View Mobile Version | View Web Version

NADA.org
April 15, 2013 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training
Inside this issue
Tesla's Musk: I'll Take Store Fight Federal
Automakers Weigh Response to U.S. Letting Japan Join Trade Talks
GM, Ford Teaming Up On Transmissions to Increase Fuel Efficiency
GM, Ford and Chrysler Must Meet Rising Pickup Demand with Fewer Plants, Workers
Nissan Considers Adding Infiniti Plant in North America
Hyundai Puts Growth On Hold
North Carolina Auto Dealers Association Chooses NADART as its Preferred Retirement Plan Provider
Toyota-Ford Tiff Shows Challenge of Measuring Global Auto Sales
Poll: Deal Trumps Tech for Shopper
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Tesla's Musk: I'll Take Store Fight Federal

NADA vows to defend state franchise laws

If Tesla Motors CEO Elon Musk can't win against dealers at the state level, he will make a federal case of his bid to sell electric vehicles directly to the public through factory stores. "If we're seeing nonstop battles at the state level, rather than fight 20 different state battles, I'd rather fight one federal battle," Musk told Automotive News last week. Options include lobbying for federal legislation or a federal court lawsuit alleging restraint of interstate commerce, he said. Auto dealers contend Tesla's factory-store model violates franchise and consumer laws in several states and urge Tesla to market its cars through a traditional franchised dealership network. But Musk said Tesla needs the freedom to sell directly to consumers if his fledgling car company is to survive. David Westcott, chairman of the National Automobile Dealers Association, said it would be a "mistake" for Musk to launch a federal bid. "NADA will vigorously defend the franchise system," said Westcott, a North Carolina dealer with GMC and Buick franchises. "A better option for Mr. Musk is to take advantage of the dealer network that already exists."
Source: Automotive News

[back to top]

Automakers Weigh Response to U.S. Letting Japan Join Trade Talks

U.S. automakers will have to decide quickly on their next step, after the Obama administration said Friday it will allow Japan to join 11-nation free-trade talks. Do the automakers mount a highly public battle to convince Congress and the public to oppose such an agreement? Or do they work behind the scenes to cut the best agreement possible? If Japan is allowed to join the Trans-Pacific Partnership — aimed at creating a free-trade zone that would account for 40 percent of the world's economy — it would be a blow to Detroit's Big Three.
Source: The Detroit News

Related Story:

[back to top]

GM, Ford Teaming Up On Transmissions to Increase Fuel Efficiency

Rivals General Motors and Ford are to announce today an agreement to cooperate on multispeed transmissions that boost fuel efficiency. The goal is to engineer the next generation of this expensive technology, on which Chrysler beat them to the market. GM and Ford have done some preliminary work covertly, but now they are willing to take it public. "Engineering teams from GM and Ford have already started initial design work on these new transmissions," said Jim Lanzon, GM's head of global transmission engineering. They expect to develop nine-speed transmissions for front-wheel-drive cars and crossovers and 10-speed transmissions for rear-drive trucks. The work will yield millions of transmissions for vehicles around the world.
Source: Detroit Free Press

[back to top]

GM, Ford and Chrysler Must Meet Rising Pickup Demand with Fewer Plants, Workers

Here's the good news: U.S. pickup truck sales rose 23% in the first quarter and are expected to approach levels not seen since before the financial crisis. That means robust profits, at least for the Detroit Three in North America. With gas prices sliding toward $3 a gallon, contractors, ranchers, farmers and truck lovers at large likely will be streaming into showrooms for the foreseeable future. Here's the challenge: General Motors, Ford and Chrysler closed seven fullsize or medium-duty pickup truck plants over the last decade. Now they have to keep up with about half as many plants and considerably fewer workers.
Source: Detroit Free Press

Related Story:

[back to top]

Nissan Considers Adding Infiniti Plant in North America

Nissan Motor Co. is considering a new plant in North America to produce at least 100,000 of its premium Infiniti vehicles a year, likely starting in 2017 as the auto maker fans out production globally from Japan. "One of the challenges we face is that we really do not have a diversified geographical footprint for manufacturing," Infiniti Motor Co. President Johan de Nysschen said Sunday. Apart from producing one model in the U.S. for global consumption, the Infiniti brand's current production was "totally concentrated" in Japan, he said.
Source: The Wall Street Journal

[back to top]

Hyundai Puts Growth On Hold

Capacity limits, suppliers, labor deal crimp production

Hyundai Motor Co.'s limited global production capacity is capping the company's growth, a top executive says. The company is squeezing nearly every unit possible from its assembly plants, said Lee In-cheol, Hyundai's vice president of international sales. "Without building a new factory, it is very, very difficult to supply more," he said. With existing plants, Hyundai can boost global output only 5 percent over current levels, Lee reckons. But that's not a problem. In fact, Hyundai doesn't want to boost production -- at least not now, and not for developed markets such as North America. The reason: Hyundai's strapped suppliers are unprepared to expand. So despite Hyundai's goal of achieving a U.S. market share of 5 percent, its share is poised to shrink.
Source: Automotive News

Related Story:

[back to top]

North Carolina Auto Dealers Association Chooses NADART as its Preferred Retirement Plan Provider

The North Carolina Automobile Dealers Association (NCADA) has endorsed NADART as its preferred retirement plan administrator. During this new venture, NADART, the retirement plan and benefits division of the National Automobile Dealers Association, and NCADA will work together to deliver a selection of investment and employee benefit options specifically targeted toward dealer businesses. “NADART really understands the dealer business model and offers tremendous value, both with their products and commitment to service all aspects of the sponsored plan,” said Robert Glaser, NCADA president. For more information, visit http://retirement.nadart.org.
Source: NADAFrontPage.com

[back to top]

Toyota-Ford Tiff Shows Challenge of Measuring Global Auto Sales

For the second time in seven months, Toyota Motor Corp. and Ford Motor Co. both claim to produce the world's top-selling car. The clash shows how counting in the global automotive industry is complicated. Ford says its Focus compact car was the leading global nameplate, with 1.02 million sales last year, citing R.L. Polk & Co. data that pegged Toyota's Corolla deliveries at 872,774. Toyota replied with a statement that said it sold 1.16 million Corollas. Determining which company is correct isn't clear cut.
Source: Bloomberg

Related Story:

[back to top]

Poll: Deal Trumps Tech for Shopper

For all the effort automakers lavish on new sheet metal and technology, 79 percent of U.S. car shoppers would rather get a good deal on an older model than wait a few months for a redesign, according to a new survey. Although more than half of all car shoppers research vehicles online, most of them do it so they can negotiate a better price on an older model, the survey results indicated.
Source: Automotive News

[back to top]

More Articles
 
Quotable
"NADA will vigorously defend the franchise system."

   
-- NADA Chairman David Westcott, commenting on remarks by Tesla Motors CEO Elon Musk to make a federal case of his bid to sell its electric vehicles directly to the public through factory stores, Automotive News, April 15
Videos

 Video: Relief Efforts Continue Months After Hurricane Sandy (NADA-TV) 

 More Videos

Chairman's Column
Consumer Protection Agency Reportedly Targets Dealer-Assisted Financing
NADA University
MarketINSIGHT Webinars

(All webinars begin at 1 p.m. EDT, unless noted otherwise. Click webinar title to register.)

- April 17: Do You Know Today’s Customer?

- April 17: Tips for Submitting a Great Workshop Proposal (2 p.m.)

- April 24: Success in a Changing Loyalty Landscape

- May 1: Prospect Your Way to Greatness

- May 8: Facilities Study Results You Need to Know

- May 15: Twenty-two Minutes to Driving Traffic!

- May 22: Multiply & Conquer With Multichannel Marketing

- May 29: Create a Task-Based Accounting Office
Search Back Issues | Unsubscribe | Subscribe | Manage your subscription | email us
NADA For more information on NADA, visit www.nada.org or contact NADA, 8400 Westpark Drive, McLean, VA 22102. This email may contain an advertisement of NADA products and services. Any opinions or statements contained herein do not necessarily reflect the views of NADA. Factual errors are the responsibility of the listed publication. If you are a franchised new-car or -truck dealer and would like to become a member of NADA, please visit the Join NADA section of www.nada.org. Questions or comments concerning NADA Headlines content may be directed to publicaffairs@nada.org .