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Inside this issue
Opinion: Answers to FAQs About Why Dealers Exist
Subprime Car Loans Help Fuel U.S. Auto Recovery
Ford Rolls Out Dealer Training to its 7,500 Global Dealers
U.S. Foresees Gas-Powered Vehicles Dominating Through 2040
Asian Automakers to Drive Added Production in North America
Mazda Sees 300,000-Plus U.S. Sales in Fiscal 2015
Parkersburg High School Foundation Receives $10K Grant
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Opinion: Answers to FAQs About Why Dealers Exist
By Michael Charapp

A great misconception is that dealers add costs to the distribution chain. Nothing could be further from the truth

Questions about the vitality of franchise laws are a staple for critics of car dealers. Detractors ask: “Why are these laws necessary? Aren't they outmoded?” Dealers should catalog the benefits of franchise laws in case they must defend them before a state legislature, in a letter to an editor or even at a cocktail party. Click here for some answers to frequently asked questions.
Source: WardsAuto
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Subprime Car Loans Help Fuel U.S. Auto Recovery

The U.S. auto industry continues its remarkable recovery, with revived subprime lending greasing the skids for sales. But industry experts say those loans aren't out of control. Although lending to those with troubled credit histories may sound dubious in the wake of the subprime crisis, experts said another cataclysmic financial meltdown is unlikely, given the differences between the housing and automobile markets. Although subprime mortgages sparked the financial crisis and Great Recession, taking years to recover, auto loans bounced back more quickly. "You had a great deal of what some would call exotic mortgages," said Bill Himpler, executive vice president at American Financial Services Association. "I have yet to have anyone show me an exotic auto loan." Cars and trucks generally sell for much less than homes. Autos are depreciating assets, losing value the moment they're driven off a car dealer's lot. The problems with the U.S. housing market circa 2005 came when "people started viewing homes as always appreciating," said Steven Szakaly, chief economist at National Automobile Dealers Association.
Source: Investor's Business Daily
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Ford Rolls Out Dealer Training to its 7,500 Global Dealers

Ford Motor Co. is taking its dealership training program worldwide. It is part of the automakers' ongoing effort to improve customer service and increase buyer loyalty. The program, known as the Consumer Experience Movement, has been running in North America since late 2010 and delivering results, Elena Ford, the automaker's vice president of global dealer and consumer experience, said in a meeting with Automotive News. “We co-created this with the dealers,” Ford said. “The Consumer Experience Movement is about how we communicate with our dealers and how dealers communicate with customers and it starts with the relationship.”
Source: Automotive News
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U.S. Foresees Gas-Powered Vehicles Dominating Through 2040

The Energy Department is predicting gasoline-powered vehicles will continue to dominate the market through 2040. The Energy Information Agency said in a report Tuesday that it also predicts a big rise in the fuel economy of the nation's cars and trucks. It predicts the fuel efficiency of the nation's cars and trucks will rise from 21.5 mpg in 2012 to 37.2 mpg by 2040. Overall energy consumption by the nation's transportation sector is expected to fall by about 4 percent. The agency predicts that in 2040, 78 percent of all cars and trucks will run on gasoline, down from 82 percent last year. It predicts a big upswing in micro-hybrids and other advanced fuel technologies to 42 percent of all vehicles by 2040. EIA predicts full hybrids will account for 5 percent of vehicles in 2040 — up from 3 percent today. Diesel vehicles will double to 4 percent from the current 2 percent. It predicts just 1 percent of total sales will be plug-in hybrids and 1 percent full electric vehicles in 2040.
Source: The Detroit News
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Asian Automakers to Drive Added Production in North America

Nearly half of all added vehicle production in North America between now and the end of the decade will come from Asian automakers, according to analysis from IHS Automotive. Asian automakers will add capacity to build nearly 1 million more cars and trucks between now and 2020. German automakers aren't too far behind; IHS analysis estimates that they will add capacity to build about 700,000 more. “Clearly, a larger number of units are going to be sourced here to meet local demand, but there's going to be additional opportunity to take advantage of global opportunities via exports,” said Mike Jackson, senior manager at IHS, from the company's Southfield offices this week. “At no other time in its history has the North American market been as well positioned as it is today.”
Source: The Detroit News
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Mazda Sees 300,000-Plus U.S. Sales in Fiscal 2015

Buoyed by strong CUV sales and new car models, Mazda is targeting at least 300,000 sales in the U.S. in the fiscal year ending March 31, James J. O'Sullivan, president and CEO of Mazda North American Operations, tells WardsAuto. Through November, Mazda sales reached 261,000, up from 250,000 a year earlier. CUV deliveries rose to 109,000 from 82,000. With monthly sales running about 21,000 units and four months to go in fiscal '15, the 300,000 mark seems attainable. “Things are going extremely well for us,” O'Sullivan observes.“So far, so good.” His next goal: possibly 400,000 sales in fiscal 2016 as recently introduced models gain a firmer foothold and a new assembly plant in Salamanca, Mexico, launches production in the spring.
Source: WardsAuto
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Parkersburg High School Foundation Receives $10K Grant

The Parkersburg High School Foundation was presented Tuesday with $10,000 as part of the National Automobile Dealers Charitable Foundation Ambassador Grants program. The money was donated by the Hathaway family of Superior Toyota Hyundai, who added $6,000 to the $4,000 Ambassador Grant. Tom and B.J. Hathaway presented the funds Tuesday to Tim Archer, president of the PHS Foundation, treasurer Charlotte Potter and PHS Principal Pam Goots. In 2010, T.R. Hathaway, president of Superior Toyota Hyundai, and his brother Scott Hathaway named their parents ambassadors of the National Automobile Charitable Foundation. Tom and B.J. Hathaway, both alumni of Parkersburg High School, said the Ambassador Grant program allows them to help support the school they love. Generations of the family have attended the school, they said. "It's a family tradition," said Tom Hathaway.
Source: News and Sentinel (Parkersburg, W.Va.)
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Quotable
"A great misconception is that dealers add costs to the distribution chain. Nothing could be further from the truth." 

   -- Michael Charapp, commenting on the benefits of the dealer franchise system, WardsAuto, Dec. 17

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