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Friday, Aug. 12, 2011 RSSSEND TO A FRIENDPRINT
Inside This Issue
Obama Claims Connection Between Fuel Standards, Jobs, But Reality is Complicated
Opinion: The Hidden Costs of Obama's Fuel Efficiency Standards
Analysts Trim Outlook for U.S. Industry Sales in 2011, 2012
In A Battered Economy, 5 Smart Moves To Get By
Chevy's 100th: Iconic Brand Leaves Pop Culture Imprint
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Top 5 Stories
Obama Claims Connection Between Fuel Standards, Jobs, But Reality is Complicated

President Obama says that his new fuel-economy standards will create jobs. Not so fast. What he doesn’t say is that those standards will lead to sustained job creation only if Americans choose to buy more fuel-efficient cars. And if recent history is true, the driving decision behind that will be high gas prices. Over the past two weeks, Obama has repeatedly touted his ambitious fuel-economy standards as good for the environment and good for the economy. Although the first part of that statement may be self-evident, the second is open to debate. 
Source: National Journal

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Opinion: The Hidden Costs of Obama's Fuel Efficiency Standards
By Thomas Pyle

Within a span of three weeks, President Obama has announced back-to-back new fuel economy standards for passenger vehicles and trucks. New regulations put in place will require a corporate average fuel economy (CAFE) of 54.5 miles per gallon for passenger vehicles by 2025. New standards for trucks will require a 10 to 20 percent increase in fuel efficiency before 2018. Whether President Obama realizes it or not, fuel efficiency does not come without compromising other aspects of a vehicle. One feature that will undoubtedly be affected by these new rules is vehicle cost. One of the most efficient ways to increase the amount of miles a vehicle can travel per gallon of gasoline is to reduce the weight of the vehicle. Therefore, auto manufacturers will be forced to make cars that are smaller and lighter in order to meet President Obama’s new CAFE standards. Far from a win for consumers, this type of government-knows-best policy is the exact opposite of how a market economy functions. Instead of making their own demands, car buyers will be forced to comply with a federal mandate that insists on prioritizing fuel efficiency above all else—safety, comfort, size, and performance all take a back seat. Car buyers will be forced to pay more and have fewer vehicle options to choose from.
Source: U.S. News & World Report

Editor's note: Pyle is the president of the Institute for Energy Research.

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Analysts Trim Outlook for U.S. Industry Sales in 2011, 2012

IHS Automotive reduced its estimate for U.S. auto sales in 2011 by 200,000 units to 12.5 million light vehicles, joining several analysts that have recently lowered their outlook for industry sales. IHS analyst Rebecca Lindland said the forecasting group also cut its estimate for 2012 deliveries in the U.S. to 13.5 million vehicles, from 14.7 million. JPMorgan Chase & Co. last week reduced its estimates for 2011 and 2012 by a combined 700,000 vehicle sales. General Motors and Ford Motor Co. - citing signs of weaker economic growth - recently indicated they expect 2011 sales to come in at the low end of a range of 12.5 million to 13.5 million units. Industry sales are up 11 percent this year through July, though growth has slowed in recent months because of inventory shortages following the March earthquake in Japan, rising gasoline prices and overall economic uncertainty.
Source: Bloomberg/Automotive News

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In A Battered Economy, 5 Smart Moves To Get By

The stock market is swinging wildly and the economy is barely registering a pulse. And that presents some opportunities for consumers. The conditions for buying a new car are ripe. To start, the sluggish economy has resulted in drivers holding onto their cars longer. That pushed up the prices dealers are willing to pay for used cars in the last few years. On average, dealers are paying around 10 percent more for three-year-old used cars than they were last year, according to the National Automobile Dealers Association. Meanwhile, sales of new cars have slowed in recent months. Some experts think automakers will soon resort to big discounts to get shoppers in showrooms. That hasn't happened on a broad scale yet, but shoppers are likely to see at least a few big incentives starting this fall.
Source: The Associated Press

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Chevy's 100th: Iconic Brand Leaves Pop Culture Imprint

In the 100 years that Chevrolets have roamed U.S. roads and byways, the car has been portrayed in movies, TV and music as the modest, everyman vehicle that anyone could afford. But in pop culture, its racier models were usually signifiers of reckless speed, eternal youth and a persistent raffishness. It might be a sleek Corvette, its shape as familiar and iconic as a Coke bottle, hurtling through a drive fast/die young teen movie, or a muddy Chevy truck driven by a feckless boyfriend in a country song. Or maybe it was a 1964 Impala made over into a low rider or a hip-hopper's tricked-out ride, but even old Chevys retain a sort of rakish allure as an affordable dream of freedom and the open road. "Cars are cast, like actors, for what they represent symbolically," said Serena Donadoni, a Metro Detroit film critic. "Chevrolet is a brand that never got old or was associated with older people. It had that feeling of eternal optimism, that if you got in one and drove, you'd end up somewhere better than where you were."
Source: The Detroit News

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More articles

Aug. 11, 2011 - Many Buyers Spurn Small Cars Despite High Gas Prices

Aug. 10, 2011 - Confidence Over Autos Stays Firm

Aug. 9, 2011 - Wall Street Turmoil Could Stall Car Industry Recovery

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

 
Quotable
"Car buyers will be forced to pay more and have fewer vehicle options to choose from."

   
-- Thomas Pyle, president of the Institute for Energy Research, referring to the hidden costs of new fuel economy standards for cars and trucks, U.S. News & World Report, Aug. 11



"Cars are cast, like actors, for what they represent symbolically. [The Chevrolet brand] had that feeling of eternal optimism, that if you got in one and drove, you'd end up somewhere better than where you were."

   
-- Serena Donadoni, a Metro Detroit film critic, referring to how Chevrolet cars have been portrayed in movies over the past 100 years, The Detroit News, Aug. 12
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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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Texas Dealer Academy Taps Online Resources of NADA University for NextGen Program
The Texas Auto Dealers Association, a subscriber of NADA U's premium online training option, NADAvt, has launched a new program to help the next generation of dealers and managers succeed when it's their time to run the business.

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