View Mobile Version | View Web Version

SPONSORED BY

NADA.org
March 3, 2014 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training

-- NADA's offices are closed today due to the weather. --
Inside this issue
Dealership Profits Keep Soaring
GM, Ford Sales Drop as Chrysler Overcomes Cold February to Post Gain
NADA Used Car Guide Names Top Retention Values for Cars
Free Trade, Lower Wages Drive Mexico's Automaking Boom
Some Old Problems Haunt New GM
Automakers Pack Premium Features in Small Packages to be Unveiled at Geneva Auto Show
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Dealership Profits Keep Soaring

The auto retail business is red hot and getting hotter as dealership profits continue to rise. It's no wonder everyone wants in. In 2013, the average U.S. dealership produced return on equity of 29 percent, according to the National Automobile Dealers Association. That figure has risen in four of the past five years and is now more than double the 12 percent return recorded in 2008 when U.S. vehicle sales collapsed. Dealerships also are enjoying record profits, according to the newly released NADA statistics. The average store made $923,248 in net pretax profit in 2013, the highest noninflation-adjusted amount since NADA started tracking the data in 1970. That's the third straight record year. The net pretax margin was 2.2 percent in 2013 and 2012. That's barely down from 2.3 percent in 2011, which was the highest that NADA had seen since at least 1978. "You have a much smaller number of dealers, post-global financial crisis," said Steven Szakaly, NADA's chief economist. "Now these dealers are selling more vehicles per dealership, which is helping your return on equity."
Source: Automotive News

Share: LinkedIn Twitter Facebook

[back to top]

GM, Ford Sales Drop as Chrysler Overcomes Cold February to Post Gain

General Motors’ February sales slid 1% from a year earlier in February and Ford’s dropped 6%, but Chrysler’s rose 11% during a month when cold weather likely kept sales below expectations. Nissan reported a 16% gain, but Toyota’s sales fell 4%. Sales for Chevrolet declined 3% in February, Cadillac’s also fell 3% and GMC’s slid 0.6%. Buick sales rose 18.8%.
Source: Detroit Free Press
Share: LinkedIn Twitter Facebook

[back to top]

NADA Used Car Guide Names Top Retention Values for Cars

New report highlights value retention performance of 2011 model year mainstream, luxury, hybrid and EV cars

Three-year-old cars in the subcompact segment have the highest retaining value at 54.4% of the Manufacturer Suggested Retail Price (MSRP) for a typically equipped model, says the NADA Used Car Guide in the February edition of NADA Perspective, a monthly industry trends report. The electric vehicle (EV) segment ranked the lowest at 39.9%. The top three performers in the subcompact segment are the Honda Fit, retaining an average value of 62.7%, followed closely by the Scion xB and Kia Soul, which averaged 60.6% and 60.1%, respectively.
Source: NADAFrontPage.com


Share: LinkedIn Twitter Facebook

[back to top]

Free Trade, Lower Wages Drive Mexico's Automaking Boom

Mexico is winning thousands of new auto jobs by offering a compelling combination of lower labor costs, a mature supply base and access to transportation that makes it easy to export vehicles to the U.S., South America and Europe. Twenty years after U.S. President Bill Clinton signed the North American Free Trade Agreement, Honda and Mazda opened two assembly plants in Mexico in less than a week. The factories, in the central Mexican cities of Celaya and Salamanca, represent an investment of more than $2 billion. Between 2013 and 2015, Honda, Mazda, Nissan, Chrysler and Volkswagen automakers will invest $6.8 billion in Mexico, according to Free Press research.
Source: Detroit Free Press

Share: LinkedIn Twitter Facebook

[back to top]

Some Old Problems Haunt New GM

General Motors is back — back in crisis mode. Two months ago the company was celebrating the end of government ownership, plaudits for product quality and the passing of the torch to a new generation of leaders who spoke in rousing terms of a "new GM." Even so, the executives were frank about GM's challenges: breaking old bad habits, closing the gap with competitors and overcoming image problems. And last week GM found itself having to confront those challenges head-on.
Source: Automotive News

Share: LinkedIn Twitter Facebook

[back to top]

Automakers Pack Premium Features in Small Packages to be Unveiled at Geneva Auto Show

European automakers are putting their longest ever market slump in the rear view mirror, shifting from survival to revival as they head into the Geneva Auto Show with dozens of car premiers, particularly for small models packed with premium features. One Geneva Auto Show buzzword is small. Mass carmakers are adding premium design features to their city cars as they fight back against premium carmakers' moving in on their small car territory. Small SUVs continue to be a trend. The Geneva show opens its doors to journalists on Tuesday, and to the public on Thursday. It runs through March 16.
Source: Associated Press

Share: LinkedIn Twitter Facebook

[back to top]

More Articles
 
Quotable
"It's a masterpiece of economic development."

    -- Sean McAlinden, senior economist for the Center for Automotive Research, referring to new auto jobs being created in Mexico, Detroit Free Press, March 2

 

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 .