GMMDA Friday News Flash
News from the Premier Minority Dealer Association in the Industry
A weekly e-publication of the GM Minority Dealers Association
Friday, September 10, 2010


Auto dealers experiencing the shortage of high-quality used vehicles across the country are expanding their reach with a virtual online inventory of vehicles from SmartAuction, Ally Financial's online wholesale remarketing auction site. This increasing demand has allowed SmartAuction to out-perform the industry by recording a nearly 14 percent increase in dealer-to-dealer online wholesale transactions in the United States for the first six months of 2010 compared to the first six months last year. According to the National Auto Auction Association's (NAAA) latest Auction Industry Report, wholesale transactions of dealer-owned vehicles were up 6.9 percent across the industry. In addition to the sizable increases in SmartAuction's active dealer base, average monthly postings per dealer are more than double what they were last year. Source:, Sept. 8, 2010


General Motors plans to start trading shares again on Nov. 18, timing that allows the company one more quarter of earnings to build its case to investors, a firm that researches initial public offerings said Thursday. Scott Sweet, the managing partner of IPO Boutique, said GM plans to price the shares on Nov. 17 and begin selling them the next day. He said the automaker wants to start a two-week a road show to drum up investor interest on Nov. 3, the day after the midterm congressional elections. It's unclear if the IPO dates have been finalized. Two people with knowledge of the process say the automaker's board hasn't approved a date for the IPO but is expected to meet next week to discuss the issue. GM is in a "quiet period" before an IPO, so no one is authorized to discuss the process publicly. The company filed paperwork for an initial public offering with federal regulators last month. GM spokeswoman Renee Rashid-Merem declined to comment Thursday on the timing of the IPO. Source:, Sep. 9, 2010


For years, Americans shopping for cars were treated to all sorts of deals and incentives, especially at the end of summer. Think Cash for Clunkers, which paid up to $4,500, or promotions that offered employee discounts to everyone. Deals are getting more scarce because automakers, newly lean and profitable, are holding the line on those profit-eating promotions. In July, they offered $1,000 less in incentives per car than a year earlier, according to And with no one expecting the government to offer a repeat of the clunkers program, get ready for fewer discounts on your next car. "This may be as good as it gets, and get used to it," says Jeff Schuster, the executive director of forecasting for J.D. Power and Associates. The standoff between buyers and car makers could continue through the rest of the year, says Jesse Toprak, TrueCar's vice president of industry trends and analysis. "We really need some sort of catalyst to take us up to a higher level," he says. Others say a healthier economy -- not incentives -- is the only real driver for higher sales. Source:, Sept. 9, 2010


The number of people killed on U.S. highways fell last year to the lowest level since 1950, the U.S. Transportation Department said, crediting seat-belt use and campaigns to combat drunk-driving for the decline. Fatalities in motor-vehicle crashes in 2009 fell to 33,808, a 9.7 percent decline from a year earlier, the National Highway Traffic Safety Administration said today in a statement. The decrease came as people in the U.S. drove 0.2 percent more than the year before. The death rate fell to 1.13 deaths per 100 million vehicle miles traveled in 2009, compared to 1.26 deaths for 2008, the agency said. "Today's numbers reflect the tangible benefits of record seat belt use and strong anti-drunk driving enforcement campaigns," NHTSA Administrator David Strickland said in the statement. "But we are still losing more than 30,000 lives a year on our highways, and about a third of these involve drunk driving." Source:, Sept. 9, 2010


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This Week's Flash
Dealer to Dealer Online Auction Sales Reflect Market Pull for Used Vehicles
Global Auto Industry Outlook Dims as U.S., China Markets Slow
Consumers Find Auto Deals, Discounts Thing of Past
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ADP Total Dealer Spend Analysis
Newtek Business Services - The Small Business Authority
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Congressional Hispanic Caucus

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Congressional Black Caucus

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NADA Washington Conference

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