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Tuesday, Aug. 9, 2011 RSSSEND TO A FRIENDPRINT
Inside This Issue
Wall Street Turmoil Could Stall Car Industry Recovery
Despite Economy and Market Woes, Cars Are Still Selling
Consumers Find Bright Spot: Low Interest Rates
Automakers Tap Recording Industry Vet to Run Trade Group
Ford Delays Full Rollout of Electric Focus
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Top 5 Stories
Wall Street Turmoil Could Stall Car Industry Recovery

Falling consumer confidence, higher interest rates could take toll on auto sales

It may take time for the auto industry to feel the impact of economic turmoil because experts don't expect interest rates on auto loans to increase immediately and the popularity of leasing should continue to grow. But consumer confidence, already battered, has taken another blow with a downgrade of the U.S. credit rating, and many now think U.S. auto sales will fail to reach 13 million this year, as analysts and automakers have projected. Traffic at dealerships, meanwhile, remains strong. "They're selling everything they can build," said Adam Davis, store manager for Suburban Hyundai in Troy. "We've kind of not been affected by anything."
Source: The Detroit News

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Despite Economy and Market Woes, Cars Are Still Selling

Since last Thursday the headlines have been downright scary. The country's credit rating has been downgraded, the stock market has plunged and, for the first time since the financial crisis in early 2009, people are looking around and wondering how secure their finances are right now. With all that swirling around, car buyers are still heading into showrooms. To quote one dealer, "People still need cars and trucks and they're still coming in here to make a deal." It appears the pent-up demand from several years where people put off buying new cars and trucks is pushing people into showrooms.
Source: CNBC

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Consumers Find Bright Spot: Low Interest Rates

The stock market sell-off over the past week has created a surprising — albeit likely short-term — silver lining for consumers: ultra-low interest rates. Alex Perdikis, general manager of Koons of Silver Spring, [Md.], said he has seen the effect trickle into the auto market. Several customers in recent weeks have cited the low rates as a motivating factor. At the end of last week, the average interest rate for a new-auto loan was 5.36 percent, down from 5.49 percent a month ago, according to research firm HSH Associates. “Consumers realize that if they’re going to make a purchase, now is probably the best time to do it,” he said.
Source: The Washington Post

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Automakers Tap Recording Industry Vet to Run Trade Group

The Alliance of Automobile Manufacturers -- the trade group representing Detroit's Big Three automakers, Toyota Motor Corp. and eight others -- said Monday that Mitch Bainwol has been named president and CEO. "I am drawn to challenges that are big and relevant and the auto sector is exactly that," Bainwol said in an interview Monday. "When you go home at night, you talk about music. You talk about cars. To me the three pillars of American culture are music, sports and cars." Since 2003, Bainwol has been president and CEO of the Recording Industry Association of America, the trade group representing the four largest music-recording companies. 
Source: The Detroit News

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Ford Delays Full Rollout of Electric Focus

Ford Motor Co. is pushing back the full launch of the 2012 Focus EV, according to a message posted on a Focus Forum from Ford marketing. Originally, the Focus was supposed to launch in 19 markets, including New York, Los Angeles, Chicago, Detroit and Seattle. In the www.myfocuselectric.com forum, Ford's electrified-vehicles marketing manager David Finnegan broke the news. "For the first few months of production, we will be concentrating on California and New York," he said. "Our dealers in those areas will be the first to have their retail orders scheduled and receive the Focus electric."
Source: Automotive News

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More articles

Aug. 8, 2011 - Cars Vs. Trucks: Are Buyers Really Downsizing?

Aug. 5, 2011 - GM Surpasses Toyota as World's Largest Automaker By Sales on Japan Quake

Aug. 4, 2011 - GM Profit Nearly Doubles on Strong Global Sales

Aug. 3, 2011 - Automakers Muster 1% Gain in Tough Month

Aug. 2, 2011 - July Another Weak Month for US Auto Sales

 
Quotable
"Consumers realize that if they’re going to make a purchase, now is probably the best time to do it."

    -- Alex Perdikis, general manager of Koons of Silver Spring, Md., who says several customers in recent weeks have cited low interest rates as a motivating factor, The Washington Post, Aug. 9

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“Buy and Sell Smart with Today’s Mobile Tools,” with Chad Goodson of CARFAX, Aug. 24 at 1 p.m. EDT

Convention News
Register Online Now for NADA's Vegas Convention

Registration is now open online for the 2012 NADA and ATD Convention and Expo, Feb. 3-6 in Las Vegas. 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.

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