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Inside this issue
Suzuki to Exit U.S. Car Market After Almost Three Decades
Hyundai, Kia Sued in U.S. Court for Overstated Fuel-Economy Labels
Used-Vehicle Prices to Increase in Aftermath of Hurricane Sandy
Report: New-Car Fuel Economy Hits All-Time High
GM Doubles Line of Credit to $11B, Moving Toward Investment-Grade Status
Nissan Cuts Net Income Forecast 20% After China Sales Plunge
BMW Sticks to Growth Plans After Quarterly Profit Rises
Automakers in U.S. Profit from Asian Island Fight
Opinion: Mercedes Irks Investors as Ambitious Sales Plan Undermines Profit Hopes
Does What You Drive to the Polls Indicate How You'll Vote?
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Suzuki to Exit U.S. Car Market After Almost Three Decades

Suzuki Motor Corp. will pull out of the U.S. car market after almost three decades, following Saab Automobile and Isuzu Motors Ltd. among automakers making their exits after failing to earn profits in the country. Suzuki will stop the sale of new automobiles in the U.S., though it will continue offering motorcycles, all-terrain vehicles and boat motors, the Hamamatsu, Japan-based carmaker said in a statement. The company's U.S. distributor filed for bankruptcy protection in Santa Ana, California as part of the reorganization. The withdrawal marks the end of a business that began in 1985 and never managed to win over U.S. consumers as Toyota Motor Corp. and Honda Motor Co. did.
Source: Bloomberg

Editor's note: In response to Suzuki's decision to exit the U.S. market, Bill Underriner, chairman of the National Automobile Dealers Association, issued the following statement:

“NADA is saddened to learn that American Suzuki will exit the U.S. car and truck market. Of course, all of us are especially concerned about the impact on Suzuki customers and dealers. We are pleased to hear that Suzuki intends to honor all warranties and plans to maintain a parts and service network – but the announcement is, nevertheless, devastating to the more than 200 Suzuki dealers operating in the U.S. NADA will do everything possible to ensure that Suzuki dealers and vehicle owners are treated fairly through this difficult wind-down process.”

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Hyundai, Kia Sued in U.S. Court for Overstated Fuel-Economy Labels

Hyundai and Kia face a federal lawsuit seeking class-action status and unspecified damages for consumers who bought vehicles with overstated fuel-economy labels. The suit follows the automakers' admission on Friday that they had sold some 900,000 U.S. vehicles from the 2011-2013 model years with inflated mileage ratings. The complaint, filed Sunday in U.S. District Court for the Southern District of Ohio, seeks attorney fees as well as unspecified damages for U.S. consumers who purchased or leased any of the eight Hyundai and five Kia nameplates cited in the suit. The suit also asks the court to permit Ohio consumers who bought Hyundai or Kia vehicles with misstated mileage labels to back out of their purchase or lease agreements.
Source: Automotive News

Related Story:

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Used-Vehicle Prices to Increase in Aftermath of Hurricane Sandy

Used-vehicle prices are expected to increase in the near term after Hurricane Sandy destroyed thousands of vehicles. NADA is predicting prices for used vehicles up to 8-years-old will be between 0.5% to 1.5% higher in December because of Hurricane Sandy. “The loss of used-vehicle supply and the increase in replacement demand after Hurricane Sandy will have the greatest impact on used-vehicle prices in December,” said Jonathan Banks, executive automotive analyst with the NADA Used Car Guide. While no two storms are alike, NADA points out that the flood damage caused by Hurricane Katrina, which cut a devastating swath across the Gulf region in late August 2005, offers insight into the impact that Hurricane Sandy could have on used-vehicle prices.
Source: NADAFrontPage.com

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Report: New-Car Fuel Economy Hits All-Time High

New cars sold in the U.S. last month had the highest fuel economy yet, according to a study by the University of Michigan Transportation Research Institute. The average fuel economy of new vehicles sold in the U.S. in October was 24.1 miles per gallon, university researchers said. That marks an increase of 4 mpg from October 2007, which was the group's first month monitoring the figures. The results are based on the Environmental Protection Agency's fuel economy ratings listed on vehicle window stickers.
Source: The Wall Street Journal

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GM Doubles Line of Credit to $11B, Moving Toward Investment-Grade Status

Automaker could use extra liquidity to buy government's shares

General Motors Co. said Monday it more than doubled its current line of credit to $11 billion, a key step toward returning to investment-grade status. The Detroit automaker said it finalized a new $11 billion revolving credit facility consisting of a $5.5 billion three-year facility and a $5.5 billion five-year facility. The new facility replaces GM's existing $5 billion credit facility secured in 2010, which would have matured in 2015.
Source: The Detroit News

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Nissan Cuts Net Income Forecast 20% After China Sales Plunge

Nissan Motor Co., the top Japanese seller of vehicles in China, cut its full-year net income forecast 20 percent after consumer backlash stemming from a territorial dispute sent sales lower in its largest market. Net income may total 320 billion yen ($4 billion) for the year ending March 31, compared with its earlier estimate of 400 billion yen, the Yokohama, Japan-based company said in a statement today. The carmaker cut its operating income forecast to 575 billion yen from 700 billion yen.
Source: Bloomberg

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BMW Sticks to Growth Plans After Quarterly Profit Rises

Bayerische Motoren Werke AG (BMW) stood by plans to increase 2012 profit after third-quarter earnings beat analyst expectations helped by gains from auto loans. The world's biggest maker of luxury cars is pushing to boost deliveries next year, led by growth in the U.S. and China. Backed by new models like an extended version of the 3-Series sedan, the Munich-based company plans to increase sales in China by more than 10 percent, outpacing the market.
Source: Bloomberg

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Automakers in U.S. Profit from Asian Island Fight

Chinese boycott of Japanese cars boosts sales by GM, Ford

The dispute between Japan and China over island territory is benefiting U.S. automakers. Ford Motor Co. sales jumped 48 percent in October, and General Motors Co. sales increased 14 percent in China, the automakers said Monday.
Source: The Detroit News

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Opinion: Mercedes Irks Investors as Ambitious Sales Plan Undermines Profit Hopes
By Neil Winton

Mercedes might be fighting toe to toe in America with BMW for the title of luxury car sales king of 2012, but regardless of who wins that contest, some investors have lost patience with the three-pointed star.
Source: The Detroit News

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Does What You Drive to the Polls Indicate How You'll Vote?

Can Democrats and Republicans find some common ground behind the wheel? A survey by totalcarscore.com, a Web site that does car reviews, product comparisons and automotive research, suggests a relationship between the type of vehicles people drive and how they'll vote on Tuesday. The Facebook survey of more than 600 U.S. participants identified as either Democrats/liberals or Republicans/conservatives allowed each respondent to select the type of vehicle he or she drives.
Source: Automotive News

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More Articles
 
NADA Foundation Mobilizes Relief Fund to Assist Victims of Hurricane Sandy






Quotable

"Suzuki is no longer among the carmakers like Toyota or Honda to have an advantageous position in the U.S., so why not focus on what it is good at?"  

   -- Satoshi Yuzaki, general manager at Takagi Securities Co, commenting on Suzuki's recent announcement to pull out of the U.S. car market, Bloomberg, Nov. 6

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