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Friday, Oct. 21, 2011 RSSSEND TO A FRIENDPRINT
 
Auto Dealers Await Study on Showroom Standards, Cite 'Financial Pressure'
Republicans Target New Fuel Rules
Unease in Chrysler Vote
Daimler to Invest $350M to Build Fifth Mercedes Model in Alabama
Ram Lineup Grows by 3
Broken and Busted: Reviving America's Car Fleet
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Auto Dealers Await Study on Showroom Standards, Cite 'Financial Pressure'

Auto dealers are facing unprecedented pressure to invest in their facilities and want to quantify the return on that investment, Stephen Wade, chairman of the National Automobile Dealers Association said Thursday. The NADA has commissioned an independent study to gather data on what dealers get for the millions they spend when automakers demand cookie-cutter dealerships across the country. "There is a real need for less financial pressure, not more," Wade said at an Automotive Press Association event in Detroit. "And the timing is bad with the most pressure to invest at a time when dealers are least able to afford it," he said.
Source: The Detroit News

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Republicans Target New Fuel Rules

More than 60 House Republicans want to bar the Obama administration from finalizing new rules to hike fuel efficiency standards for the 2017-25 model years. In a letter Thursday to House Appropriations Committee Chairman Harold Rogers, R-Ky., 66 House members — including three Democrats — urged the House of Representatives to include a provision in a spending bill that would prohibit the Environmental Protection Agency and California from moving forward with new fuel emissions limits. The effort is strongly backed by the National Automobile Dealers Association, which has raised concerns about whether Americans will buy more fuel-efficient but higher-priced vehicles.
Source: The Detroit News

Editor's note: Recent oversight hearings on Capitol Hill and the bipartisan letter from U.S. House members indicate that Congress is starting to scrutinize the administration’s plan on fuel economy, which will result in car buyers paying more for new vehicles. This increased bipartisan attention in Congress reveals that the administration will need to better justify its cost assessment of the yet-to-be proposed fuel economy rule on consumers. The proposed fuel economy mandates are estimated to add—on average—between $3,100 and $3,600 to the price of a new vehicle. Click here for the Austria-Carter letter.

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Unease in Chrysler Vote

Early voting by Chrysler Group LLC workers showed signs of dissatisfaction over a proposed labor agreement after two United Auto Worker union locals rejected the accord Thursday and voter turnout remained low. Workers from Local 1268, representing Chrysler's Belvidere, Ill., assembly plant, rejected the contract by 56%–44%, the local said on its Web site. The results underscore the struggles many Chrysler workers have with the signing bonus provision. Unlike Ford Motor Co. and General Motors Co., which are paying a lump sum signing bonus payouts, Chrysler is breaking its $3,500 signing bonus into two parts.
Source: The Wall Street Journal

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Daimler to Invest $350M to Build Fifth Mercedes Model in Alabama

Daimler AG said it will invest $350 million to produce a fifth Mercedes-Benz model at its factory in Vance, Ala., starting in 2015. The investment will create an additional 400 jobs at the plant. Daimler CEO Dieter Zetsche said in a statement that the new model for Alabama will be one of 10 additional vehicles Mercedes-Benz will roll out over the next four years. Production of the new vehicle is part of an investment of more than $2 billion that Daimler approved earlier this year.
Source: Automotive News

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Ram Lineup Grows by 3

Chrysler Group LLC plans to welcome two new models to its Heavy Duty Power Wagon family today at the Texas State Fair, as well as a limited Mossy Oak version of the popular Ram Outdoorsman pickup. The Mossy Oak Edition Ram 1500 will arrive as a 4x4 Crew Cab model and include features that cater to outdoors enthusiasts. According to Ram officials, 42 percent of Ram owners camp, 44 percent fish and 30 percent hunt. Ram will also announce today that the 2012 Ram Heavy Duty Power Wagon will arrive in two new variants: the ST and luxurious Laramie models.
Source: The Detroit News

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Broken and Busted: Reviving America's Car Fleet

While much of the U.S. economy struggles, Derrick Oxender and people like him are pumping up sales and profits for auto retailers and auto makers alike. On Thursday, Mr. Oxender, the owner of a chain of oil-change shops in Ann Arbor, Mich., was shopping for a new Volkswagen Jetta to replace the 2004 model his son drives. That need to replace aging vehicles has turned the auto industry into one of the economy's bright spots. The average vehicle on America's roads is 10.6 years old up from 8.8 years in 2000, according to researcher R.L. Polk. That's helping drive sales even with the stock market and home prices slumping.
Source: The Wall Street Journal

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Quotable
"There is a real need for less financial pressure, not more."

   
-- NADA Chairman Stephen W. Wade, in remarks to the Automotive Press Association Thursday on the unprecedented pressure dealers are facing to invest in their facilities, The Detroit News, Oct. 21
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Convention News
NADA, ATD Using Technology to Enhance Convention Experience

The NADA-ATD Convention and Expo, Feb. 3-6 in Las Vegas, will feature several enhancements to the dealer experience, including:

  • an NADA Convention and Expo Smartphone App
  • interactive displays throughout the convention center
  • Social Connection Zone featuring a social media wall 
  • MyNADAPlanner, your tool to schedule meetings and create a convention road map.

Registration is brisk, with six hotels already sold out. Click here to register.

Marketplace
NADA U Webinar: Oct. 26, 1 p.m., EDT: “How to Keep Pace with the New Normal"

NADA U Partners Descend on DC for Power Pack

Boost Service Department Profits with NADA’s Atwood

NADA 20 Groups for Fixed Ops Managers Meeting in a City Near You—Controllers/CFO Groups Now Forming

Special NADA Pricing on Sleek HP Powerhouse PC

More Savings from Lenovo

Foundation News
NADA Foundation: Ambassador Supports American Red Cross

NADA Foundation: Ambassador Supports Reading Program in Michigan

NADA Foundation Program Reaches 500th Ambassador

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