View Web Version

SPONSORED BY
 
NADA.org
August 11, 2015 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training

Inside this issue
How Fiat Chrysler 'Got Smart on Pricing'
Who Will Pay Rising Development Costs?
Automakers Feel China Heat as Buyers Desert Showrooms
Hyundai Hires Subaru Veteran Evans to Fill Top U.S. Marketing Post
Ohio's Future Dealers Learn to Lobby, Network
Top Stories
How Fiat Chrysler 'Got Smart on Pricing'

When Fiat Chrysler Automobiles reported second quarter earnings CEO Sergio Marchionne said the company more than doubled operating profit in North America because "we got smart on pricing." For years, FCA's crosstown rivals have had profit margins in North America that were two or three times higher. But as Marchionne well knows, profit margins are about more than just bragging rights. For an automaker, lower profit margins can cool off Wall Street investors and lead to lower stock prices and also smaller profit sharing checks for hourly workers. But analysts this year say brisk sales of specific models, including the Ram 1500 Laramie Limited and its Dodge Challenger and Charger Hellcats, along with a steady increase in Jeep sales have boost average transaction prices for FCA. The automaker also has cut back on less-profitable fleet sales, kept incentives under control and cut dealer discounts.
Source: USA Today
Share: LinkedIn Twitter Facebook

[back to top]

Who Will Pay Rising Development Costs?

Regulators and consumers keep demanding that automakers pack more features and equipment into vehicles. But all of that comes at a cost -- which somebody ultimately has to pay. It's a conundrum that's bound to keep squeezing automakers' product-development budgets tighter in the coming years, as technology races on and fuel economy standards grow stricter. From 2010 to 2014, mainstream automakers' capital expenditures and spending on r&d jumped 63 percent, or more than 12 percent annually, according to Fiat Chrysler CEO Sergio Marchionne. At that rate, such spending would be double last year's levels by the end of the decade. It would be difficult if not impossible for most automakers to absorb those increases without major price hikes. Some companies are altering their product plans for the coming years to avoid making vehicles too expensive to be competitive.
Source: Automotive News
Share: LinkedIn Twitter Facebook

[back to top]

Automakers Feel China Heat as Buyers Desert Showrooms

The great Chinese stock slump that first whacked luxury car sales is spreading to mass-market brands as wannabe customers like Zhang Jiabin count the cost of soured investments. The 37-year-old food company executive lost nearly $6,500 when shares tumbled in June and July, and can't now afford the new Volkswagen Tiguan sport-utility vehicle he had his eye on. Auto sales in China fell 7.1 percent in July from a year earlier as many more who lost out in a trillion-dollar share slump joined Zhang in delaying purchases. The monthly drop, the biggest in two and a half years, was the fourth in a row and marked China's longest streak of sales declines since at least the 2008 global financial crisis. Sales for January to July grew only 0.4 percent, the slowest first seven months of the year since at least 2009, and global brands from Ford Motor Co to Nissan Motor Co are bracing for a sustained period of dwindling demand and depressed prices. That will squeeze profit, create an inventory burden for dealers and ramp up already-fierce competition.
Source: CNBC

Related Story:


Share: LinkedIn Twitter Facebook

[back to top]

Hyundai Hires Subaru Veteran Evans to Fill Top U.S. Marketing Post

Dean Evans, who managed the feel-good advertising at Subaru from 2011 to 2014 and pushed the automaker to concentrate more strongly on digital marketing, has been hired by Hyundai as its U.S. marketing chief. Hyundai announced the hiring [Monday], ending a nine-month run without a marketing leader. The move comes six weeks after Hyundai wrote a big check to replace General Motors as automotive sponsor of the National Football League. It’s now up to Evans to help hone Hyundai’s message for that big stage. Dave Zuchowski, CEO of Hyundai Motor America, said the company picked Evans for his broad experience and inspirational leadership.
Source: Automotive News

Related Story:


Share: LinkedIn Twitter Facebook

[back to top]

Ohio's Future Dealers Learn to Lobby, Network

OADA educates next-gen auto retailers

As a kid, Jessica Germain remembers her car-dealer father, Steve Germain, regularly traveling to Washington, D.C., for business. "I was curious and thought it was so cool that he was heading to Washington to talk business and fight for certain rights," said Germain, director of customer experience and associate engagement for Germain Motor Co. in Columbus, Ohio. Germain, 33, now says she gets "almost" more face time with federal lawmakers than her dad does, thanks to a program the Ohio Automobile Dealers Association launch-ed in 2013. She also spends considerable time with state legislators carrying on her father's crusade for pro-dealership laws on the local level. The OADA Next Gen Dealer Program was created to help educate budding dealers such as Germain about legislative issues and processes. It helps them build relationships with lawmakers as well as with their dealership peers throughout the state. In the process, OADA is grooming its future members and lobbyists by teaching them how to talk effectively to legislators.
Source: Automotive News
Share: LinkedIn Twitter Facebook

[back to top]

More Articles
 
Quotable
"The score today: Sergio 1, the Doubters 0."

    -- Max Warburton, analyst for Bernstein Research, commenting on Fiat Chrysler Automobiles' 2Q earnings, Detroit Free Press, Aug. 10

Sponsored by

NADA Market Beat
NADA Raises 2015 Sales Forecast to 17.2 Million Light Vehicles
Chairman's Message
Commentary: NADA Refocuses on Core Services
Videos

NADA University Online: The Next Generation 
(NADA-TV)


Get the Facts: The Benefits of Franchised Auto Dealers


NADA Foundation: On the Go(Pro) with Canine Companions

 

Sponsored by

NADA Webinars
NADA members can view past webinars on-demand at no charge at NADA University Online. Member must create NADA account before viewing.
NADA Foundation News
Pacific Lutheran University Receives NADA Foundation Grants
 
 
Search Back Issues | Unsubscribe | Subscribe | Manage your subscription | email us
NADA For more information on NADA, visit www.nada.org or contact NADA, 8400 Westpark Drive, McLean, VA 22102. This email may contain an advertisement of NADA products and services. Any opinions or statements contained herein do not necessarily reflect the views of NADA. Factual errors are the responsibility of the listed publication. If you are a franchised new-car or -truck dealer and would like to become a member of NADA, please visit the Join NADA section of www.nada.org. Questions or comments concerning NADA Headlines content may be directed to publicaffairs@nada.org .