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Inside this issue
Commentary: Price Competition Among Dealers Benefits Car Buyers
FTC Updates its Guidance on 'Endorsements and Testimonials'
GM, Subaru Identify Vehicles in Takata Recall
Judge Puts GM Ignition Switch Lawsuits on Ice
Deadline to Participate in Dealership Workforce Study Extended to June 30
Lamborghini's SUV Will Join Growing Field
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Commentary: Price Competition Among Dealers Benefits Car Buyers
By Bill Fox

What’s in 2.2 percent? As a percentage of total sales, it’s a number that represents the average pretax, net profit at U.S. franchised new-car dealerships, according to NADA Data 2014. And what may be a startling fact is that the 2.2 percent profit, which accounts for sales in the new- and used-vehicle, service and parts departments, is more than a one-percentage point less than what many other retailers earn. This figure has remained the same for the third straight year. And this dynamic is attributed to fierce competition at dealerships that benefits car buyers. In fact, a recent study from the Washington, D.C.-based Phoenix Center proves that price competition among auto dealers lowers car prices for consumers, often by $500 or more per car. Click here for the full commentary.
Source: NADA

Editor's note: Fox is 2015 NADA chairman and a multi-franchise dealer in upstate New York.

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FTC Updates its Guidance on 'Endorsements and Testimonials'

The FTC’s “Guides to Use of Endorsements and Testimonials in Advertising” (Endorsement Guides) have been around for a number of years. The Endorsement Guides generally require that endorsements be truthful and not misleading, as well as disclosure of any connection between an endorser and marketer (including in consumer reviews or social media endorsements). The FTC has issued updated staff guidance, including a series of updated FAQs, which address issues such as disclosure on social media platforms such as Twitter. This updated guidance could affect dealer marketing efforts. Dealers are encouraged to review this updated guidance with their counsel.
Source: NADA Regulatory Affairs

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GM, Subaru Identify Vehicles in Takata Recall

General Motors Co. and Subaru of America Inc. announced new vehicle recalls as part of the ongoing Takata Corp. air bag inflator recall that greatly expanded earlier this month. GM said Friday it is recalling 374,715 2007-08 Chevrolet Silverado and GMC Sierra heavy-duty pickups in the U.S., Canada and other countries to replace front passenger air bag inflators produced by Takata. Subaru said it is adding about 60,000 vehicles with faulty air bags. They include 2004-05 Subaru Impreza sedans and wagons, and 2005 Saab 9-2x wagons. A Subaru spokesman said the automaker knows of no accidents or injuries. On Thursday, Fiat Chrysler Automobiles, Ford Motor Co. and Honda Motor Co. reported vehicles that were part of the expanded recall.
Source: The Detroit News

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Judge Puts GM Ignition Switch Lawsuits on Ice

A federal bankruptcy judge, who last month ruled General Motors is protected from "lost value" lawsuits involving cars sold before its July 2009 exit from bankruptcy has put those same claims on hold while another federal court rules on an appeal. GM had asked the court to dismiss the cases, which seek monetary damages for the lost value of used cars because of various recalls. Most of those cars were built before the bankruptcy. At issue is a provision that protects "New GM," post-bankruptcy, from lawsuits involving products built before the bankruptcy. U.S. Bankruptcy Judge Robert Gerber ruled April 15 that GM could use that protection to void "lost value" lawsuits. But wrongful death and personal injury claims involving any GM vehicle, regardless of when they were produced, can proceed either in court or through the GM Ignition Compensation Fund.
Source: Detroit Free Press

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Deadline to Participate in Dealership Workforce Study Extended to June 30

In response to numerous requests, NADA is extending the participation deadline for the 2015 Dealership Workforce Study to June 30, 2015. Dealers are encouraged to make sure their stores or groups are represented in the only comprehensive and authoritative study of the retail automotive and truck workforce. All participants will receive comparative statistics for their own dealerships. Go to www.nadaworkforcestudy.com now to enroll, complete the survey and upload payroll data. If you have any questions, e-mail WorkforceStudy@nada.org or call 800.557.6232.
Source: NADA Dealership Operations

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Lamborghini's SUV Will Join Growing Field


The Lamborghini Urus concept SUV was introduced at the 2012 Beijing Motor Show. (Photo credit: Automobili Lamborghini S.p.A.)

Suddenly, the super-rich don't want to be seen in luxury cars anymore. They want their SUVs. That would seem to be the message from the formal entry this week of sports-car maker Lamborghini, which announced it will join Maserati, Bentley and Rolls-Royce in fielding SUVs at stratospheric prices. All will attempt to meld their famously swoopy lines and purring performance with the practicality of an SUV.
Source: USA Today

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Quotable
"Employment at new-car dealerships is also at a near all-time high. Last year, more than 1 million people worked at dealerships across the country, which was higher than any other auto-related industry."

   
-- NADA Chairman Bill Fox, said in an NADA commentary, May 27

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