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.

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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:

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According to the most recent Nilson Report ratings of U.S.-based check guarantee companies, National Check Trust is the 6th largest check guarantee company in the country. Additionally, the average check guaranteed by NCT is $750.00, which illustrates our commitment to specializing in guaranteeing large checks as opposed to small retail checks.

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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:

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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.

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In a previous post, we alerted you to NCT’s offer to the automobile industry for a free check guarantee and payment solutions consultation. As part of NCT’s commitment to the core industries we serve, we are also offering a free consultation to members of the furniture industry as well.

Below, you will find the press release announcing our free check guarantee and payment solutions consultation to companies in the furniture industry. The release received wide distribution earlier today thanks in large part to the fact that NCT’s free consultation offer comes at a time when many companies are looking for ways to improve their cash flow situation. In addition to many industry journals and publications, here are a few of the sites publicizing the latest NCT announcement:

• NCT Offers Free Check Guarantee and Payment Solutions Consultation to Furniture Industry – (MarketWatch via Business Wire)
• NCT Offers Free Check Guarantee and Payment Solutions Consultation to Furniture Industry — (EarthTimes.org)
• NCT Offers Free Check Guarantee and Payment Solutions Consultation to Furniture Industry — (Yahoo! Finance)

Here is the complete press release:

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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.

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National Check Trust is a proud supporter of the Foundation for Peace, and we are using our company picnic this weekend as an opportunity to generate proactive support in the form of a monetary donation.

The NCT company picnic, which is being held this weekend at CB Smith Park, features a raffle that all NCT employees have been encouraged to participate in. Raffle tickets were sold throughout this past week for $5 a piece, with two grand prize winners to be announced at the picnic.

Most importantly, 50% of the proceeds from raffle ticket sales will be donated directly to the Foundation for Peace.

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A sobering 2009 for the auto industry continued last week as GM announced it is cutting the Pontiac brand, 20,000 jobs, and thousands of dealerships across the country. The announcement of GM’s restructuring plan was accompanied last by news that Chrysler was filing for bankruptcy.

As this week begins, according to the Wall Street Journal, GM is expected to continue working every angle possible to stay out of bankruptcy court. In addition to continued talks with the UAW about it proposal to close 2,600 dealerships, GM is also expected to talk with banks holding secured debt in hopes of working out deals to reduce its debt burden.

According to the WSJ, the U.S. Treasury Department is giving GM until June to finalize the details of its restructuring plan. If GM can negotiate the right deals, it may be able to avoid bankruptcy. If not, the company is likely to suffer the same fate as Chrysler.

Interestingly, a prominent owner of Pontiac, Buick, and GMC dealerships in Michigan has reportedly made GM an offer to buy the Pontiac brand. According to ABC12 news in Michigan, Jim Waldron has put together a team of investors willing to buy vacant plants and to hire workers to continue Pontiac production. The amount of the offer was not disclosed.

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MIRAMAR, Florida – May 5, 2009 — National Check Trust, Inc. (NCT) has been the premier check guarantee and payment solutions provider to the automotive industry since 1991. Since late 2007, when the automotive industry began its downward trend and posed new economic challenges, NCT’s clients turned again to the company they trust to help them decrease cost and increase cash flow. NCT answered the call and their immediate response was to give many of their clients a gifted back credit at the end of 2008.

“In response to the crisis, NCT is also taking things a step further in offering a no-cost, in-depth consultation to the industry at large,” said Jeanine Goodstein, Vice President of Sales & Marketing for NCT. “As the automotive specialist, we’re deeply committed to this industry and recognize that we are all in this together. We want to offer support to every company in the business, not just our own client base,” she continued.

National Check Trust, Inc.’s business model was designed specifically to maximize revenue and minimize risk.

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