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Monday, June 27, 2011 RSSSEND TO A FRIENDPRINT
Top 5 Stories
Obama Targets $72 Billion Business Tax Break
Government Considers Boosting Fuel Economy Requirements to 56 m.p.g. by 2025
U.S. Gas Prices Dip Slightly to Near $3.63/Gallon
June Car, Truck Sales to Rebound, Analysts Say
Nissan Aims to Boost Market Share, Margin
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Top 5 Stories
Obama Targets $72 Billion Business Tax Break

Barack Obama’s proposal to end a business tax break worth $72 billion is among the tensions the president may confront as he meets today with Senate Minority Leader Mitch McConnell in an effort to revive bipartisan talks over reducing the debt, three persons familiar with the issue say. Ending the so-called last-in-first-out, or LIFO, provision, a method of accounting for inventory costs, was among options offered by White House officials for raising $400 billion in revenue over 10 years during seven weeks of negotiations led by Vice President Joe Biden, the people said, speaking on the condition of anonymity because they weren’t authorized to comment publicly.
Source: Bloomberg

Editor's note: NADA has been meeting with the tax writing committees to strongly oppose the repeal of LIFO, which is used by a majority of auto dealers. Repeal of LIFO would constitute a massive tax increase for many small business dealers. Since U.S. House members are back in their home districts this week and Senators in their home states next week, NADA's Legislative Affairs office is urging dealers to communicate with their lawmakers during the Congressional recess to oppose the Obama administration's proposal to repeal LIFO as part of the debt ceiling agreement.

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Government Considers Boosting Fuel Economy Requirements to 56 m.p.g. by 2025

The White House is ramping up its discussions with automakers and elected officials regarding fuel economy standards for 2017-25, and informed the Detroit Three that the government is considering boosting those requirements to 56 miles per gallon by 2025. Automakers, dealers and others in the auto industry are pushing for a much lower CAFE standard when federal regulators announce the proposed 2017-25 rules for cars and light trucks in September. A target of 56 m.p.g. would amount to about a 5% increase per year during that period. It will likely face stiff pushback by the auto industry as the negotiations proceed.
Source: Detroit Free Press

NADA Statement: To reach a 56 miles per gallon standard would mean a tremendous shift in the types of vehicles that consumers would be able to buy. To meet that goal, 55 percent of market share would be hybrid and plug-in electric vehicles, according to the Center for Automotive Research. In 2010, hybrids and plug-ins together accounted for less than 2.5 percent of U.S. new auto sales. Overly ambitious standards set 14 years in the future risk severe economic harm if consumer wants and needs are not met. Only a Congressionally-created CAFE program will result in fuel economy standards for vehicles designed and priced to meet consumer demand.

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U.S. Gas Prices Dip Slightly to Near $3.63/Gallon

U.S. average retail gasoline prices fell over the past two weeks and could ease a bit more in coming weeks due in part to the release of crude oil from the U.S. strategic energy reserve, according to the latest nationwide Lundberg survey. The national average price for self-serve regular unleaded gas was $3.6283 a gallon on June 24, a decline of about 11 cents in the past two weeks, according to the survey of about 2,500 gas stations. Gas prices will continue to fall in part because the International Energy Agency (IEA) said it will release 60 million barrels in July, which caused the price of crude oil to drop, survey editor Trilby Lundberg said. "Unless there was a very severe disruption in the supply of crude, it's safe to say we won't see prices of crude coming back any time soon," Lundberg said.
Source: Reuters

Related article

  NADA Economist: New Car Sales Expected to Rise in July as Gas Prices Drop (NADA Newsroom)

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June Car, Truck Sales to Rebound, Analysts Say

U.S. vehicle sales in June, to be announced Friday, are believed to be up from the previous month, as well as from June 2010, even as worries about the nation's halting economic recovery persist. A strong fall selling season is likely to make up for May's sales slump, they say. California-based research firm J.D. Power and Associates predicts U.S. sales of 1,106,400 vehicles in June, up 8 percent from a year ago and 2.6 percent from May. That translates into a seasonally adjusted selling rate — a measure watched by the industry to determine full-year sales — of 12 million.
Source: The Detroit News

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Nissan Aims to Boost Market Share, Margin

Nissan Motor Co., Japan’s second- largest automaker, aims to increase its share of the global car market to 8 percent over the next six years as the company expands in fast-growing emerging economies. Nissan plans to boost its share from 5.8 percent in the year ended March 31 and to widen its operating profit margin to 8 percent from 6.1 percent by fiscal 2016, the Yokohama-based carmaker said in a midterm plan announced today. The company will introduce 51 new models over the next six years as it aims to capture 10 percent of global luxury-car sales, according to the plan.
Source: Bloomberg

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More articles

June 24, 2011 - Vehicle Quality Trips Over Efforts to Add Fuel Economy, Multi-Media

June 23, 2011 - NADA Disagrees with Recommendations by Former EPA Administrators on Fuel Economy

June 22, 2011 - Ford Exec Says June Auto Sales Could Top May Levels

June 21, 2011 - Chrysler Gets Improved Marks from Consumer Reports

June 20, 2011 - Fuel Prices No Longer Trigger Hybrid Desire, Study Says

 
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Quotable
"Unless there was a very severe disruption in the supply of crude, it's safe to say we won't see prices of crude coming back any time soon."

     -- Trilby Lundberg, editor of a national survey that found the average price for self-serve regular unleaded gas was $3.63 a gallon on June 24, Reuters, June 26

Marketplace
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NADA U Webinar: "New Credit Score Disclosures for Adverse Action and Risk-Based Pricing Notices," Wednesday, July 6, 1-3 p.m. EDT

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