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November 23, 2015 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Support Amendment to Protect Dealer Loaners
NADA Convention: Early Bird Registration Ends Nov. 27
VW Sinks, Detroit 3 Rise in Buy-Sell Reports
U.S. Escapes Unscathed in This Round of VW Cuts
Volvo on Fast Track to 100,000 Sales Target
Lincoln's Mission: 'Core Segments First'
Mazda: A History Of Survival Through Innovation
Mike Molstead Motors in Charles City Donated a CPR Training Unit to the Charles City Family YMCA
Top Stories
Support Amendment to Protect Dealer Loaners

The American Car Rental Association, which represents major rental companies such as Enterprise, is working behind the scenes with the trial attorneys to try to kill bill language that protects dealer loaners.

A House – Senate conference committee is now debating the transportation reauthorization bill which includes a House-passed amendment that protects dealer loaners. Senators John Thune (R-S.D.), Bill Nelson, (D-Fla.), Claire McCaskill (D-Mo.) and Roy Blunt (R-Mo.) will play a pivotal role in determining whether this language is included in the final transportation bill.  They need to hear from dealers today.

The Senate passed a trial lawyer-backed bill in July that would ground dealer loaners for minor recalls and technical non compliances. The House-passed bill included an NADA-backed amendment which clarifies that new requirements on rental cars (which include dealer loaners) apply only to rental car companies, not dealers.

The amendment refines an overly broad Senate measure requiring rental car companies to ground vehicles under recall. By grounding all rental vehicles under open recall, the Senate bill fails to differentiate between recalls that should be immediately addressed and those with a negligible impact on safety (i.e. an airbag warning sticker that might peel off or an incorrect phone number in the owner’s manual). 

The dealer loaner amendment is needed because the Senate bill is designed for major rental car companies with enormous fleets that will have the advantage of getting recall parts first. The majority of dealers are small businesses who operate on thin margins and will take losses waiting in line for delayed parts making it harder and uneconomical for dealers to provide loaner vehicles for their customers.

Dealers should contact their Senators today and ask them to support Main Street dealers and preserve the dealer loaner amendment to the transportation bill. Call the Capitol Switchboard at 202 224-3121 or to find your Senators, click here.  

For more information call the Legislative Affairs office at 202-547-5500 or email mharrington@nada.org.
Source: NADA Legislative Affairs
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NADA Convention: Early Bird Registration Ends Nov. 27

Attendees who register for the 2016 NADA Convention & Expo in Las Vegas by Friday, Nov. 27, will receive a $100 discount from the on-site rate.

Considered the “Automotive Industry Event of the Year,” the NADA convention includes dealer-manufacturer franchise meetings, new educational workshops for dealers and managers, hundreds of exhibitors on the expo floor showcasing the latest equipment, services and technologies for dealerships and numerous networking events for attendees.

The NADA convention—which runs from Thursday, March 31, through Sunday, April 3, 2016—will be held at the Las Vegas Convention Center.

The American Truck Dealers (ATD) Convention & Expo runs concurrently with the NADA convention.

For more information or to register, visit www.nadaconvention.org.
Source: NADA
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VW Sinks, Detroit 3 Rise in Buy-Sell Reports

German brand gets mixed buyer reviews

The value of a Volkswagen dealership, already dismal due to low sales in the U.S., has plummeted further following the diesel-emissions scandal, said two buy-sell advisory firms' reports released last week. But VW's paltry value could make it a bargain for brave buyers who believe in the brand's ability to recover. "Certain aggressive buyers may be willing to acquire VW franchises at very low blue sky values with the expectation that the company will weather the storm," wrote Erin Kerrigan, managing director of Irvine, Calif., buy-sell advisory firm Kerrigan Advisors, in her quarterly Blue Sky Report. "If correct, these prescient investors will likely earn attractive returns on their investments." Meanwhile, the reports gave domestic brand dealerships rising valuations due to low gasoline prices that have spurred truck sales.
Source: Automotive News
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U.S. Escapes Unscathed in This Round of VW Cuts

Exec: More investments could soon get the ax

Scandal-plagued Volkswagen Group has cut its global spending plan next year by more than $1 billion, but it spared the ax at its U.S. operations. The biggest investment cut in North America affects only Mexico. Sources familiar with the plans say the renovation of a paint shop in VW's massive Puebla plant, one of the group's largest factories worldwide, will be shelved, even though the company says the decision is still under review. The much-anticipated groupwide investment budget disappointed analysts, who had expected deeper cuts as VW braces for a multibillion-euro hit from its emissions cheating scandal. Company officials were put on the defensive.
Source: Automotive News

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Volvo on Fast Track to 100,000 Sales Target

2017 could be comeback year, N.A. CEO predicts

Volvo Cars of North America, on track for its first annual U.S. sales increase in three years, expects to top 100,000 vehicles as soon as 2017, an achievement that would help more dealers become profitable and legitimize the brand's comeback efforts, CEO Lex Kerssemakers said. Kerssemakers, who is nearing the end of his first year as North American CEO, said Volvo, which sold 56,366 vehicles in 2014, is targeting about 70,000 this year and 87,000 in 2016. He said it would then take "one, one and a half -- maximum two years" to reach 100,000, a threshold Volvo last surpassed in 2007. Through October this year, Volvo sales totaled 53,803, a 13 percent gain. Source: Automotive News
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Lincoln's Mission: 'Core Segments First'

In 2016, Lincoln will have a new face, its most powerful car ever, a revived Continental and a chance to top 100,000 U.S. sales for the first time since 2008. In China, it will add a dealership every 10 days. What it apparently won't have, at least anytime soon, is a rear-wheel-drive sports car that many fans of the brand have been hoping for. "We've said we need to cover the core segments first," Matt VanDyke, director of global Lincoln, told Automotive News at a private event to show the freshened MKZ sedan. "Luxury coupes and sports cars are not the first place we need to go." In the near term, Lincoln is more concerned with updating its look.
Source: Automotive News
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Mazda: A History Of Survival Through Innovation

Mazda’s history could be described as a story of survival, along with a deep sense of community and pride. This brand, originally a manufacturer machine tools, is now recognized as one of the world’s most popular automakers. The company has produced over 40 million vehicles since its inception, but to truly understand the brand’s history Mazda invited dozens of automotive journalists and analysts from around the globe to experience a 4-day immersion program in its heritage.
Source: Forbes
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Mike Molstead Motors in Charles City Donated a CPR Training Unit to the Charles City Family YMCA

Mike Molstead Motors in Charles City donated a CPR training unit to the Charles City Family YMCA as part of a National Automobile Dealers Charitable Foundation Program. A Resusci Anne Torso was presented to Charles City Family YMCA Executive Director Lance Lasher by Mike Molstead Motors Sales Managers Josh and Jordan Molstead at the dealership. The National Automobile Dealers Charitable Foundation works with new car dealers throughout the country to donate CPR training mannequins to hospitals, police and fire departments and schools. Since the program began in 1975, more than 4,600 mannequins have been donated through the program and more than 2 million people have been trained on them.
Source: Globe Gazette (Mason City, Iowa)
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Quotable
"Volkswagen is going to be around. They're doing all the right things now to be able to correct the issue. They'll be fine. I certainly wouldn't be afraid to be a VW dealer today. Down the road, it will be a good franchise to have."

    -- Tommy Baker, owner of Baker Motor Co. in Charleston, S.C., on his interest in buying a VW dealership despite the automaker's recent emissions crisis, Automotive News, Nov. 23

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