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Top 5 Stories
Small Cars Get More Expensive, Harder to Find
Shrinking Supplies Mean Bye-Bye Used-Car Bargain
U.S. Economy Adds 244,000 Jobs
Healthier Chrysler Dealers Add Sales, Staff
Resuming the Great Debate: Safety vs. Weight
For comprehensive auto industry news, visit the online news magazine NADAFrontPage.com
Top 5 Stories
Small Cars Get More Expensive, Harder to Find

It's basic economics: High gas prices + parts shortages out of earthquake-damaged Japan = car shortages and higher prices. Dealers and experts say already-tight supplies of small cars will shrink even more in coming weeks, especially from Japanese automakers, as the fallout from the March 11 earthquake and rising demand for more fuel-efficient cars continues depleting dealer stocks. That means that while consumers might find the car they want, they might not find it in the exact color and with the exact options they desire, such as a sunroof or a navigation system. They'll likely be paying more for it, too. And though most brands are affected to some degree, Toyota dealers are begging for certain models. "There is no question that the pipeline is going to definitely get a bit thin," said Bob Page, owner of Page Toyota in Southfield.
Source: Detroit Free Press

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Shrinking Supplies Mean Bye-Bye Used-Car Bargain

Prices for used cars hit a record high in April and are poised to go even higher as production cutbacks during the recession and the more recent Japanese earthquake has made used vehicles a hot commodity as dealers dive into the depleted pool for cars to fill their lots. The one-two punch has added between $1,500 to $3,000 to the price of some used cars just in the last six months, meaning more money for trade-ins and a tougher time for shoppers looking for a deal. High-demand used vehicles made only in Japan, such as Toyota's Prius, are expected to climb further. Prius shoppers "may want to hold off until Toyota ramps up its production later in the year," said Jonathan Banks, executive automotive analyst for the National Automobile Dealers Association. "There will be a new car shortage; there is no way around that."
Source: The Wall Street Journal

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U.S. Economy Adds 244,000 Jobs

WASHINGTON -- The U.S. economy added 244,000 seasonally-adjusted jobs last month, including 29,000 manufacturing positions, the Labor Department said Friday. The auto industry added 2,900 jobs -- up 0.4% from March, bringing the total U.S. auto manufacturing sector to 698,700 jobs. On the retail side, auto dealers added 4,700 jobs in April, a 0.5% increase, to just more than 1.03 million jobs. President Barack Obama spoke Friday at a transmission plant in Indianapolis that builds parts for hybrid buses. Obama touted the job growth, saying "we are regaining our footing."
Source: Detroit Free Press

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Healthier Chrysler Dealers Add Sales, Staff

DETROIT -- Chrysler Group says the financial health of its dealers is improving. CEO Sergio Marchionne, speaking during an earnings conference call, said that Chrysler's sales per dealership are gaining on those of rivals. Numbers from the Automotive News Data Center bear him out. In 2010, Chrysler Group dealerships sold an average of 465 vehicles, up 40 percent from 2009. Chrysler said its dealers added 700 sales and technical staff positions in the first quarter to handle the higher sales. The company's sales rose 23 percent in April, topping the industry average of 18 percent.
Source: Automotive News

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Resuming the Great Debate: Safety vs. Weight

In the life-and-death question of whether lighter, more fuel-efficient vehicles will kill more Americans, the Obama administration plans to set 2017-25 model-year mpg targets on the premise that vehicle safety need not be compromised by reducing weight, an administration official said. Not everyone is so sure. Chrysler and the Alliance of Automobile Manufacturers -- whose members include Toyota, General Motors and Ford -- have asked the administration to consider the matter more thoroughly. "We're going to be making cars safer, but let's not take all that safety and sacrifice it just to make fuel economy," said Scott Schmidt, a senior safety director for the alliance.
Source: Automotive News

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For comprehensive auto industry news, visit the online news magazine NADAFrontPage.com

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NADA Used Car Guide Redesigns Website
Follow along as editors of the NADA Used Car Guide blog about changes in the used-car and -truck markets on the guide's revamped website, www.nada.com/b2b.

Dealer Executive Education at Babson College August 2011 Class Forming Now
Babson College has the nation's No. 1 ranked MBA program for entrepreneurship, a distinction it has earned for 17 consecutive years.

May Discounts From Lenovo
NADA members can use eCoupon USXMAYSAVINGS2011 at checkout to get an additional 8% off IdeaPad Y Series and an additional 10% off IdeaCentre All in One Desktops.

HP's Inventory Blowout
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Quotable
"There will be a new car shortage; there is no way around that."

    -- Jonathan Banks, executive automotive analyst for the NADA Used Car Guide, adding that prices of used vehicles will continue to soar as a result of the Japanese earthquake, The Wall Street Journal, May 9

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Upcoming Webinars

Wednesday, May 11, at 1 p.m. (Eastern): “Rein in Out-of-Control Technology Costs,” with Paul R. MacDonald, president of TriMac Automotive Advisory Group

Wednesday, May 18, at 1 p.m. (Eastern): “One-Price Selling: In Sync with Today’s Auto Purchasers,” presented by Mark Rikess, CEO of The Rikess Group


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Alert: Bogus Webpage Mimics NADAguides.com

A bogus website, http://nadaguides.zxq.net/
vehicle/purchase/protection
, has been set up to look like the legitimate website of NADAguides.com. The fraudulent Web page offers services for “Auto Purchase Protection” and facilitates the transfer of funds between buyers and sellers. This Webpage has no connection with NADA or NADAguides.com. NADA is attempting to shut down the site. It appears to be hosted overseas.
Source: NADA Legal Affairs

 
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