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Inside this issue
Auto Dealers In The Fast Lane Amid Favorable Trends
SUVs, From Small to Swanky, Take Center Stage
Ghosn Sees Global Car Market Up 1.5% in 2013
NADA: Higher Quality and Tight Supply Keep Older Used Vehicle Prices High
Volkswagen Considers 40 Electric, Hybrid Vehicles in Green Push
54% of Gen Y Online Shoppers Open to Buying Any Brand, J.D. Power Finds
Following in Dad's Footsteps as Dealer and as Mayor
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Auto Dealers In The Fast Lane Amid Favorable Trends

How many of your neighbors are suddenly driving new cars? Auto sales are rebounding as cautious Americans who held onto their cars through the economic downturn are now trading up to newer vehicles. Sales of new cars rose 17% in August, reaching an annualized rate of 16.09 million — not a record, but the fastest pace since December 2007. Analysts expect the financial gains to continue in coming years as the industry puts more distance between itself and the beating it took during the recession of 2008 and 2009. "There are a number of things pushing growth in the industry right now — pent-up demand from buyers, better access to financing, an onslaught of new products and technologies," said Larry Dixon, senior automotive analyst at the National Automobile Dealers Association (NADA). "The whole industry has benefited."
Source: Investor's Business Daily
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SUVs, From Small to Swanky, Take Center Stage

Auto makers experiment with the formula, once distinctly American

Big auto makers are using this week's Frankfurt auto show to launch a new generation of sport utility vehicles aimed at consumers from Shanghai to San Jose who are paying premium prices to ride tall. Sport utility vehicles started out as a distinctively American automotive idea, starting with World War II Jeeps and evolving into the hulking, gas guzzling trucks that dominated U.S. highways during the late 1990s. During the past decade, SUVs evolved from modified pickup trucks into modified cars, but many kept the boxy, utilitarian profiles of the originals. Now, auto makers are experimenting with the formula again, looking to cash in with SUVs that are small, sleekly aerodynamic and, in most cases, more profitable than the sedans that share their mechanical underpinnings.
Source: The Wall Street Journal
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Ghosn Sees Global Car Market Up 1.5% in 2013

Renault-Nissan CEO Carlos Ghosn says the global auto market will grow by just 1.5 percent this year and by about 3 percent in 2014, helped by an improvement in Europe. Renault had already cut its 2013 global forecast to 2 percent in July from 3 percent in April. Europe should "see the end of the tunnel next year," Ghosn told France's Les Echos newspaper in an interview published on Monday. He said vehicle sales in the region should be flat to 1 percent higher, ending five years of declines. Renault expects to win market share in Europe thanks to product launches, Ghosn said.
Source: Reuters
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NADA: Higher Quality and Tight Supply Keep Older Used Vehicle Prices High

Later-model prices soften due to new market pressures

Used car and light-truck prices for 4-to-10 year old units are expected to be 0.5% higher in 2013 than like-age units were in 2012, according to the NADA Used Car Guide in its latest report, NADA Used Vehicle Price Report: Age-level Analysis and Forecast. By comparison, NADA predicts that prices for vehicles up to three years in age will be 1.5% lower than similarly aged unit prices last year. “Historically speaking, reliability and unexpected repair cost concerns meant that vehicles over five years of age took a back seat to their younger, in-warranty counterparts in terms of demand,” said Jonathan Banks, executive automotive analyst for the NADA Used Car Guide. “However, rapid advances in dependability over the past decade have changed consumer attitudes towards purchasing older vehicles.”
Source: NADAFrontPage.com
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Volkswagen Considers 40 Electric, Hybrid Vehicles in Green Push

Volkswagen Group outlined plans to offer as many as 40 electric or hybrid vehicles in a bet that customers will have enough confidence to shift to low-emission models. The automaker will produce 14 vehicles with alternative drivetrains by next year, it said in a statement. The company will widen the lineup should demand increase, CEO Martin Winterkorn said on Monday at a Frankfurt auto show event to introduce the e-Up electric car and and a battery-powered version of the Golf hatchback. "The electric car cannot be a compromise on wheels," Winterkorn said. "It must convince customers in every respect." The plug-in hybrid has the "greatest market potential," the CEO added.
Source: Bloomberg
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54% of Gen Y Online Shoppers Open to Buying Any Brand, J.D. Power Finds

More than half of Gen Y online shoppers are open to buying any brand at the beginning of the shopping process, according to a new J.D. Power and Associates study released [Monday]. The 2013 New Autoshopper Study -- exploring how new-vehicle buyers use digital devices such as smartphones and tablets to gather information before a purchase as well as what Web sites and apps were used -- found that 50 percent of online car shoppers will consider any brand at first, with the figure rising to 54 percent among Gen Y. The study is based on input from 17,012 buyers and leasees of 2011-13 model-year new vehicles "who used information gathered digitally during the shopping process." "It is important for brands and websites to pay special attention to Gen Y buyers, as they are increasing in market share at the greatest rate among all new-vehicle buyers" and are now responsible for more than 20 percent of all retail sales, said Arianne Walker, senior director of automotive media and marketing at J.D. Power, in a statement.
Source: Automotive News
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Following in Dad's Footsteps as Dealer and as Mayor

Second-generation dealers are fairly common. Second-generation dealers as second-generation mayors, not so much. Tom Cole, 45, owner of Cole Chevrolet-Buick-GMC-Cadillac in Bluefield, W.Va., took office as mayor of the city on Aug. 1. He follows in the footsteps of his father, Paul Cole Jr., 81, who was Bluefield's mayor for a total of 13 years, including a 12-year stretch in 1981-93. Paul Cole owned the car dealership and had an International Harvester franchise. In 1978-80, he was chairman of the American Truck Dealers, a division of the National Automobile Dealers Association. Tom has followed his father's lead in association work as well. He will become chairman of the West Virginia Automobile & Truck Dealers Association next June.
Source: Automotive News
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More Articles
 
Quotable
"There are a number of things pushing growth in the industry right now — pent-up demand from buyers, better access to financing, an onslaught of new products and technologies." 

    -- Larry Dixon, senior automotive analyst with NADA Used Car Guide, commenting on rebounding auto sales, Investor's Business Daily, Sept. 6
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Chairman's Column
'Accelerate' Your Business at the NADA Convention in New Orleans
Videos

 
Audi Training Venture with NADA Improves Showroom Experience (NADAFrontPage.com)


 Audi Dealer Gains Edge with NADA University Online (NADAFrontPage.com)


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

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

- Sept. 11: Get 5 Stars Your Customer’s First Impression

- Sept. 18: Influence is Key to Internet Sales Growth

- Oct. 2: Reverse Engineering: The Automotive Purchase Funnel

- Oct. 9: Avoid Facility Design and Construction Mistakes

- Oct. 23: Millenials: Driving the Next Car Evolution

 For more information about the webinars, click here.

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Miami Township Firehouse Education Revitalized with Donation (Cincinnati.com)
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