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MADA Press Conference at State Capitol - Wednesday, January 27, 2010

At a State Capitol press conference today, the Minnesota Automobile Dealers Assn asked Chrysler and General Motors to consider immediate reinstatement of dealers seeking reinstatement through Federal Binding Arbitration.

Scott Lambert, executive vice president of MADA, said the arbitration process is stressful and expensive for both the dealers and the manufacturers. "It would be a better use of these resources to reinvest in our businesses and work together to sell cars and service our customers," he said.

Dealers Partipate in Press Conference - Wednesday, January 27, 2010

George McGuire and Steve Whitaker participated in the MADA press conference at the State Capitol Wednesday to ask for reinstatement. From left, McGuire and Whitaker are interviewed by MPR reporter Annie Baxter.

Terminated Dealers To Meet With Experts About Franchise Reinstatement Fight - Monday, January 18, 2010

Minnesota dealers who lost, or are losing, a Chrysler or ongoing General Motors franchise as a result of the bankruptcy proceedings last summer are facing a very important decision: Do they want to face off against the factory in front of an independent arbitrator to try and get their franchise back?

Recently-enacted Federal legislation will allow affected dealers to elect binding arbitration no later than January 25, 2010.

MADA will host a meeting on January 19^th (10:00 a.m.; Bloomington Sheraton Hotel) to educate terminated and wind-down dealers about how to proceed in their franchise reinstatement fight. Once elected, the arbitration proceeding may take as long as 6 months.

MADA believes that cooperation among dealers seeking arbitration is the best way to maximize success and minimize costs. We also believe it’s crucial to bring highly qualified and experienced legal talent to the aid of the dealer side. Representatives from two prominent Twin Cities law firms, Leonard, Street & Deinard and Dady & Garner will share their expertise at MADA’s meeting, and be available to answer dealers’ questions about the law and the arbitration process.

Ultimately, the arbitrator must decide whether the franchise should be continued or reinstated based on a balancing of three economic interests: those of the dealership, the manufacturer, and the public at large. The law requires the arbitrator to consider these factors:

· Dealership’s:

o Profitability in 2006, 2007, 2008, and 2009

o Experience

o Current economic viability

o Satisfaction of the performance objectives

· Manufacturer’s overall business plan

· Demographic and geographic characteristics of the dealership’s market area

For some dealers, the decision to elect arbitration has been difficult. Arbitration – similar to litigation – can be very expensive. Costs of discovery, attorney’s fees, expert witnesses, and the arbitrator’s fees may quickly add up. Besides money, many partial wind-down GM dealers – particularly those who lost Cadillac – are also concerned about jeopardizing their ongoing relationship with the factory.

MADA is committed to standing up for the rights of terminated and wind-down dealerships. We’re also committed to what the new legislation demands – a fair review of Chrysler and GM downsizing decisions which many dealers judged to be foolish and arbitrary.

Training Coordinator needed for MADA - Wednesday, January 13, 2010

For information on the open position, please click here

2010 Legislative Session Preview - Tuesday, January 12, 2010

The 2010 Legislature will convene in St. Paul on February 4^th to tackle another state budget shortfall. But, daunting as it may be, budget problems are only one of many factors that promise to complicate the upcoming session.

MADA will promote additional protections for dealers’ franchise rights, focusing on rights of terminated dealers to future franchise awards in their market area, beefing up protections against unreasonable facilities requirements of the manufacturer, and giving dealers more flexibility in buying and selling dealerships. In addition, MADA will be fighting against a move by the RV Industry to weaken franchise protection laws.

In the bigger picture, Minnesota faces a $1.2 billion budget shortfall for the current biennium. Lawmakers' options are limited, with a fifth of the two-year budget already spent. The MN Constitution requires the Legislature to balance the state’s books by the end of each biennium, with the current cycle ending June 30, 2011. The $1.2 billion deficit represents 5 percent of what's left.

Of course, no legislative session is ever simple, but the 2010 legislature can expect politics to play a bigger role in their negotiations than ever.

A defense spending bill signed into law by President Obama in October included a requirement that U.S. military personnel get at least 45 days to receive and return their absentee ballots for the general election. Minnesota's September primary currently allows only 30 days, which means it will likely be moved from September to sometime during the summer months.

Moving the Primary Election Day, also necessitated moving the political parties’ endorsing conventions, which will now happen in April and May. That means those political conventions -- which is when the parties pick their endorsed candidates for the Governor’s race -- are now scheduled to coincide with the busiest weeks of deal-making at the legislature. With eight sitting legislators currently running for Governor, and all 201 legislators up for election in 2010, the new convention schedule and looming election adds complication to a very difficult task ahead.

MADA sends weekly email updates about the Minnesota Legislative Session to all interested MADA members. Make sure you’re getting all the latest information by updating your contact information and subscribing to the Legislative Updates emails

House Commerce Committee Holds Second Interim Hearing on Dealership Closures - Tuesday, January 12, 2010

MADA briefed the House Commerce Committee on the status of 60 dealerships that were terminated by GM and Chrysler due to bankruptcy, including the recently passed federal arbitration procedure that awaits the terminated dealers in 2010. The Commerce Committee heard testimony from Anoka dealers, Lee and Karen Carlson of Main Motors about their experience doing business with GM as a “wound-down” dealership.

Jeff Perry, state government relations director for GM, faced questioning from committee members over why his company was shutting down profitable dealerships in Minnesota. Perry was ill-equipped to provide any useful information to the committee about the rationale behind GM’s decision.

The video replay of this committee can be viewed at this link to the MN Legislature site.