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Friday, July 29, 2011 RSSSEND TO A FRIENDPRINT
Inside This Issue
Cars Sold in U.S. Could Get 54.5 mpg by 2025
July Auto Sales to Start Recovery
Kia Second-Quarter Profit Rises 67% on Gains in U.S. Sales of SUVs, Sedans
Marchionne Creates Single Management Team to Oversee Fiat-Chrysler Merger
GM Holds Meet-the-Millennials Week
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Top 5 Stories
Cars Sold in U.S. Could Get 54.5 mpg by 2025

Calling it "the most important step we've ever taken in reducing our nation's dependence on foreign oil," President Obama announced a proposed new round of fuel economy standards for cars and trucks sold in the United States that would double the average mileage by 2025. Under the proposed plan, the combined fuel economy of all cars and light trucks sold in 2025 would have to increase to an average 54.5 miles per gallon, or nearly double the current figure. They'd ramp up to that level over seven years, starting in 2017 when current rules end. Stricter fuel economy requirements could spell trouble for smaller automakers ... [that] don't have as broad a range of models to work with. "This could really squeeze some of the smaller automakers out of the U.S. marketplace," [industry analyst Dave Sullivan of Autopacific] said. These new fuel economy increases will almost certainly require price increases as automakers add new technology and more expensive lightweight materials to cars and trucks. Higher car prices will be a major concern for consumers, said Jeremy Anwyl, chief executive of the automotive website Edmunds.com, in a draft of a letter he sent to the EPA. Anwyl expressed frustration with the secretive nature of the government's discussions with automakers and environmental groups in preparing the new rules. "The two things that concern consumers most are the availability of vehicles that they prefer, and the pricing of those vehicles," Anwyl wrote.
Source: CNNMoney.com

Editor's note: NADA is closely analyzing the deal with certain automakers on fuel economy standards for model years 2017-2025. As this “deal in principle” was reached prior to the beginning of the rulemaking process, many details are not yet available. NADA will continue to stress that vehicle affordability and model choice remain paramount for consumers and dealers. If car and truck buyers cannot or are not willing to pay for these new vehicles, there will be little to no environmental benefit, serious ramifications for American workers and a negative impact on the economy.

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July Auto Sales to Start Recovery

July auto sales should show an improvement from the past two months as the industry recovers from supply chain disruptions in Japan, but it could be a long time before the industry is fully back on track. "We think we're probably going to be into late August, early September before we get back on trend," General Motors Co's U.S. sales chief Don Johnson said in an interview last week. July sales, expected to hit an annual rate of about 12 million vehicles, should mark the beginning of a recovery from a bottom in June ... That is still less than the 13 million-plus pace from earlier in the year.
Source: Reuters

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Kia Second-Quarter Profit Rises 67% on Gains in U.S. Sales of SUVs, Sedans

Kia Motors Corp., the world’s best-performing major auto stock this year, posted a 67 percent increase in second-quarter profit as it sold more sedans and sports utility vehicles in the U.S. Kia sold 21 percent more cars than a year earlier, boosted by a 36 percent surge in exports to the U.S., where the company sold more K-5 sedans and Sorento SUVs. “The strong won will make it difficult, but we are confident that we will be able to continue profitable performance,” Lee Jae Rok, Kia’s chief financial officer, said in a briefing in Seoul. “Profits will continue to increase with new model releases in the second half.”
Source: Bloomberg

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Marchionne Creates Single Management Team to Oversee Fiat-Chrysler Merger

Sergio Marchionne, chief executive officer of Fiat SpA and Chrysler Group LLC, signaled how important the U.S. market is to the carmakers by keeping direct control of North American operations under the single management team he announced [Thursday] for the two companies. “We have gone through a pretty long dating period here, over two years to get know the organizations and we’ve established all the right relationships between the two organizations to now implement an integration plan,” Marchionne said July 26 in a conference call with analysts.
Source: Bloomberg

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GM Holds Meet-the-Millennials Week

General Motors is putting young people under the microscope. The automaker is hosting a weeklong event at its Renaissance Center headquarters [in Detroit] to help GMers get to know the millennials, the 11- to 30-year-olds that make up a growing portion of the car-buying market. Personalities from MTV are hosting a series of seminars featuring experts and young people to shed light on the millennials' views on cars, how they choose brands and what motivates and inspires them. GM expects about 800 employees to attend, from marketing and advertising types to engineers and designers. GM says it's probably the first time the company has mobilized that many of its employees in a get-to-know-you effort for a single buying demographic. "This generation is the largest cohort that we've seen. There are frankly a lot of misconceptions and stereotypes about it," says John McFarland, senior manager of global strategic marketing at GM. "The more we can understand them as a company, and as a dealer network, the better experience we can provide."
Source: Automotive News

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More articles

July 28, 2011 - Obama to Announce New Fuel Economy Standards Friday

July 27, 2011 - Deal Would Ease 2025 Fuel-Economy Standards

July 26, 2011 - Auto Sales Accelerate in July as Inventories Expand

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'

 
Videos

 
Adverse Action
Requirements

(NADA University)

 
Dealers in Good
Position to Sell

(AutoFocus)

 
NADA Foundation:
A Success Story
 
(AutoFocus)

Quotable
"There are still a lot of vehicles that have 0 percent or close to 0 percent financing available. People know that's not going to go on indefinitely." 

    -- John McEleney, Iowa GM and Toyota dealer, on the significant pent-up demand from individuals and businesses driving increasingly aging vehicles that, paired with deals, could help drive sales in the second half, Reuters, July 28

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 Small but Mighty PC

Super Savings from Lenovo

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