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Wednesday, June 15, 2011 RSSSEND TO A FRIENDPRINT
Top 5 Stories
Study: Fuel Rules to Hike Car Costs
Consumer Panel in Jeopardy
NADA UCG Sees Possible End to Compact Price Rise
Hyundai Boosts Output in Push for 600,000 U.S. Sales in 2011
Cautious Consumers Could See Lower Prices Ahead
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Top 5 Stories
Study: Fuel Rules to Hike Car Costs

Fed standards may swell prices by $10K, cut 260K jobs by '25

Sharply higher fuel efficiency standards by 2025 could force vehicle prices up by nearly $10,000, reduce sales by 5.5 million vehicles annually and eliminate more than 260,000 jobs, according to a study by the Ann Arbor-based Center for Automotive Research. The center's study, released Tuesday, predicted it will cost between $3,744 and $9,790 per vehicle to develop and produce cars that meet a range of between 47 and 62 mpg — a span being considered by federal regulators — by 2025. Jay Baron, president and CEO of the center, said the main difference between the government's analysis and the center's "is how much will the technology come down over 15 years."
Source: The Detroit News

NADA Statement: If fuel economy standards are set too high or kick in too soon, dealers will be forced to stock vehicles with unduly high prices that will fail to meet consumer demand. The real question is whether new car shoppers will be willing and able to pay for future fuel economy improvements or choose to drive their current vehicles longer or turn to the used vehicle market.

Related article

  Opinion: CAR Study Merits Scrutiny During CAFE Talks (Automotive News)

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Consumer Panel in Jeopardy

A year ago, President Obama championed the creation of a government agency that would be charged with protecting Americans’ wallets and restore certainty to the nation’s financial system. But just weeks before its official launch, the future of the Consumer Financial Protection Bureau is in danger, hamstrung by a partisan standoff that has ground work on Capitol Hill to a virtual halt. The protracted battle threatens to rob the agency of many of the powers that Obama once cited as crucial to preventing another financial crisis. The stalemate has lasted so long that it would be virtually impossible for the Senate to vet any candidate before the agency opens for business July 21, even if a compromise could be reached.
Source: The Washington Post

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NADA UCG Sees Possible End to Compact Price Rise

A headline contained within the latest edition of Guidelines produced by NADA Used Car Guide ... showed that while wholesale prices for the full month of May continued to move upward, the past three weeks of auction activity indicate that prices for compact and midsize cars may have reached their tipping point. Prices for these two segments have either flat-lined or receded slightly. “These results can be attributed in large part to lower gas prices and the improving supply picture being portrayed by Japanese OEMs,” [NADA Used Car Guide executive automotive analyst Jonathan Banks] surmised.
Source: Auto Remarketing

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Hyundai Boosts Output in Push for 600,000 U.S. Sales in 2011

Hyundai Motor Co. said increased production capacity will allow it to sell a record 600,000 cars and light trucks in the U.S. this year as demand for its Sonata and Elantra models grows. Hyundai and affiliate Kia Motors Corp. are among the fastest-growing automakers in the U.S. this year, with respective sales increases of 29 percent and 45 percent through May. Both are adding models with improved styling and fuel efficiency to win sales from competitors including Toyota Motor Corp. and Honda Motor Co., which are struggling with reduced supply after Japan’s record earthquake in March cut output.
Source: Bloomberg

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Cautious Consumers Could See Lower Prices Ahead

Consumers are spending cautiously in the face of still-high gasoline and grocery-store prices and restraining the economy's growth. But some relief could be on the way: Wholesale food prices dropped last month by the most in a year. And motorists are likely to face lower gasoline prices this summer. Consumers had been paying an average of nearly $4.00 for a gallon of gas in early May. On Monday, the national average was $3.70 a gallon, according to AAA. Still, that's a dollar more than what consumers paid a year ago.
Source: The Associated Press

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More articles

June 14, 2011 - Honda Forecasts Profit to Drop 63% After Earthquake Disrupts Production

June 13, 2011 - Ally Partners with TIME on Prestigious Dealer of the Year Honor

June 10, 2011 - GM Expands Chevrolet Volt Orders to All 50 States, Lowers Price

June 9, 2011 - SUVs Safer Than Ever, But Small Cars Still Perilous

June 8, 2011 - Akerson: GM Strong After 'Rebirth' in Bankruptcy, But Challenges Remain

 
Videos

Dealers Eye Consumers in 'Scramble' for Used Cars (AutoFocus)

 Mercedes Enrolls in NADA U (NADA-TV)

 Disaster Relief for Dealership Employees (NADA-TV)

Quotable
"Let's wisely raise fuel economy levels, while at the same time preserving affordability and jobs."

    -- The Alliance of Automobile Manufacturers, in a radio ad emphasizing that high fuel efficiency standards could cost jobs, The Detroit News, June 15

Marketplace
Webinar: “Dealership Valuation for Estate and Succession Planning,” June 16 at 1 p.m. EDT

Free Webinar: “Boost Your Revenue in Today's Transparent Used Car Market,” June 21 at 12 p.m. EDT 

Dealer Executive Education at Babson College August 2011 Class Forming Now

HP's Built-in Connectivity at Your Fingertips

Lenovo's June Savings

Foundation News
Boston Dealer Creates 'Family Ambassadors of Distinction'

NADA Foundation Program Reaches 500th Ambassador

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