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Inside this issue
U.S. June Auto Sales Keep Climbing
New Obamacare Tax on Self-insured Health Plans due July 31, 2014
Reminder: NADA Guidance on Safety Recall 'Stop Sales' Orders and Reimbursement
GM Owners Buy New Models While Recalled Autos Go to Shop
Foxx: U.S. Will Keep Up Pressure on GM to Do Right Thing
Less Negotiating, More Explaining: The New World of Auto Sales
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
U.S. June Auto Sales Keep Climbing

Low interest rates and a brighter economic outlook drove U.S. new-vehicle sales higher for most major auto makers in June, allaying worries of a market slowdown and setting the industry up for a strong second half. Industry-wide auto sales rose 1.2% to 1.4 million in June, pushing the annualized selling rate to 16.98 million, its highest pace since July 2006, according to market research firm, Autodata Corp. For the first half of the year, auto makers sold a total of 8.2 million vehicles in the U.S., up 4.3% over the same year-ago period.
Source: The Wall Street Journal

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New Obamacare Tax on Self-insured Health Plans due July 31, 2014

Dealers that sponsor a self-insured health plan with a plan year ending during 2013 have until July 31, 2014, to submit an updated form and payment for a new tax requirement under the Affordable Care Act (ACA), also known as Obamacare. This new tax is intended to fund the Patient-Centered Outcomes Research Institute (PCORI), a new initiative under the ACA with a stated goal of improving health decisions by advancing comparative clinical effectiveness research. Dealers should consult with their tax and health care professionals to learn more. Click here for details. 
Source: NADA Legal and Regulatory Affairs

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Reminder: NADA Guidance on Safety Recall 'Stop Sales' Orders and Reimbursement

Prompted by a surge of safety recalls involving new General Motors’ vehicles and parts, NADA has received numerous inquiries from dealers concerning reimbursement for expenses over and above the reasonable cost of fixing the vehicles in question. Extensive discussions with GM resulted in the company issuing a Global Connect communication on the subject last May. Here’s the bottom line: GM has a warranty transaction process for floor plan reimbursement for new motor vehicles subject to “stop sales” orders where parts are unavailable. Details are found in each recall bulletin. Note: federal law does not mandate “floor plan” reimbursement for used vehicles. For more information on recalls, “stop sales,” and how federal law addresses floor plan reimbursement for new-vehicle recalls, click here. (Username and password are required.) If you have any questions, please contact NADA Regulatory Affairs at (703) 821-7040 or regulatoryaffairs@nada.org.
Source: NADA

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GM Owners Buy New Models While Recalled Autos Go to Shop

As owners of recalled General Motors Co. cars roll into Duane Paddock’s Chevrolet dealership for repairs, the unexpected happens. While their old cars are in the shop, they kick tires on new models in the showroom. Some even buy one. “You bring in a 2007 Saturn with 140,000 miles on it, we’re certainly prepared and ready to do the recall,” said Paddock, whose store near Buffalo, New York, is deriving as much as 12 percent of its business from recall customers. “The next thing you know, the consumer is in the showroom, saying, ‘Boy, oh boy, that Cruze looks sharp.’”
Source: Bloomberg

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Foxx: U.S. Will Keep Up Pressure on GM to Do Right Thing

U.S. Transportation Secretary Anthony Foxx defended the government’s handling of auto safety issues as General Motors Co. continues to issue more recalls, and said it will continue to push the Detroit automaker to take action. Foxx noted that as part of GM’s record-setting $35 million fine for delaying its recall of 2.6 million Chevrolet Cobalts, Saturn Ions and other cars, the automaker has agreed to up to three years of monitoring and monthly meetings with auto safety officials about all possible safety issues.
Source: The Detroit News

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Less Negotiating, More Explaining: The New World of Auto Sales

When Tom Schweiss first began selling cars 11 years ago, it wasn’t unusual for him to spend eight hours walking the showroom with a single customer. He would lead them around the sales floor and show them three, maybe four vehicles. He’d patiently answer questions about basic amenities, such as whether they could get a leather interior or whether the sunroof and power windows came standard. Fast forward to 2014, and Schweiss is facing a very different kind of shopper at Audi Silver Spring.
Source: The Washington Post

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More Articles
 
Quotable

"The market is really going to set a price that's fair to dealers and customers."

   
-- Kevin Reilly, owner of Alexandria Hyundai, commenting on pricing transparency as a result of the Internet, which has had a positive outcome of driving up customer satisfaction rates, The Washington Post, June 29

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