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Inside this issue
NADA Releases New Video on the Benefits of Price Competition in Auto Retailing
U.S. Demands Faster Action on Air Bag Recalls
World Vehicle Sales Up 2.7% in September
Volkswagen Q3 Profits Jump 56 Percent
Ally Reports $423 Million Profit in Third Quarter
Fiat Chrysler to Spin Off Ferrari into Separate Company
Ford's Fields Lunch Auction Draws Top Bid of $50,000 -- So Far
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
NADA Releases New Video on the Benefits of Price Competition in Auto Retailing

Fierce competition among America's franchised auto dealers benefits car buyers by driving down retail costs on both vehicle prices and financing rates, says the National Automobile Dealers Association in a new animated video released today as part of its “Get The Facts” initiative.

Car buyers benefit when multiple dealers compete for their business, and because dealers have relationships with multiple lenders they often provide car buyers with better financing rates than they can get on their own, NADA says.

The video also addresses several misconceptions about automotive retailing.

“Dealers see a net profit on new cars of less than 1 percent. Compare that to other goods, like furniture, which sees margins of 40 percent or more between the factory and store,” NADA says. “Dealers' profits are so low because competition forces them to drive prices down—competition that wouldn't exist if factories owned their own stores.”

NADA's “Get The Facts” initiative is designed to inform policymakers, opinion leaders and the media about the numerous benefits of the dealer franchise network through a variety of multimedia resources and videos available at www.nada.org/GetTheFacts.
Source: NADA Public Affairs
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U.S. Demands Faster Action on Air Bag Recalls

The top U.S. auto safety regulator wrote to 10 major automakers and the Japanese air bag supplier Wednesday, urging faster action on recalls of 7.8 million vehicles for potentially defective air bags linked to at least four deaths. David Friedman, deputy administrator of the National Highway Traffic Safety Administration, sent letters to air bag supplier Takata Corp., along with General Motors Co., Ford Motor Co., Chrysler Group LLC, Toyota Motor Corp., Honda Motor Co., Nissan Motor Co., Mazda Motor Corp, Subaru, Mitsubishi and BMW. It urged them to move faster to fix faulty air bags.
Source: The Detroit News

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World Vehicle Sales Up 2.7% in September

Global vehicle sales totaled 7.4 million units in September, a 2.7% increase over like-2013 and the largest monthly volume since March's 8.5 million-unit finish. Solid gains were witnessed by nearly every region in the month, with North America posting the largest year-over-year growth. Sales in the region surged 10.2% to 1.5 million units, with all countries recording strong gains over year-ago. Deliveries in the U.S. climbed 9.7% in September, while Canada and Mexico posted increases of 12.7% and 13.0%, respectively.
Source: WardsAuto
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Volkswagen Q3 Profits Jump 56 Percent

Automaker Volkswagen AG says that net profit jumped 56 percent in the third quarter as the company sees continuing sales growth in China and Europe. The company reaffirmed its profit targets for the year but said Thursday global auto markets would remain dominated by political and economic uncertainty. Net profit rose to 2.97 billion euros ($3.8 billion) from 1.91 billion euros in the same quarter a year ago. Sales revenue rose 4.1 percent to 48.9 billion euros ($62.4 billion).
Source: Associated Press
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Ally Reports $423 Million Profit in Third Quarter

Detroit-based auto lender Ally Financial Inc. said Wednesday it had net income of $423 million in the third quarter on the continuing strength of the auto sales market. Ally said its income was more than four times the $91 million it reported in the same period in 2013 and comes as the U.S. Treasury is working to completely exit its ownership stake. Adjusted earnings per share] for the quarter were $0.53, compared to $0.42 for the previous quarter and $0.05 for the comparable quarter in 2013.
Source: The Detroit News
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Fiat Chrysler to Spin Off Ferrari into Separate Company

Ferrari, the storied exotic luxury car brand, will soon be spun off as a stand alone company so that investors can more clearly put a value on the company with the prancing stallion logo. Ferrari has been part of Fiat since 1969, when it first acquired a 50% stake in Ferrari.
Source: Detroit Free Press
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Ford's Fields Lunch Auction Draws Top Bid of $50,000 -- So Far

The price to have lunch with Mark Fields? At least $50,000. Ford Motor Co.'s CEO will have an exclusive lunch, valued at $50,000, with the highest bidder, to benefit Detroit charity Focus: HOPE. The winner and his or her guest will dine with Fields in Ford's penthouse at the automaker's headquarters in Dearborn, Mich. The online auction featured on Charitybuzz, which raises money for nonprofits with celebrities and brands, opened Oct. 15 and closes at 3 p.m. EDT on Thursday.
Source: Automotive News
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Quotable
"Dealers see a net profit on new cars of less than 1 percent. Compare that to other goods, like furniture, which sees margins of 40 percent or more between the factory and store."

   
-- NADA said in a new animated video on the benefits of price competition in auto retailing, NADA.org, Oct. 30

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