View Web Version

SPONSORED BY
 
NADA.org
October 13, 2015 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Volkswagen to Slash Investment By $1.1B Per Year
Small Businesses Get Break on Affordable Care Act Provision
As Car Makers' Fortunes Diverge, So May Their Labor Deals
Prius Takes on Diesels as Hybrids Seen Gaining From VW Scandal
Used Car & Truck Prices Move in Opposite Directions
Do-Not-Call Rules Do Not Prohibit Dealers from Calling Consumers about Vehicle Recalls
Porsche North America Names Klaus Zellmer CEO
Ferrari Traffic Jam? Production to Jump 30%
Top Stories
Volkswagen to Slash Investment By $1.1B Per Year

Embattled German carmaker Volkswagen announced Tuesday it would cut annual investment by 1 billion euros ($1.1 billion) after a special board meeting in the wake of the emissions scandal that has thrown the company into crisis. In a press release Tuesday, the company's new Volkswagen Brand Board of Management said they planned to ramp up efficiency programs and overhaul select car models while cutting investments made by the VW Group's brand division by around 1 billion euros ($1.1 billion) per year. The board also outlined plans for major developments towards plug-in hybrid vehicles and said new models of its flagship Phaeton car would be completely electric.
Source: CNBC

Related Stories:


Share: LinkedIn Twitter Facebook

[back to top]

Small Businesses Get Break on Affordable Care Act Provision

Small- to medium-sized business owners may be breathing a little easier after President Barack Obama on [Oct. 7] signed into law a revised definition of “small employer” under the federal Patient Protection and Affordable Care Act. Without the revision, firms with 51-100 employees would have been grouped with smaller businesses which, under the ACA, would have required them to offer health coverage to employees that included certain “essential” benefits beginning in 2016. Those 160,000 employers and their workers also likely would have faced higher premiums, 50 percent or higher in some cases, in part because they would be in a smaller risk pool. Now most medium-size firms will be off the hook, although businesses with 2-50 employees must still comply with the regulation and individual states still have the authority to keep the broader definition.
Source: Pittsburgh Post-Gazette
Share: LinkedIn Twitter Facebook

[back to top]

As Car Makers' Fortunes Diverge, So May Their Labor Deals

UAW official hints Ford workers may get different deal than pact reached with Fiat Chrysler

A United Auto Workers union official told Ford Motor Co. workers that a proposed labor contract with Fiat Chrysler Automobiles NV isn’t necessarily the same wage deal that the union will press upon other Detroit auto makers, the latest sign that the union’s longtime commitment to pattern bargaining could be weakening as finances at the domestic car companies diverge. For several years, contract deals struck by Ford, General Motors Co. and Chrysler have largely mirrored one another. GM and Chrysler’s trips through bankruptcy court have disrupted the competitive playing field for U.S. auto makers, and the merged Fiat Chrysler’s heavier use of entry-level workers has further altered the financial footing of the three rivals.
Source: The Wall Street Journal
Share: LinkedIn Twitter Facebook

[back to top]

Prius Takes on Diesels as Hybrids Seen Gaining From VW Scandal

Toyota Motor Corp. said it set out to match the performance of diesel engines in developing its new Prius, as analysts predict gasoline-electric hybrids to benefit from Volkswagen AG’s emissions-rigging scandal. Certain grades of the Prius that goes on sale in Japan in December will achieve as much as 40 kilometers (25 miles) per liter under Japan standards. The car’s engine has thermal efficiency of more than 40 percent, a key to fuel economy and on par or better than diesel engines. “For a long time our dream has been to catch up with the diesel efficiency,” Shunsuke Fushiki, a Toyota engineer for hybrid vehicles, told reporters Tuesday in Tokyo. “We’ve been successful in achieving this.”
Source: Bloomberg
Share: LinkedIn Twitter Facebook

[back to top]

Used Car & Truck Prices Move in Opposite Directions

Wholesale prices didn’t move much in September, and trends seen throughout the course of the year continued to prove true this past month. The monthly analysis of wholesale prices by  ADESA Analytical Services indicates that used rates were “relatively flat” in September, as car prices continued to fall and truck prices were on the way up in light of low gas prices. That’s according to the latest edition of Kontos Kommentary from Tom Kontos, executive vice president and chief client officer at ADESA Analytical Services.
Source: Auto Remarketing
Share: LinkedIn Twitter Facebook

[back to top]

Do-Not-Call Rules Do Not Prohibit Dealers from Calling Consumers about Vehicle Recalls

As a reminder to dealers, the National Do-Not-Call (DNC) rules do not prohibit dealers from calling consumers to alert them that their vehicles have been recalled because of a product safety or defect concern and to schedule appointments to correct the defect. The Federal Communications Commission granted a 2005 NADA petition clarifying the rules, and noted that the clarification applies when the defect repair work involves no cost to the consumer. Calls that encourage the purchase of other goods and services “will be deemed a prohibited telephone solicitation.”  However, please note that this clarification only applies to the National Do-Not-Call rules, and not the separate restrictions under the Telephone Consumer Protection Act (TCPA) for text messages, prerecorded calls, calls made to cell phones, or calls made using autodialers. Dealers should consult their counsel to ensure that any recall telephone calls also meet these and other TCPA requirements. Click here for the full text of the FCC ruling.
Source: NADA Regulatory Affairs

[back to top]

Porsche North America Names Klaus Zellmer CEO

Volkswagen's sports car unit Porsche today named Klaus Zellmer president and CEO of its North American unit, effective Nov. 1. Zellmer is currently Porsche's head of overseas and emerging markets. He replaces Detlev von Platen, who is relocating from Porsche's North American headquarters in Atlanta to the company's headquarters in Stuttgart, Germany, to head global sales and marketing. Von Platen, CEO of Porsche Cars North America for seven years, was named to his new position Sept. 30. The announcement today was the latest in VW's ongoing management shuffle in the wake of its diesel emissions cheating scandal, which claimed the job of CEO Martin Winterkorn and prompted hundreds of lawsuits and investigations around the world.
Source: Automotive News
Share: LinkedIn Twitter Facebook

[back to top]

Ferrari Traffic Jam? Production to Jump 30%

With Ferrari's coming initial public offering, it's about to become easier for supercar aficionados to get their hands on one of its exclusive vehicles. In a move that could frustrate some owners and collectors, the high-end automaker said in an SEC filing that it plans to increase production by 30 percent — from around 7,000 cars to 9,000 annually — by 2019. Ferrari said its decision is in response to "growing demand in emerging markets and from demographic changes as the size and spending capacity of our target client grows."
Source: CNBC
Share: LinkedIn Twitter Facebook

[back to top]

More Article
 
Quotable
"Time and again, the Volkswagen team has proved it stands united and is fully focused on shaping the future, particularly when times are tough. We have now laid the further foundations for that."

   -- VW CEO Herbert Diess, on the automaker's plan to cut annual investment by 1.1B per year, CNBC, Oct. 13

Sponsored by

NADA Market Beat

August's SAAR Tops 17.7 Million New Light Vehicles
Chairman's Message
Commentary: 17 Million Reasons Why Auto Sales Will Remain Healthy 
Videos

Register Today for the 2016 NADA Convention in Las Vegas


Dealer Financing Benefits Car Buyers


NADA University Online: The Next Generation 
  


Get the Facts: The Benefits of Franchised Auto Dealers

 Sponsored by

NADA Webinars
All webinars will be held at 1 p.m. ET unless otherwise noted

Oct. 21: Dealership Valuation Trends in 2015

Oct. 28: Business Development or Detriment to Business? You Decide

Nov. 4: Big Data - Big Future

Nov. 18: A Hot Market – Dealership Mergers and Acquisitions

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
NADA Foundation Presents Grants to Wheeling Jesuit University
 
 
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 .