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September 3, 2015 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
VIDEO: Autoline: 'The Dealer Economy' with NADA's Steven Szakaly
Fed Report Shows Autos and Housing Fueling US Growth
China's Car Slowdown Punishes Dealers
VW's CEO Winterkorn Set to Stay on for Three More Years
Fiat Chrysler Will Keep Jeep Wrangler Plant in Toledo
Car Dealer Encourages Students to Consider Careers in Auto Tech
Top Stories
VIDEO: Autoline: 'The Dealer Economy' with NADA's Steven Szakaly

With car and truck sales predicted to hit around 17 million for the year, you’d imagine that most dealers are singing “Happy Days Are Here Again.” But is that really true? Joining John McElroy as his Autoline THIS WEEK guest is Steven Szakaly, chief economist for the National Automobile Dealers Association. Steve Finlay from Ward’s Dealer Business and John Stoll from the Wall Street Journal join the show.
Source: Autoline THIS WEEK


Editor's note:
The segment originally aired August 30, 2015.

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Fed Report Shows Autos and Housing Fueling US Growth

While U.S. housing and auto sales showed strength over the summer, manufacturers were feeling pressure from China's economic slowdown and the oil industry was squeezed by lower energy prices. That's the U.S. economic picture that emerges from the Federal Reserve's latest look at business conditions around the country. The Fed said 11 of its 12 regional banks reported that the economy grew at least modestly in July through mid-August. The Fed report, known as the beige book, will be used for discussion when the central bank meets next on Sept. 16-17. The gathering will be closely watched because of the possibility it will decide to start raising interest rates from record lows near zero. The survey found that real estate activity improved throughout the country, with home sales and home prices climbing in all 12 districts. Auto sales were also a bright spot in most regions. "Expectations are generally optimistic that auto sales will improve or continue to be strong through the end of the year," the report said.
Source: The Associated Press

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China's Car Slowdown Punishes Dealers

Even if China’s car market improves, auto makers will leave little for the dealers

China’s worst car market in six years has beaten down auto stocks to the point that some of them may even seem like a good deal. In the case of the car dealers, though, investors should steer clear. These companies are in for more pain, in particular Zhongsheng Group. Shipments from car makers to dealers fell in June and July from a year before, the first such consecutive occurrence since 2009. This isn’t just due to a consumer slowdown, though that may worsen as the stock market implodes, scaring customers into deferring big purchases. It is also because manufacturers are churning out more units than consumers can buy.
Source: The Wall Street Journal

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VW's CEO Winterkorn Set to Stay on for Three More Years

The executive committee of Volkswagen's supervisory board has proposed extending Martin Winterkorn's contract as chief executive until the end of 2018 ... opening the door to the appointment of a new chairman. Volkswagen is still looking for a permanent successor to Ferdinand Piech, the former chairman who was ousted earlier this year after clashing with Winterkorn over strategy, leading to the appointment of former union boss Berthold Huber as interim chair. Analysts said Winterkorn was now unlikely to become chairman himself now he had the backing to remain chief executive from the key members of VW's supervisory board, including influential labor leaders and representatives from the German state of Lower Saxony, a top shareholder.
Source: Reuters

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Fiat Chrysler Will Keep Jeep Wrangler Plant in Toledo

Fiat Chrysler Automobiles has found a way to keep production of the iconic Jeep Wrangler in Toledo, Ohio, which had launched a prolonged citywide effort to keep its plant open. But the move will involve the loss of the next-generation Jeep Cherokee, according to a report Tuesday. The automaker plans to move production of the Wrangler to the north side of its Toledo Assembly Complex, where the Cherokee is currently made, and launch the Wrangler there. That means the company must find a new home for the Cherokee, one of the automaker's most popular vehicles. The two most likely places for the Cherokee to be built would be Sterling Heights Assembly, where the Chrysler 200 is produced, or Belvidere, Ill., where the Dodge Dart is produced.
Source: Detroit Free Press

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Car Dealer Encourages Students to Consider Careers in Auto Tech

Encouraging students to be future vehicle technicians is the goal of a new program by the Western New York Ford Dealers. WBFO's Focus on Education Reporter Eileen Buckley says the dealers donated four cars to area auto tech schools as part of the Ford Future Techs Initiative. The local car dealers said there is a critical need for more auto technicians to service the vehicles we drive. "We decided to pool our funds to donate Ford vehicles, produced over the last three years, to local schools with automotive technical repair programs," said Peter DeLacy of the Ford Auto Dealers.
Source: WBFO 88.7 (Buffalo, N.Y.)

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More Articles
 
Quotable
"Now is a good time to buy a vehicle."

    -- Yong Yang, Ford's senior U.S. economist, says the lure of low interest rates and gasoline prices are overshadowing consumer concerns of the tumultuous stock market, Detroit Free Press, Sept. 1


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