Lawmaker, NADA to GMAC: Floorplanning at Crossroads
WASHINGTON — U.S. Congresswoman Candice Miller (R-Mich.) and National Automobile Dealers Association (NADA) chairman John McEleney have undertaken separate campaigns to extend a program designed to provide floorplanning credit to Chrysler dealerships.
Up to 140 dealerships will be adversely affected when the initial six-month term ends on Nov. 15. The program began after GMAC became Chrysler’s captive lender in the wake of the OEM’s May bankruptcy filing. The facilitation of interim floorplan financing was part of an agreement between the two companies, the Obama administration and Chrysler Financial, which will cease operations in 2011.
Miller has been working to gather more signatures for her letter, which will be mailed to GMAC and Chrysler Financial as early as today.
NADA’s McEleney wrote to Chrysler Group CEO Sergio Marchionne, warning that the automaker is at risk of losing “a substantial portion of its retail network” — namely, those dealerships that were turned down for floorplanning by GMAC or don’t expect to be approved by the Nov. 15 deadline.
McEleney urged Marchionne to broker an intercreditor agreement between the two lenders and extend the program by 12 months. The full text of his letter can be found at NADA.org.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →