already embroiled in bankruptcy, GM has been trying to avoid
the same fate. However, GM came one step closer to bankruptcy being a reality with the news this morning that its attempted debt-equity swap had failed to get the targeted amount of 90% of bondholders to swap their debt.
According to Bloomberg reports this morning, bankruptcy is now “imminent” for GM. Many analysts have also expressed no surprise that the debt-equity swap was a failure. The following is an excerpt from the Bloomberg report by Caroline Salas on the failed debt-equity swap transaction attempted by GM:
Earlier today, we became aware of a petition that has been started in support of the nearly 800 auto dealers that were recently terminated by Chrysler, which is already operating under bankruptcy protected. According to the most recent reports, Chrysler still plans to cut an additional 2400+ dealers in the future.
An online petition has been started in support of these terminated Chrysler dealers at Petition2Congress.com. Each petition signature sends an email to your U.S. Senators and your Congressman. Here is an excerpt from the body of the petition, copy/pasted as it appears on the petition itself with all caps:
Last week, we discussed a few of the myriad challenges currently facing auto dealerships across the country, namely that thousands of them would likely be closing in the near future. Unfortunately, that harrowing prediction has come to fruition as GM and Chrysler combined have informed nearly 2,000 dealerships across the country that their franchise contracts will not be renewed once they expire.
For many Chrysler dealers the announcement, while surely disappointing, is not a death knell to their business, as many sell other brands and can continue business. Many GM dealers, however, sell only GM cars. Thus, today’s announcement that GM is cutting 1,200 dealers by not renewing franchise agreements means that those dealers will be forced to shut their doors in the near future.
As the automotive industry continues to work through its struggles, an alliance of manufacturing industry groups is taking to the streets to rally support for the American auto manufacturing industry.
The “Keep It Made in America” bus tour is touring 34 cities for which manufacturing, specially in the automobile industry, is an economic bedrock. Among the sponsors for the tour are the Alliance for American Manufacturing, the Mayors and Municipalities Automotive Coalition, and the United Steelworkers.
United Tranz*Actions was formed in 2010 as a merger between National Check Trust and American Check Management. UTA is a premier check guarantee services and payment solutions provider. Headquartered in Miramar, FL, UTA offers highly customized check guarantee services and programs, integrated customer support, and innovative systems. Contact us today to learn more.
