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Friday, Aug. 7, 2009 RSSSEND TO A FRIENDPRINT
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Top Stories
'Cash-for-Clunkers' Program Gets $2B Refill
Auto Dealers Applaud Congressional Funding to Extend 'Cash for Clunkers' Program
Auto Inventories Depleted by U.S. 'Cash for Clunkers' Discounts
National Media Interest Keeps NADA Leaders Busy Touting 'Clunkers' Program
Volvo Cars Sale Likely Later This Year, Sweden Says
CFO Says Ford Plans to Refresh 90% of its Car Lineup by 2012
Top Stories
'Cash-for-Clunkers' Program Gets $2B Refill

Car shoppers caught up in the frenzy of the "cash-for-clunkers" program now have more time and a $2 billion reason to trade in their old gas guzzlers. President Barack Obama signed into law Friday a measure tripling the budget of the $1 billion incentive program that has drawn big crowds to formerly deserted showrooms. The Senate on Thursday passed the legislation extending the 2-week-old program into Labor Day and preventing it from running out of money. "Now more American consumers will have the chance to purchase newer, more fuel-efficient cars and the American economy will continue to get a much-needed boost," Obama said in a statement hailing the vote. Dealers said the additional money would help them maintain a sales pace they haven't seen in months and continue to benefit from heavy publicity surrounding the rebates. Car dealers saw an uptick in sales in July...
Source: The Associated Press

Editor's Note: Earlier today, the White House contacted NADA's Legislative Affairs Office to report that President Obama had signed the cash-for-clunkers extension into law, bringing to an end one of NADA's most successful lobbying campaigns. Last night, the Senate voted 60-37 to pump $2 billion more into the program. "No one doubts that without the collective efforts of NADA member dealers and ATAEs, the cash-for-clunkers program would not exist today," said NADA Chairman John McEleney. NADA would like to thank all dealers and ATAEs for their concerted efforts in support of the clunkers program. "This is a fine example of how effective we can be when we reach out to members of Congress through a coordinated grassroots campaign," McEleney added. Click here to see how your Senators voted on the funding extension.

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Auto Dealers Applaud Congressional Funding to Extend 'Cash for Clunkers' Program

WASHINGTON – Car shoppers and dealers across the country breathed a sigh of relief [Thursday] when the Senate approved a House measure adding $2 billion to the wildly successful “cash for clunkers” initiative. “Cash for clunkers is a resounding success,” said John McEleney, NADA chairman and a multi-franchise dealer in Iowa. “With the additional $2 billion, even more ‘clunkers’ will be taken off the road and replaced with more fuel-efficient vehicles. Extending the ‘clunkers’ program benefits the environment and the economy. It’s the best kind of stimulus.” For additional information on the program, visit www.nada.org/cashforclunkers.
Source: NADA Newswire

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Auto Inventories Depleted by U.S. 'Cash for Clunkers' Discounts

Auto shoppers may not find their preferred colors or accessories when they visit U.S. showrooms this weekend as the government’s “cash for clunkers” program depletes inventories. Automakers may need four to six weeks to rebuild supplies, said John McEleney, chairman of the National Automobile Dealers Association. General Motors Corp. and Chrysler Group LLC dealers may be most affected because those companies slashed production as they went through bankruptcy, he said. “With this quick spike in sales, it has wiped out a lot of inventory,” McEleney, who owns dealerships in Iowa City and Clinton, Iowa, said in an interview yesterday. “The selection won’t be quite as great.” Neale Kuperman, owner of a Toyota Motor Corp. dealership in Blauvelt, New York... “We have seven-and-a-half acres here, and you could play a game of touch football right now and not run into a car,” Kuperman said. “We’re absolutely depleted on models.” The clunkers program is protecting dealers’ used-car lots because of the requirement that vehicles traded in be scrapped, not sold, said Paul Taylor, chief economist of the dealers association, based in McLean, Virginia. “It will help used-car values,” Taylor said.
Source: Bloomberg News

Editor's Note: While dealers around the country are reporting low inventory, the overall inventory of light vehicles can support another month of robust new vehicle sales, according to NADA Chief Economist Paul Taylor. New car dealers are in a good position to support sales of well over 11 million units at an annual pace, even though it would be beneficial to have more of the most popular models. Several manufacturers have announced plans to step up production in the next month, including GM and Hyundai in their U.S. plants.

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National Media Interest Keeps NADA Leaders Busy Touting 'Clunkers' Program

NADA Chairman John McEleney appeared Wednesday on CNBC's "The Call," hosted by Larry Kudlow and Trish Regan, to discuss the "clunkers" program ("Call of the Wild: Keep or Scrap Cash for Clunkers?"). McEleney said the program has given auto sales a much-needed "kick start." "There's been a tremendous amount of pent-up demand over the last year ... so I think the timing was great," he said. NADA Vice Chairman Ed Tonkin last night appeared on PBS' "NewsHour with Jim Lehrer." Tonkin spoke with senior correspondent Judy Woodruff about the benefits of the program and its effects on the broader economy ("Dealers, Detroit Look for Boost From 'Clunkers'"). "There's been an explosion in business," Tonkin said. "It's been ... successful for not only auto dealers ... but the country as a whole, because this will keep the [auto] plants going." Tonkin said the "cash-for-clunkers" program will also protect jobs, pointing out that one in six U.S. jobs is related to auto production. "So anything that can keep dealerships open, keep plants going is a win for our country," he said.
Source: NADA Newswire

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Volvo Cars Sale Likely Later This Year, Sweden Says

Ford Motor Co. will likely complete the sale of its Volvo Cars unit in the latter part of this year, Swedish Industry Ministry State Secretary Joeran Haegglund said. Ford is not in the same rush to dispose of the unit as General Motors Corp., which is in the process of selling Saab Automobile to Koenigsegg Automotive AB, Haegglund said. “We’re in touch with Ford and note all rumors,” Haegglund said. “Ford has a slower pace than GM and Saab and we expect a sale will be completed in the latter part of the year.”
Source: Bloomberg News

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CFO Says Ford Plans to Refresh 90% of its Car Lineup by 2012

TRAVERSE CITY, Mich. -- Ford Motor Co. plans to refresh up to 90 percent of its vehicle lineups in North America, Europe, Asia Pacific and Africa by 2012 to help it increase sales ... Ford Chief Financial Officer Lewis Booth said here Thursday. Booth told reporters that vehicles are like doughnuts -- they don't get better with age. "We're going to have fresh products," Booth said. "I don't know -- what's the world's best doughnut? (The vehicles) are going to be the Krispy Kremes of the world." By 2014, the average Ford vehicle's age will be shrunk by 20 percent, he said.
Source: The Detroit News

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Quotable
 
"Now more American consumers will have the chance to purchase newer, more fuel-efficient cars and the American economy will continue to get a much-needed boost."

   
-- President Obama in a statement hailing the vote on "cash-for-clunkers," which pumped $2 billion more into the popular program, The Associated Press, Aug. 7


"No one doubts that without the collective efforts of NADA member dealers and ATAEs, the cash-for-clunkers program would not exist today. 

   
-- NADA Chairman John McEleney, NADA Newswire, Aug. 7


"[Cash-for-clunkers] has been ... successful for not only auto dealers ... but the country as a whole..." 

   
-- NADA Vice Chairman Ed Tonkin in an appearance on PBS' "The NewsHour with Jim Lehrer," Aug. 6 


"We have seven-and-a-half acres here, and you could play a game of touch football right now and not run into a car. We're absolutely depleted on models."

   
-- NADA Director Neale Kuperman, owner of a Toyota dealership in Blauvelt, N.Y., on the success of the clunkers program, Bloomberg News, Aug. 7
 


"Extending the 'clunkers' program benefits the environment and the economy. It's the best kind of stimulus."

   
-- NADA Chairman John McEleney, The Washington Post, Aug. 7

Video Highlights
 

Keep or Scrap Cash for Clunkers? 
(CNBC)


Dealers, Detroit Look for Boost From 'Clunkers' (PBS)



GM Still Government Motors? (Fox Business)



Helping Dealers Left Out of New GM (Fox Business)



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



NADA's New Buy Now Campaign



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



Fighting the Dealers' Fight (CNBC)



Cutting Dealers a Mistake (Fox Business)



Vice Chairman Tonkin on Chrysler Closures (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.

 
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