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September 13, 2016 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
NADA President Peter Welch: The Battle Between Facts and Stereotypical Reporting on Auto Retailing
Important Deadline Regarding VW Buyback Program
Adviser for NADA's Retirement Program Offers Insight on Stock/Equity Market Performance in Election Year
At Long Last, Hybrid Gains Cost Advantage Over Diesel, Top Electrification Guru Says
Chevy Bolt EV Range is 238 Miles: Prime Time for the Electric Car?
Top Stories
NADA President Peter Welch: The Battle Between Facts and Stereotypical Reporting on Auto Retailing

In attempting to report on the state of automotive retail in the U.S. (“The battle between Tesla and your neighborhood car dealership,” Sept. 9, 2016), The Post regurgitated a number of worn-out theories about what drives consumer preferences, but ignored the one fact that actually tells the story accurately – simply put, Americans like being able to save money on new-car purchases by letting multiple, independent dealers compete for their business.

Lazy narratives and old stereotypes aside, the fact is that most credible, quantitative surveys – including ones from J.D. Power, and Car and Driver – of actual dealership customers find a very high level of consumer satisfaction with the dealership experience. And for good reason; the American franchise system for auto retailing promotes intense competition among dealers, and the primary winners are consumers.

In fact, the real story about direct sales isn’t about profitability or even product; it’s about the attempt to be exempted from determinations – made by all 50 state legislatures, conservative and liberal alike – that consumers deserve to benefit from having multiple same-brand dealers compete fiercely for their business.

Thankfully for consumers, their local elected officials continue to believe that preserving this intra-brand competition is important. If The Post or anyone else wishes to debate the merits of a system that saves consumers about $500 on the average new-car purchase, we only suggest the debate is grounded in fact, not fiction.

-- Peter Welch, President, National Automobile Dealers Association (Tysons, Va.)

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Important Deadline Regarding VW Buyback Program

During a NADA University Online webinar last week that addressed Federal Trade Commission (FTC) concerns with dealer advertising claims related to the VW Buyback Program, the FTC presenters highlighted the upcoming Sept. 16, 2016 deadline for submitting certain claims in connection with that Program.

In particular, the Sept. 16, 2016 deadline applies to “Eligible Sellers,” which are those who:

(1)  Purchased or acquired an eligible vehicle on or before Sept. 18, 2015; and
(2)  Sold or transferred ownership of the vehicle after Sept. 18, 2015 but before June 28, 2016. 

Generally, Eligible Sellers include non-Volkswagen (and non-Audi) dealers who held title to an eligible vehicle or held a bill of sale for an eligible vehicle. An Eligible Seller must identify itself by Sept. 16, 2016 (by registering online at www.VWCourtSettlement.com or submitting an identification form by mail or fax) to receive any benefits. 

PLEASE NOTE: Other individuals who may be eligible for compensation under the Program -- such as owners (including non-VW/Audi dealers), lessees, and certain former lessees -- have until Sept. 1, 2018 to submit claims.

NADA members may access the webinar by clicking here.
Source: NADA Regulatory Affairs

Editor’s note: The foregoing information is offered for informational purposes only and is not intended as legal advice. Consult your attorney for guidance specific to your business operations.

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Adviser for NADA's Retirement Program Offers Insight on Stock/Equity Market Performance in Election Year

Great-West Capital Management (GWCM), the adviser to the Drive Balanced Fund and Drive Income Fund available to participants in the NADA Retirement Program from Empower, shares some insights on stock market performance prior to, during and following election years, as well as equity market performance under different political regimes. Click here to view GWCM's Research Note, "Don't let the presidential election alter your long-term investment strategy."  
Source: Great-West Capital Management

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At Long Last, Hybrid Gains Cost Advantage Over Diesel, Top Electrification Guru Says

One of the world’s leading experts in the electrification of cars says that hybrid technology has already reached price parity with diesel, and as the cost of diesel cars goes up due to tougher regulations, he believes the widening cost gap should hasten the demise of diesel. Due to their cost, the share of pure battery-electric vehicles should not go above an impressive 30% for the next 10 or 20 years, says Toyota’s Satoshi Ogiso. A longtime development leader of Toyota’s Prius family, Ogiso also was instrumental in Toyota’s fuel cell development program, which went commercial in late 2015 with the Toyota Mirai.
Source: Forbes.com


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Chevy Bolt EV Range is 238 Miles: Prime Time for the Electric Car?

General Motors announced Tuesday that its 2017 [Chevrolet] Bolt EV has achieved a federally tested range of 238 miles per charge. That impressive number -- enough to travel from Los Angeles to Las Vegas without stopping to recharge -- is the best of available battery-powered cars in that price range. As the first mid-priced, long-range electric vehicle to hit the market, the Bolt could be the most convincing argument yet for mainstream acceptance of an electric vehicle.
Source: Los Angeles Times

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Past Articles
       
      Quotable
      "If The Post or anyone else wishes to debate the merits of a system that saves consumers about $500 on the average new-car purchase, we only suggest the debate is grounded in fact, not fiction."

          -- NADA President Peter Welch, commenting on a misguided article on auto retailing published in The Washington Post, NADA Headlines, Sept. 13

       
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