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Thursday, Sept. 29, 2011 RSSSEND TO A FRIENDPRINT
Inside This Issue
Browning: VW Brand Now Profitable in U.S.
Incentives Key to Increasing Auto Sales, Analyst Says
Ford Said to Discuss Adding 10,000 U.S. Jobs, Moving Fusion
GM Labor Costs to Rise 1% a Year for Next 4 Years Under New UAW Contract
Report: EPA Cut Corners on Key Scientific Document Supporting Controls on Greenhouse Gases
Backing Indie Bands to Sell Cars
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Top Stories
Browning: VW Brand Now Profitable in U.S.

The Volkswagen brand expects to be profitable in the United States this year, Jonathan Browning, CEO of Volkswagen Group of America, said [Wednesday]. "Audi brand achieved profitability in the U.S. last year," he said outside a Society of Automotive Analysts conference in suburban Detroit. Browning cautioned that he was talking only of the VW sales operation not including U.S. manufacturing, financial services, or VW's contribution to global fixed costs.
Source: Automotive News

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Incentives Key to Increasing Auto Sales, Analyst Says

The U.S. auto industry must find a way to stimulate demand or risk seeing recessionary-level sales for several years, an automotive analyst said [Wednesday]. A decline in the number of cars on the road per U.S. driver is much of the reason U.S. new vehicle sales are stuck at an annual pace of 12 million to 13 million range, compared with their 16-million-plus range before the recession, said Itay Michaeli, vice president at Citi Investment Research. While American drivers still want to own the number of cars they did in the past decade – for instance, having two cars for each family – the economy and the job market has made them reticent to buy, Michaeli said ... “Many people are just simply too afraid of the uncertainty,” he said.
Source: Detroit Free Press

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Ford Said to Discuss Adding 10,000 U.S. Jobs, Moving Fusion

Ford Motor Co. is discussing adding as many as 10,000 jobs in the U.S. in negotiations with the United Auto Workers union on a new four-year contract, according to three people familiar with the talks. The job-creation discussion is part of high-level negotiations between Ford and UAW President Bob King over wages, benefits, and employment gains in the new contract and is still subject to change, said the people, who asked not to be identified revealing internal deliberations. As many as 4,000 of those jobs may come from Ford shifting production of the Fusion midsize sedan to the U.S. from Mexico, one of the people said.
Source: Bloomberg

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GM Labor Costs to Rise 1% a Year for Next 4 Years Under New UAW Contract

General Motors told Wall Street analysts that a new UAW contract will boost hourly labor costs by only 1% in each of the next four years. GM workers ratified the four-year agreement by nearly two-to-one, the UAW said Wednesday. Sixty-five percent of production workers and 63% of skilled-trades workers voted for the pact, which preserves or adds more than 6,300 jobs, increases second-tier wages, sweetens profit-sharing and awards a $5,000 signing bonus. GM is offsetting entry-level wage increases and signing bonuses by offering skilled-trades workers buyouts of up to $75,000, and ending free legal services.
Source: Detroit Free Press

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Report: EPA Cut Corners on Key Scientific Document Supporting Controls on Greenhouse Gases

The Obama administration cut corners before concluding that climate-change pollution can endanger human health, a key finding underpinning costly new regulations, an internal government watchdog said Wednesday. Regulators and the White House disagreed with the finding, and the report itself did not question the science behind the administration’s conclusions. Still, the decision by the Environmental Protection Agency’s inspector general is sure to encourage industry lawyers, global warming doubters in Congress and elsewhere, and Republicans taking aim at the agency for what they view as an onslaught of job-killing environmental regulations. The report said EPA should have followed a more extensive review process for a technical paper supporting its determination that greenhouse gases pose dangers to human health and welfare, a finding that ultimately compelled it to issue controversial and expensive regulations to control greenhouse gases for the first time.
Source: The Associated Press

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Backing Indie Bands to Sell Cars

When Toyota began selling the Scion in 2003, the company hoped to draw younger customers with an adventurous and risky form of marketing. Rather than pay for celebrity endorsements, it subsidized music with extremely limited popular appeal, like grindcore. Now, after years of sporadically releasing music, the company wants to act more systematically, almost like a record label, by sponsoring a full campaign of record releases, videos and tour support for about 20 acts.
Source: The New York Times

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More articles

Sept. 28 - Deadline for US Auto Fuel Economy Proposal to Slip

Sept. 27 - NADA Joins Challenge to New NLRB Poster Mandate

Sept. 26 - U.S. Auto Sales Defy Economic Fears

Sept. 23 - Video: General Motors: From Bailout to Shanghai

Sept. 22 - Ford: U.S. Sales to Rise in September  

 
Quotable
"Many people are just simply too afraid of the uncertainty."

   
-- Itay Michaeli, vice president at Citi Investment Research, who says incentives like Hyundai's Assurance program are necessary to stimulate demand for cars and trucks, Detroit Free Press, Sept. 28
Videos

 
Video: Families of 9/11
Thank NADA Foundation
(AutoFocus)

Video: Update on Adverse
Action Requirements

(AutoFocus)

Video: NADA Foundation:
A Success Story
 
(AutoFocus)

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Chairman's Column
Economic Fears May be Rising, But New-Car Sales are Still Expected to Rise

Dodd-Frank Law Takes Effect with Implications for F&I Office

Convention News
Five Las Vegas Hotels Sold Out

Registration for the 2012 NADA-ATD Convention & Expo, Feb. 3-6, remains brisk. For the first time, both conventions will be held together. Top hotels in Las Vegas are filling up quickly. Click here to register.
Foundation News
NADA Foundation Ambassador Supports Reading Program in Michigan

NADA Foundation Program Reaches 500th Ambassador

Marketplace
Seats Available in Five Remaining Academy Classes of 2011

NADA 20 Groups for Fixed Ops Managers Meeting this Fall; Controllers/CFO Groups Now Forming

HP's Small but Mighty PC

Save More Than 50% on Lenovo in September

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