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Inside this issue
GM Sets No Cap on Recall Victim Compensation Fund
GM Recalls Another 8.4 Million Vehicles, Most for Ignition Switch Defect
Chryslerís U.S. Sales Beat Estimates as Big Month Seen
Auto Sales Close to Hitting the Brakes: Study
At Halfway Point, Used Sales Ahead of 2013 Pace
Average Car on the Road Still Getting Older, But for the Right Reasons
Google, Detroit Diverge on Road Map for Self-Driving Cars
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
GM Sets No Cap on Recall Victim Compensation Fund

General Motors Co.'s victim compensation fund — which could face hundreds or even thousands of claims from anyone harmed in a crash in which air bags failed to deploy 2.6 million now-recalled Chevrolet Cobalts, Saturn Ions and other cars — will face significant challenges before it starts accepting claims. The fund, announced Monday, faces significant questions from a member of Congress, lawyers and safety advocates over how difficult it will be to prove that crashes from a decade ago are linked to defective ignition switches. One thing is certain: GM likely won't get a final tally on victim compensation for a full year. The Detroit automaker will place no overall cap on the compensation fund and will pay “whatever it takes” to resolve all claims, fund administrator Kenneth Feinberg said Monday at a press conference in Washington. He declined to offer any estimate of the total amount that will be paid until claims are reviewed.
Source: The Detroit News

Editor's note: For more information on the GM recall, go to www.gmignitionupdate.com or www.safercar.gov.
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GM Recalls Another 8.4 Million Vehicles, Most for Ignition Switch Defect

General Motors is recalling yet another 8.4 million vehicles in North America, most for another problem with their ignitions, bringing the company's total recall tally to 28.9 million for the first-half of this year, more than its cumulative U.S. sales over the last decade.
Source: Detroit Free Press
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Chryslerís U.S. Sales Beat Estimates as Big Month Seen

Chrysler Group LLC's U.S. auto sales rose 9.2 percent in June as home-building spurred pickup and minivan sales. The company saw its 51st consecutive monthly increase and projected the industry would top estimates. Chrysler sold 171,086 cars and light trucks, aided by a Jeep brand sales gain of 28 percent, according to a statement from the Auburn Hills, Michigan-based company.
Source: Bloomberg

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Auto Sales Close to Hitting the Brakes: Study

America's auto industry, in the midst of a five-year run where sales have rebounded more than 55 percent, is close to seeing a slowdown according to a new study. The AlixPartners 2014 Automotive Study suggests sales of cars and trucks in the U.S. will hit a peak this year and then gradually pull back. "This is a cyclical industry and we think this current cycle has just about run its course," said Mark Wakefield of AlixPartners. "We're a little less optimistic than others about the demand for new vehicles staying this strong."
Source: CNBC
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At Halfway Point, Used Sales Ahead of 2013 Pace

Once June figures are tallied, it's likely that year-to-date used-vehicle sales through the midpoint of 2014 will once again have eclipsed 20 million units, according to CNW Research. In its latest Retail Automotive Summary, the firm was predicting monthly used-car sales to come in just under 4.5 million, which would push the six-month total to 20.33 million units. The mid-year mark would be a 0.9 percent increase from the pace of 2013, CNW indicated, although franchised and independent dealers were showing a bit of relative softness in June.
Source: Auto Remarketing
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Average Car on the Road Still Getting Older, But for the Right Reasons

The age of the average car on the road has finally hit a plateau. That's good news for the auto industry, because it implies people are finally starting to replace their cars and trucks instead of hanging onto them. For the last few years the age of the U.S. so-called “fleet” kept hitting new records, with the average car passing 10 years old, then 11 years old at an extraordinary pace even though new-vehicle sales had begun to recover. Accordingly, the age of the average vehicle on American roads hit 11.4 years earlier this year, according to an IHS Automotive study based on Polk Co. registration data. What's new is that analysts expect the average age to stay there through 2015, and then very gradually increase to an estimated 11.7 years in 2019. If the run-up to 11.4 years through the end of 2013 was out of necessity, analysts attribute the gradual increase for the next five years to the fact that today's cars are built with higher quality and last longer.
Source: Forbes
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Google, Detroit Diverge on Road Map for Self-Driving Cars

In 2012, a small team of Google engineers and business staffers met with several of the world's largest car makers, to discuss partnerships to build self-driving cars. In one meeting, both sides were enthusiastic about the futuristic technology, yet it soon became clear that they would not be working together. The Internet search company and the automaker disagreed on almost every point, from car capabilities and time needed to get it to market to extent of collaboration. It was as if the two were "talking a different language," recalls one person who was present.
Source: CNBC
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Quotable

"Our customers deserve more than we delivered in these vehicles. That has hardened my resolve to set a new industry standard for vehicle safety, quality and excellence."   

    -- GM CEO Mary Barra, commenting on the recall of 28.9 million GM vehicles this year, Detroit Free Press, June 30

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