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Monday, July 25, 2011 RSSSEND TO A FRIENDPRINT
Inside This Issue
President Bush and Marchionne to Keynote NADA Convention in Las Vegas
Analysis: Automakers Wary as Economy Stuck in Slow Gear
Automakers Warn of Huge Job Losses Under Obama Fuel Efficiency Plan
The Recession Has Pounded Black-Owned Dealerships, Halving Their Ranks and Stalling Detroit's Effort to Build Them Up
Scion to Dealers: Online Sales May Click for You
Click here for NADA's online newsroom at NADAFrontPage.com. .
Top 5 Stories
President Bush and Marchionne to Keynote NADA Convention in Las Vegas

Online registration opens today for convention and housing

President George W. Bush and Sergio Marchionne, chief executive officer of Chrysler Group and Fiat S.p.A., are the scheduled keynote speakers for the 2012 NADA and ATD Convention and Expo in Las Vegas next February. NADA chairmen Stephen Wade and Bill Underriner will also deliver industry remarks. The inspirational address will be provided by Aron Ralston, who had to amputate his right arm with a knife to free himself from a boulder after a hiking accident. His autobiography “Between a Rock and a Hard Place” was the subject of the film “127 Hours.” The 2012 convention, which runs Feb. 3-6 at the Las Vegas Convention Center, will mark the first time that the NADA and ATD conventions will be held together. The convention also includes workshop sessions, franchise meetings, hundreds of exhibits and a new Social Connection Zone. “The exchange of ideas, updates on the latest marketing concepts and networking with fellow dealers at the convention is a rewarding experience,” says Rick Morrison NADA convention chairman. “There is no other event that offers dealers and their managers so much at one time in one location.” Super Bowl XLVI will also be held Sunday, Feb. 5. Dealers and their managers are encouraged to register early to take advantage of discounted pricing and reduced hotel rates. To register online, visit www.nadaconventionandexpo.org.
Source: NADA Newsroom

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Analysis: Automakers Wary as Economy Stuck in Slow Gear

Each month, a dozen executives of General Motors Co gather on the 39th floor of their Detroit headquarters to survey the auto industry, the U.S. economy and how they will meet demand from customers. Recently, the view has not been impressive. With the economy still struggling to regain momentum after the financial crisis of 2007-09 and 14 million Americans out of work, the planners at GM and a host of corporations across America are in no rush to make big new investments to ramp up output and hiring. Like many U.S. manufacturers, it is squeezing more from existing factories and using time-honored efficiency boosts such as adding to overtime and eliminating plant bottlenecks. For automakers and dealers, high gasoline prices are also a constant factor. "People are so sensitive to the price of fuel, if it spikes like it did earlier this year, it can have quite an effect on either keeping people out of the market or causing them shift their preferences on product," said John McEleney, a Clinton, Iowa, GM and Toyota dealer.
Source: Reuters

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Automakers Warn of Huge Job Losses Under Obama Fuel Efficiency Plan

Automakers are pushing back against an Obama administration proposal that would almost double vehicle fuel-efficiency standards, launching a new ad campaign warning of hundreds of thousands of job losses across the country. But the automakers are balking, noting a federal agency called the Energy Information Administration predicted the increased standard would result in a 14 percent drop in sales. "When manufacturers bring an advanced vehicle technology to market, consumers must be willing to buy it. There is a high level of uncertainty about consumer willingness to pay significantly higher prices for more fuel-efficient vehicles. In recent history, consumers have tended to value upgrades in performance, vehicle size, and other attributes at the expense of fuel economy," an agency report said. " ... the new standards will cost so much more that it will result in a loss of about 220,000 jobs," said Ed Tonkin, former chairman of the National Automobile Dealers Association. "A sales drop means job losses and not just with automakers but at hundreds of auto parts suppliers, dealerships and repair facilities across the country," one of the ads says. "The glass industry, the steel industry, the rubber industry," Tonkin said. "And it goes on and on and on. The financing industry, the delivery companies, the railroads that deliver these vehicles."
Source: FoxNews.com

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The Recession Has Pounded Black-Owned Dealerships, Halving Their Ranks and Stalling Detroit's Effort to Build Them Up

When Curley Lee got his first car dealership in November 1997, he dreamed of handing the business down to his children. "We had family discussions about branching out, getting more stores, teaching my children the business, to secure a future not only for them but for my grandbabies," recalls the 53-year-old former professional basketball player. Handing down a business to the next generation is common among auto dealers. But it is unlikely that Lee's children, who range in age from 8 to 32, will inherit a dealership. With his store, Ford of Champaign (Ill.), hemorrhaging red ink as the economy tanked, Lee couldn't find financing. He voluntarily, if reluctantly, closed his dealership in June 2008. Thousands of auto dealers were casualties of the economic crisis. But Lee is part of an especially vulnerable group: black dealers, whose businesses rose and fell with the domestic automakers. Black dealers have taken a disproportionate hit -- "drastic" in the words of one minority dealer spokeswoman -- in the past three years.
Source: Automotive News

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Scion to Dealers: Online Sales May Click for You

Toyota’s Scion division wants dealers to consider adopting Amazon.com-style online retailing tactics that would appeal to the brand’s youthful customers. The plan would not require dealers to sell exclusively online. But [Scion Vice President Jack] Hollis said he believes the Gen Y customers targeted by Toyota’s youth brand use the Internet to such an extent that finding and buying a car online is not farfetched. Scion has been an incubator for ideas at Toyota. Hollis often says that the youth brand is more about “Who and how?” than “How many?” in terms of retail sales. Scion cannot go to a build-to-order system because all its vehicles are made in Japan, which is too long a pipeline. That means shoppers would have to search Scion inventories, whether at a specific dealership or at a port processing center.
Source: Automotive News

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More articles

July 22, 2011 - Michigan Delegation Calls White House Fuel Proposal 'Not Reasonably Feasible'

July 21, 2011 - Automakers Try to Stall Higher MPG Standards, Ask Obama for Review

July 20, 2011 - Michigan Delegation to Meet, Consider Joining Fuel Economy Fight

July 19, 2011 - Auto Makers, White House Spar on Fuel-Economy Goal

July 18, 2011 - Automaker Ads to Protest Obama 56 m.p.g. Goal

 
Videos

 
2011 NADA Convention
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Quotable
"The exchange of ideas, updates on the latest marketing concepts and networking with fellow dealers at the convention is a rewarding experience. There is no other event that offers dealers and their managers so much at one time in one location."

   
-- Rick Morrison, chairman of the NADA convention, which opened advance registration today, NADA Newsroom, July 25
Convention News
Online Registration for 2012 Convention Now Open

Registration for the 2012 NADA and ATD Convention and Expo, Feb. 3-6 in Las Vegas, is now open online. The 2012 convention will mark the first time the NADA and ATD conventions will be held together. Dealers are urged to register early to take advantage of early-bird pricing and reduced hotel rates. Click here to register.

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
Marketplace
HP's Built-in Connectivity at Your Fingertips

July Specials from Lenovo

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