View Mobile Version

SPONSORED BY
Advertisement
NADA.org
September 27, 2013 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training
Inside this issue
GM Halts Dealer-Incentive Programs in N.H., Citing Disclosure Rule
U.S. Government Begins Third Phase of GM Stock Sell-Off
Transportation Secretary Foxx to Meet with Detroit Big 3 Execs
U.S. Labor Department Obtains Judgment, Car Detailer to Pay Wage Violations
Used-Car Dept. Overhaul Raises Sales, Profits
Chrysler Lifts Production Curbs on Jeep Cherokee
Why Ford's Tiny Buyout Of Livio Could Be A Big Deal For Connected Cars
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
GM Halts Dealer-Incentive Programs in N.H., Citing Disclosure Rule

General Motors has stopped running dealer-incentive programs in New Hampshire in response to a new law requiring automakers to disclose more information about the programs. GM told its 24 New Hampshire dealers this week that it "will not offer any new dealer sales programs in New Hampshire," including so-called stair-step programs or other contests that award dealers bonus money for hitting factory-set sales targets. The move strikes back against a dealer-backed law that took effect this week requiring automakers to provide dealers with advance, written details about their sales incentive programs. The provision requires automakers to explain how they calculated each dealer's sales target and to disclose the targets of all dealers in the state. Peter McNamara, president of the New Hampshire Automobile Dealers Association, which lobbied for the changes, believes GM is balking at the requirement for greater transparency. He says notifying dealers of programs in advance and disclosing details "shouldn't be difficult to do since the manufacturers create the program themselves."
Source: Automotive News
Share: LinkedIn Twitter Facebook

[back to top]

U.S. Government Begins Third Phase of GM Stock Sell-Off

The U.S. Treasury is launching the third phase of its sale of General Motors stock. The Treasury Department confirmed earlier this month that it owned 7.3% of GM after the second phase of its selldown, down from 13.8% in June 12. The government plans to sell its remaining 101.3 million shares gradually on the open market. The Treasury wants to divest of GM completely by April 1. With GM's stock hovering around $37, the government is expected to lose about $10 billion on its $49.5-billion bailout of the largest U.S. automaker.
Source: Detroit Free Press
Share: LinkedIn Twitter Facebook

[back to top]

Transportation Secretary Foxx to Meet with Detroit Big 3 Execs

Transportation Secretary Anthony Foxx will meet Friday with executives at Detroit's Big Three automakers and tour auto facilities. The new secretary — a former mayor of Charlotte, N.C. — said previously he looked forward to going to Detroit to meet with U.S. automakers and learn more about the auto industry. Foxx is expected to tour General Motors Co.'s Warren Transmission plant with Mike Robinson, vice president for sustainability and global regulator affairs. He will also tour Chrysler Group LLC's Jefferson-North Assembly plant in Detroit and Ford Motor Co.'s VIRTTEX driving simulator in Dearborn. Foxx also met with Michigan Gov. Rick Snyder on Thursday. Foxx is among the cabinet officials who will be in Detroit on Friday for a meeting with government officials and local community leaders to talk about the Motor City in the wake of its Chapter 9 bankruptcy filing.
Source: The Detroit News
Share: LinkedIn Twitter Facebook

[back to top]

U.S. Labor Department Obtains Judgment, Car Detailer to Pay Wage Violations

Company services 17 major car dealerships throughout Southern California

The U.S. Department of Labor has obtained a consent judgment in federal court ordering automotive detailer Interior Magic of California LLC, and officers Frank and Tammy Hallberg, to pay $292,000 in back wages and liquidated damages to 205 current and former employees, plus pay $34,408 in civil money penalties. The judgment comes after an investigation by the department’s Wage and Hour Division found the Torrance-based company willfully violated the Fair Labor Standards Act’s overtime, minimum wage and record-keeping provisions. For more information, visit www.dol.gov/whd.
Source: U.S. Department of Labor
Share: LinkedIn Twitter Facebook

[back to top]

Used-Car Dept. Overhaul Raises Sales, Profits

New policy, pricing, equipment aid turnaround

Paul Lynch felt like "crawling under a table" when his dealership financial data revealed to his classmates at the NADA Dealer Academy that some of the used cars on his lot had been there for more than 500 days. But the shame provoked the general sales manager at DePaula Chevrolet in Albany, N.Y., into action, leading to a complete overhaul of his used-vehicle operation. With the support of the dealership's vice president, Tom Restino, Lynch sold off the aged inventory at a $200,000 loss. He also reduced by 80 percent the time it took to get a used vehicle ready for retail sale. He enacted a strict policy: No used vehicle sticks around for more than 60 days. Ever. In 2012, the year after Lynch's epiphany, DePaula sold 1,385 used cars and trucks, almost twice the 737 it sold in 2011. His gross profit improved about $400 per unit.
Source: Automotive News
Share: LinkedIn Twitter Facebook

[back to top]

Chrysler Lifts Production Curbs on Jeep Cherokee

Auto maker applying software fix for transmission that delayed deliveries

Chrysler Group LLC is gearing up to begin deliveries of its 2014 Jeep Cherokee after problems tuning its nine-speed transmission delayed shipments and prompted the company to slow production of the important new sport-utility vehicle. Chrysler has corrected the calibration problem and is applying a fix to about 10,000 vehicles that were first off the production lines at its Toledo, Ohio, factory, said Bruce Baumhower, president of the United Auto Workers local that represents workers at the plant. Transmissions on the about $23,000 and up vehicles weren't shifting as smoothly as expected, prompting the revisions. The latest delays mean the 2014 Cherokees won't be arriving at dealerships in volume until the fourth quarter.
Source: The Wall Street Journal
Share: LinkedIn Twitter Facebook

[back to top]

Why Ford's Tiny Buyout Of Livio Could Be A Big Deal For Connected Cars

As acquisitions go, Ford Motor's purchase of Michigan start-up Livio doesn't amount to even a tiny drop in the bucket. Still, it has the potential to create ripples throughout the industry. Ford paid less than $10 million — not even 0.2 percent of its 2012 net profit — to acquire the Ferndale, Mich.-based company whose software connects the apps on your smartphone to your car's dashboard. Ford said the move will extend its leadership in the race to provide drivers with safe, seamless access to the electronic content they love while in their vehicles. More importantly, however, the two companies plan to focus on developing an industry standard for smartphone-to-vehicle communications, a market that is expected to reach 21 million vehicles by 2018.
Source: Forbes
Share: LinkedIn Twitter Facebook

[back to top]

More Articles
 
Quotable
"If there is a good rationale for why one dealership has a 50-unit objective and another has 25, why not disclose it?"

   
-- Peter McNamara, president of the New Hampshire Automobile Dealers Association, commenting on a new law in N.H. that requires automakers to disclose more information about dealer-incentive programs, Automotive News, Sept. 27
NADA Market Beat
August Light Vehicle Sales Best of 2013
Chairman's Column
NADA Meets with GM Board of Directors
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)

More Videos

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

- 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.

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

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