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Tuesday, Dec. 27, 2011 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
  
Inside this issue
Sales Could Hit 14 Million in '12
New-Car Sales Pace in December to Top 13 Million: J.D. Power
Saab Dealers: What Next?
Dealers Reminded to Protect Their Data
Plug-In Electric Vehicles Get Off to a Slow Start
Ford Hits 100,000 Truck Sales with V-6 EcoBoost Engine
Lengths of Used-Car Loans Increase
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Sales Could Hit 14 Million in '12

Rising employment, better credit availability, new products and urgency to replace aging vehicles will drive U.S. auto sales higher in 2012, forecasters say. Paul Taylor, chief economist for the National Automobile Dealers Association, says that if European sales falter, U.S. shoppers could benefit. "German automakers will target the U.S. market to sop up excess capacity," Taylor said. For the same reason, he said, Asian automakers would boost shipments to North America, probably triggering higher incentives and sales.
Source: Automotive News

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New-Car Sales Pace in December to Top 13 Million: J.D. Power

U.S. auto sales in December are expected to top 13 million on an annual rate for the fourth consecutive month, indicating uncertainty about the economy has not slowed the industry down, J.D. Power and Associates and LMC Automotive said on Thursday. They forecast the annual selling rate for new cars in December at 13.4 million, up from 12.5 million in December 2010. "For the third straight time, light-vehicle sales are posting strong selling rates at the close of the year," LMC Senior Vice President Jeff Schuster said in a statement.
Source: Reuters

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Saab Dealers: What Next?

For more than a decade, Tony Malouf has been general manager of the nation's biggest Saab dealership. Now he's got a big problem. Saab of Troy, in suburban Detroit and part of the 11-dealership Elder Automotive Group, was sitting on about 60 Saabs as of last week, with another 50 or so in his loaner fleet, Malouf said. That's roughly $4 million worth of inventory. In his office off the store's sleek showroom -- filled with Christmas wreaths and gleaming 2011 Saabs but devoid of customers -- Malouf tried to stay positive even as the Swedish automaker slides toward a likely liquidation.
Source: Automotive News

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Dealers Reminded to Protect Their Data

As part of NADA’s ongoing efforts to promote compliance with the full range of legal and regulatory obligations affecting its members, dealers are reminded to thoroughly review the legal sufficiency of their customer data collection, retention, safeguarding and disclosure practices. As part of this process, dealers are encouraged to review NADA’s brief 2005 dealer alert entitled Are You In Control of Your Data? The alert addresses vendors’ access to dealers’ electronic data and the need to ensure that such access complies with applicable federal and state data privacy protection laws, including the federal Gramm Leach Bliley Act and the FTC Privacy and Safeguards Rules that implement it. Dealers should be aware that since this alert was issued, the FTC has (i) amended the FTC Privacy Rule to require financial institutions to adopt a Model Privacy Notice if they wish to have safe harbor protection for the language and format used to describe their privacy policies, and (ii) issued the FTC Affiliate Marketing Rule. NADA has developed detailed educational guides on the full range of federal data privacy requirements that apply to dealers, which are available at www.nadauniversity.com.  In addition to consulting these resources, dealers should determine whether state data protection laws impose additional obligations.
Source: NADA Regulatory Affairs

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Plug-In Electric Vehicles Get Off to a Slow Start

Sticker shock, low gas prices deter buyers
Rather than electrifying auto buyers, the plug-in car revolution is feeling more like a fizzle. A year after the first two plug-in electric cars from major makers went on sale, buyers appear put off by high sticker prices -- even with federal subsidies -- and, for the moment, by more-stable gasoline prices. Electric cars on the way to showrooms also face stiffer competition from conventional cars and hybrids that not only are cheaper, but also have gotten markedly more fuel-efficient as automakers work to meet tightening federal fuel-economy rules. All these problems amount to some big bumps on the road to President Barack Obama's stated goal of 1 million electrified vehicles (including advanced hybrids) on the road by 2015.
Source: USA Today

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Ford Hits 100,000 Truck Sales with V-6 EcoBoost Engine

Ford Motor Co.'s gamble that consumers would embrace a fuel-efficient V-6 in their F-150 full-size pickup hit a milestone [Dec. 21] with confirmation that 100,000 trucks with the smaller EcoBoost engine have been sold this year. The last time Ford sold that many pickups with a V-6 was in 1985, according to Doug Scott, group marketing manager for F-Series trucks. Demand prompted Ford to increase production a couple months ago of the truck with the EcoBoost engine.
Source: The Detroit News

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Lengths of Used-Car Loans Increase

Used-car loan terms are getting longer. That’s in part because pre-owned vehicles are in demand today, keeping their residual values strong. They also last longer because of quality improvements in recent years compared with their relatively short-lived predecessors. “Long-term used-vehicle loans are risky propositions,” says Jonathan Banks, an auto analyst for the National Automobile Dealers Assn. “... if you have a 3-year-old vehicle and push the loan out five years, it’s an 8-year-old car by the end of the loan. There is a point where the depreciation becomes rapid.” When that happens, the amount of the outstanding debt becomes substantially greater than the value of the vehicle. It’s a risky proposition for both borrower and lenders.
Source: WardsAuto.com

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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

"We're open for business. We've seen interest go up because many people see it as the last chance to buy a Saab."

    -- Tony Malouf, general manager of Saab of Troy in Michigan, who sold two cars early last week despite the drumbeat of bad news after the automaker's Dec. 19 bankruptcy filing, Automotive News, Dec. 26



"The big obstacle is price."

   
-- Craig Giffi, vice chairman and automotive sector leader for consultants Deloitte, referring to the high consumer cost of electric cars compared to less expensive conventional cars and hybrids, USA Today, Dec. 25
  


NADA - National Automobile Dealers Association
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Exhibitor Update

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Lenovo's New December Deals

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