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June 23, 2014 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
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Inside this issue
NADA Vice Chairman Discusses Recalls on National Public Radio
GM Dealers Grapple with Recall Avalanche
Honda, Nissan and Mazda Join Recall Over Faulty Air Bags
N.J. Assembly OKs Bill to Allow Direct EV Sales
What Are the Top Five Disaster Risks to Small Businesses?
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Top Stories
NADA Vice Chairman Discusses Recalls on National Public Radio

The auto industry is cruising toward a record number of safety recalls: GM has recalled 20 million vehicles in the first six months of this year, and most carmakers have lowered the bar for the kind of problems that'll have them sending you back to your local dealers. But while that sounds like bad news, it turns out that recalls can have an upside — at least for car dealers. Michelle Krebs, a senior analyst at, explains that dealerships can actually make money when carmakers discover defects. The reason? Customers have to take their cars into a dealership to get the problems fixed.

But General Motors' recent recalls have been hampered by the slow pace of the repairs, according to dealer Bill Fox. Fox sells several car brands in upstate New York with his sister, including Chevy. He's also vice chairman of the National Automobile Dealers Association. He says the problem with the GM recall is that less than 10 percent of the cars have been fixed. There's a backlog because of a shortage of parts; GM is offering incentives to dealers and their workers to help speed up the process and get the job done. Fox says dealers may benefit when there's a recall — but no one profits if customers have to wait too long. And that's GM's real test for the summer.
Source: NPR

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GM Dealers Grapple with Recall Avalanche

As General Motors continues to pile on recalls, the scope has become staggering — and the work and customer interaction will all fall to the automaker's franchised dealers. They're the ones who will perform the actual repairs on what is already 17.73 million vehicles in the U.S. — with the likelihood, GM says, of still more recalls by midsummer. Given the burden, no wonder General Motors CEO Mary Barra singled out for praise GM's hundreds of dealers on the front line of carrying out recall repairs. So far, the dealers aren't complaining. The pace of available parts to fix recalled vehicles has been a stream, not a river, so they aren't overwhelmed. Customers, for the most part, haven't hounded them for repairs. And the payments from GM for performing the repairs will certainly be a nice supplement to service department revenues.
Source: USA Today

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Honda, Nissan and Mazda Join Recall Over Faulty Air Bags

Worldwide recalls linked to defective air bags made by the Japanese supplier Takata, which regulators say could rupture and injure passengers with flying shrapnel, widened Monday as the Japanese automakers Honda, Nissan and Mazda recalled a total of almost three million cars for crucial fixes. Japanese and American regulators are investigating reports that defective Takata air bag inflaters — used by at least seven global automakers — could cause the air bags to rupture. On June 11, Toyota said that it would recall 2.3 million vehicles worldwide.
Source: The New York Times

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N.J. Assembly OKs Bill to Allow Direct EV Sales

The New Jersey General Assembly approved a bill last week to allow consumers to buy electric cars directly from a manufacturer. The bill now heads to the state Senate. The approval on Monday, June 16, followed the March 11 vote of the eight-member state Motor Vehicle Commission to block Tesla Motors, which sells only EVs, from direct sales. The commission consists of members of Republican Gov. Chris Christie's cabinet and other gubernatorial appointees. The Christie administration "does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation and Tesla has been aware of this position since the beginning," the statement said.

Also on June 16, New York Gov. Andrew Cuomo signed previously approved legislation that would allow Tesla to continue selling vehicles at its five company-owned stores in the state. But the bill requires that any transfer of those locations must be to a franchised dealer and bans any other manufacturer from having factory-owned stores except in limited circumstances. Auto dealers in the state applauded the signing of the legislation.
Source: Bloomberg/Automotive News

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What Are the Top Five Disaster Risks to Small Businesses?

Preparedness Tips to be Shared at Free Webinar Hosted by SBA and Agility Recovery

One of the major challenges small business owners face after disasters are sales losses and a diminished customer base. In a survey of 7,500 small and medium sized businesses done by the National Federation of Independent Businesses (NFIB), 62% said losing profits and clients was their biggest post-disaster challenge. Whether it’s a fire, flood or tornado, small businesses face an uphill trek when it comes to rebuilding in the aftermath of a disaster. That’s why it’s important to have a recovery plan in place. Assessing your company’s risks is one of the first steps in creating an effective business continuity plan. Join Agility Recovery and the U.S. Small Business Administration on Tuesday, July 8, for an online discussion on how to protect your business before a disaster strikes.     
SBA has partnered with Agility to offer business continuity strategies at its “PrepareMyBusiness” website. Visit to download disaster planning tip sheets and to view archived webinars. The SBA provides disaster recovery assistance in the form of low-interest loans to homeowners, renters, private nonprofits and businesses of all sizes. To learn more, visit
The webinar, “The Top 5 Risks to Business in America,” is scheduled for Tuesday, July 8, from 2 p.m. - 3 p.m. EDT. Space is limited. Click here to register.
Source: SBA

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More Articles

"Every time there is a media burst, the phones really light up in the store."

    -- Mike Maroone, president of AutoNation, the national dealership chain that has 36 locations selling GM vehicles, 27 of which are Chevrolet dealers, commenting on the recall situation, USA Today, June 23

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