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Inside this issue
Tesla CEO Fights for New Electric-Car Sales Model in U.S.
Video: Bob Lutz on the Future of Electric Cars, Tesla, Fisker, Better Place, Etc
GM to Rejoin S&P 500 in Key Milestone
Industry Gets Back on Track in May, Snuffs Out Slump Concern
Fiat-Chrysler HQ Speculation Largely Irrelevant: Power is Already in Mich.
More Industry Donations Pour Into Oklahoma for Tornado Relief
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Tesla CEO Fights for New Electric-Car Sales Model in U.S.

Elon Musk, the chief executive of electric carmaker Tesla Motors Inc, criticized the traditional way of selling cars in the United States and indicated the model would hamper the 10-year-old U.S. automaker's growth prospects. Tesla is pushing to sell its Model S electric sedan directly to consumers rather than relying on a network of independent dealers. These efforts have met stiff resistance from dealer groups around the country. Musk has said that traditional dealers may not be the best advocate for electric cars because they rely largely on gas-powered vehicles for revenue. He told shareholders that the traditional dealer model has not worked for other auto start-ups, including Fisker Automotive and Coda Holdings, which filed for bankruptcy last month. David Hyatt, vice president of public affairs for the National Automobile Dealers Association, disputed Musk's comments, saying the troubles facing Fisker and Coda did not stem from their sales models. "Industry experts say Fisker failed because it rushed its product to market before engineering problems were resolved," Hyatt said in a statement. "Coda did not receive government loans and was under-capitalized. "Thank goodness there are independent dealers left to try to help the customer," he added. "Manufacturers and brands may come and go, but the dealers are there for the long term."
Source: Reuters

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Video: Bob Lutz on the Future of Electric Cars, Tesla, Fisker, Better Place, Etc

Bob Lutz, former chairman of GM, discusses his take on Elon Musk, the future of Tesla and the electric car industry as a whole in a recent interview with CNBC. Click here for the video.
Source: CNBC
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GM to Rejoin S&P 500 in Key Milestone

General Motors is returning to the Standard & Poor's 500 Index, representing a key benchmark in the automaker's financial revival. GM, which was removed from the index on the eve of its Chapter 11 bankruptcy reorganization in 2009, will replace H.J. Heinz on the S&P 500 after the close of trading Thursday, a spokesman for the index said Monday. “The GM team has been working very hard to earn the business of customers around the world and to win the confidence of investors, and rejoining the S&P 500 shows we're very much on track,” GM CEO Dan Akerson said in a statement. The move, which was widely expected in recent weeks, is symbolic, but it will have real economic impact. Many investment and mutual funds replicate the S&P 500 or require that their managers only invest in stocks of companies that are in a key index.
Source: Detroit Free Press
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Industry Gets Back on Track in May, Snuffs Out Slump Concern

The U.S. auto industry regained its early-2013 sales form in May, but the results were decidedly mixed among major automakers. The seasonally adjusted annual rate of sales rebounded to 15.3 million from April's 14.9 million, effectively halting worries of a downtrend after the previous five monthly SAARs had topped 15 million. Among the biggest automakers last month, three soared while five fluttered below the industry's 8 percent overall gain. Nissan North America led all the big players with a 25 percent surge, followed by Ford Motor Co.'s 14 percent and Chrysler Group's 11 percent. Automakers and dealers sold 1,443,311 light vehicles, the highest volume May in six years.
Source: Automotive News
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Fiat-Chrysler HQ Speculation Largely Irrelevant: Power is Already in Mich.

Southeast Michigan takes on higher profile as Fiat-Chrysler weighs where to locate HQ

The question of where a combined Fiat-Chrysler group will be headquartered following a planned formal merger is causing all sorts of anxiety in Fiat SpA's hometown of Turin, Italy. But the answer has largely been made moot by the demands of running a transnational organization. "Our headquarters is on a plane, or a number of planes," said Gualberto Ranieri, vice president of communications for Chrysler Group LLC. He noted that, for almost two years, the Fiat-Chrysler organization has been run by a 22-member global executive council headed by Sergio Marchionne, the CEO of both Fiat and Chrysler. "They meet once a month — either here, or in Italy, or in Brazil, or in Shanghai," Ranieri said. When in Michigan, the council alternates between Chrysler's corporate headquarters in Auburn Hills and its satellite headquarters, Chrysler House, in downtown Detroit. Wherever they meet, members of the council also visit local manufacturing and research-and-development operations to keep a close eye on how their effort to forge a globally competitive automotive company out of two largely regional also-rans is working. But a look at the company's organization chart makes it hard to shake the feeling that the nexus of power has already shifted to southeast Michigan.
Source: The Detroit News
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More Industry Donations Pour Into Oklahoma for Tornado Relief

Following the devastating tornado in Oklahoma last month, several areas of the state continued to be pummeled by heavy storms and flash flooding, including another round of twisters on Friday, the second in two weeks. To help dealership employees affected by the deadly storm that struck Moore, Okla., on May 20, the Oklahoma Auto Dealers Association donated $50,000 to the charitable foundations of two dealer groups. “The outpouring of support and contributions from state and metro dealer associations across the country has been tremendous, and the Oklahoma dealers wanted to step up and help our fellow dealership employees,” OADA president Steve Rankin said. OADA made an online contribution of $25,000 to the Emergency Relief Fund of the National Automobile Dealers Charitable Foundation and donated $25,000 to the Car Dealers Care Foundation, which is run by the Metro Auto Dealers Association of Oklahoma City. So far, the Car Dealers Care Foundation has provided 77 dealership employees in the metro Oklahoma City area with more than $100,000, said Peter Hodges, president of the Oklahoma City dealers association. “We're grateful to the auto dealers and dealer associations that have contributed to the Car Dealers Care Foundation,” Hodges said. Providing additional support, the NADA Foundation's Emergency Relief Fund has distributed $36,500 to dealership employees affected by the Oklahoma tornadoes, and has received $42,900 in donations (as of May 31).
Source: Auto Remarketing
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More Articles
 
Quotable
"Manufacturers and brands may come and go, but the dealers are there for the long term."

      --- David Hyatt, vice president of public affairs for NADA, rebutting Elon Musk's criticism of the franchise dealer network, Reuters, June 4

Chairman's Column
CFPB Guidance Lacks Transparency and Research
Videos

Video: NADA Analyst Jonathan Banks Predicts Strong Auto Sales in 2013 (NADA-TV)


Automotive Forum 2013: Industry Leaders Convene in NYC (NADA-TV)

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NADA University
MarketINSIGHT Webinars

(All webinars begin at 1 p.m. ET. Click webinar title to register.)

- June 5: DMS Access: Practical and Regulatory Concerns

- June 12: Boost Revenues, Increase Car Counts at No Cost

- June 19: Digital Retailing Strategies That Increase ROI

- June 26: Advertising Checklist: Check Ten Boxes to Win!

 For more information about the webinars, click here.

NADA Foundation News
NADA Foundation Ambassador Tarik Daoud Provides Scholarships to Detroit-Area Students
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