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Tuesday, July 26, 2011 RSSSEND TO A FRIENDPRINT
Inside This Issue
Auto Sales Accelerate in July as Inventories Expand
Toyota Moves Closer to Pre-Quake Output Levels
Chrysler Posts a Loss, but Operating Income Improves
Ford Second-Quarter Profit Beats Estimates as Buyers Pay More
Used-Vehicle Prices in August to Exceed Those in January, NADA Guide Predicts
Click here for NADA's online newsroom at NADAFrontPage.com. .
Top 5 Stories
Auto Sales Accelerate in July as Inventories Expand

New car sales have picked up this month from June's disappointing levels, say forecasters, attributing most of the improvement to the recovery of dealer inventories of Japanese models. With Japan's biggest automakers restoring production after months of disruptions from the massive March quake, sales could spike in the fall, they say. This month's selling pace, measured on an annualized basis, is expected to reach 11.9 million cars and light trucks, up from 11.45 million in June, and 11.5 million in July, 2010, said J.D. Power and Associates. Roger Penske, chief executive of Penske Automotive Group Inc., said during a quarterly earnings call on Thursday that Honda was 60 days behind Toyota in restoring dealer stocks. He said he expected his dealers' overall stocks to be "near normal" in the fourth quarter. Penske said he expected to see growing pricing pressure on dealers — meaning lower prices and more incentives for consumers — in the second half of the year. "When they kick back in," Penske said, "that's going to give the market a lift."
Source: The Detroit News

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Toyota Moves Closer to Pre-Quake Output Levels

Toyota Motor Corp. reported a big step forward Monday in its domestic production recovery after the March 11 earthquake, as progress in restoring its parts-supply chain helped bring output in June closer to year-earlier levels. Domestic output at Japan's biggest car maker by volume fell 15.9% in June from the previous year to 249,660 vehicles, but that was a much narrower decline than a drop of 54.4% in May and a 78.4% plunge in April. The improved figures reflect resumed production and increased output at suppliers whose facilities were damaged by the quake and tsunami. 
Source: The Wall Street Journal

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Chrysler Posts a Loss, but Operating Income Improves

Chrysler said on Tuesday that improved vehicle sales and better pricing had helped the company raise its operating income and revenue for a second consecutive quarter. The company, which is majority owned by the Italian automaker Fiat, reported a loss for the quarter of $370 million, mostly because of a $551 million one-time charge to fully repay loans from the United States and Canadian governments. Without the charge, Chrysler said it would have posted net income of $181 million in the second quarter; it had a net loss of $172 million in the period a year earlier.
Source: The New York Times

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Ford Second-Quarter Profit Beats Estimates as Buyers Pay More

Ford Motor Co., the second-largest U.S. automaker, said second-quarter profit beat estimates as buyers paid more for models such as the Fiesta subcompact. Net income fell to $2.4 billion from $2.6 billion a year earlier, Dearborn, Michigan-based Ford said today in a statement. Excluding some items, profit was 65 cents a share, beating the 61-cent average of 14 analysts’ estimates compiled by Bloomberg. Chief Executive Officer Alan Mulally raised prices for Fiesta cars and Explorer sport-utility vehicles to offset some of the $4 billion in higher costs that Ford expects this year, including manufacturing spending.
Source: Bloomberg

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Used-Vehicle Prices in August to Exceed Those in January, NADA Guide Predicts

Wholesale prices of late-model, fuel-efficient used cars peaked in June but will be higher in August than they were in January, predicts the senior analyst at NADA Used Car Guide. Jonathan Banks says prices of some popular, 2006-09 cars such as Toyota Prius, are expected to be as much as 30 percent higher next month than they were at the first of the year. Used-vehicle prices typically peak in March and depreciate about 15 percent by year end, Banks says. But because of a tighter supply and strong demand for used vehicles, prices peaked in June. And prices of some fuel-efficient cars are expected to be 10 percent to 30 percent higher in August than in January. Banks says used vehicle prices are expected to remain relatively high the rest of the year, dropping about 6 percent from August through December. Depending on new-vehicle incentives, which affect used-vehicle prices, much of the decline is expected to occur July through September, coinciding with the new model year, he adds. "Dealers paid the highest prices they should pay for small cars in May and June," Banks says. "We are not expecting a so-called correction. What we are expecting is depreciation."
Source: Automotive News

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More articles

July 25, 2011 - President Bush and Marchionne to Keynote NADA Convention in Las Vegas

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

 
Videos

 
2011 NADA Convention
Highlights
(NADA-TV)

 
Dealers in Good
Position to Sell

(AutoFocus)

 
NADA Foundation:
A Success Story
 
(AutoFocus)

Quotable
"Refinancing our debt and repaying our government loans six years early reinforces our conviction that we are on the right path."

   
-- Sergio Marchionne, Chrysler CEO, in a statement on the automaker's second-quarter loss caused by the expense of shedding its government debt, The Associated Press, July 26
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 discounted 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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