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Inside this issue
NADA Issues Dealer Guidance on Counterfeit Air Bags
How a Slowdown in China Could Hurt GM, VW and Toyota
Mercedes Loses Ground to BMW, Audi in Luxury Sales Race
Toyota to Hold World's Biggest Car Recall for 16 Years
Performance-Oriented B-Cars Storming U.S. Market
Honda Offers $3,000 Discounts on Natural-Gas Civic
White, Silver Are Top Vehicle Colors in 2012
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
NADA Issues Dealer Guidance on Counterfeit Air Bags

The National Highway Traffic Safety Administration (NHTSA) announced today a consumer advisory on counterfeit air bags. Federal investigators have determined that thousands of counterfeit bags have been bought and installed in U.S. motor vehicles over the past three years. NHTSA also has determined that in the event of a frontal collision, these counterfeit bags are unlikely to deploy properly or may deploy in a manner that can harm vehicle occupants. Click here for an NADA dealer Q&A document. 

All told, vehicles with counterfeit air bags installed are believed to constitute less than 0.1% of the total in-use fleet. Nonetheless, dealers should be prepared to respond to inquiries from the public on this matter. NHTSA is urging concerned owners to start by visiting www.safercar.gov/Air+Bags to determine if they are at risk. In addition to the NADA guidance noted above, dealers should expect to receive communications directly from the OEMs they represent, addressing how to detect and manage counterfeit air bags. Note: unlike a safety recall campaign, customers should expect to pay to have their air bags diagnosed, and if necessary, replaced. Questions on this matter may be directed to NADA Regulatory Affairs at regulatoryaffairs@nada.org or (703) 821-7040.
Source: NADA Regulatory Affairs

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How a Slowdown in China Could Hurt GM, VW and Toyota

The Chinese auto market looks like it's slowing down, and that's not good news for big global auto makers including General Motors Co., Volkswagen AG and Toyota Motor Corp. Toyota Motor Corp. Honda Motor Co. and Nissan Motor Corp. suffered deep drops in their Chinese sales last month, amid an upsurge in Sino-Japanese tensions over disputed islands in the East China Sea. Chinese consumers may be shunning Japanese cars for nationalistic reasons, but there are signs that it's getting tougher for all auto makers to hit their ambitious sales targets in the world's largest auto market.
Source: The Wall Street Journal

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Mercedes Loses Ground to BMW, Audi in Luxury Sales Race

Daimler AG's Mercedes-Benz is falling further behind in the luxury car contest. Burdened by a disjointed strategy in China, sluggish expansion of entry-level models and an aging S-Class sedan, the once-dominant upscale nameplate has slipped deeper into third place. The Mercedes sales gap to Volkswagen AG's Audi has more than doubled within a year, hampering Chief Executive Dieter Zetsche's pledge to retake the lead.
Source: Bloomberg

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Toyota to Hold World's Biggest Car Recall for 16 Years

Toyota Motor Co., still in recovery mode after a series of problems that plagued its global operations over the last three years, announced Wednesday it is recalling 2.5 million vehicles sold in the United States due to a potential risk of fire. On a worldwide basis, the recall involves 7.43 million vehicles sold under the Toyota and Scion brands. It's the biggest single recall since Ford Motor Co pulled back 7.9 million vehicles in 1996.
Source: MSNBC

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Performance-Oriented B-Cars Storming U.S. Market

A new pocket-rocket is emerging in the U.S. market, driven by tougher federal fuel-economy standards and buyers wanting more bang for their buck. All-new punched-up small cars coming soon include B-segment products such as the Chevy Sonic RS, Fiat 500 Turbo and a widely expected but yet-unconfirmed Ford Fiesta ST. Unlike the hot hatches of the last decade, the new breed is smaller, cheaper and more fuel-efficient.
Source: WardsAuto

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Honda Offers $3,000 Discounts on Natural-Gas Civic

As if paying a little more than $2 a gallon for fuel isn't enough inducement, Honda is throwing $3,000 on the hood of its natural-gas powered Civic sedans. It will come in the form of a $3,000 debit card good for buying natural gas at the Clean Energy chain of fueling stations.
Source: USA Today

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White, Silver Are Top Vehicle Colors in 2012

If you bought a new vehicle this year, chances are high it was white or silver. Twenty-two percent of cars and trucks built for the 2012 model year have white paint, making it the most popular color worldwide. Silver is close behind, at 20 percent, followed by black at 19 percent. Gray and red follow to round out the top five.
Source: Associated Press

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Quotable
"Dealers will play a critical role in identifying and removing suspected counterfeits as well as easing the fears of consumers not affected by this issue."

   
-- Frank Borris, director of NHTSA's Defects Investigation office, commenting on the counterfeit air bag warning, The Detroit News, Oct. 10

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NADA Chairman Bill Underriner will discuss the state of the retail-auto industry at the Automotive Press Association luncheon in Detroit on Tuesday, Oct. 23. Underriner will discuss opposition to stair-step incentive programs and the latest developments concerning factory-mandated dealership upgrade programs. A recent NADA facilities study found no evidence that facility improvements result in any sales gains, either short term or long term. It's a point of contention between some dealers and some manufacturers.


 


 

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