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

SPONSORED BY
Click Here
NADA.org
Thursday, Aug. 27, 2009 RSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training
Top Stories
DOT Acknowledges Dealer Frustration with Slow Reimbursements but Promises 'Dealers Will Get Paid'
With Clunker Program Over, Some Fear Auto Sales Drought
Consumer Confidence Shows a Notable Rise
Chrysler Sues Daimler Over Key Parts Supplies
Chrysler, Nissan End Vehicle-Development Partnership
Ford Has No Plan to Keep Stake in Volvo, Fleming Says
VW Lays Out Strategy for New U.S. Models
Top Stories
DOT Acknowledges Dealer Frustration with Slow Reimbursements but Promises 'Dealers Will Get Paid'

WASHINGTON – The "cash for clunkers" program came to a close Tuesday night, with nearly 700,000 older vehicles taken off the roads and replaced with more fuel-efficient cars and trucks, according to a news release from the Department of Transportation. Auto dealers submitted rebate applications worth $2.88 billion, which was just under the $3 billion provided for the program by Congress. "The clunkers program has proved more popular with the public than anyone expected," says NADA Chairman John McEleney, a multi-franchise dealer in Iowa. "In that regard, it was a huge success. Now, we have to make sure that dealers will not be penalized by a loss of reimbursement for legitimate program sales for reasons outside of their control, such as an inability to access the Transportation Department’s Web site," he added. During the final days of the program, which included two deadline extensions, auto dealers around the country reported computer delays that prevented them from filing reimbursement claims. To handle the rush of reimbursement claims, the Transportation Department has augmented a team that already includes more than 2,000 people processing dealer applications for rebates. Click here for statistics on the "clunkers" program.
Source: NADA Newswire

[back to top]

With Clunker Program Over, Some Fear Auto Sales Drought

Now that the government's cash-for-clunkers blowout is finally over, some fear a morning-after hangover of buyers' remorse and a sales drought for struggling auto dealers. The sales fall-off was expected, said Paul Taylor, economist for the National Automobile Dealers Association. "It's not a source of fear. It's just one more thing that needs to be managed."
Source: USA Today

[back to top]

Consumer Confidence Shows a Notable Rise

WASHINGTON -- Consumer sentiment rose more than expected in August, an indication that Americans’ pessimism about the economy might be lifting. The New York-based Conference Board said Tuesday that its Consumer Confidence index rose to 54.1, from an upwardly revised 47.4 in July. Economists surveyed by Thomson Reuters had expected a slight increase to 47.5. Still, the index is far below 90, the minimum level associated with a healthy economy. Above 100 signals strong growth. Economists closely monitor confidence because consumer spending accounts for about 70 percent of United States economic activity. Consumer sentiment — aided by signs the economy is stabilizing — has recovered a bit since hitting a record low 25.3 in February. Many analysts expect the economy to grow 2 to 3 percent in the current quarter, spurred by a more stable housing market and the cash-for-clunkers program, which has increased auto sales. But economists worry that without more consumer spending, the recovery may weaken next year.
Source: The Associated Press

[back to top]

Chrysler Sues Daimler Over Key Parts Supplies

DETROIT -- Chrysler Group LLC has sued Daimler AG saying the German automaker has failed to honor supply contracts for parts essential for the production of key 2010 Chrysler vehicles. Chrysler, which emerged from bankruptcy in June under new management led by Fiat SpA, said in the lawsuit filed on Friday it would be forced to halt production of several 2010 model year vehicles if it does not get the components. "Without court intervention, Daimler's actions threaten to shut down Chrysler's manufacture of key product lines and derail this Court's carefully structured plan to foster the manufacturing, assembly and sale of Chrysler vehicles for the 2010 model year and beyond," Chrysler said in the lawsuit.
Source: Reuters

[back to top]

Chrysler, Nissan End Vehicle-Development Partnership

DETROIT -- Chrysler Group LLC and Nissan Motor Co. will end their vehicle-development partnerships, citing "significant changes in business conditions." The move kills Chrysler's plans to sell a new small car - developed by Nissan - in North America and Europe by 2010. The car was to be called the Dodge Hornet. Nissan will also drop a plan to supply Chrysler with a new vehicle based on the Nissan Versa sedan for limited distribution in South America in 2009. Chrysler, meanwhile, said it will end development work on a full-size pickup truck for Nissan's 2011 model year. The changes come after teams from both auto makers studied the viability of the projects amid the changes in the automotive industry, the companies said Wednesday.
Source: Dow Jones Newswires

[back to top]

Ford Has No Plan to Keep Stake in Volvo, Fleming Says

Ford Motor Co. doesn’t intend to keep a stake in Volvo Cars and is aiming to sell the Swedish automaker by the end of the year, said John Fleming, the U.S. company’s top executive in Europe. Maintaining a holding in Volvo is “just not something that’s even being considered,” Fleming said in an interview today at Ford’s European headquarters in Cologne, Germany. Ford has been unwinding integration with Volvo for more than a year and is in talks with “a number of parties” about a sale, he said, declining to identify them. Ford is seeking about $2 billion for Gothenburg, Sweden-based Volvo, less than a third of what it paid a decade ago, two people with knowledge of the sale said in May. Chinese automakers Geely Holding Group Co. and Beijing Automotive Industry Holding Co. are among possible bidders, people familiar with the talks have said.
Source: Bloomberg

[back to top]

VW Lays Out Strategy for New U.S. Models

HERNDON, Va. – Volkswagen of America’s top executives outlined a strategy today to turn the European automaker’s money-losing U.S. arm into a pillar of its plans to surpass Toyota Motor Co. as the world’s largest – and most profitable – automaker. With a goal of selling 800,000 VWs in the United States by 2018 – a threefold increase from this year’s levels – the automaker will add several new models designed specifically for American buyers, including a new sedan, a seven-seat sport utility and an updated version of its iconic Beetle. VW is spending $1 billion to build a plant in Chattanooga, Tenn., that will launch a new midsize sedan in 2011. Stefan Jacoby, VW’s North American chief, said the model will be larger than the current Passat but cost less – targeting the Honda Accord, Chevrolet Malibu and Toyota Camry head-on. “We want to be the No. 1 automaker globally,” Jacoby said today during a briefing at VW’s U.S. headquarters in Virginia. “Not everybody believes in this goal. We believe in this vision we have, and we are working very hard on its realization.” VW executives said the company would refresh its entire lineup by 2011, and would target new parts of the market to boost its sales.
Source: Detroit Free Press

Editor's Note: Stefan Jacoby, president and CEO of Volkswagen America, is scheduled to speak Saturday, Feb. 13 at the NADA convention in Orlando, Fla. Click here to register for the convention.

[back to top]

 
Quotable
 
"The clunkers program has proved more popular with the public than anyone expected. Now, we have to make sure that dealers will not be penalized by a loss of reimbursement for legitimate program sales for reasons outside of their control."

   
-- NADA Chairman John McEleney referring to the repeated crashing Monday of the Transportation Department Web site as dealers filed rebate applications to meet the deadline, Philadelphia Inquirer, Aug. 27


"It's almost like people were coming out of their caves, and seeing that it was safe to go back into the showrooms."

   
-- George Pipas, chief market analyst for Ford, on the success of the "cash for clunkers" program, The New York Times, Aug. 27


"We want to be the No. 1 automaker globally."

   
-- Stefan Jacoby, Volkswagen's North American chief, who will be a keynote speaker at the upcoming NADA convention in Orlando, Detroit Free Press, Aug. 26

Video Highlights
 

Keep or Scrap Cash for Clunkers? 
(CNBC)


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



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)



Cutting Dealers a Mistake (Fox Business)



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.

2010 Convention
 
 

Did you know?

As a bonus for attending the upcoming NADA convention, you can attend two workshop sessions on Friday afternoon before the convention starts at no extra charge!

For more money-saving ideas, click here or visit www.nada.org/convention and click the $$$ Savings icon. And for special airline discounts, check out our airfarewatchdog in the money-saving section.

Be in the know at the 2010 NADA Convention & Expo in Orlando, Fla., Feb. 13-15.

 
Click Here



Orlando 2010 - Go to Know

Save Instantly on HP Laptops

Save up to 44% on Lenovo PCs

NADA Insurance Gives Dealers Thousands in Hole-in-One Coupons


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.