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

SPONSORED BY
Click Here
NADA.org
Friday, June 26, 2009 RSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training
Top Stories
U.S. June Auto Sales May Hit Strongest Rate This Year
AutoNation Says 'Clunker Law' May Boost Sales by 10%
Chrysler Dealer Funds Cut
House Plans Vote on More Funding for Clean Cars
Lear Nears Chapter 11 as Car-Parts Turmoil Rises
General Motors Said to Pick Michigan for Future Small-Car Plant
Suzuki Gains on Possible Partnership With Volkswagen
Top Stories
U.S. June Auto Sales May Hit Strongest Rate This Year

General Motors Corp., Toyota Motor Corp., Ford Motor Co. and other automakers may report a U.S. sales rate for June that exceeds 10 million units for the first time this year, according to four industry estimates. “The SAAR is finally back in double-digits,” Jesse Toprak, executive director of industry analysis for Edmunds.com in Santa Monica, California, said in a statement today. “We’re still a long way from 16 million unit sales, but things are moving in the right direction.”
Source: Bloomberg

[back to top]

AutoNation Says 'Clunker Law' May Boost Sales by 10%

AutoNation Inc. said the “cash-for- clunkers” law President Barack Obama signed may increase new-vehicle sales at the largest publicly traded U.S. auto retailer by 10 percent through year end. A 10 percent increase from the law approved yesterday may mean “roughly” an extra 4,000 new vehicles because industry demand has been running as much as 40 percent lower than last year, according to Marc Cannon, a company spokesman. “The fact that this incentive will be available only at new-vehicle franchises is a big advantage,” Chief Executive Officer Mike Jackson said in an interview. “At a minimum it will generate a lot of traffic.”
Source: Bloomberg

[back to top]

Chrysler Dealer Funds Cut

GMAC suspends financing for up to 90
As the Free Press reported last month, GMAC, which has replaced Chrysler Financial as the largest source of inventory financing for Chrysler dealers, is evaluating how well capitalized the dealers are. About 60% applied to GMAC, and the lender suspended credit to about 6% of those that applied, Chrysler officials said. Dealers have 30 days in which to appeal, or find additional investors to meet GMAC's criteria.
Source: Detroit Free Press

[back to top]

House Plans Vote on More Funding for Clean Cars

Measure would double loans for advanced-technology vehicles to $50 billion
WASHINGTON -- The House plans to vote by Saturday on a controversial climate-change bill that would double federal loans for plug-in electric vehicles and other advanced-technology cars, congressional spokeswomen said [Thursday]. The bill, whose centerpiece is a cap-and-trade system for power plants, oil refineries and manufacturing, also would require electric utilities to consider providing electrical-charging stations for the vehicles.
Source: Automotive News

Editor's Note: NADA is opposed to the Waxman-Markey "cap-and-trade" bill because (1) this bill carves out an exception to the "cap" by allowing California regulators to continue to regulate fuel economy in 14 states, thereby undermining a single, national fuel economy standard; and (2) the bill strips U.S. DOT of its authority to regulate heavy-duty trucks, and instead transfers that authority to EPA, which unlike DOT, does not have to consider job loss, the health of the industry or consumer choice when setting a fuel economy standard.

[back to top]

Lear Nears Chapter 11 as Car-Parts Turmoil Rises

Lear Corp., the world's second-largest auto-seat maker, is preparing to file for bankruptcy as soon as next week, said people familiar with the matter. Lear, a large supplier to bankrupt General Motors Corp., missed a $38 million interest payment due June 1 on two of its senior notes. The company is in the midst of exercising a 30-day grace period on the payment, which expires Tuesday.
Source: The Wall Street Journal

[back to top]

General Motors Said to Pick Michigan for Future Small-Car Plant

General Motors Corp., planning for its future after leaving bankruptcy, has decided to assemble a future small-car model at its plant in Orion Township, Michigan, two people familiar with the decision said. The automaker ... chose the location because the state offered the biggest tax incentives and abatements, said the people ... Tax abatements would be needed to attempt to save about 1,200 to 1,400 jobs at the plant ... About 3,400 workers currently are employed at the plant, according to GM’s Web site.
Source: Bloomberg

[back to top]

Suzuki Gains on Possible Partnership With Volkswagen

Suzuki Motor Corp., Japan’s fourth- largest automaker, gained the most in more than a month after Volkswagen AG was said to be considering a partnership, according to a person familiar with the situation. Volkswagen has made contact with the Japanese carmaker ... on products and strategy, said the person ... “Suzuki needs a partner to help develop new models and GM has become very unstable,” said Yasuaki Iwamoto, an analyst at Okasan Securities Co. in Tokyo. “This alliance would be good news for Suzuki.”
Source: Bloomberg

[back to top]

 
Quotable
 
"The SAAR is finally back in double-digits. We’re still a long way from 16 million unit sales, but things are moving in the right direction."

    -- Jesse Toprak, executive director of industry analysis for Edmunds.com, Bloomberg, June 25

Video Highlights
 

Media Coverage: The Tragedy of Dealer Closings (NADA-TV)


NADA's New Buy Now PSA, 'No Kidding'



No Dent in Demand for Some U.S. Cars (NBC)



Car Dealers Trying to Buy More Time (NBC)



Fighting the Dealers' Fight (CNBC)



Cutting Dealers a Mistake (Fox Business Network)



Vice Chairman Tonkin on Chrysler Closures (Bloomberg)



Should Government Decide Dealers' Fate? (CNBC)



The Case Against Closing Dealerships (CNBC)



In-Depth Look - Pent Up Auto Demand (Bloomberg)



NADA on Floorplan Credit Crisis (NADA-TV)


John McEleney's Testimony to Senate Committee (CNBC)
 Senate Testimony on Floorplan Loans (NADA-TV)
 Banks Turning on American Car Dealers? (WTNH-TV)
 NADA Tackles Industry Crisis (NADA-TV)
 McEleney Speaks at NADA Convention (NADA-TV)
 Demise of Dealerships Leaves Big Dent (NBC)
NADA on the Front Lines  (NADA-TV)


Click here for more video reports.

 


Orlando 2010 - Go to Know

Save up to 46% on Select Lenovo Laptops

 

Click Here

Search Back Issues | Unsubscribe | Subscribe | 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.