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November 18, 2016 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Roger Penske and Helio Castroneves Join Speaker Lineup at NADA Convention
President-Elect Donald Trump: Possible Dealership Tax Impacts and Considerations
Federal Judge Hears Overtime Challenge and Promises to Rule Soon
Volkswagen Gives Its SUV a Name Americans Can Pronounce
Carmakers Show Their Caution on Electric Cars at Los Angeles Auto Show
Top Stories
Roger Penske and Helio Castroneves Join Speaker Lineup at NADA Convention



Motorsports legends Roger Penske, chairman of Penske Corporation, and Helio Castroneves, three-time IndyCar Series winner at the Indianapolis 500 for Team Penske Racing, take the stage on Saturday, January 28, for an intimate conversation with Keith Crain, editor-in chief of Automotive News, during the 2017 NADA Convention and Expo in New Orleans.

“As NADA celebrates its centennial, it’s a wonderful honor for it to salute Roger Penske on 50 years of motorsports along with Helio Castroneves, who is an icon at Indianapolis as well as becoming a participant in an auto dealership,” said Crain, who is also chairman of Crain Communications, Inc. “NADA’s 100th anniversary is a milestone for auto dealers across this nation.”

Penske is chairman of Penske Corporation, a closely-held, diversified, transportation services company whose subsidiaries operate in a variety of industry segments, including retail automotive, truck leasing, transportation logistics and professional motorsports. Penske Corporation manages businesses with revenues of more than $26 billion, operating in 3,300 locations and employing 50,000 people worldwide.

Castroneves is a Brazilian auto racing driver currently competing in the North American IndyCar Series. In IndyCar competition, Castroneves has 14 wins and 28 poles, and has never placed lower than sixth in the standings in a complete season of racing. He won the Indianapolis 500 in both 2001 and 2002, becoming the fifth driver to do so in consecutive years.

For the full schedule, click here. To register, click here.
Source: NADA Public Affairs

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President-Elect Donald Trump: Possible Dealership Tax Impacts and Considerations

On November 8, Donald Trump was elected the United States' 45th president. Although nothing is definitive at this time, President-elect Trump focused on tax reform as a large piece of the economic component of his campaign and has previously indicated that he plans to make changes to several key areas of US tax law. Therefore, it is critical for dealers to acknowledge these implications and begin considering how such changes might impact them and their dealership(s) once Trump officially takes office. The areas of potential change that are most likely to impact dealers and their businesses include: lowering income tax rates, repealing the Affordable Care Act (ACA), thereby eliminating the net investment income (NII) tax and repealing/significantly reducing federal estate and gift taxes.
Source: Dixon Hughes Goodman LLP

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Federal Judge Hears Overtime Challenge and Promises to Rule Soon

Sitting in Sherman, Texas, the Eastern District’s Judge Amos Mazzant (an Obama appointee) aims to make a decision by next week on whether to issue an emergency injunction against the Labor Department’s overtime rule. Set to take effect December 1, the rule will double (to $47,476) the salary threshold under which virtually all workers are guaranteed time-and-a-half pay whenever they work more than 40 hours in a given week. Twenty-one state attorneys general and a coalition of business groups are trying to stop the rule from taking effect. Judge Mazzant heard arguments for nearly four hours with a 10-minute recess, according to court minutes. The minutes state that Mazzant “hopes that initial ruling [on the emergency injunction] will be issued on Nov. 22, 2016.” If the court rejects the motion for an injunction, Mazzant will hold a hearing Nov. 28 on whether to grant summary judgment. A decision is expected before the rule takes effect.
Source: POLITICO

Editor’s note:
NADA is a plaintiff in the suit against DOL seeking to halt the implementation of the overtime rule. At the November 16 hearing, the judge indicated an intent to rule on the preliminary injunction on or before November 22. Given that an injunction would effectively extend the rule’s effective date, NADA suggests that dealers avoid changing pay plans before then. Reminder: a webinar and dealer guide on this topic are available here (username and password are required).

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Volkswagen Gives Its SUV a Name Americans Can Pronounce


Jason Stein (left), publisher/editor of Automotive News, interviews Hinrich Woebcken, CEO of Volkswagen’s North American operations, at NADA/J.D. Power AutoConference LA on Nov. 15, 2016. (Photo: NADA)

Volkswagen, seeking to recover from its diesel emissions-cheating scandal, is betting that a jumbo-sized sport utility vehicle will persuade more U.S. consumers to give it another chance -- now that the seven-seater has a name they can pronounce: Atlas. The name initially proposed by company bosses in Wolfsburg, Germany -- the Teramont -- had landed with a thud when it was run by U.S. dealers months ago. Customers already had to grapple with two SUVs with unusual names, the Touareg and Tiguan. "It was back in March when we sat together and we openly discussed with a group of dealers, ‘Do you like that name?”’ Hinrich Woebcken, chief executive officer for the brand’s new North America region, said at an industry conference this week in Los Angeles. “And they all said ‘Ah, frankly ...”’
Source: Bloomberg


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Carmakers Show Their Caution on Electric Cars at Los Angeles Auto Show

Electric cars are taking a back seat to more profitable trucks and sport utility vehicles at this year's Los Angeles Auto Show, a venue that recently has been a showcase for green cars. Despite Tesla Motors' bold bet on consumer demand for all-electric vehicles, traditional automakers at the show are pushing the trucks and SUVs that generate fat profits, in a reflection of how cheaper gasoline is influencing consumer spending.  Market demand, however, is shifting toward trucks and sport utilities.


Dave Zuchowski, CEO of Hyundai Motor America, speaks at AutoConference LA, hosted by NADA and J.D. Power, on Nov. 15, 2016. (Photo: NADA)

The National Automobile Dealers Association says a predicted 17.1 million new car and truck sales in 2017 would favor light-truck sales, for an expected 60 percent of the market, up from 50 percent in 2013. Low fuel prices are behind a five-year decline in green vehicle sales, which is undercutting efforts by automakers to build economies of scale for new technology, said Hyundai Motor America Chief Executive Dave Zuchowski. "That's a particularly disheartening metric," Zuchowski told auto dealers at the AutoConferenceLA gathering on Tuesday.
Source: Reuters

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Past Articles
       
      Quotable
      "NADA's 100th anniversary is a milestone for auto dealers across this nation."

          -- Keith Crain, editor-in chief of Automotive News, who will host an intimate conversation with motorsports legends Roger Penske and Helio Castroneves during the 2017 NADA Convention and Expo in New Orleans, NADA Headlines, Nov. 18.
       
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