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October 5, 2016 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
NADA Chairman: Policy Goals Can’t Be Achieved On the Backs of Our Customers
GM’s Ammann Says Automaker Can Sustain Profits for Year to Come
Fiat Chrysler Ordered to Face Dealerships’ Antitrust Suit
As Demand for Cars Falters, Auto Prices Are Poised to Fall
U.S. Transport Chief: Automakers Will Back Self-Driving Car Oversight
Top Stories
NADA Chairman: Policy Goals Can’t Be Achieved On the Backs of Our Customers

Jeff Carlson: “What we’re doing is standing up for our customers, and helping Washington find a better way that protects our customers but still gets us across the policy goal line.”

DETROIT -- NADA Chairman Jeff Carlson on Wednesday sounded another warning to Washington, D.C., about implementing policies that would inadvertently make buying, financing, trading-in, and servicing cars and trucks harder and more expensive for consumers.



Carlson, in NADA’s annual policy speech to the Automotive Press Association in Detroit, illustrated a number of real-world examples of how decisions in Washington and elsewhere are leading to increased prices for consumers when they go to buy new vehicles, when consumers obtain financing for those vehicles, and when consumers go to trade-in older vehicles for newer, cleaner and safer cars and trucks.

“If Washington wanted to implement a policy that would add $600 to the cost of financing a new car, what would you call that?” Carlson asked. “What about a policy that would take anywhere from $1,200 to $6,000 out of a customer’s pocket when they went to trade-in a used vehicle in order to buy a new one? How about a policy that would add thousands of dollars to every single new vehicle that every manufacturer makes, up and down their entire lineups, right out of the gate? Or what if new-car buyers had to pay hundreds of dollars more at the retail level because Washington thought it was no longer beneficial to consumers to have multiple, independent retailers competing with each other for the same customers?”

“Leaving aside what Washington calls it, what would that feel like as a customer?” Carlson continued. “Do you think that customer feels like they just got taxed? You’re darn right they do.”

Carlson – who is also the president of Glenwood Springs Ford and Glenwood Springs Subaru in Colorado, as well as Summit Ford in Silverthorne, Colorado – has been leading the efforts of franchised auto dealers to remind leaders in Washington that their policy objectives can’t be achieved if vehicles become too expensive for consumers to afford.

“NADA is in the business of telling Washington that they better get it right. And getting it right means keeping it affordable,” Carlson said. “So what NADA has said to leaders in Washington is that: We understand your goals, and we agree with many of your goals, but we cannot accomplish those goals on the backs of our customers.”

“What we’re doing is standing up for our customers, and helping Washington find a better way that protects our customers but still gets us across the policy goal line.”

Click here for Carlson’s complete remarks.
Source: NADA

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GM’s Ammann Says Automaker Can Sustain Profits for Year to Come

General Motors Co. generates $1 billion in pretax profit a month. Yet the stock market seems unimpressed, assigning the company a market value of just $50 billion. So why are GM shares so cheap? It’s one of the more vexing questions Dan Ammann, the company’s president, faces every day. The Detroit automaker posted record profits last year, will be close to that level this year and is putting the pieces in place for a run at more growth in 2017, Ammann said in an interview at Bloomberg News headquarters in New York.
Source: Bloomberg

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Fiat Chrysler Ordered to Face Dealerships’ Antitrust Suit

Fiat Chrysler Automobiles NV’s U.S. unit failed to persuade a federal judge to throw out an antitrust lawsuit claiming it pushed dealers to submit fraudulent sales numbers to prop up the carmaker’s share price. Napleton’s Arlington Heights Motors in Illinois sued Fiat Chrysler in January, alleging racketeering, violations of antitrust laws and breach of contract. U.S. District Judge Virginia Kendall in Chicago threw out the racketeering claim, while rejecting Fiat’s motion to dismiss antitrust and other claims.
Source: Bloomberg

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As Demand for Cars Falters, Auto Prices Are Poised to Fall

While the U.S. inched its way out of the Great Recession, consumers went car shopping in droves. As sales rebounded, the price of cars and trucks rose to record highs. Now, the price trend is set to reverse itself, partly because some buyers are unwilling or unable to pay the high prices and instead are opting for used cars. Although overall industry sales are tracking last year's record 17.5 million, many automakers are selling more cars to rental companies to maintain the momentum. Sales to consumers are declining, so companies are ramping up incentives. Discounts in September hit a level not seen since automakers were desperate for sales during the financial crisis in late 2008.

"Customers have an affordability problem," says Wes Lutz, owner of a Chrysler-Dodge-Jeep-Ram dealership in middle-class Jackson, Michigan, west of Detroit. About one-third of his customers can't get credit, another third have trouble, and the rest are credit-worthy, he said. Even if prices fall, Lutz expects government safety and fuel economy requirements to push them back up, driving more people from new cars to used. He's adding personnel and square footage to his used-car operation in anticipation.
Source: Associated Press

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U.S. Transport Chief: Automakers Will Back Self-Driving Car Oversight

U.S. Transportation Secretary Anthony Foxx told Reuters he expects automakers and tech companies will comply with voluntary guidelines his department issued last month for autonomous vehicles. The National Highway Traffic Safety Administration (NHTSA), an agency of Foxx's department, has called on automakers to voluntarily submit details of self-driving vehicle systems to regulators in a 15 point "safety assessment" and urged states to defer to the federal government on most vehicle regulations.
Source: Reuters

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Past Articles
       
      Quotable
      "NADA is in the business of telling Washington that they better get it right. And getting it right means keeping it affordable. So what NADA has said to leaders in Washington is that: We understand your goals, and we agree with many of your goals, but we cannot accomplish those goals on the backs of our customers."

          -- NADA Chairman Jeff Carlson, in remarks today to the Automotive Press Association in Detroit, NADA Headlines, Oct. 5

       
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