View Mobile Version | View Web Version

NADA.org
Tuesday, May 31, 2011 RSSSEND TO A FRIENDPRINT
Top 5 Stories
Sales Slowdown in May Won't Prevent Biggest Year Since 2008
Hedge Fund Helps Chrysler Grow in Calif.
Toyota's Japan Production Will Near Normal in June
Fiat Willing to Buy Canada's Chrysler Stock
Detroit's Rebound Is Built on Smaller Cars
Click here for NADA's online newsroom at NADAFrontPage.com.
Top 5 Stories
Sales Slowdown in May Won't Prevent Biggest Year Since 2008
Bloomberg

DETROIT -- U.S. auto sales probably ran at the slowest pace of the year in May, a pause in demand before lower gas prices and rebounding production in Japan fuels the most annual purchases since 2008. May light-vehicle deliveries, to be released tomorrow, may have run at a 12.1 million seasonally adjusted annual rate, the average estimate of 11 analysts surveyed by Bloomberg. "Predominantly this is a supply issue," George Magliano, a New York-based senior economist for IHS Automotive, said in a telephone interview. "The auto market was developing considerable momentum coming into this month before issues related to Japan."

Editor's note: NADA Chief Economist Paul Taylor says that declining gas prices will help dealers sell a mix of vehicles this summer, leading to annual sales of 12.9 million units in 2011. "Moderating gas prices going forward is good news for new-car and -truck dealers," says Taylor, "and the vehicle inventory will recover as early as mid-June." Taylor noted that a gallon of gas is currently about $1 more than it was on Memorial Day 2010, but he says if prices continue to fall "consumers will have more money to spend in the immediate future."

[back to top]

Hedge Fund Helps Chrysler Grow in Calif.
Automotive News

Rival dealers say factory help isn't fair

California Superstores, a new dealership group owned largely by a New York hedge fund, is buying up former Chrysler Group dealerships and at least one existing store in California. And Chrysler is buying the real estate for the group as a way to beat California's high cost of real estate and to rebuild Chrysler's weak market share in the state. "We're buying the real estate and York Capital is funding the dealership operations with working capital," [Peter Grady, Chrysler vice president for network and fleet] told Automotive News.

[back to top]

Toyota's Japan Production Will Near Normal in June
The Associated Press

TOKYO -- Toyota's auto production in Japan will recover to 90 percent of pre-disaster levels next month, faster than the company had projected and highlighting its power to bounce back from the disaster. Toyota, the world's biggest automaker, had said earlier that production at its global factories would be at about 70 percent levels in coming months. It had not expected to return to normal levels until late this year. Nissan Motor Co. expects worldwide production to be back at pre-disaster levels by October, and Honda has said normal production levels weren't expected until late this year.

[back to top]

Fiat Willing to Buy Canada's Chrysler Stock
The Associated Press

TORONTO -- The chief executive officer of Chrysler and Fiat said Monday he and Canadian authorities have begun talking about purchasing Canada's 1.7 percent ownership in Chrysler. The Canadian federal government and provincial Ontario governments received 1.7 percent of Chrysler two years ago as part of a bailout that also provided $1.7 billion in loans to help the Detroit company survive. Chrysler, already controlled by Fiat, recently paid back the last of the money it borrowed from the Canadian and American governments. Fiat then began the process of buying the shares owned by the U.S. government.

[back to top]

Detroit's Rebound Is Built on Smaller Cars
The New York Times

DETROIT — After years of being outgunned by Japanese rivals, the American auto industry has made small cars a central part of its strategy, seeking to capitalize on a fundamental shift in the preferences of consumers in an era of fast-rising gas prices. Their efforts are already paying off in the marketplace. Nearly one in four vehicles sold in the United States in April was a compact or subcompact car, compared with one in eight a decade ago.

[back to top]

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 Built-in Connectivity at Your Fingertips
Stay connected on the go with HP computing solutions equipped with access to mobile broadband.

 
NADAFrontPage.com
Click here for NADA's online newsroom at NADAFrontPage.com.
Top Videos
 
GM Sales Chief Discusses Progress, Challenges Ahead (AutoFocus) 



Charitable Foundation Supports Wounded Veterans Initiative (NADA-TV)

Quotable
"This car has changed my impression of Detroit, big time."

    -- Christopher L. Garcia-Rivera of Northborough, Mass., who averages nearly 40 miles to the gallon in the Ford Fiesta he bought for $14,900 in April, The New York Times, May 29

Tornado Relief


Upcoming Webinars

Thursday, June 16, at 1 pm (Eastern): “Dealership Valuation for Estate and Succession Planning”


NADA Used Car Guide

Providing the most reliable
and most comprehensive
used-vehicle values since 1933

 
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.