View Mobile Version | View Web Version

SPONSORED BY
Advertisement
NADA.org
Tuesday, July 5, 2011 RSSSEND TO A FRIENDPRINT
Top 5 Stories
Detroit 3 Tops Light-Vehicle Sales to U.S. Consumers Last Month
New Vehicle Rules to Curb Greenhouse Gas Emissions Spark Debate
Despite Low Sales, Dealer Profits Rise
Widening GM Truck Supply Reminiscent of 2008 'Bad Habits'
CEO Krafcik: Hyundai's Way Cuts Fuel Use Now, Does It Cheaper
Click here for NADA's online newsroom at NADAFrontPage.com. .
Top 5 Stories
Detroit 3 Tops Light-Vehicle Sales to U.S. Consumers Last Month

The Detroit Three sold 50.2% of the light vehicles purchased by U.S. consumers last month, capturing a majority of the market for the first time since August 2009, as the effects of Japan's March earthquake continue to rock the auto industry. Chrysler led Detroit automakers with a 30.2% year-over-year sales gain in June. Sales grew 13.3% at Ford and 10.6% at GM. But shortages of cars on Toyota's and Honda's lots kept their consumers out of showrooms, dragging each of their sales down 21% and holding the overall U.S. sales rate to 11.5 million -- its lowest level since August 2010 and well below analysts' expectations. While some small-car buyers were waiting last month, large-vehicle shoppers were buying.
Source: Detroit Free Press

[back to top]

New Vehicle Rules to Curb Greenhouse Gas Emissions Spark Debate

Heather Zichal, deputy assistant to the president for energy and climate-change policy, makes a forceful case for the need to slash greenhouse-gas emissions and boost the efficiency of cars and small trucks: The moves will cut America’s oil consumption, foster the nation’s energy independence, save consumers money at the pump and help revive domestic auto manufacturers. What she doesn’t volunteer is that they will curb climate change. The Obama administration is crafting two regulations — one targeting passenger vehicles, the other focused on heavier trucks and buses — that would do more to cut global-warming pollution than any other policy in the president’s time in office. A host of states and industry groups are also challenging in federal court the EPA’s authority to regulate vehicles’ greenhouse-gas emissions. National Automobile Dealers Association spokesman Bailey Wood asserted that the Obama administration is “trying to use regulatory fiat to get done what they couldn’t get done legislatively.” The White House was unable to get a bill setting federal limits on greenhouse-gas emissions through Congress in 2010.
Source: The Washington Post

[back to top]

Despite Low Sales, Dealer Profits Rise

Net pretax margin hits 24-year high in 2010

Despite anemic new-vehicle sales, the average dealership's net pretax profit margin hit a 24-year high in 2010 -- even though the new-vehicle department was in the red for a fifth straight year, according to the National Automobile Dealers Association. The net pretax profit as a percentage of total dealership sales in all departments was 2.1 percent in 2010, up from 1.5 percent in 2009 and the highest since 1986, NADA said last week in its annual NADA Data report. Strong results in the used-vehicle and service and parts operations bolstered overall results. Dealerships also got a boost from much lower floorplan expense, which plunged because of low interest rates and tighter new-vehicle inventory. Dealerships that survived the downturn and factory bankruptcies also picked up sales and service business from competitors that shut down, said Paul Taylor, NADA's chief economist.
Source: Automotive News

[back to top]

Widening GM Truck Supply Reminiscent of 2008 'Bad Habits'

General Motors Co. stocked Jim Ellis Chevrolet in Atlanta with plenty of Silverado full-size pickups in early 2011, part of a wager on a strong economic recovery. The strategy is backfiring. “We thought that this year would bring back the kind of economic activity that would translate into us selling more trucks,” Mark Frost, the dealership’s general manager, said in a phone interview. “It’s not happening.” Supply of Silverado has ballooned to 6 1/2 months worth at the dealership, a figure Frost, 52, calls “a little scary.” The Detroit-based automaker, 33 percent owned by the U.S. after its 2009 bankruptcy, has 280,000 Silverado and GMC Sierra pickups on dealers’ lots around the country. If sales continue at June’s rate, that would be enough to last until November.
Source: Bloomberg

[back to top]

CEO Krafcik: Hyundai's Way Cuts Fuel Use Now, Does It Cheaper

Hyundai Motor America CEO John Krafcik says Hyundai's approach to achieving fuel economy is faster and cheaper -- and good for the USA. Hyundai, in its June sales report [Monday], went out of its way to highlight that 40% of its sales were its 40 mpg-on-the-highway cars -- mainly, the new Accent subcompact ($14,995 with shipping to start) and hot-selling Elantra compact ($17,205 base), as well as the Sonata hybrid midsize sedan ($26,545). Hyundai calculated that it had a corporate average fuel economy level for cars sold in June of 35.9 mpg, and 35.7 mpg on sales year-to-date, which it says is best of any maker selling in the U.S. That's also a hair above the 2016 federal corporate average fuel economy mandate.
Source: USA Today

[back to top]

More articles

July 1, 2011 - FTC to Review Dealers' Treatment of Military Customers

June 30, 2011 - Governors Urge Feds to Consider Jobs, Costs in Fuel Standards

June 29, 2011 - Sen. Levin Wants Answers on White House 56.2 mpg Proposal

June 28, 2011 - GM Calls Fuel Regime 'Tough'

June 27, 2011 - Obama Targets $72 Billion Business Tax Break

 
Videos

 
Dealers in Good
Position to Sell

(AutoFocus)

 
NADA Foundation:
A Success Story
 
(AutoFocus)

 
Mercedes Enrolls in
NADA U
(NADA-TV)

Quotable
"I'm very bullish, especially considering gas prices are steadily dropping. That's a good sign for the popular summer selling months."

   
-- April Ancira, vice president of the Ancira Auto Group in San Antonio, says she's optimistic about auto sales picking up over the next several months, Automotive News, July 4
Marketplace
NADA U Webinar: "New Credit Score Disclosures for Adverse Action and Risk-Based Pricing Notices," Wednesday, July 6, 1-3 p.m. EDT

HP's Built-in Connectivity at Your Fingertips

Lenovo's June Savings

Foundation News
NADA's Bruce Kelleher and Wife Honored as 'Family Ambassadors of Distinction'

Boston Dealer Creates 'Family Ambassadors of Distinction'


NADA Foundation Program Reaches 500th Ambassador
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.