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Monday, Nov. 21, 2011 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Glenn Mercer: The Auto Industry Expert Dealers Want to Hear From
NADA Continues to Vigorously Defend Dealer-Assisted Financing Model at Final Dealer Roundtable
VW Nearing No. 1 Ahead of Schedule
Revenge of the Internal Combustion Engine
GM Boss Says Public is Past Anger Over Bailout
L.A. Auto Show Draws Serious Buyers Looking for New Cars
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Top Stories
Glenn Mercer: The Auto Industry Expert Dealers Want to Hear From

Ask automotive retail experts about manufacturer-mandated facility upgrades and you will find no shortage of opinions, says analyst Glenn Mercer. Ask them to back their opinion with research, and you will find a shortage. "Franchise economics have been studied well," says Mercer, an auto industry analyst for more than 25 years. "What hasn't been covered much is automotive dealer franchise economics as they relate to the facilities ..." Mercer, a former partner in the management and consulting firm McKinsey & Co., was hired in October by the National Automobile Dealers Association to lead a study on the value of dealership showroom renovations. "There's a lot of moving pieces to what we're looking at," said Michael Regan, vice president of industry affairs for NADA. "Glenn's background certainly gives him the ability to understand not only the manufacturer's process but also the dealers."
Source: Automotive News

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NADA Continues to Vigorously Defend Dealer-Assisted Financing Model at Final Dealer Roundtable

The Federal Trade Commission (FTC) conducted its third and final Motor Vehicle Dealer Roundtable on Nov. 17 in Washington, D.C. The FTC is examining what, if any, actions it should initiate to further protect consumers in the area of vehicle financing. The actions it may pursue include rulemaking, enforcement, and consumer and business education. As with the two prior FTC roundtables in Detroit and San Antonio, NADA representatives provided a vigorous defense of the dealer-assisted financing model and provided extensive information to correct and rebut a series of misstatements made about various dealer practices. NADA also underscored that, despite repeated requests for empirical information from the FTC, the consumer group allegations of dealer misconduct were anecdotal and unsupported by current and reliable data demonstrating that they are widespread.
Source: NADA Newsroom

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VW Nearing No. 1 Ahead of Schedule

When Volkswagen AG set out five years ago to become the world's No. 1 carmaker by 2018, the goal seemed ambitious. Particularly in the U.S., where VW was trailing Asian import brands, the German automaker known for its witty ads and pricey small cars appeared unlikely to surpass all its rivals. Now, years ahead of even VW's expectations, Volkswagen has risen into the top ranks. By some measures, it will be the world's largest carmaker this year with projected sales of more than 8 million vehicles. Toyota, meanwhile, has slid to third from first place after suffering self-inflicted blows as well as devastating natural disasters, while GM is recovering from bankruptcy.
Source: The Detroit News

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Revenge of the Internal Combustion Engine

At the Chevrolet dealership [in Ann Arbor, Mich.], customers want to see and touch the Volt, the gasoline-electric hybrid hailed by enthusiasts as the kind of innovation that could secure the future of General Motors. But they usually kick the Volt's tires and move on, often to a Cruze. The compact Chevy gets up to 42 miles per gallon, and you can buy two of them for the cost of one $40,000 Volt. Call it the revenge of the internal combustion engine. Major automakers and the Obama administration have bet heavily on hybrids and pure electric vehicles. But new and more efficient gas engines are winning on the showroom floor, an inconvenient truth that could slow the acceptance of electric cars.
Source: Reuters

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GM Boss Says Public is Past Anger Over Bailout

The American public has gotten past its animosity toward General Motors for taking a government bailout in 2009, the company's top executive said Thursday. "I think America loves a competitor. I think General Motors, Chevrolet in particular, is part of Americana," Akerson said during an appearance at the Detroit Economic Club.
Source: The Associated Press

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L.A. Auto Show Draws Serious Buyers Looking for New Cars

After two years of pushing off buying a car, Michael Kennedy says he's ready to take the plunge. That's why he waited in line for 45 minutes Friday to be one of the first to check out the hundreds of vehicles on display at the Los Angeles Convention Center. "It's about time to buy," said the 50-year-old Pasadena resident, who last purchased a car in 2003 after seeing it at that year's Los Angeles Auto Show. "I was looking last year, the year before, but, you know, with the economy, that just wasn't realistic." Many pouring into the convention floor echoed Kennedy's attitude about the economy, and rather than just looking to be entertained by cool cars, they had a practical goal in mind: researching a replacement for their aging autos.
Source: Los Angeles Times

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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.

"They come in to look at a Cruze. They drive a Volt. They go back to the Cruze."

    -- Michael Mosser, general manager of Suburban Chevrolet of Ann Arbor, Reuters, Nov. 19

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NADA - National Automobile Dealers Association

 Economic Report from NADA Chief Economist Paul Taylor

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
Highest-Rated Convention Speaker Returns in 2012

Jeffrey Hargett of the Ritz-Carlton Leadership Center—the highest-rated workshop speaker from the past convention—was invited back to the 2012 convention in Las Vegas to speak on a different topic, “How to Fulfill Your Customers’ Unexpressed Wishes.” The workshop will be held only once—on Saturday, Feb. 4, at 10:30 a.m. at the convention center. The workshop video will not be available for purchase after the convention. Click here to register for the convention today.

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

New NADA Mobile App for iPhone and iPad

Special NADA Pricing on Sleek HP Powerhouse PC

Holiday Savings from Lenovo
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