For optimal viewing through your web browser or PDA, click here.

SPONSORED BY
 
NADA.org
Thursday, June 19, 2008 RSSSEND TO A FRIENDPRINT
Home | AdvocacyAffiliates | Convention | Jobs | Programs | Publications | Training | Services
At a Glance...
Top Stories
EPA's Draft Raises MPG
Free Web Site Will Allow Buyers to Check a Vehicle's Hidden Repair History
June Vehicle Selling Pace Falls to Unexpectedly Low Level
GM Delays Truck Overhaul
Toyota Truck Sales to Falter in U.S.
Nardelli Tries to Shift Chrysler's Culture
Analysts Ask: Isn't it Time for GM to Sell Hummer?
How Green is My Low-cost Car? India Revs Up Debate
NADA Update
Enroll Now for NADA's Executive Leadership Program
NADA and EPA to Recognize Energy Star Efficient Dealerships
Automotive News to Host 'Green Dealership' Webinar
Dealers Urged to Apply for the 2008 ENERGY STAR for Small Business Award
Hire an AYES Intern Today
STAR Answers Dealers' Questions About PC Equipment
Go Green With HP ENERGY STARŪ Desktops
Top Stories
EPA's Draft Raises MPG

Automakers are able to average 38.3 miles a gallon by 2020, early regulation version says
WASHINGTON -- The Environmental Protection Agency says in a draft regulation that automakers could improve fuel efficiency standards to as high as a fleet-wide average of 38.3 miles per gallon by 2020. Meeting that standard could cost carmakers as much as $30 billion a year, said a copy of the 252-page draft of the EPA proposal obtained by The Detroit News on Wednesday. The EPA sent similar versions of its proposal to other agencies, including the Transportation Department, on Tuesday for final review amid a flurry of meetings with the White House to finalize the draft. The proposal comes on top of another unveiled in April by the National Highway Traffic Safety Administration that would raise fuel efficiency standards to a fleet-wide average of 31.6 mpg through 2015. The NHTSA plan is seen as the first step on the way to a congressional mandate of 35 mpg by 2020 -- a 40 percent increase over current requirements. The EPA proposal, which will be unveiled Monday, lays out a broad number of areas in which the agency could limit greenhouse gases, including autos, ships, aircraft, nonroad vehicles such as farm and construction equipment, along with solid waste incinerators. The EPA will seek public comment before issuing a more formal proposal that could come before year's end. A final regulation isn't expected before the Bush Administration leaves office. "When it is released, we'll review it and act appropriately," said Charles Territo, a spokesman for the Alliance of Automobile Manufacturers, the trade group that represents Detroit's Big Three, Toyota and six other automakers.
Source:  The Detroit News

Free Web Site Will Allow Buyers to Check a Vehicle's Hidden Repair History

A new public database may protect American consumers, keep rolling wrecks off the highways and save lives in the process.  The National Insurance Crime Bureau is creating a free public database of vehicles declared a total loss, "or totaled," by insurers, allowing individuals to enter vehicle identification numbers, or VINs, to see if a set of wheels they want to buy has a hidden history.  [T]he crime bureau's database will have access to the internal records of hundreds of the nation's largest insurance companies and will be offering the most comprehensive information so far available, said Frank Scafidi, a spokesman for the organization.  In the best case, these cars are carefully repaired and their histories are fully disclosed to future buyers.  In the worst case, an unlicensed auto body shop performs a few Mickey Mouse frame adjustments, installs a phony inoperable air bag, sprays on a nice coat of paint and then washes the title in the interstate used car auction market.  The system has long jeopardized the safety of not only the buyers of these vehicles with substandard repairs but everybody who shares the road with them.  "Our goal is to provide as much information as possible to consumers -- at no charge -- to protect them against fraudulent used car sales and potentially deadly accidents from driving unsafe vehicles," said Robert M. Bryant, crime bureau president. The flip side of this problem is that insurers turn around and sell these cars into the auction market. As a result, some insurance companies have been reluctant to release VINs of their totaled vehicles, worried that it could hurt their recoveries.  So far, about 60 percent of the 1,000 insurers in the NICB have agreed to provide the crime bureau with the totaled VINs. Scafidi hopes the rest of the industry will quickly join. Although it's not complete, the NICB database is the most comprehensive that currently exists, Scafidi said.  After many years of resisting, major insurers are seeing that it is to their advantage to get consumers this information and force the salvage industry to clean up its act. There is theoretically nothing wrong with a properly repaired salvage car, but consumers need to be informed about a car's history to make intelligent decisions. What's more, federal legislation is pending that could force the industry's hand in this.
Source:  Los Angeles Times

[Editor's Note: "The hundreds of vehicles destroyed by the Midwest floods underscore the need for insurers to make total-loss data available to used car buyers," says David Regan, NADA vice president of legislative affairs." NICB has been slowly making more total-loss data available, such as the VINs of Katrina cars and stolen vehicles.  At this time details are not available, but this represents progress in NADA’s continuing efforts to make total-loss data more timely, complete and available to the public.]

June Vehicle Selling Pace Falls to Unexpectedly Low Level

June is shaping up to be one of the worst months in recent memory for auto sales, with consumers steering clear of large gas-guzzlers and automakers running low on supplies of small, fuel-efficient models that are in demand. After an unexpectedly weak start to the month, several auto analysts and forecasters predicted a huge drop Wednesday in the annualized selling rate for June to as low as 12.5 million vehicles. That's a figure that would have been unthinkable just a few months ago. The last time annual car and truck sales came in below 13 million was in 1992. Auto executives cautioned that midmonth sales estimates can be rough, but they confirmed that business is down sharply. "Dealers report that they are now suffering from a mismatch between what consumers want to buy -- small cars -- and what they have in inventory -- pickups and SUVs," said Rod Lache, an auto analyst at Deutsche Bank.
Source:  The Detroit News

GM Delays Truck Overhaul

Decision will free up funds, time for automaker to meet new fuel rules
General Motors Corp. has indefinitely put off plans to re-engineer a next generation of full-size pickups and SUVs amid plummeting sales of large trucks, the automaker said Wednesday. Instead of overhauling big trucks like the Chevrolet Silverado pickup and GMC Yukon SUV in a few years, GM will save money and resources by improving on the current models launched in 2007. Delaying a remodel of the trucks also gives GM time to factor in the effects of new federal fuel economy mandates. The next generation of full-size trucks was scheduled to go into production in 2013, according to GM's labor contract with the United Auto Workers. "We're going to focus on improving the current trucks until we see where the market goes," GM spokesman Tom Wilkinson said.
Source:  The Detroit News

Toyota Truck Sales to Falter in U.S.

Toyota Motor Corp. is likely to struggle to make money at its two truck plants in the U.S. this year, a consulting firm said, underscoring the toll slumping sales of trucks and sport-utility vehicles are taking on auto makers of all stripes. The company is still likely to generate substantial profits in North America, thanks to booming sales of cars such as the Camry sedan and the Prius hybrid. But until recently Toyota had hoped an expansion into trucks would boost its bottom line in the U.S. Wednesday, Toyota said it is slowing production at two of its truck plants in North America, in San Antonio, Texas, and Princeton, Ind., in a second such move to adjust the pace of work. In addition to slowing the assembly-line speed, San Antonio's truck line, which makes the Tundra pickup, will be shut down for 14 days between now and the end of October.
Source:  The Wall Street Journal (Subscription required.)

Nardelli Tries to Shift Chrysler's Culture

With Chrysler LLC losing money and its market share plunging in the U.S., Chief Executive Robert Nardelli is tackling what he sees as the root cause of most of the auto maker's problems: its Old Detroit mind-set. Over the decades when Detroit's Big Three dominated the nation's auto market, Chrysler, General Motors Corp. and Ford Motor Co. often put their own priorities, like keeping their plants running at full capacity, ahead of satisfying customers. Now, Mr. Nardelli is trying to replace those old habits with some of the no-nonsense management principles that have fueled the success of General Electric Co., one of his former employers. On Wednesday, the top 300 executives at Chrysler are expected to turn off their BlackBerrys and begin three days of in-house management seminars aimed at putting customers first in all of Chrysler's operations. Mr. Nardelli himself is scheduled to lead a session on the corporate culture of a customer-driven company. The event is the centerpiece of a broader, yearlong effort by Mr. Nardelli to overhaul attitudes at Chrysler. "The traditional way of running the company got us where we are now," Mr. Nardelli said in an interview last week. "So we're trying to break some of the old paradigms."
Source:  The Wall Street Journal (Subscription required.)

Analysts Ask: Isn't it Time for GM to Sell Hummer?

The Hummer brand could be sold in the near future and if it is, analysts say the buyer won't be a familiar one but instead might come from Russia, India or China. Speculation about the future of the military-style brand that epitomizes the in-your-face, gas-guzzling SUV began at General Motors Corp.'s annual meeting June 3, when Chairman and Chief Executive Officer Rick Wagoner said the company is considering "all options" for the brand: from a complete revamp of the product lineup to a partial or complete sale. "GM had a good run with it. But in today's environment it doesn't make sense," said David Healy, an analyst at Burnham Securities. "It's well-known, but its reputation is one of wretched excess." Dealers and some analysts disagree, arguing that there is equity in the go-anywhere, do-anything brand and that GM can recast it as environmentally friendly. But the prevailing opinion is that GM's only option is to sell as the vehicle becomes increasingly impractical in the United States, which accounts for 84.5 percent of Hummer sales.
Source:  Detroit Free Press

How Green is My Low-cost Car? India Revs Up Debate

MUMBAI -- Shweta Kumari is waiting impatiently for Tata Motors' new Nano to hit Mumbai's car showrooms later this year. With a price tag of about $2,500, the Nano will cost about half the price of the cheapest car currently on the market, easily affordable for Kumari, who works as a software developer. But some environmentalists are dreading the prospect of hundreds of thousands of low-cost cars hitting polluted and over-crowded roads around the world in the next few years. "In the current policy and regulatory framework, the low-cost cars will be disastrous," said Anumita Roychowdhury, associate director of the Centre for Science and Environment in New Delhi. Car makers, warily eyeing sliding sales in developed markets such as the United States and Europe, disagree. They argue the small, fuel-efficient vehicles are a greener option than gas-guzzling SUVs and larger cars as oil soars above $130 a barrel and as consumers in emerging economies such as China, India and Russia get behind the wheel in ever increasing numbers. Tata Motors, which unveiled the snub-nosed Nano to a rousing reception in January, says the world's cheapest car meets the strictest environmental criteria, and its lean design delivers high fuel-efficiency of about 20 km/liter (45 miles/gallon) of petrol. The car, with a dealer price of 100,000 rupees ($2,330) ... is less polluting than motorbikes and scooters, Tata Motors says ...
Source:  Reuters

[back to top]
NADA Update
Enroll Now for NADA's Executive Leadership Program

Ranked No. 1 for Entrepreneurial Education
Applications are now being accepted for NADA's Dealer Executive Education program at Babson College, which meets at Babson's Wellesley, Mass., campus from Sept. 21-26. Launched in March, the program offers a six-part, 16-month curriculum designed to enhance the leadership skills of dealership employees. "Ideal candidates for the program are individuals who are in a position to effect change within the dealership," says Allan Jones, director of the NADA dealer academy. Instructors lead students through a series of interactive learning activities, including group activities, role-play and video. Students gain insight into leadership traits, decision-making processes, communication skills and "opportunity obsession" -- a term coined by Babson. "This is a lot more than just changing your dealership. This is about making myself a better leader," said Jared Hamilton of Henry Day Ford in Sandy, Utah. "If I become a more effective leader, I can ... articulate our dealership's vision." The program teaches you how to "think like an entrepreneur and how to think beyond the four walls of the dealership," said Matthew Haiken of Prestige Volvo in East Hanover, N.J.  Babson College has been ranked No. 1 in entrepreneurship for 13 consecutive years by U.S. News & World Report. For more information on NADA's Executive Education, visit www.DealerExecEd.org.

Click here to see why NADA's executive leadership program is No. 1 for executive education.

NADA and EPA to Recognize Energy Star Efficient Dealerships

  

As part of NADA's Energy Stewardship Initiative, both NADA and EPA’s Energy Star program are eager to recognize dealerships that have met or exceeded the Energy Star Challenge by improving their energy efficiency by at least 10 percent.

NADA will award these “green” dealers with a certificate, a press release distributed to the dealership’s local media, and coverage on www.nada.org, as well as recognition at NADA’s annual Washington Conference in September.

If you have improved the energy efficiency of your dealership or dealerships by at least 10 percent and you can show us, please send an email to RegulatoryAffairs@nada.org. Candidates for recognition will be asked to submit their dealership’s energy information. For more on NADA’s partnership with Energy Star, visit www.nada.org/energystar.

Automotive News to Host 'Green Dealership' Webinar

Dealers are encouraged to participate in an online seminar hosted by Automotive News on June 24 at 1 p.m. EST. The focus of the seminar is environmentally friendly dealerships and how dealers are gaining an advantage by going green. Editor Dave Sedgwick will interview dealers who have gone green, and the experts that helped them. Joining Sedgwick will be Pat Lobb, owner of Pat Lobb Toyota of McKinney, Texas; Justin Doak of the U.S. Green Building Council; and Douglas Greenhaus, director of environmental health and safety for NADA.

Participants can post a question in advance by emailing asktheexpert@autonews.com with the subject line "Green Dealerships." To register for the Webinar, click here.

Dealers Urged to Apply for the 2008 ENERGY STAR for Small Business Award

The 2008 ENERGY STAR Small Business and Congregations Awards are open to any small business, congregation, or non-profit which has increased the energy efficiency of its facility through upgrades or energy-management improvements during the last two years. It can be a large project or small improvement in energy efficiency, a retrofit or new construction. In 2007, EPA’s ENERGY STAR program honored three dealerships: Pat Lobb Toyota of McKinney, Texas; Planet Subaru, Hanover, Mass.; and Sendell Motors, Inc., Greensburg, Pa. Each received an ENERGY STAR for Small Business Award, which recognized these dealerships as “examples of financial and environmental stewardship” for achieving greater energy efficiency at their facilities. To download an application, click here.

Hire an AYES Intern Today

More than 2,000 qualified students are available in the Automotive Youth Educational Systems (AYES) program, and all are available for summer internships. NADA is a long-time, active supporter of the AYES program, which is designed to help train young people as automotive technicians, and prepare them for careers at new-car and -truck dealerships. "NADA encourages dealers to participate with their local AYES-affiliated schools," said NADA Chairman Annette Sykora. "As a school to career partnership, it's a tremendous way to grow your own workforce. Hiring an AYES student also supports local schools and the community, and can increase the productivity of your dealership's service department." To find an AYES school near you, call (888) 339-AYES, e-mail info@ayes.org or visit http://maps.ayes.org. Additional information on AYES can also be found at at www.ayes.org.
Source: AYES

STAR Answers Dealers' Questions About PC Equipment

 

Standards for Technology in Automotive Retail (STAR) has developed new guidelines to help dealers evaluate their PC Equipment.  Visit STAR's Dealer Infrastructure Guidelines (DIG) publication for more information. To learn "What is Key When Selecting Client Hardware?"  click here.

Go Green With HP ENERGY STARŪ Desktops

Save up to 44 percent on computer power consumption when you choose HP ENERGY STAR® qualified HP desktops with 80 PLUS® power supplies. Look for HP Compaq dc7800 Ultra Slim Desktop at www.nada.org/ProductsServices/PC+Purchase+Program/, click www.hp.com/go/promos/nad1 (member log-in required).

[back to top]
Featured Video
 

Click Here to see why NADA's executive leadership program is No. 1 for executive education. 

More Video Highlights
Quotable
 
"Our goal is to provide as much information as possible to consumers -- at no charge -- to protect them against fraudulent used car sales and potentially deadly accidents from driving unsafe vehicles." 

   
-- Robert M. Bryant, president of the National Insurance Crime Bureau, referring to a new public database that may protect American consumers, keep rolling wrecks off the highways and save lives in the process, Los Angeles Times, June 18


"The hundreds of vehicles destroyed by the Midwest floods underscore the need for insurers to make total-loss data available to used car buyers."

    -- David Regan, NADA vice president of legislative affairs, NADA Headlines, June 19 


"Dealers report that they are now suffering from a mismatch between what consumers want to buy -- small cars -- and what they have in inventory -- pickups and SUVs."

    --
Rod Lache, an auto analyst at Deutsche Bank, The Detroit News, June 19


"We're going to focus on improving the current trucks until we see where the market goes."

   
-- GM spokesman Tom Wilkinson, referring to its decision to put off plans to re-engineer a next generation of full-size pickups and SUVs amid plummeting sales of large trucks, The Detroit News, June 19


"The traditional way of running the company got us where we are now. So we're trying to break some of the old paradigms."

   
-- Chrysler LLC Chief Executive Bob Nardelli, referring to his efforts to shift the culture of Chrysler to becoming a more customer-driven company, The Wall Street Journal, June 19


"It's well-known, but its reputation is one of wretched excess."

   
-- David Healy, an analyst at Burnham Securities, referring to the in-your-face, gas-guzzling Hummer, Detroit Free Press, June 19
Video Highlights
 
   

New Orleans is Back!


 NADA's New Orleans Project
 NADA's Return to New Orleans 
 NADA Chief Economist Forecasts a Challenging '08
Click here for more NADA-TV reports.
 
Search Back Issues | Unsubscribe/Manage your subscription | email us
NADA For more information on NADA, visit www.nada.org or contact NADA, 8400 Westpark Drive, McLean, VA 22102. This email may contain an advertisement of NADA products and services. Any opinions or statements contained herein do not necessarily reflect the views of NADA. Factual errors are the responsibility of the listed publication. If you are a franchised new-car or -truck dealer and would like to become a member of NADA, please visit the Join NADA section of www.nada.org. Questions or comments concerning NADA Headlines content may be directed to media@nada.org.