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Thursday, Nov. 17, 2011 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside This Issue
EPA: Gas Mileage Boost Means Pricier Cars
Volkswagen Seeks Changes in U.S. Fuel Rule
Pent-Up Demand Brings Customers to Car Dealerships
Chrysler Plans More Fiat Dealerships as 500 Misses Sales Goals
Porsche Unveils Design Plans for Corporate H.Q. in Atlanta and Experience Center in L.A.
House Repeals Contractor Withholding Tax
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
EPA: Gas Mileage Boost Means Pricier Cars

New federal gas mileage rules proposed Wednesday will add thousands of dollars to the cost of new cars. But in the long run, regulators say, drivers will spend less on gas, outweighing the additional cost at the dealership. The rules aim for an average gas mileage of 54.5 miles per gallon by the 2025 model year. The major automakers, both U.S. and foreign-based, have essentially endorsed the new rules, as has the United Auto Workers union and many members of Congress from the automaking states in the Midwest. But some in the industry, including the trade association for auto dealers, expressed concerns. "This regulation gambles that millions of consumers will be able to afford thousands more for generally smaller, more expensive vehicles that may not meet their needs," said the National Automobile Dealers Association in a statement Wednesday.
Source: CNNMoney.com

Editor's note: Click here to read NADA's response to the Model Year 2017-2025 proposal ("NADA: Can Consumers Afford the Upfront Costs of Fuel Economy Hikes?")

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Volkswagen Seeks Changes in U.S. Fuel Rule

Volkswagen has pressed U.S. regulators to change a proposal to double auto fuel efficiency, arguing the plan puts it at a competitive disadvantage and unfairly de-emphasizes clean diesel engines. Volkswagen did not sign onto an agreement backed by virtually every other major U.S. and overseas car company that underpinned the Obama administration proposal on Wednesday to boost efficiency targets to 54.5 miles per gallon by 2025. "A lot of good work has been done, but there is room and a need for some improvements to keep a level playing field for all automakers to attain the challenging new goals," said Jonathan Browning, chief executive of Volkswagen Group of America.
Source: Reuters

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Pent-Up Demand Brings Customers to Car Dealerships

Car dealers are getting a surprise end-of-the-year bonus: More Americans are replacing old cars and trucks, enlivening a normally sleepy time for auto sales and putting November on track to be the industry's strongest month of the year. Dealers and analysts say people are finally getting rid of cars and trucks they've held onto for more than a decade. That demand, plus attractive lease deals, an ample supply of Japanese models and promotions on remaining 2011 models have drawn buyers to showrooms in large numbers the last two weeks. "We're seeing the most showroom traffic that we've seen all year," said Ed Williamson, part-owner of two Miami-area GM Buick-Cadillac-GMC dealerships.
Source: The Associated Press

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Chrysler Plans More Fiat Dealerships as 500 Misses Sales Goals

Chrysler Group LLC, falling behind its North American sales goals for the Fiat 500, plans to open 20 more U.S. dealerships during 2012’s first quarter to sell the Italian brand. North American sales of the Fiat 500 this year through October reached 21,380, a rate below Chief Executive Officer Sergio Marchionne’s forecast of 50,000 for 2011. The rollout was hindered by complications in opening new Fiat stores instead of using existing space at Chrysler dealerships. Marchionne said today in Toledo, Ohio, that the lack of Fiat outlets has held back sales of the 500. “We need to continue to work on distribution,” Marchionne told reporters. “We’ve had 50 dealers, 60 dealers trying to sell the car. I think Ferrari has more dealers than that.”
Source: Bloomberg

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Porsche Unveils Design Plans for Corporate H.Q. in Atlanta and Experience Center in L.A.

In two years, frequent fliers circling above Hartsfield-Jackson Atlanta International Airport may glimpse a Porsche badge out their windows. The atrium of the automaker’s new North American headquarters, scheduled to open in late 2013, will be shaped to resemble the shield adorning Cayennes, Panameras, Caymans, 911s and Boxsters. Porsche expects to break ground early next year on the ambitious new center in Atlanta, which would consolidate the company’s North American administration, technical, training and other operations. It would also include what the company called its Customer and Driver Experience Center, consisting of a test track, a restaurant, a shop for Porsche-branded goods and other amenities.
Source: The New York Times

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House Repeals Contractor Withholding Tax

In a rare show of bipartisanship, an effort to repeal a 3 percent withholding tax on government contractors passed the House by a vote of 422 to 0 just days after the bill was passed with similar bipartisan support in the Senate. The most recent version of the legislation also included a Senate amendment to provide tax credits and hiring incentives to assist unemployed veterans. The legislation was lauded by lawmakers from both parties and the White House as an undisputed opportunity to create jobs. Last week the White House issued a statement supporting the legislation and the amendment. President Obama is expected to sign it as early as this week.
Source: National Journal

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More Articles


The NADA Story

The NADA story began in 1917 when 30 auto dealers traveled to the nation’s capital to convince Congress not to impose a luxury tax on the automobile. They successfully argued that the automobile is a necessity of American life, not a luxury. From that experience was born the National Automobile Dealers Association. Today, NADA represents nearly 16,000 new-car and -truck dealerships with 32,500 franchises, both domestic and international.

 
Quotable

"This regulation gambles that millions of consumers will be able to afford thousands more for generally smaller, more expensive vehicles that may not meet their needs."

    -- NADA, in a statement expressing concern with the White House's new fuel economy proposal of 54.5 miles per gallon by the 2025 model year, CNNMoney.com, Nov. 16

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Videos


 Economic Report from NADA Chief Economist Paul Taylor
(AutoFocus)

Ford's Czubay on Fuel Economy and Consumer Choice  (AutoFocus)

NADA Used Car Guide October Market Update (AutoFocus)

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Chairman's Column
Study Takes a Look at ROI of Factory Image Programs

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
Learn 'The Art of Leadership' with John Powers

John Powers, a best-selling author and playwright, will present "Walk Softly So You Can Listen: The Art of Leadership" on Feb. 5, from 2:15 to 3:30 p.m. at the 2012 NADA-ATD Convention & Expo in Las Vegas. (For an advance look at Powers' presentation, register for the NADA University Learning Hub webinar "Wrong Customers are Still Customers" on Jan. 18, from 1-3 p.m. EDT.) Las Vegas hotel rooms are filling up fast. Click here to register for the convention today.

Exhibitor Spotlight: Duro-Last Roofing, Inc.

Duro-Last Roofing manufactures a custom-prefabricated, reinforced, thermoplastic single-ply roofing system that is ideal for commercial, industrial, flat or low-sloped applications. Visit Duro-Last Roofing in booth 3877 at the 2012 NADA-ATD expo.

Foundation News
NADA Foundation Ambassador Peter Blackstock Supports California School

Iraq War Veteran, Disabled Child Receive Canine Companions from the NADA Foundation


NADA Foundation: Ambassador Supports American Red Cross
Marketplace
New NADA Mobile App for iPhone and iPad

Special NADA Pricing on Sleek HP Powerhouse PC

Holiday Savings from Lenovo
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