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Top 5 Stories
U.S. Scraps Letter Grades for Cars
Chrysler Raises Funds to Repay U.S. Loan
Toyota Says U.S. Prius Supply to Recover to 70% in June
Honda to Dealers: More Vehicles Coming in July, August
May Auto Sales See 'Dismal' Beginning
Click here for NADA's online newsroom at NADAFrontPage.com.
Top 5 Stories
U.S. Scraps Letter Grades for Cars
The Wall Street Journal

WASHINGTON—The Obama administration has scrapped a proposal to assign new passenger cars a letter grade from A to D based on their fuel efficiency, according to people familiar with the matter. The administration was considering the letter grades as part of a revamp of the familiar price-and-mileage labels affixed to new cars. Instead, the updated labels, expected to be unveiled by Obama officials next week, will include more information designed to help consumers judge a car's projected gasoline costs and its emissions.

Editor's note: NADA is awaiting the final fuel economy label rule and remains hopeful that it will not include a requirement that vehicles be labeled with letter grades based on their fuel economy and greenhouse gas emissions. During the process, NADA submitted extensive written comments and worked with Congress to oppose the letter grade system because it would unnecessarily confuse consumers. In addition, Forrest McConnell testified before the EPA last fall (when he was still chairman of NADA's Regulatory Affairs Committee), explaining in detail the difficulties associated with such an approach. NADA will update dealers as more information becomes available.

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Chrysler Raises Funds to Repay U.S. Loan
Detroit Free Press

After three weeks of negotiations with banks and bond investors, Chrysler said Thursday it has raised the money necessary to repay all of the $7.5 billion in debt it owes to the U.S. and Canadian governments less than two years after it emerged from Chapter 11 bankruptcy. The Auburn Hills automaker said it sold $3.2 billion in bonds and obtained a $3.2-billion loan as well as a $1.3-billion credit facility from investors and commercial lenders.

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Toyota Says U.S. Prius Supply to Recover to 70% in June
Bloomberg

Toyota Motor Corp., the world’s largest seller of hybrid cars, expects U.S. supply of its top-selling Prius to recover to about 70 percent of normal next month after output was disrupted by Japan’s record earthquake. Toyota’s U.S. unit should get at least 36,000 Prius cars to sell in June, July and August, or about 12,000 a month, Bob Carter, group vice president for U.S. sales, said yesterday. Supply in the next three months will be “in the 60 percent to 70 percent range,” Carter said at a briefing in Half Moon Bay, California. “It’s much improved.”

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Honda to Dealers: More Vehicles Coming in July, August
Automotive News

LOS ANGELES -- Honda Motor Co. told its U.S. dealers [Thursday] it expects production to bottom-out this month before increasing in July and August, signaling that efforts to repair supply chains ravaged by Japan's March 11 earthquake and tsunami are gaining traction. John Mendel, executive vice president of American Honda, told dealers ... to expect availability of vehicles built in July to increase 11 percent compared to June. Considering what Honda has in stock, plus incentives for vehicles with adequate availability, Mendel said dealers "need to continue to push hard on the sales front." "We all know the automobile market is getting better and we want to be able to grow along with it," Mendel said.

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May Auto Sales See 'Dismal' Beginning
The Detroit News

Gas prices, scaled-back incentives biggest contributors to slowdown

Car and truck sales picked up speed in the first four months of the year on rising consumer confidence, but they appear this month to be losing momentum. Auto experts had expected a lull in May because of shortages of some of the most popular Japanese models, but they're watching to see if there's more to the slowdown than a dearth of supplies — perhaps some backsliding in demand. "The biggest drivers are a pullback in incentives as well as lower availability of vehicles," said Jeff Schuster, executive director of global forecasting at J.D. Power [and Associates]. "Those two are contributing the most." 

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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.

 
NADAFrontPage.com
Click here for NADA's online newsroom at NADAFrontPage.com.
Quotable
"If you own a small or midsize car, your car is probably worth a lot more than you think. Trade-in values are at an all-time high."

    -- Jonathan Banks, executive auto analyst for the NADA Used Car Guide, ABC News, May 19

Video Highlights
 
Price of Used Cars Hits 16-Year High (ABC News)

 
GM Sales Chief Discusses Progress, Challenges Ahead (AutoFocus) 

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


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

Tornado Relief


NADA University


NADA Used Car Guide

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and most comprehensive
used-vehicle values since 1933

 
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