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November 15, 2016 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
NADA Forecasts 17.1 Million New-Vehicle Sales in 2017
Los Angeles Auto Show 2016: Again, It's All About The CUVs
BMW Eyes 100,000 Electric Car Sales in 2017
Feds to Require Sound Alerts for Electric Cars, Hybrids
Chevrolet Bolt EV wins 2017 Motor Trend Car of the Year
Top Stories
NADA Forecasts 17.1 Million New-Vehicle Sales in 2017

Steven Szakaly, chief economist of the National Automobile Dealers Association, predicts sales of 17.1 million new cars and light trucks in 2017.

“We are headed toward a stable market for U.S. auto sales, not a growing market,” Szakaly said today at an economic briefing ahead of the Los Angeles Auto Show. “The industry has achieved record sales, and pent up demand is effectively spent.”

The vehicle segment mix will continue to favor light-truck sales, which are expected to account for 60 percent of the market in 2017, and continuing the upward sales trend.

With seven weeks remaining in 2016, new-vehicle sales are on pace for 17.4 million, which would be a slight decline from the all-time record set in 2015.

Sustaining the auto sales momentum established this year, Szakaly added that the overall economic outlook for 2017 remains strong with projected gross domestic product (GDP) growth at 2.6 percent, employment growth between 150,000 to 180,000 jobs per month, and the price for regular-grade gasoline at less than $2 per gallon.

“It’s important to recognize that there are some political unknowns, but the economic outlook for 2017 looks extremely positive for auto sales, particularly light trucks,” Szakaly said. “New-vehicle sales will likely level off in response to the U.S. market maturing, not as a result of the election. If increased infrastructure spending happens and certain tax cuts materialize under the new administration, it will mean a better long-term outlook.”

Szakaly added that an additional benefit to the economy could come with the easing of regulations relating to fuel economy.

Outlining some areas of concern, he said rising interest rates, ever-increasing loan terms and higher vehicle transaction prices will likely lead to a slower but still strong sales pace in 2017.

“New-car shoppers can expect a year with slightly higher interest rates on auto loans, but those increases will likely be offset by rising automaker incentives,” Szakaly added. “Rising interest rates could also increase pressure on leasing, which for many car segments is already suffering from declining residuals and used-car values. Leasing is still expected to rise in 2017, but not at the same pace we have seen over past few years.”

In addition, NADA forecasts that new-car dealerships will retail 15.3 million used vehicles in 2017, compared to an expected 15.1 million used sales in 2016. The total used-vehicle market will exceed 40 million retail sales in 2017.
Source: NADA 

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Los Angeles Auto Show 2016: Again, It's All About The CUVs

Automobility LA, formerly known as the Los Angeles Auto Show, is often the stage for U.S. introductions of vehicles first shown at European auto shows in the months prior, and this year is no different. Whether new to the U.S. or new to the world, introductions will be skewed toward crossover utility vehicles (CUVs). This year’s show, which kicks off for media and industry types Tuesday, follows recent industry trends, expanding past product to include mobility and its position in the wider automotive industry.
Source: Forbes.com

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BMW Eyes 100,000 Electric Car Sales in 2017

BMW wants to boost sales of electric cars by two-thirds next year to 100,000 vehicles as the luxury automaker is offering more battery-powered models, Sueddeutsche Zeitung reported, citing Chief Executive Officer Harald Krueger. Munich-based BMW expects to increase its deliveries of fully electric and hybrid vehicles to around 60,000 units this year, Krueger said in an interview published on Monday. Sales of battery-powered BMW models have totaled about 100,000 cars since 2013, he noted. "Electric mobility will come, but demand is not going through the roof at the moment," the newspaper quoted Krueger as saying.
Source: Reuters

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Feds to Require Sound Alerts for Electric Cars, Hybrids

Federal regulators are moving to require electric and hybrid cars to make sounds that alert pedestrians who have trouble seeing. The National Highway Traffic Safety Administration said Monday it is moving to require all electric and hybrid vehicles to create noise at up to 19 miles per hour – whether in forward or reverse. Above that speed, cars make enough wind-speed noise and tire noise that they have no trouble being heard.
Source: The Detroit News

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Chevrolet Bolt EV wins 2017 Motor Trend Car of the Year

The 2017 Chevrolet Bolt EV took home Motor Trend magazine’s coveted Car of the Year honors Monday during an awards ceremony in Los Angeles ahead of the L.A. Auto Show. The highly anticipated Bolt, which is due in showrooms by the end of the year, offers an estimated 238 miles of all electric range with a price tag of less than $30,000, minus a federal income tax rebate. The Motor Trend award is the first major award for the Bolt EV.
Source: The Detroit News

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Past Articles
       
      Quotable
      "We are headed toward a stable market for U.S. auto sales, not a growing market. The industry has achieved record sales, and pent up demand is effectively spent."

          -- Steven Szakaly, in comments during an economic briefing on the sidelines of the Los Angeles Auto Show, NADA Headlines, Nov. 15
       
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