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Inside this issue
Superstorm Sandy Will Raise Used-Car Prices Nationwide
Penske Automotive, Group 1 Rebounding from Sandy's Wrath
Suzuki's U.S. Departure: No Surprise to its Dealers
Ford Hires 5,200 in Plants, Pushes Utilitization to 114%
Ford's Battery Gives it the Edge Over Prius, Volt
Mazda to Produce Toyota-Brand Vehicles in Mexico
Aging Drivers Present New Transportation Challenge
Ferrari to Auction F12 Berlinetta for Hurricane Relief
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Superstorm Sandy Will Raise Used-Car Prices Nationwide

An estimated 250,000 vehicles were flooded, compounding an already-tight used-car market. Experts say a typical car could go up $700 to $1,000 in the short term. The estimated 250,000 cars flooded by Superstorm Sandy on the East Coast will drive up used-car prices, even as far away as California. The supply shortage comes on the heels of an already tightened used-car market in the wake of the recession, when new car sales dried up. Now the flood of Sandy-damaged cars is putting more pressure on the tight supply of late-model cars. Prices will go up at least 0.5% to 1.5% in December, said Jonathan Banks, an analyst with the National Automobile Dealers Assn. The dealer group said that amounts to a little more than $50 to $175 for the average used vehicle.
Source: The Los Angeles Times

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Penske Automotive, Group 1 Rebounding from Sandy's Wrath

Of 36 Penske Automotive dealerships in the region, three in Jersey City, N.J., were hit the hardest. Severe flooding damaged about 1,000 new and used vehicles and knocked out power until Tuesday. All of the group's stores have since reopened. Penske estimates that storm-related losses and expenses, including insurance deductibles, will cost 2 to 3 cents per share of its stock during the fourth quarter, "before potential benefits from business interruption insurance," the company said in a statement late Wednesday.

In addition, between 100,000 to 250,000 consumer vehicles could be lost from used vehicle supply, the National Automobile Dealers Association said. That compares with 325,000 cars flooded during Hurricane Katrina, which slammed the Gulf Coast in 2005, according to the National Insurance Crime Bureau. Dealers affected by Sandy may apply to receive emergency relief funds for their employees through the National Automobile Dealers Charitable Foundation. The program has $1.3 million pledged since Sandy struck, $1 million from NADA, and $300,000 from state and metro dealer associations, including $250,000 from the Greater New York Automobile Dealers Association.
Souce: Automotive News

Editor's note: To apply for assistance or donate to the Emergency Relief Fund, click here.

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Suzuki's U.S. Departure: No Surprise to its Dealers

When Suzuki Motor Corp. disclosed this week it would pull out of the U.S. auto market, the news came as little surprise to dealers who had struggled with a dramatic plunge in sales over the last five years. On Monday, dealers including Don Hicks, who owns a Suzuki dealership in Aurora, Colo., got the news that Suzuki's U.S. subsidiary, American Suzuki Motor Corp., filed for Chapter 11 bankruptcy protection. “I wasn't particularly surprised,” Mr. Hicks said. “They had been really slowing things down for a while.” Suzuki's 220 U.S. dealers now face the task of winding down their stores, which includes selling off remaining vehicle stock. Suzuki plans to offer discounts on those cars to help move them, and will continue to honor its vehicle warranties and keep some parts and service locations open at some current Suzuki dealers.
Source: The Wall Street Journal

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Ford Hires 5,200 in Plants, Pushes Utilitization to 114%

Ford Motor Co., the second-largest U.S. automaker, has added about 5,200 jobs this year in its U.S. factories, and its North American plants are operating at 114 percent of capacity, the highest in more than three decades.
Source: Bloomberg

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Ford's Battery Gives it the Edge Over Prius, Volt

Ford is rolling out its answer to the Chevrolet Volt and Toyota Prius plug-in, the C-MAX Energi, a wagonish car based off the same underpinnings as the Focus that can travel 21 miles on an all-electric charge before the 4-cylinder engine kicks on. There are lots of one-ups loaded into it. Better MPG-e, for example, than the Prius plug-in or Chevy Volt. That's mile-per-gallon-equivalent, a government-created method of establishing a fuel economy to vehicle that uses both electric power or gasoline to travel. It also has about twice the range of the plug-in Prius and costs about the same after federal tax credits – just under $30,000.
Source: The Wall Street Journal

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Mazda to Produce Toyota-Brand Vehicles in Mexico

Mazda Motor Corp. will make Toyota-brand subcompacts at its new plant in Mexico, allowing Japan's top automaker to strengthen its North American model lineup. Under the agreement announced Friday, Mazda will annually produce 50,000 subcompacts, based on the Mazda2 but under the Toyota brand by mid-2015. Toyota Motor Corp. will invest in equipment and other costs for the production increase, both sides said.
Source: Associated Press

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Aging Drivers Present New Transportation Challenge

Baby boomers started driving at a young age and became more mobile than any generation before or since. They practically invented the two-car family and escalated traffic congestion when women began commuting to work. Now, 8,000 of them are turning 65 every day, and those retirements could once again reshape the nation's transportation.
Source: Associated Press

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Ferrari to Auction F12 Berlinetta for Hurricane Relief

The first F12 Berlinetta to be sold in the United States will be auctioned by Ferrari, which will donate the proceeds to the American Red Cross to support the organization's relief efforts after Hurricane Sandy, the automaker said. The auction will be at 9 p.m. Eastern time on Nov. 17 at the Formula One United States Grand Prix in Austin, Tex. People who cannot attend the event may contact Ferrari dealers for information on how to place bids.
Source: The New York Times

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NADA Foundation Mobilizes Relief Fund to Assist Victims of Hurricane Sandy





Quotable

"Here at Ferrari, we have experienced and seen the devastation that Hurricane Sandy has caused in the affected area firsthand. We want to use our event next week at Formula One in Austin to give back to our local community by auctioning the F12 Berlinetta."

   
-- Marco Mattiacci, chief executive and president of Ferrari North America, commenting on the automaker's plan to raise money for Hurricane Sandy relief, The New York Times, Nov. 9

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