NMMA chairman: Jacobs is correct on financing crisis, but is GMAC the right solution?
By IBI Magazine
In a three-page letter to NMMA members dated Monday, NMMA chairman David Slikkers said the US trade association is taking a multi-pronged approach to easing the floorplan financing crunch facing most boat dealers and manufacturers. But Slikkers questions if gaining access to GMAC funds, the terms of which would be administered by the US government, would be the right solution for the marine industry. Slikkers said the US marine industry has lost 135,000 jobs. "If you are in the business, you understand what is going on and why," he wrote. "As the Floorplan financing issue became acute in the fall of 2008, all aspects of NMMA began taking actions to address the issue." Slikkers said the trade association has been working with federal lawmakers to "pursue appropriate and viable policy remedies" and has formed a Dealer Floorplan Task Force to identify solutions. While Slikkers said that the floorplan lending problem remains "unresolved", he noted that NMMA has gained access to TALF funds, Small Business Administration financing, and has communicated the industry's plight to key Congressional committees. NMMA Canada has also testified before the Canadian Parliament about lack of floorplan financing in that country. The National Marine Bankers Association has also developed a webinar and information kit for marine dealers. "Despite these efforts, as Irwin Jacobs very clearly represented in his letter, there is more work to be done," wrote Slikkers. "I do not know if it is possible to have the government compel GMAC or any other lending institution to enter the marine Floorplan lending business. I do not know if we want the government dictating the terms of our business or the business of our lenders. Despite billions of dollars given to the auto industry, the government solution has not worked. As many of their dealers shut their doors, Chrysler and GM are now in government-engineered bankruptcies." But Slikkers said he agreed that the "entire industry" must become "personally involved" in communicating with government officials. "Now is the time to use the personal relationships that you have with your Congressmen and Congresswomen, and to make new relationships," he wrote. "Collectively, we can increase the noise-level in Washington and raise our industry profile further." NMMA will have an email letter on its website that can be sent to individual congressman. "They should hear from company CEOs directly and from your employees, vendors, and dealers," wrote Slikkers. "I encourage you to invite them to your plant facility or dealership (even if it is closed or not producing). Tell them about the people you employ or used to employ, the amount you contributed to federal and local tax revenues, and what you provide for your communities."
(17 June 2009)
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