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Inside this issue
Automakers, Dealers Roll Out Black Friday Deals
U.S. Auto Sales to End Year Strong, But Fears About Incentives Mount
Auto Loan Underwriting Poised to Loosen in 2014, Moody's Says
Top GM Exec Says Cadillac 'Needs' a Giant Car
Hyundai Aims to Burnish Brand with New Genesis
GM's $27 Billion in Cash Seen Luring Activists
Men See Red, Women Take A Shine To Silver When Car Shopping, Survey Says
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Automakers, Dealers Roll Out Black Friday Deals

Automakers and their dealers are trying to join in the Black Friday shopping frenzy, saving some of their better deals in hopes of luring shoppers out of malls and big-box stores and into showrooms. General Motors, Ford Motor and Hyundai are among makers hoping to cash in on the traditional holiday shopping kickoff. The big day comes as they are clearing the last of 2013 models. This year, Black Friday is a day before the end of November, coinciding with end-of-month sales.
Source: USA Today

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U.S. Auto Sales to End Year Strong, But Fears About Incentives Mount

U.S. auto sales are expected to finish the year at a fast pace, with demand possibly at its highest in November, but Wall Street remains worried the industry could return to overly generous incentives that would eat into profits. Economists surveyed by Thomson Reuters see the annual sales rate for U.S. new-vehicle sales in November finishing at 15.6 million vehicles. And some analysts said the rate could top 16 million, which would mark the strongest pace of the year. "Our marketing is there, our inventories are good, our product is really good; we just need a good finish," Tim Coad, owner of Coad Family Dealerships in Cape Girardeau, Missouri, said in a telephone interview.
Source: Reuters

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Auto Loan Underwriting Poised to Loosen in 2014, Moody's Says

Underwriting standards on auto loans will slip in 2014 as increased competition pushes lenders to take more risk, according to Moody’s Investors Service. “Auto lenders will continue their return to higher levels of risk-taking, a trend that emerged in 2013 and will gain momentum in the coming year,” Moody’s analysts Jeffrey Hibbs, Mack Caldwell and William Black wrote in a report. Heightened competition will result in “ever-more generous loan terms,” they said. Losses on vehicle debt for borrowers from the least creditworthy to prime customers have held below historic norms during the past several years as the U.S. economy improves, according to Moody’s. Along with low interest rates, that’s drawing new lenders, the New York-based analysts said.
Source: Bloomberg

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Top GM Exec Says Cadillac 'Needs' a Giant Car

A big Cadillac like the Elmiraj concept coupe should be the next Caddy, according to Mark Reuss, president of General Motors North American operations. "That's the car Cadillac needs," he said in an interview at the auto show [in Los Angeles.] Cadillac could produce both a coupe and a sedan based on the big-car hardware it is developing. But the market for coupes typically is limited, so the four-door sedan would be the money-maker. The coupe, though profitable, would be a low-volume "halo" car that sets a strong image for the sedan -- and for other Cadillacs.
Source: USA Today

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Hyundai Aims to Burnish Brand with New Genesis

Hyundai has revamped the luxury Genesis sedan for the first time since 2008, attempting to elevate its brand and grab a bigger share of U.S. car sales as competition from American and European automakers erodes Hyundai’s dominance in its South Korean stronghold. The new Genesis ... will be available in the U.S. early next year and will be the first Hyundai luxury sedan sold in Europe. Y.J. Ahn, a director of Hyundai’s American business, said the redesigned sedan will help drive 10 percent growth in Hyundai’s U.S. sales next year from 734,000 vehicles expected this year.
Source: Associated Press

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GM's $27 Billion in Cash Seen Luring Activists

General Motors Co. will be a tempting target for activist investors if it doesn’t quickly return cash to shareholders from what the automaker calls its “fortress balance sheet.” The U.S. Treasury Department said last week it expects to sell its remaining 31.1 million GM common shares by year-end, depending on market conditions, to end an almost half decade of government oversight. The exit makes GM a possible target for activist investors, who may push the company to pay out some of its $26.8 billion in cash through a dividend or stock buyback, said Harry J. Wilson, a member of the U.S. auto task force that helped rebuild the automaker in a 2009 bankruptcy.
Source: Bloomberg

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Men See Red, Women Take A Shine To Silver When Car Shopping, Survey Says

Just as vanilla continues to be the best-selling ice cream flavor, white is the most popular car color among U.S. car buyers according to paint provider PPG Industries. Twenty-one percent of new cars are painted white, with black and gray coming in second and third at 19 and 17 percent, respectively. Yet a recent study conducted by the used-car-shopping site iSeeCars indicates there’s a sizeable rift between the sexes when it comes to choosing car colors, with men being more expressive in that regard.
Source: Forbes.com

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More Articles
 
Quotable
"There are some warning signs brewing in industry sales momentum and discipline" with incentives heating up.

   
-- Morgan Stanley analyst Adam Jonas commenting on rising incentives biting into companies' profit margins, Reuters, Nov. 26
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Videos

  NADA Chairman Speaks to Detroit Auto Press (NADA-TV)
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