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Inside this issue
Congressional Recess A Great Opportunity for Dealers to Meet With Their Elected Representatives At Home
America's Car Fleet Hits New Old-Age Record
'Accelerate' Your Business at the NADA Convention in New Orleans
Why Automakers are Investing in Diesel Engines in the U.S.
GM Cuts Plug-In Volt's Price By $5,000
GM, Ford Report Record July Sales in China
Will Porsche's $845,000 'Spyder' Hybrid Have Legs?
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Congressional Recess A Great Opportunity for Dealers to Meet With Their Elected Representatives At Home

Congress has adjourned until September 9th. Most Members will use this break to connect with their constituents back home. During the recess, dealers are urged to engage with their Representatives and Senators on key dealer issues by setting up appointments in their state offices, visiting town hall meetings or inviting them to the dealership for a tour. NADA Legislative Affairs recommends face-to-face meetings to discuss the following issues:

Preserve Dealer-Assisted Financing – The Consumer Financial Protection Bureau (CFPB) is pressuring financing sources to eliminate dealer reserve and shift to flat fees as a way to compensate dealers for arranging indirect auto financing. The CFPB is attempting to make this radical policy change without public hearing or comment and refuses to release its methodology or analysis to Congress. Members of Congress should be aware that eliminating the ability of a customer to negotiate will raise the cost of auto loans for consumers. For detailed information, click here.

No LIFO Repeal - The Obama Administration has proposed repealing the LIFO (Last In, First Out) accounting method, which would result in a tax increase for dealers who use LIFO. This issue may be considered as part of a comprehensive tax reform bill this fall. Congress should say “no” to this tax increase. For detailed information, click here.

Rental Car Recalls – A Senate Committee recently reported out a bill that would ground almost all rental or loaner vehicles under open recall, even for paperwork violations that pose no threat to actual safety. It would regulate dealers with a fleet of five or more rental or loaner vehicles the same as a multinational rental car company, and subject dealers to new federal inspection and recordkeeping requirements. Senators should be urged to support small business protections to the bill prior to the legislation moving forward. For detailed information, click here.

Information on the key issues facing franchised auto dealerships can be found at www.NADA.org/legislativeaffairs or by calling NADA Legislative Affairs at 202-547-5500.
Source: NADA Legislative Affairs

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America's Car Fleet Hits New Old-Age Record

Despite booming sales of new vehicles in the past year, the average age of America's auto fleet has hit another record. The average age of all cars and trucks now stands at 11.4 years, up from 11.2 years last year, says research firm Polk. A decade ago it was 9.7 years. Drivers put off buying new cars during the recession, nursing their jalopies through to better times. But in the last year, they have returned to showrooms in droves not only to buy cars likely to last them longer, but to trade in for models that will get better gas mileage. While the number of vehicles between six and 11 years decreased, it was offset by an increase in the number of vehicles older than 12 years.
Source: USA Today

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'Accelerate' Your Business at the NADA Convention in New Orleans
By David Westcott, NADA Chairman

It's fitting that New Orleans—a city as tough, determined and resilient as the auto industry—will host the 2014 NADA Convention & Expo in January. Just like the city, the auto industry has endured its own share of crises and comebacks. We have been through many challenges over the past few years, but today we are stronger than ever and auto sales are steadily improving. Since the devastation of Hurricane Katrina, The Big Easy has invested billions of dollars in major restoration projects, including renovations at the convention center and improving the streets. There is also a new streetcar line connecting the Sports District to the Central Business District and French Quarter. Hundreds of new restaurants have opened since Katrina and millions of dollars have been invested in hotel upgrades. Our convention theme is Accelerate—something the auto industry and New Orleans have in common with both rebuilding our roads to recovery. The NADA convention offers all attendees—dealers and their managers, manufacturer execs and exhibitors—an opportunity to learn new ways to “accelerate” business success. Online registration and housing is now open. Seven of the 33 convention hotels have already sold out. Be sure to make your reservations early to book a hotel of choice. Dealers and managers who register by Sept. 13 will receive a $100 discount from the onsite rate. For more information or to register, visit www.nadaconvention.org.
Source: NADAFrontPage.com
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Why Automakers are Investing in Diesel Engines in the U.S.

On the surface, the Volkswagen brand's total July sales of 35,779 units looks like chump change compared with The Big Boys. The top-selling vehicle in the country, the Ford F-150, accounted for 60,449 sales in July, while one Honda model, the Civic, nearly single-handedly outsold all of Volkswagen's models combined. But drill deeper into VW's July sales and you'll see one of the reasons why domestic automakers are starting to invest serious cash in diesel engines for North American vehicles other than heavy-duty pickups. In July, one out of every three customers who bought a VW spent an extra $2,000 or so for a diesel engine. Diesels accounted for 30 percent of all of the VW brand's July U.S., a record. VW's diesel success has been building for a long time. For decades, VW has steadfastly stood by the diesel and invested in improving its performance, reliability and drivability. The diesel is no longer the smoky, stinky engine it once was. Along the way, VW has built a legion of loyal diesel drivers who display a cult-like devotion to their cars, bragging about the fuel economy and longevity of the engine, and, more importantly, buying one VW diesel after another. Now, because of VW's growing sales, the high price of gasoline and the looming 54.5 mpg government mandated fuel economy standard, some automakers have decided they can no longer afford to ignore the diesel engine.
Source: Automotive News
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GM Cuts Plug-In Volt's Price By $5,000

Lower cost intended to entice buyers who are still wary of EVs

General Motors Co. is slashing the price of its plug-in hybrid Chevrolet Volt by $5,000, making it the latest automaker to lower prices of electric vehicles in the face of lagging consumer demand. The Detroit-based automaker said it will cut the base price 12.5 percent, from $39,995 to $34,995. The price cut comes just weeks after the automaker announced a $5,000 give-back on the 2012 Volt and $4,000 on the 2013 model. The first Volt, a 2010 model, cost $41,000. GM put a positive face on its decision to lower the list price. “The lower price and cost savings from driving on electricity provide Volt owners an unmatched balance of technology, capability and cost of ownership,” said Don Johnson, U.S. vice president, Chevrolet sales and service. “We have made great strides in reducing costs as we gain experience with electric vehicles and their components.”
Source: The Detroit News
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GM, Ford Report Record July Sales in China

General Motors Co. and Ford Motor Co. posted record July sales totals in China, the largest and fastest growing auto market in the world. GM said Monday that for the first time, July sales topped 200,000: 221,580, to be exact. Ford said sales jumped 71 percent to 72,834. GM sales were up 11.1 percent overall, including a 25.7 percent jump in Buick sales for the month and an 82.8 percent increase in Cadillac sales. Through July, GM and its joint ventures have sold about 1.79 million vehicles, up 10.7 percent from the same period a year ago and setting a record for the first seven months of the year. Ford's year-to-date sales are up 50 percent, the automaker said Monday, totaling 480,555 sales for the period of January through July.
Source: The Detroit News
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Will Porsche's $845,000 'Spyder' Hybrid Have Legs?

Porsche knows how to make its new $845,000 hybrid super sports car look like a bargain: Display it among cars that cost a few million dollars or more. The company plans to make the rounds with the 918 Spyder at the Pebble Beach Concours d'Elegance in Monterey, Calif., later this month. It is a good spot for the debut because the people attending are rabid car fans who tend to have the means to acquire exotic sports cars. Besides, the Spyder seems almost cheap next to 40- and 50-year-old models selling for five times as much. But the proximity of valuable collectibles raises a touchy question: Will the 918 appreciate in value the way the Ferrari 250 GT SWB and Alfa Romeo TZ-2 of the 1960s did? Or will it rapidly lose value like most costly cars?
Source: The Wall Street Journal
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More Articles
 
Quotable
"To go mainstream, you are going to have to lower the price." 

   
-- David Cole, chairman emeritus of the Center for Automotive Research, commenting on GM slashing the Volt's price by $5,000 to entice more buyers, The Detroit News, Aug. 6
Chairman's Column
'Accelerate' Your Business at the NADA Convention in New Orleans
Videos

 
What's Driving Auto Sales? (NADAFrontPage.com)


 Audi Scores High with Dealers (NADAFrontPage.com)


 NADA Foundation Helps Tornado Victims (NADAFrontPage.com)

More Videos

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

- Aug. 7: Buyers' & Sellers' Perspectives on the Market

- Aug. 21: Redefine the Aftermarket Customer Experience

- Aug. 28: Profit Paradigm: Stop the Big Squeeze

- Sept. 4: DMS Access Concerns (Part II)

 For more information about the webinars, click here.

NADA Foundation News
Richard Strauss Inspires Family to Support Community Causes (NADAFrontPage.com)

NADA Foundation Makes Gift to Families First Health Center (Seacoastonline.com, Portsmouth, N.H.)

Peconic Bay Medical Center School of Radiology Receives Ambassador Grant (Riverheadlocal.com, Riverhead, N.Y.)
 
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