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Inside this issue
Republicans Take Majority in Senate, Gain Seats in House
Toyota Expects Record Profit
G.M. Offers $25 Cards to Owners Who Get Ignition Switches Fixed
Pace of Auto Industry Mergers Hits Seven-Year High
Automakers Tweak NA Output
Marchionne Boosts Fiat Chrysler Stake 80% With Options
Hollins University Receives Grant from the NADA Foundation
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Republicans Take Majority in Senate, Gain Seats in House

Republicans gained a majority in the Senate in Tuesday's midterm elections. Before the election, Democrats held 55 Senate seats (including 2 Independents who caucus with Democrats) and Republicans held 45. Republicans won seven Senate seats from Democrats -- in Arkansas, Colorado, Iowa, Montana, North Carolina, South Dakota and West Virginia. Based on races that have already been called, Republicans in the next Congress will have 52 senators and Democrats will have 45. Two races, in Alaska and Virginia, are too close to call. There will be a runoff on Dec. 6 to determine the Louisiana senate seat. Republicans are expected to have at least 53 senate seats in the next Congress.
 
In the House, Republicans have expanded their majority. Going into the election, Republicans held 233 seats and Democrats had 199, with 3 vacancies. In races that have been called, Republicans currently hold 243 seats -- currently a 14-seat gain -- and Democrats 174. There are 18 races that remain undecided, including two House races in Louisiana that will be determined in the Dec. 6 runoff. Republicans won several races seen as significant upsets. Two new members of Congress have dealership experience; Mark Walker (R-N.C.), who worked in finance management for the Flow Automotive Group prior to becoming a pastor, and Don Beyer (D-Va.), owner of the Beyer Automotive Group.
Source: NADA Legislative Affairs
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Toyota Expects Record Profit

Japanese auto maker reports quarterly earnings growth of 23%

Toyota Motor Corp. said it expected record profits in the current fiscal year, buoyed by a weaker yen and a model lineup that is steaming ahead in the U.S. The world's biggest auto maker by vehicle sales turned in another blockbuster quarter powered by sales of its profitable sport-utility vehicles in the U.S. Toyota's July-September net profit rose 23% to ¥539 billion yen ($4.7 billion) from the same period a year ago, beating global rivals Volkswagen AG and General Motors Co. Toyota raised its profit outlook for the year ending March 2015, saying it expected to make an operating profit of ¥2.5 trillion and net profit of ¥2 trillion, both of which would be records. While Toyota slightly cut its prediction for full-year vehicle sales because of weaker performance in Asia, its sales in the U.S. have been solid and its North American profit margins are rising on the back of vehicles such as the RAV4 SUV and the bread-and-butter Camry sedan.
Source: The Wall Street Journal
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G.M. Offers $25 Cards to Owners Who Get Ignition Switches Fixed

With more than a million defective small cars still on the road, General Motors said on Tuesday that it was adding an incentive for owners to have them fixed: $25 gift cards to one of seven retailers, like Applebee’s and Bass Pro Shops. As of last week, 1.26 million, or 53 percent, of the cars had been repaired, leaving many drivers potentially at risk. The automaker has in part attributed the high number of unrepaired cars to inaction by owners, but dealerships have only recently had enough replacement parts in stock. G.M.’s supplier had to revive the production of the ignition switch — finishing only in September — and distribute repair kits around the country.G.M. is mailing letters to affected owners, encouraging them to act before Dec. 1 to qualify for the $25 reward.
Source: The New York Times

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Pace of Auto Industry Mergers Hits Seven-Year High

A total of 250 mergers and acquisitions valued at an estimated $27.5 billion were completed in the global automotive industry over the first six months of this year, a 14% increase

Mergers and acquisitions are back in full force in the global automotive industry and are reshaping the competitive landscape of both suppliers and manufacturers. A total of 250 mergers and acquisitions were completed in the global automotive industry over the first six months of this year, according to a study completed by PriceWaterhouseCoopers. That's a 13% increase compared with the 222 transactions completed during the first half of 2013.
Source: Detroit Free Press
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Automakers Tweak NA Output

2014 North American auto production remains steady at 17.3 million, despite Q4 tweaks trimming 20,500 units

With just two months to go, automakers in North America are still geared for a 17.3 million-unit finish for the year, despite some recent fiddling that trimmed 44% of the 46,600-unit increase put in place a month ago. That decline appears to result from some manufacturers pulling ahead units from October-December into late September, which ended 32,800 units, or 2.2%, ahead of earlier estimates, while adjusted August figures rose by 4,900 cars and trucks.
Source: WardsAuto
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Marchionne Boosts Fiat Chrysler Stake 80% With Options

Fiat Chrysler Automobiles Chief Executive Officer Sergio Marchionne increased his holding in the carmaker by almost 80 percent as he exercised his remaining stock options in the carmaker. Marchionne owns 12.1 million shares in FCA, valued at $134 million at [Tuesday's] closing price in New York, after exercising options on Nov. 3 for 10.7 million shares and selling part of them “for the sole purpose of funding the strike price and meeting the relevant tax liabilities,” Fiat said late [Tuesday] in a statement. He held 6.8 million shares before the transaction. The purchase makes Marchionne the fifth-largest shareholder in the auto manufacturer, according to data compiled by Bloomberg.
Source: Bloomberg
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Hollins University Receives Grant from the NADA Foundation


The NADA Foundation presents Hollins University with a $7,000 grant on Oct. 30, 2014. (Pictured left to right): Colin Royster from the Virginia Automobile Dealers Association; Robert P. Mallon, chairman of the NADA Foundation; Nancy Oliver Gray, president of Hollins University; Bruce Farrell, president of Berglund Chevrolet; and Naxhieli Acosta, director of the NADA Foundation.

The National Automobile Dealers Charitable Foundation presented Hollins University with a $7,000 donation to be used for the emergency needs of students. The contribution was provided through the NADA Foundation’s Joseph J. Sanchez Memorial Fund.

“Hollins is deeply honored to receive this generous gift. It will be a tremendous resource for our university as we help those who face emergencies that could impede their educational pursuits,” said Nancy Oliver Gray, president of Hollins University in Roanoke, Va. “We applaud the National Automobile Dealers Charitable Foundation for recognizing this vital need and establishing a fund that has a profound and lasting impact in the lives of college students throughout the nation.”

The fund was established to honor Sanchez, former vice president and general manager of General Motors’ Oldsmobile division and the first president of Saturn Corporation. Since its inception in 1985, grants worth $528,000 have been presented to private and independent colleges across the country.

“Joseph Sanchez strongly believed in the importance of higher education,” said Robert P. Mallon, chairman of the NADA Foundation. “It is our pleasure to honor his memory and support Hollins University’s contributions to its students.” 

The donation was presented by Mallon; Bruce M. Farrell, president, Berglund Chevrolet in Roanoke, Va.; and the Virginia Automobile Dealers Association on Oct. 30.
Source: NADA Public Affairs
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Quotable
"Dealership service centers across the country have been adding staff, expanding service hours and remaining open on holidays to get the work done."

   
-- Bill Fox, NADA vice chairman and a General Motors dealer in upstate New York, said dealers were taking extra measures to accommodate owners concerning the ignition switch recall fix, The New York Times, Nov. 4

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