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Inside this issue
NADA Urges Regulators to Confront Affordability Problem in Fuel Economy Mandates
54 MPG?: Auto Industry Rips Stricter Gas Mileage Levels
July Auto Sales Tepid, But Industry Still Rides High
GM and Ford U.S. Sales Miss Mark But Industry Strong Overall
Autonomous Vehicles Would Need Mandatory Inspections, NADA Exec Says
Register for the NADA Convention by Sept. 9 and Save $100
Top Stories
NADA Urges Regulators to Confront Affordability Problem in Fuel Economy Mandates

Wes Lutz, chairman of NADA's Regulatory Affairs Committee, on Tuesday joined other automotive industry leaders in warning regulators about the significant costs to consumers of implementing overly aggressive fuel economy standards. Speaking at the Center for Automotive Research Management Briefing Seminars in Traverse City, Mich., Lutz explained that new vehicles are already becoming unaffordable for millions of consumers, and he urged regulators to consider that reality before adopting stringent fuel economy mandates that will only add thousands of dollars to prices of all new cars and trucks.
Source: NADA

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54 MPG?: Auto Industry Rips Stricter Gas Mileage Levels

A simmering debate that normally occurs behind closed doors over whether changes should be made to fuel economy and greenhouse gas emissions standards has spilled out into the open. It happened at an automotive conference [in Traverse City, Mich.] as government regulators clashed with auto industry groups. One of the central issues the auto industry frequently raises is whether or not consumers will be willing, or able, to buy the vehicles that the government is mandating. "($5,000 more) would crush my customers. It would crush me as a dealer," said Wes Lutz, owner of Extreme Chrysler Dodge Jeep Ram in Jackson.
Source: Detroit Free Press

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July Auto Sales Tepid, But Industry Still Rides High

For an auto industry that has recently reached a stratosphere for U.S. sales, it's getting harder to beat those historic highs. Interest rates on auto loans are expected to rise modestly, but “consumers will not feel the pinch of rising interest rates because automakers will roll out additional financial incentives,” National Automobile Dealers Association chief economist Steven Szakaly said Tuesday.

Despite some economic and political uncertainty ahead with the upcoming elections, the National Automobile Dealers Association is holding steady its sales forecast of 17.7 million new cars and light trucks for this year.

“We’ve had six straight years of steadily rising sales, which has been a fantastic period of growth, and vehicles per household have returned to the same level prior to the Great Recession,” Szakaly said at the Center for Automotive Research Management Briefing Seminars in Traverse City on Tuesday. “But most pent-up demand has been satisfied. For 2017, we expect new-vehicle sales to reach 17.1 million units.”

Szakaly added that rising employment and leasing will continue to grow and drive sales, as well as low gasoline and diesel prices, which allow consumers to spend more on vehicles. As a result, he added, nearly six out of every 10 new vehicles sold this year will be a light truck.
Source: Detroit Free Press

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GM and Ford U.S. Sales Miss Mark But Industry Strong Overall

The biggest U.S. automakers, General Motors Co. and Ford Motor Co. reported July U.S. sales that disappointed Wall Street on Tuesday but results were strong overall for the industry despite fears its long growth spurt may soon be over. Overall, July U.S. auto sales on Tuesday rose 0.7 percent to 1.52 million vehicles, according to Autodata Corp, for a seasonally adjusted annualized rate of 17.88 million vehicles. Autodata said the annualized rate for July was the highest since last November. Wes Lutz, owner of Extreme Chrysler Dodge Jeep Ram in Jackson, Michigan, said consumers "are maxed out and can barely afford the vehicles they are driving." Lutz said he is expanding his used car showroom, anticipating that new vehicle sales will decline.
Source: Reuters

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Autonomous Vehicles Would Need Mandatory Inspections, NADA Exec Says

If automakers hope to avoid liability in crashes involving autonomous vehicles, regular inspections must be mandated, the chief economist for the National Automobile Dealers Association said. Steven Szakaly, speaking here at the Center for Automotive Research’s Management Briefing Seminars on Tuesday, said the auto industry should take its cue from the aviation and mining industries, which bring their vehicles in for regular, mandated service to ensure systems are working properly. "You cannot allow those systems to fail,” Szakaly said. "And if you have those systems fail, or you don’t properly maintain those systems and that leads to failure, that liability is on those manufacturers."
Source: Automotive News


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Register for the NADA Convention by Sept. 9 and Save $100

The discounted registration rate for NADA members and managers includes admission to NADA 100 Carnival.

Online registration and hotel selection for the 2017 NADA Convention and Expo in New Orleans is now open. NADA members and their managers who register by September 9 will receive a $100 discount.



NADA, founded in 1917, will kick off yearlong events commemorating its 100-year anniversary with NADA 100 Carnival in New Orleans. The exclusive event for NADA members, international affiliates and guests will be held at Mardi Gras World on Thursday, January 26. The Carnival will feature cuisine from top New Orleans restaurants, as well as musical entertainment from Foreigner, Cowboy Mouth and jazz favorites. The NADA member and manager registration fee includes admission to the NADA 100 Carnival.

Convention speakers include comedian Jim Gaffigan, NADA Chairman Jeff Carlson, inspirational speaker Amy Purdy and NADA Vice Chairman Mark Scarpelli. A fifth speaker will be announced in the coming weeks. The four-day NADA Convention, which runs from January 26 to 29, includes dealer franchise meetings, workshops, an exhibitor showcase and numerous networking events. Click here to register.
Source: NADA

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Past Articles
     
    Quotable
    "The manufacturers have sounded the warning: The drastic upswing of the miles-per-gallon compliance curve from now until 2025 is going to have a dramatic effect on vehicle prices - and not just on the most fuel-efficient vehicles in the fleet, but up and down the entire lineup."

        -- Wes Lutz, chairman of NADA's Regulatory Affairs Committee, speaking at a policy seminar on fuel economy at the Center for Automotive Research Management Briefing Seminars in Traverse City, Mich., nada.org, August 2


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