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October 16, 2015 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Flexible Schedules Aim to Keep Stores Strong
Why the U.S. Automotive Sales Boom Will End in 2017
VW Must Adjust Strategy Through 2025, Mueller Says
GM Global Sales Down 1.3% in First 9 Months of 2015
New Auto Group Formed to Prevent Cyberattacks
Fiat Chrysler to End Viper Production in 2017, Labor Deal Says
NADA Foundation Presents Grants to Wesley College
Top Stories
Flexible Schedules Aim to Keep Stores Strong

Shorter weeks, open-ended hours seek to boost morale

Stiff competition can lead to flexible hours. Capitol Honda in San Jose, Calif., started opening its doors on Sunday and kept its service operations working at full capacity with a 4/10 rotating schedule: work four 10-hour days in a stretch. About once a month, the rotating schedule gives most technicians six days off in a row. Sellers Buick-GMC in Farmington Hills, Mich., switched to being open six days a week, from five previously, about six years ago after employees agreed to rotate working one Saturday a month. As a bonus, Saturday workers are treated to a free lunch.

In Idaho, Larry H. Miller Subaru Boise is open all day Monday through Saturday. Employees are assigned one day off per week. Workers also have more freedom on their workdays with flexible, open-ended hours. The automotive retail sector gradually is embracing a more flexible workweek, as indicated by the continuing decline in scheduled work hours in the industry, said Ted Kraybill, president of ESI Trends, a Largo, Fla., research and consulting company that manages the National Automobile Dealers Association's annual Dealership Workforce Study.
Source: Automotive News
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Why the U.S. Automotive Sales Boom Will End in 2017

What happens after next year? “Pull back.” At least that’s the word from IHS Automotive, which believes that U.S. auto sales will continue to strengthen through 2017 until a convergence of events begins to stifle new car and truck sales. “We do see headwinds starting to form,” said Charles Chesbrough, IHS senior economist, during the company’s global outlook. IHS isn’t alone in its boom cycle prediction for auto sales. The National Automobile Dealers Association also believes the current trend of strong sales should continue, although its tea leaves suggest the up cycle is shorter with 2016 being a record-setting year and 2017 beginning the slide back to more normal sales levels.

While Chesbrough suggested economic factors like higher interest rates will hasten the decline, NADA Chief Economist Steven Szakaly, points to another contributing factor: used-car prices. NADA expects used-car prices to fall by an average of 4.5% per year in 2016 and 2017, making previously owned vehicles a palatable alternative, especially for those who wanted a new vehicle but are finding that the amount they can afford won’t get them as much new car or truck as they had hoped. For 2016, NADA predicted U.S. sales of about 17.6 million new cars and light trucks – that is, pickups, SUVs, crossovers and minivans, which would surpass the current mark of 17.4 million, set in 2000.
Source: Yahoo Autos
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VW Must Adjust Strategy Through 2025, Mueller Says

Volkswagen Group needs to adjust its overall strategy through 2025 as it cedes more power to brands and regions while pushing an investigation of the emissions scandal, CEO Matthias Mueller said. VW has a good chance of rebounding from the scandal, Mueller said on Thursday in a speech to managers in Leipzig. "We have a good chance of shining again in two to three years," he said. Key points of VW's Strategy 2018, the blueprint of the carmaker's push for scale and quality drawn up under former CEO Martin Winterkorn, remain valid, Mueller said.
Source: Reuters
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GM Global Sales Down 1.3% in First 9 Months of 2015

General Motors Co. said Thursday it has sold 7.15 million vehicles globally through the first nine months of the year, down 1.3 percent from the same time in 2014. The automaker blamed the drop on economic and sales market conditions in South America and its decision to reduce its presence in certain global regions. It said sales rose in four of five largest regions.
Source: The Detroit News
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New Auto Group Formed to Prevent Cyberattacks

Two auto trade associations are forming a new working group to help prevent cyberattacks on the nation’s 230 million cars and trucks. The Alliance of Automobile Manufacturers and Association of Global Automakers have established a group to create best practices for the industry, The Detroit News learned Thursday. The group’s new effort comes as Congress has raised concerns about the security of cars after Wired magazine in July showed how a 2014 Jeep SUV could be commandeered by a hacker. The report prompted the first-ever recall for hacking worries by an automaker, covering 1.4 million vehicles. The group, which represents all major automakers, is in the early stages and may not complete findings until next year.
Source: The Detroit News
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Fiat Chrysler to End Viper Production in 2017, Labor Deal Says

The Viper, Dodge’s all-American exotic sports car launched nearly a quarter-century ago to much acclaim, will end production in 2017, according to details contained in Fiat Chrysler’s new contract with the UAW. The product plan is included in the agreement that will be voted on by UAW members next week. It also indicates that FCA will upgrade its eight-speed automatic transmission.
Source: Automotive News
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NADA Foundation Presents Grants to Wesley College


NADA Foundation grant presentation at Wesley College earlier this week. (L-R) Mary Jane Willis; Bill Willis, NADA director and foundation trustee; Paul Clark, president of Wesley College; and Winston's wife, Jeanni Winston.

The National Automobile Dealers Charitable Foundation presented Wesley College in Dover, Del., with two grants totaling $14,000. The donations were made through the Joseph J. Sanchez Memorial Fund, which supports the emergency needs of students; and the John P. Winston, Sr., Memorial Fund, which is dedicated to the study of ethics.

“Today was a great day on the campus of Wesley College as we hosted some extended Wesley College family members from the National Automobile Dealers Charitable Foundation. Their gracious gifts will provide our students a margin of excellence that will be second to none, while also allowing them the opportunity to carry on the legacy of excellence and service, reflective of the fund’s namesakes, into the future,” said Robert E. Clark II, president of the university. “We especially want to acknowledge, and thank, Wesley’s Board of Trustee member Bill Willis (Class of ’66) for bringing this opportunity to fruition for Wesley College and our students.”
Source: NADA
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