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Top 5 Stories
62 MPG: CAFE Debate Will Reshape Industry
Toyota Plans New Sales Incentives
Nissan Posts $380 Million Quarterly Profit
Used Prices Rise for Small Cars, Fall for SUVs
Saab Future in Doubt Again After China Deal Terminated
Top 5 Stories
62 MPG: CAFE Debate Will Reshape Industry

One certainty: More hybrids ahead

Quiet negotiations going on in Washington could change profoundly the nature of U.S. cars and trucks over the next 13 years, making more of them electrified and more costly. New federal fuel economy and emissions rules took effect Jan. 1, requiring automakers to hit 35.5-mpg corporate average fuel economy by the 2016 model year. But automakers and regulators from the EPA, the National Highway Traffic Safety Administration and the California Air Resources Board already are haggling over a tougher proposal initiated by President Barack Obama last October. That plan calls for a CAFE range of 47 mpg to 62 mpg by the 2025 model year. The key issue: Industry spokespeople say the 62 mpg CAFE, sought by environmentalists, could be too costly and may not be feasible. One industry ally says hitting 62 mpg would require widespread vehicle electrification, adding nearly $10,000 to the price of a new vehicle. Speaking recently in Detroit, EPA official Margo Oge said the agency does not want to hurt auto sales.
Source: Automotive News

Editor's note: “NADA has stressed for many years that regulators—in order to develop good policies—need to consider and leverage consumer demand when writing new fuel economy regulations,” said Andrew Koblenz, NADA vice president of regulatory affairs. “We are pleased that Director Oge recognizes the importance of considering market forces when setting the final fuel economy rules.” Koblenz added that “only if and when consumers embrace the products mandated by the government will the environmental and safety improvements offered by these vehicles be realized. However, fuel economy regulation by three different agencies – NHTSA, EPA and California – under three different sets of rules makes it more likely that automakers will be forced to build a fleet that does not match consumer demand. Returning to a single, national fuel economy standard based on the CAFE structure Congress created is the best way to cut GHG emissions, reduce the nation’s dependence on foreign oil, and harness the power of consumers to put more fuel-efficient vehicles on the road.”

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Toyota Plans New Sales Incentives

DETROIT -- Toyota Motor Corp. will launch a new set of sales incentives on many of its models Thursday, dealers briefed on the matter said. On Wednesday, Toyota said it expects its plants in Japan and in U.S. to reach about 70% of normal output in June. Earlier, Toyota announced that it would begin in June restoring 100% production to the Avalon, Camry and Corolla sedans, the Highlander SUV, Matrix wagon, Sequoia SUV, Sienna minivan and Venza wagon. Toyota will keep production of the Tundra and RAV4 SUVs at 30% for the time being, the dealers said. "Programs will vary from region to region and additional details may be available via dealer advertising as early as this weekend," said Mike Michels, Toyota's spokesman in the U.S.
Source: The Wall Street Journal

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Nissan Posts $380 Million Quarterly Profit

TOKYO -- Nissan rounded out a record year for car sales by returning to profit in the fourth quarter but Chief Executive Carlos Ghosn acknowledged serious challenges from Japan's natural disasters. The good news Thursday was clouded by uncertainties due to the damage from Japan's earthquake, tsunami and nuclear crises that have disrupted production for Nissan and other Japanese automakers. Nissan Motor Co., allied with Renault SA of France, reported a 30.77 billion yen ($380 million) profit for January-March, a turnaround from a 11.6 billion yen loss a year earlier. "Our recovery is going smoothly and robustly," Ghosn said. "Fiscal year 2010 was a record year for Nissan in terms of sales and growth."
Source: The Associated Press

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Used Prices Rise for Small Cars, Fall for SUVs
By Colin Bird

Are you driving around in an older, gas-guzzling SUV and looking for a way out? Maybe you’re thinking about trading it for a used, fuel-efficient small car? We have some bad news: Getting a cheap, used, efficient car is getting harder by the day. A used car appreciating year over year is almost unheard of, and it is going to make shopping for a used car a challenge. Five-year-old entry-level compact vehicles are now worth 72.1% more than they were last year, according to the National Automobile Dealers Association. At the same time, used-SUV prices have remained relatively flat or have fallen. Prices are expected to increase further through July, when normal seasonal demand for used and new cars peaks, NADA says.
Source: Cars.com

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Saab Future in Doubt Again After China Deal Terminated

PARIS — The future of Saab Automobile was thrown into doubt yet again on Thursday as the Swedish carmaker announced that a partnership it had agreed a little more than a week ago with a small Chinese automaker had foundered. Saab has been unable to produce cars at its factory in Trollhattan, Sweden, since early April, when suppliers stopped extending credit. It had hoped to resume production this week after a financing and ownership deal, with the Hawtai Motor Group, was announced with some fanfare May 3 in Beijing. On Thursday, however, Spyker Cars, the Dutch company that acquired Saab from General Motors in 2010, said the deal had fallen apart.
Source: The New York Times

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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
NADA members can save $330 on HP's Compaq 6005 Pro Small Form Factor Desktop PC and $440 on HP's Compaq 800 Elite Small Form Factor PC with free U.S. ground shipping.

 
NADAFrontPage.com
For comprehensive auto industry news, visit the online news magazine NADAFrontPage.com.
Quotable
"We will be very mindful -- and I underline 'mindful' -- of the consumer throughout this process. Unless people buy these new clean cars and trucks, and buy them in large numbers, everyone loses."

    -- Margo Oge, director of the EPA's Office of Transportation and Air Quality, referring to proposed fuel economy rules that would increase the cost of vehicles to meet new standards, Automotive News, May 9
Video Highlights
 
GM Sales Chief Discusses Progress, Challenges Ahead (AutoFocus) 

 
2011 NADA-IHS Auto Forum Offers Insiders' View of Present, Future (NADA-TV)

 
Analyst Says Gas Prices Affecting Small, Midsize Used Markets (AutoFocus)


NAD Charitable Foundation Supports Wounded Veterans Initiative (NADA-TV)

Tornado Relief


Upcoming Webinar

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


NADA Used Car Guide

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used-vehicle values since 1933

 
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