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Inside this issue
VW Vows to Compensate Dealers for Tainted Diesels
Industry Blindsided as CAFE Fines Jump
GM Boosts Discounts on Big Pickups
July 20 Webinar: The Future of Retail: Connection Commerce
Top Stories
VW Vows to Compensate Dealers for Tainted Diesels

Dealers say the TDI Settlement Program affects the nearly 500,000 tainted diesels on the road and another 12,000 vehicles that dealers are unable to sell

Volkswagen AG  executives in the U.S. have pledged to compensate hundreds of American franchise dealers who have been damaged by the car maker’s emissions scandal, according to dealers who met with the company on Friday. A senior American executive from the German car maker made the pledge at a meeting with more than 150 Volkswagen dealers from the Northeast at the Renaissance Hotel in Newark, N.J., that lasted nearly three hours Friday.

It is the first time the German car maker acknowledged that dealers would get restitution for the economic damage they suffered from the scandal, which affected nearly 500,000 diesel vehicles in the U.S. alone. The details of the restitution aren’t known as negotiations are continuing.

Volkswagen is hosting meetings across the U.S. to inform dealers about how the company plans to implement a historic roughly $15 billion settlement reached last month with customers and government authorities.
Source: The Wall Street Journal

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Industry Blindsided as CAFE Fines Jump

Higher fines for missing mpg targets could upend compliance strategies

Automakers worried about the cost of meeting fuel economy targets are waking up to a startling new reality: The cost of not meeting them is about to get a lot higher.

Next month, the National Highway Traffic Safety Administration will more than double the fine it assesses automakers that fall short of their annual corporate average fuel economy standards. For many automakers, that increase could upend the economics of their fuel economy compliance strategies, laid out years ago, and insiders worry that automakers' exposure to fines for noncompliance will only grow as the CAFE requirements grow tougher each year.

What's more, NHTSA confirmed to Automotive News that the steeper penalties will apply to 2015 model year vehicles for which it has yet to issue compliance reports. That means automakers at risk of missing their targets still don't know how much more the increased fines may have already cost them.

The Alliance of Automobile Manufacturers blasted what it called a "draconian" increase, saying it will make it harder for automakers to make progress toward the Obama administration's call for a fleetwide average of 54.5 mpg by the 2025 model year.

The change also risks upsetting the fragile consensus between automakers and regulators as both sides dive into the key midterm evaluation of the administration's "national program" of greenhouse gas and fuel economy rules.
Source: Automotive News

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GM Boosts Discounts on Big Pickups

General Motors Co. more than doubled discounts on some of its large pickups in July’s first 10 days after U.S. sales of the highly profitable models fell last month despite ads attacking the durability of Ford Motor Co.’s aluminum-bodied trucks. Incentives averaged $7,962 on the Chevrolet Silverado, up 76 percent from June levels, and $9,457 on the GMC Sierra, an increase of 147 percent, according to J.D. Power data obtained by Bloomberg. Ford offered $4,457 on its F-150 and Fiat Chrysler Automobiles NV had discounts of $6,172 on its Ram, according to the research firm.
Source: The Detroit News

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July 20 Webinar: The Future of Retail: Connection Commerce

Date: Wednesday, July 20
Time: 1 pm ET
Duration: 30 minutes

The webinar explores digital retailing technologies that can help increase the dealership's bottom line. Participants will learn new ways to create a seamless sales process and fast transition to the showroom floor. Mike Burgiss from Cox Automotive will discuss best practices for online sales and how to connect with today’s customers to meet their expectations while creating brand loyalty and a personalized shopping experience. Click here to register.
Source: NADA

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More Articles
 
Quotable
"Personally, I feel more bullish about VW and our future than ever before."

    -- Alan Brown, a VW dealer based in Lewisville, Texas, and chairman of VW's National Dealer Advisory Council, commenting on VW's pledge to compensate dealers who have been damaged by the car maker's emissions scandal, The Wall Street Journal, July 17
 
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