View Mobile Version | View Web Version

NADA.org
February 19, 2014 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training
Inside this issue
Carmakers May be on the Verge of an Incentives War
Surge in U.S. Auto Sales Drives Demand for Air Shipments of Parts
Washington State Legislature Acts to Allow Tesla to Sell Cars Directly
NADA Opens Enrollment for Annual Dealership Workforce Study
GM Secures Aluminum for Trucks
Fisker Wins Approval to Sell Assets to China's Wanxiang
Automakers vs. Tech Firms in a Battle to Use Airwaves in Talking Cars
Commentary: The Best of NADA 2014
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Carmakers May be on the Verge of an Incentives War

When General Motors announced it would offer more than $7,000 in discounts on some of its big Silverado pickups, the news sent many shoppers rushing to showrooms. But it also sent shivers racing down the spines of automotive investors increasingly worried that slowing sales may trigger the sort of incentive wars that trashed industry profits during the years leading up to the recent recession. All the ingredients are there for a classic price war, automotive analysts warn—one that could be great news for consumers but potentially disastrous for the auto industry. After January auto sales took a sharp dip that may have been impacted by more than just the cold weather, there are now a growing number of vehicles piling up on dealer lots across the country. That may force manufacturers to sharply increase rebates and other incentives to move the cars.
Source: CNBC
Share: LinkedIn Twitter Facebook

[back to top]

Surge in U.S. Auto Sales Drives Demand for Air Shipments of Parts

Sales of automobiles in the U.S., forecast to reach a seven-year high in 2014, are increasing demand for car parts by Toyota Motor Corp. and General Motors Co., in turn boosting air shipments from the world's largest parts makers. Automotive sales in the U.S. will probably rise 2.6 percent to 16 million this year, according to Credit Suisse, after reaching 15.6 million cars and light trucks last year, the most since 2007, according to researcher Autodata Corp. Hitachi Ltd. raised its profit forecast, citing higher sales in North America from its automotive-parts business.
Source: The Detroit News
Share: LinkedIn Twitter Facebook

[back to top]

Washington State Legislature Acts to Allow Tesla to Sell Cars Directly

Tesla can continue to sell cars directly to customers under amended bills passed in the state House and Senate, but it will be the only car manufacturer with that privilege

Tesla can continue to sell cars directly to customers under amended bills passed in the [Washington] state House and Senate, but it will be the only car manufacturer with that privilege. Senate Bill 6272 and House Bill 2524 were intended keep manufacturers from competing with their own dealers by banning manufacturer-owned dealerships and franchise stores — Tesla's sales model. They would have kept Tesla, which has stores in Seattle and Bellevue, from opening additional franchises. But both bills were amended to exclude manufacturers who already have a license to do so.
Source: The Seattle Times
Share: LinkedIn Twitter Facebook

[back to top]

NADA Opens Enrollment for Annual Dealership Workforce Study

Since officials contend a major challenge facing franchised dealers is attracting and keeping talented employees, the National Automobile Dealers Association wants to help members with this task. NADA's Dealership Workforce Study is now open for enrollment to NADA and ATD members. There is no cost to participate. Dealers can enroll as individual dealerships or dealer groups using a secure, Web-based process that involves completing a survey and uploading payroll data. Enrollment closes on April 30. Dealers can enroll at www.nadaworkforcestudy.com. For more information, send an email to WorkforceStudy@nada.org or call (800) 557-6232.
Source: Auto Remarketing
Share: LinkedIn Twitter Facebook

[back to top]

GM Secures Aluminum for Trucks

Auto maker steps up effort to use metal in high-volume pickups

General Motors Co. is accelerating efforts to field a largely aluminum-bodied pickup truck by late 2018, under pressure from federal fuel efficiency standards and archrival Ford Motor Co., according to people familiar with the matter. The No. 1 U.S. auto maker recently locked-in supply contracts with Alcoa Inc. and Novelis Inc., which are now working to increase their aluminum sheet production to supply the next-generation GM pickup, the people said. Aluminum sheet for automotive bodies is in such high demand that companies need to order it years in advance. The push to develop what the industry calls an "aluminum intensive" large pickup marks an apparent change of direction for GM, which has pursued smaller and lighter weight steel-bodied trucks.
Source: The Wall Street Journal
Share: LinkedIn Twitter Facebook

[back to top]

Fisker Wins Approval to Sell Assets to China's Wanxiang

Fisker Automotive Holdings Inc. won court approval to sell its assets to China's Wanxiang Group Corp. for an offer valued at $149.2 million, almost six times what the hybrid-car maker sought whan it filed for bankruptcy. The auction's result “shows that a fair process is a good thing,” U.S. Bankruptcy Judge Kevin Gross said at a hearing in U.S. Bankruptcy Court. Wanxiang topped Hybrid Tech Holdings LLC after 19 rounds of bidding with an offer that includes $126.2 million in cash, plus equity and $8 million in assumed liabilities. The purchase, which requires clearance under federal antitrust law, includes an abandoned General Motors Co. plant in Wilmington that Fisker acquired in 2010.
Source: Bloomberg
Share: LinkedIn Twitter Facebook

[back to top]

Automakers vs. Tech Firms in a Battle to Use Airwaves in Talking Cars

Auto and technology companies are battling over a slice of coveted radio waves, with carmakers arguing the potential for lifesaving crash-avoidance systems should take precedence over more Wi-Fi for Web data and video. U.S. Transportation Secretary Anthony Foxx said Feb. 3 his department will write rules for talking cars before President Barack Obama leaves office. That set up a tussle between the two sides, led by General Motors Co. and Comcast Corp., which among them spent almost $200 million last year to influence lawmakers and regulators in Washington. Automakers said they're getting close to deploying technology Foxx described as a "moon shot" that could save as many lives as seat belts. Comcast, Google Inc. and Microsoft Corp., calling the systems more of a long shot, are pushing the Federal Communications Commission to let them at least share spectrum reserved for automakers 15 years ago.
Source: Bloomberg
Share: LinkedIn Twitter Facebook

[back to top]

Commentary: The Best of NADA 2014
By Michael Bowen

The 2014 National Automobile Dealers Association Convention is in the history books. Fortunately my new comfortable shoes held up through all the walking (note to self: next year bring a pedometer!) and after several cancelled flights and too many hours in airports, we're back under the comforting clouds of the Pacific Northwest. The weather may have been unseasonably cold in New Orleans, but it there were a lot of hot news to find on the convention floor. There were new ideas and new technologies; there were new dealers and new vendors; but most of all there was a gathering of auto industry experts all working towards the same goal: connecting consumers to help them find the vehicles they need. The convention floor was hopping this year. Vendors new and old were showing off their latest technologies and wooing dealers into their booths. The Dealer Marketing Magazine team split up and hit the floor to investigate as many of the booths as possible so we could bring you the best of NADA 2014! With over 560 booths on the convention floor, it was a lot of walking, but we've assembled a list of what we think are the hottest new technologies and ideas from the show. Click here for the list.
Source: Dealer Marketing Magazine

Editor's note: For NADA-TV coverage of the 2014 NADA convention, click here.
Share: LinkedIn Twitter Facebook

[back to top]

More Articles
 
Quotable
"Rising inventory levels combined with several more waves of bad weather will result in a short-term spike in incentives. The danger is that this could be the beginning of an escalating arms race for market share."

    -- Eric Lyman, vice president of editorial and consulting for ALG, commenting on the possibility of an incentives war between automakers due to slowing sales, CNBC, Feb. 17
NADA Market Beat
Light-vehicle Sales Drop in January
Chairman's Column
NADA Releases Fair Credit Compliance Program for Dealers
Videos

 Meet NADA Chairman Forrest McConnell (NADA-TV)


NADA Used Car Guide's Jon Banks Highlights Feb.'s Guidelines (NADA-TV)

Sponsored by
 

NADA Foundation News
New Orleans' High Schools Receive CPR Training Manikins

ADESA and NADA Donate $37,000 to Canine Companions

NADA and Ally Donate $50,000 to Second Harvest Food Bank in New Orleans 
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 .