View Mobile Version | View Web Version

SPONSORED BY
NADA.org
June 18, 2014 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training
Inside this issue
New NADA Study: The Dealer Franchise System Works Best for Manufacturers
The Detroit News: Auto Dealers Defend State Franchise Laws Amid Tesla Push
Study: Detroit's Big 3 Lead Industry in Hiring, Output, Economic Impact
Barra to Tell Congress She 'Will Not Rest' Until GM Fixes Problems
NADA University Webinar: Simple Strategies to Retain Gen Y Employees
Checks Coming for Owners of Ford Vehicles with Wrong M.P.G. Labels
Millennials Looking For Rides Under $20K
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
New NADA Study: The Dealer Franchise System Works Best for Manufacturers

Dealers bear the cost and risks of investments—at virtually no cost to the manufacturers—and provide a vast distribution channel that benefits consumers

A new study released today by NADA highlights why the dealer franchise system is the most efficient and effective way for auto manufacturers to distribute and sell automobiles nationwide. “Franchised dealers invest millions of dollars of private capital in their retail outlets to provide top sales and service experiences, allowing auto manufacturers to concentrate their capital in their core areas of designing, building and marketing vehicles,” the study says.

Key findings from the NADA study, Auto Retailing: Why the Franchise System Works Best,” include:

  • The average dealership today requires an investment of $11.3 million, including physical facilities, land, inventory and working capital.
  • Nationwide, dealers have invested nearly $200 billion in dealership facilities.
  • Annual operating costs totaled $81.5 billion in 2013, an average of $4.6 million per dealership. These costs include personnel, utilities, advertising and regulatory compliance.
  • The vast majority—95.6 percent—of the 17,663 individual franchised retail automotive outlets are locally and privately owned. They generate billions in state and local taxes annually and provide significant employment opportunities that help build goodwill in the community.
  • Manufacturers benefit from the high return on capital invested in manufacturing vehicles, as opposed to the low margin of retailing them.
  • Dealers bear the cost and risks of these investments—at virtually no cost to the manufacturers—and provide a vast distribution channel that benefits the consumer.

The study is part of a major new “Get The Facts” initiative from NADA to promote the benefits of America’s franchised new-car dealership network. The initiative includes animated videos, a Web site and variety of multimedia resources available at www.nada.org/GetTheFacts.
Source: NADA Public Affairs

[back to top]

The Detroit News: Auto Dealers Defend State Franchise Laws Amid Tesla Push

The nation's 17,000 new-car dealers are fighting back in the face of pressure from Tesla Motors Inc., which is working to convince state legislatures to let it sell cars directly to consumers. The National Automobile Dealers Association commissioned a report released Tuesday. It argues that dealers provide significant benefits to consumers and carmakers. It launched a website at www.nada.org/GetTheFacts to make its case. Dealers employ about 1 million people nationwide. Dealers repeatedly turned back attempts by automakers over past decades to upend state laws that bar them from directly sales. But they face their greatest challenge to their legal protections from the California-based electric car company. “The franchised dealer network benefits consumers and manufacturers alike by providing fierce price competition among dealers and an extremely efficient distribution network that is acutely sensitive to local markets,” said auto analyst Maryann Keller, in the 34-page report.
Source: The Detroit News

Related Story:


Share: LinkedIn Twitter Facebook

[back to top]

Study: Detroit's Big 3 Lead Industry in Hiring, Output, Economic Impact

Detroit's Big Three automakers continue to lead the pace of the U.S. automotive industry in hiring, production and economic impact, according to a new study. A report titled State of the U.S. Automotive Industry — released Tuesday by the American Automotive Policy Council — found that General Motors Co., Ford Motor Co. and Chrysler Group LLC employ two out of three U.S. auto workers and produce nearly one and a half times more vehicles in the U.S. than their competitors. As a whole, the auto industry generates hundreds of thousands of jobs and is America's largest manufacturing sector, responsible for 3 percent of the country's gross domestic product.
Source: The Detroit News
Share: LinkedIn Twitter Facebook

[back to top]

Barra to Tell Congress She 'Will Not Rest' Until GM Fixes Problems

General Motors CEO Mary Barra plans to tell members of Congress on Wednesday that the automaker has already taken numerous steps to address safety defects more quickly and that she “will not rest” until GM has fixed the “deep underlying cultural problems” that allowed a deadly flaw in the Chevrolet Cobalt to fester for more than a decade, according to prepared testimony. Barra's return to Capitol Hill, 11 weeks after telling House and Senate panels investigating GM that she could not yet answer many of their questions about the Cobalt recall, follows the release of an internal report that uncovered what she called “a pattern of incompetence and neglect.”
Source: Automotive News

Editor's note: For more information on the GM recall, go to www.gmignitionupdate.com or www.safercar.gov.

Related Stories:


Share: LinkedIn Twitter Facebook

[back to top]

NADA University Webinar: Simple Strategies to Retain Gen Y Employees

Today's "Simple Strategies to Retain Gen Y Employees" webinar will highlight how to increase engagement to reduce expensive Gen Y employee turnover in dealerships. Attendees will hear a success story from Craig Martinez, general sales manager of the world's top Lexus dealership since 1992 and management consultant Nicole Lipkin will share “sticky factors” that can help you hold onto your youngest employees. The webinar will be held today, June 18, at 1 p.m. ET. Click here to register.
Source: NADA University Online
Share: LinkedIn Twitter Facebook

[back to top]

Checks Coming for Owners of Ford Vehicles with Wrong M.P.G. Labels

Ford will start mailing checks at the end of June to 215,000 owners of Ford and Lincoln vehicles that were sold with inaccurate fuel economy ratings. Customers do not need to contact the automaker. The payment is automatic, said Ford spokesman Said Deep. Last week, Ford said it had applied test data incorrectly, which resulted in inflated fuel economy claims for six models, mostly hybrids. Affected are most trim levels of the 2014 Ford Fiesta as well as hybrid versions of the 2013-14 Ford Fusion, C-Max and Lincoln MKZ and the C-Max Energi plug-in hybrid.
Source: Detroit Free Press
Share: LinkedIn Twitter Facebook

[back to top]

Millennials Looking For Rides Under $20K

Most recent college graduates these days have less room for spending than in years past due to rising higher education costs and significant student loans. And Millennials are playing it thrifty these days when it comes to vehicle purchases, says a recent Cars.com blog post found on its DealerADvantage site. According to the blog post, the majority of Millennial car shoppers browsing vehicles on Cars.com want to purchase a vehicle under $20,000. “As recent graduates begin their careers and consider purchasing a new car, the majority will focus on affordability first and foremost,” said Jesse Toprak, chief analyst for Cars.com.
Source: Auto Remarketing
Share: LinkedIn Twitter Facebook

[back to top]

More Articles
 
Quotable

"Franchised dealers invest millions of dollars of private capital in their retail outlets to provide top sales and service experiences, allowing auto manufacturers to concentrate their capital in their core areas of designing, building and marketing vehicles."

    --
NADA reports in a new study, "Auto Retailing: Why the Franchise System Works Best,” June 18

 Sponsored by

NADA Market Beat
May SAAR Hits 16.7 Million, Highest Since February 2007
Chairman's Message
Commentary: Employment at New-Car Dealerships Rising
Videos

Get the Facts: The Benefits of Franchised Auto Dealers


Fox News: NADA Study Says Federal Regs on Dealers Cost the Economy More Than $10 Billion


NADA Chief Economist Discusses NADA Data 2014 on 'Market Beat'


Ford's Joe Hinrichs Sits Down with NADA-TV at the Automotive Forum in New York

Sponsored by

NADA University Webinars
All webinars begin at 1 p.m. ET unless noted otherwise. 

-- June 18: Simple Strategies to Retain Gen Y Employees

-- June 25: Body Shop for Trucks

NADA Foundation News
Robert Ross Named an Ambassador of the NADA Charitable Foundation

Lotspeich Family Named Ambassadors of Distinction

NADA Foundation Seeks to Increase Charitable Giving through Ambassadors Program
 
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 .