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Inside this issue
GM's Stracke Steps Down as Europe Chief; Girsky Named Interim Head
Service Departments a Vehicle for Profits
GM to Bring Thousands of IT Jobs In-House
Is Toyota's 'Ghost in the Machine' Dead?
LA Eliminates Tax to Entice Auto Dealers to Stay in City Limits
Opinion: The Good and Not So Good About 2012 Sales
In-Vehicle Navigation Sales Will Quadruple By 2019
Can Lego Be the Answer for Generation N?
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
GM's Stracke Steps Down as Europe Chief; Girsky Named Interim Head

Opel's Karl-Friedrich Stracke stepped down from his position as CEO of the embattled European carmaker to take on "special assignments," where he will report to General Motors CEO Dan Akerson. "GM Vice Chairman Steve Girsky, currently Chairman of the Opel Supervisory Board, will serve as acting head of GM's European operations as the company searches for a replacement. The supervisory board of Adam Opel AG will be convened soon to appoint an interim chairman of the management board," GM said in a statement today.
Source: Automotive News

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Service Departments a Vehicle for Profits

Dealerships whose warranty business is waning are adding services and lowering prices at their service counters to compete with independent shops and remain profitable. Dealers nationwide hope to ensure repeat customers by selling more maintenance contracts and offering other goods and services, such as discounted tires and express oil changes. More service departments are open Saturdays and they're reaching out to customers through social media and digital promotions to remain top-of-mind when drivers need to service their vehicles. U.S. dealerships' total service and parts business rose 3.8 percent to $80 billion last year, according to the National Automobile Dealers Association.
Source: The Detroit News

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GM to Bring Thousands of IT Jobs In-House

General Motors Co. plans over the next three to five years to hire thousands of new information technology workers as the company embarks on a major IT transformation that it believes will make it more competitive and help drive profits and market share. Today, 90 percent of GM's IT function is handled by workers outside the company and about 10 percent is handled by GM's global IT workforce of about 1,500 workers.
Source: The Detroit News

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Is Toyota's 'Ghost in the Machine' Dead?

Toyota has announced another major recall to address problems with stuck gas pedals. Late last month, the Japanese automaker issued a recall for the 2010 Lexus RX 350 and the 2010 Lexus RX 450h to correct a floor mat entrapment issue. That means about 154,000 car owners will be making a trip to the dealer soon. The grand total for recalls related to stuck accelerators in Toyota products, according to the Department of Transportation, is now more than 10 million vehicles. However, conspiracy theorists, a safety expert, and those who have experienced sudden unexplainable surges have insisted for years that some Toyota vehicles also have electrical problems that caused crashes, the so-called “ghost in the machine.”
Source: Fox News

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LA Eliminates Tax to Entice Auto Dealers to Stay in City Limits

The city of Los Angeles has been losing auto dealerships to neighboring cities for years. That's because until now, L.A. charged a business tax that drove many dealers away. A new law signed by L.A. Mayor Antonio Villaraigosa aims to lure more dealerships back to the city.
Source: KABC-TV Los Angeles

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Opinion: The Good and Not So Good About 2012 Sales
By John K. Teahen, Jr., Automotive News

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In-Vehicle Navigation Sales Will Quadruple By 2019

The number of cars, trucks and crossovers sold with in-vehicles navigation systems will quadruple in North America by 2019, according to a new study, growing to nearly 13 million new systems annually.
Source: MSNBC

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Can Lego Be the Answer for Generation N?

As U.S. automakers yearn to return to the days of 16 million-plus annual vehicle sales, one of the annoying realities they face is convincing the next generation to drive in the first place. A recent report by industry consulting firm, AlixPartners, labeled this young generation of drivers Generation N, as in "neutral about driving." So how can the industry combat this generational ambivalence to driving? Lego. Ford Motor Co. last fall teamed up with its southern U.S. dealers to sponsor a Driving School exhibit at the new 150-acre Legoland Florida theme park.
Source: Automotive News

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Quotable
"We're currently undergoing one of the largest information technology transformations in the history of the automotive industry." 

    -- General Motors Co., says on its website, which lists more than 200 IT related job openings, The Detroit News, July 12




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