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At a Glance...
Top Stories
NADA Convention Registration and Hotel Reservations Open Monday
AutoNation Results Top Forecasts
GM Sees Sales Soar Overseas, but Continue Struggling at Home
Honda Beats Q1 Estimates but Sees Tougher Year Ahead
At Ford, End of a Big-vehicle Era Takes a Toll
Chrysler Puts 1Q Loss at $515 Million
Report: Tata on Track to Sell $2,500 Car This Fall
NADA Update
NADA Publication Provides Guidance on New FTC 'Red Flags Rule'
Auto Dealers Invited to SEMA Show to Learn about $38 Billion Market
Lenovo Offers NADA Members Savings on ThinkPad Notebooks
Top Stories
NADA Convention Registration and Hotel Reservations Open Monday

 

New Orleans is back – the site of the 2009 NADA Convention & Exposition January 24-27. And the Big Easy is ready for dealers to return. "The heart and the core of New Orleans, its commercial and its cultural core and its tourism and hospitality industry looks better than it did before the storm," says Stephen Perry, president and CEO, New Orleans Convention and Visitors Bureau. The NADA convention committee recently met in New Orleans to see firsthand the city's progress. "New Orleans is definitely ready for the dealers to come back," says Annette Sykora, NADA chairman.

Convention registration and hotel reservations begin Monday, July 28. In recognition of tough economic times, registration fees and hotel rates have remained unchanged, and discounted airfare is available. More than 700 exhibitors, 150 dealer workshops, a heavy-weight lineup of speakers and an additional half-day of workshops, including "Lifeline to Profit$" (offered both Friday and Tuesday), are slated for the NADA convention.

In 2007, New Orleans hosted 7.1 million visitors. Since Hurricane Katrina, $700 million has been invested in new hotel renovations. More restaurants (913) are open in the city today than before Katrina. And the French Quarter is cleaner than ever. "It's amazing how clean the French Quarter is," Sykora says.

The theme of the NADA convention is "Committed to Community." Putting the theme into action, the NADA Charitable Foundation contributed $400,000 in May to the Brees Dream Foundation (founded by Drew Brees, New Orleans Saints quarterback) to complete the restoration of the athletic fields at Lusher High School, the city's largest public high school.

New Orleans has been a favorite NADA convention city for more than 30 years. The cultural experience of New Orleans continues to flourish, as it has for centuries. The city is the birthplace of jazz and the place of some of the world’s most popular musicians – from Louis Armstrong to Lenny Kravitz.

The most celebrated and historic core of the city – including the French Quarter, Faubourg Marigny, Central Business District, Warehouse and Arts District, Magazine Street, Garden District, Audubon Park and Zoo and St. Charles Avenue – is thriving. "From the time you enter the city, you can see that everything has been revitalized," says Jeff Carlson, chairman of the NADA convention committee.

Click here to register online or for more information.

 Click here for the video that shows just how much progress New Orleans has made since Katrina.

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AutoNation Results Top Forecasts

In a rare bright spot for the embattled auto industry, dealership chain AutoNation Inc. reported better-than-expected earnings for the second quarter and saw its stock surge 11 percent. The Fort Lauderdale, Fla., company reported net income of $51.8 million, or 29 cents a share, down 34 percent from the $79.3 million, or 38 cents a share, it earned a year earlier. "I think they navigated a challenging macroeconomic environment quite well," Stephens Inc. auto retail analyst Richard Nelson said. "I don't expect the situation to let up anytime soon." Investors were also cheered by a positive outlook from Chairman and Chief Executive Michael J. Jackson, and further plans to trim costs.
Source:  The Wall Street Journal (Subscription required.)

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GM Sees Sales Soar Overseas, but Continue Struggling at Home

Worldwide, U.S. automaker loses this round to Toyota
General Motors Corp. set sales records outside the United States in the first half of 2008, but was dragged down by the company's struggling home market, underscoring how critical it is for GM to successfully execute its North American turnaround. GM reported global sales of 2.29 million vehicles in the second quarter, a 5 percent decline from a year earlier. It lost ground to Toyota Motor Corp. in the companies' continuing battle to be the global automotive leader. Toyota reported preliminary second-quarter sales of about 2.41 million, up about 1.8 percent from a year ago. GM sold 4.54 million vehicles in the first half of the year, while Toyota's total rose to 4.82 million. Industry analysts say the race for No. 1 in auto sales is not as important as winning loyal customers who can drive sustainable profitability, particularly in GM's home market of North America. "For GM, we benefited from the growth in the emerging markets," said Mike DiGiovani, GM executive director, global market and industry analysis, "but there was not quite enough growth in the second quarter to offset weakness in North America, more specifically in the U.S. market." The contrast underscores the importance of GM executing its North American turnaround successfully.
Source:  Detroit Free Press

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Honda Beats Q1 Estimates but Sees Tougher Year Ahead

TOKYO -- Honda Motor Co.'s quarterly earnings handily beat market estimates but it cut its annual profit and global car sales forecasts as it battles with rising costs for raw materials and a crumbling U.S. auto market. Quarterly net profit at Japan's No.2 automaker ... showed a surprise 8 percent rise on Friday due mainly to a fall in allowances for U.S. sales incentives from the year before. But like many other Japanese automakers due to follow with results in the coming weeks, Honda is suffering from a collapse in demand for big, gas-thirsty vehicles in the United States, its biggest market. With supply of popular, fuel-efficient cars such as the Civic falling far short of demand, Honda cut its sales forecast in North America this business year by 1.4 percent to 1.745 million cars and its global sales target also by 1.4 percent to 4.08 million cars.
Source:  Reuters

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At Ford, End of a Big-vehicle Era Takes a Toll

DETROIT — Ford Motor Company tallied the financial impact on Thursday of falling sales of its big pickups and sport utility vehicles, which contributed to the worst quarterly loss in its 105-year history. While Ford’s auto operations lost $1 billion in the second quarter, the bulk of the company’s $8.7 billion loss came from write-downs in the value of its truck factories and lease portfolios. The huge charges reflect the diminishing value of both the plants and the vehicles they produce. So far this year, sales of large pickups are down 25 percent, and S.U.V.’s have fallen 32 percent, according to the trade journal Ward’s Automotive Reports. But the impact is hurting automakers in more than just sales of new trucks. “There are multiple second- and third-order impacts,” [said Brian Johnson of Lehman Brothers.] “We’re seeing it in lease residuals, we’re seeing it in loan losses, and we’re seeing an impact in the showroom, because people can’t get enough on their old cars to make it worthwhile to get into a new car.”
Source:  The New York Times

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Chrysler Puts 1Q Loss at $515 Million

Chrysler Holding LLC, the parent company for automaker Chrysler LLC and its finance arm, lost $515 million in the first quarter of 2008, the company said Thursday, the same day that former parent Daimler AG said its stake in the Auburn Hills automaker is worth only a fifth of what is was six months ago. In a rare move, privately held Chrysler made its quarterly loss public after Daimler reported that its 19.9 percent stake in the American company cost the German automaker 373 million euros, or about $585 million, last quarter, based on European accounting standards. Chrysler officials said the net loss Daimler attributes to the U.S. automaker, incurred in the first quarter, is 65 million euro, or about $103 million, when based on American accounting standards and other bookkeeping differences. Because Daimler owns about one-fifth of Chrysler Holding, it's a reasonable estimate that Chrysler's total loss for the quarter is five-times that figure -- or roughly $515 million, when converted based on currency values as of March 31, Chrysler spokeswoman Shawn Morgan said.
Source:  The Detroit News

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Report: Tata on Track to Sell $2,500 Car This Fall

Tata Motors Ltd., maker of the $2,500 Nano car, will introduce the vehicle in the October-December quarter, Bloomberg News reported today. Tata Motors' Nano is aimed at first-time car buyers in India, where more than 45 million people use motorcycles. The automaker, which purchased the Jaguar and Land Rover luxury brands from Ford Motor Co. for $2.4 billion, wants to challenge Suzuki Motor Corp.'s dominance of the Indian car market.
Source:  The Detroit News

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NADA Update
NADA Publication Provides Guidance on New FTC 'Red Flags Rule'

McLEAN, Va. — In response to the Federal Trade Commission (FTC)’s new Red Flags Rule — under which most dealers and other creditors must develop and implement a comprehensive Identity Theft Prevention Program by Nov. 1 — NADA Management Education has released a new guide to assist with U.S. dealer compliance.

A Dealer Guide to the FTC Red Flags and Address Discrepancy Rules: Protecting Against Identity Theft (L50) explains the requirements under the Rule, and includes detailed, step-by-step guidance on developing the written program required under the Red Flags Rule, as well as a sample written program, worksheets and other helpful materials. All members will soon receive one free copy of the full guide in the mail. The sample written program is also being made available to members — free upon request, subject to terms and conditions — as a Word document to aid dealers in developing written programs specific to their dealerships in advance of the compliance deadline.

To receive these materials, contact me@nada.org with your request and member identification number. Additional copies of the guide, as well as a PDF version, are available to members for $40 each. The guide is also available to nonmembers for $80 each. The guide also will serve as the basis for two virtual seminars on the Red Flags Rule. Register for the seminars, to be held twice — August 26 and September 23 — at www.nada.org/seminars, or call (800) 248-6232, ext. 7061. For further information, visit the NADA Management Education online catalog at www.nada.org/mecatalog or call (703) 821-7227.
Source: NADA Newswire

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Auto Dealers Invited to SEMA Show to Learn about $38 Billion Market

DIAMOND BAR, Calif. -- While the nation’s new-car and -truck dealers continue to make major investments in their dealerships to improve sales and customer satisfaction, one area of potential new business has remained relatively untapped—the $38 billion accessory market. That’s why Phil Brady, president of the National Automobile Dealers Association (NADA), and Chris Kersting, president and CEO of the Specialty Equipment Market Association (SEMA), have announced a first-of-its-kind, comprehensive “Dealer Day” program designed exclusively for NADA members at the 2008 SEMA Show.  The half-day program is scheduled for Wednesday, Nov. 5 at the Las Vegas Convention Center. There is no cost to attend “Dealer Day.”  “At a time when many dealers are looking for new ways to generate additional revenue and sales, this program will provide dealers with new ideas and strategies to help improve their bottom-line performance by creating profitable accessory programs,” says Brady. To register or receive more information about the program, e-mail dealerlink@sema.org.
Source:  NADA Newswire

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Lenovo Offers NADA Members Savings on ThinkPad Notebooks

 

NADA members can save up to $650 on ThinkPad notebooks by using the eCoupon USXSUMMERHEAT at checkout until July 29. To take advantage of the discount, visit NADA's PC Purchase Program Web site (member login required), then click on the link for Lenovo or call 1-800-426-7235, Option 1, Ext. 4838. Enter eCoupon USXSUMMERHEAT at checkout. Free ground shipping is available on all Web orders.

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Featured Video
 

Click here for the video that shows just how much progress New Orleans has made since Katrina. NADA's annual Convention & Expo returns to New Orleans Jan. 24-27.  

More Video Highlights
Quotable
 
"New Orleans is definitely ready for the dealers to come back."

    -- Annette Sykora, NADA chairman, says in a video that shows just how much progress New Orleans has made since Katrina.


"I think American innovation is going to come up with the solution."

    -- Prabhakar Nair, research chief for UOP, a company working on converting garbage into fuel, The New York Times, July 25
Video Highlights
 
  
NADA and "SeeMore's Playhouse" Team Up to Promote Child Passenger Safety
NADA's New Orleans Project: Lusher Charter School
NADA's Return to New Orleans
NADA Chief Economist Forecasts a Challenging '08
Click here for more NADA-TV reports.
On the Lighter Side
 
 CALIFORNIA DREAMIN'



"California [will have] a role as a laboratory for innovative approaches."

    -- Alliance of Automobile Manufacturers' Dave McCurdy on how the country can have a progressive national fuel-economy policy.

Source:  NADA's AutoExec Magazine

 
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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.