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January 11, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Automotive News: NADA's Welch Tells Automakers to End 'Unfair' Incentive Programs
Welch Offers Charge to Industry to Confront Affordability Problem Together
Toyota Sees $2 Billion-a-Year U.S. Spend After Trump Attack
Detroit Tries to Find the Upside of Trump's Hostile Tweets
Volkswagen Expecting $4.3B Criminal, Civil Settlement
Rising Used-Vehicle Supply Seen Pushing Prices Down in 2017
Top Stories
Automotive News: NADA's Welch Tells Automakers to End 'Unfair' Incentive Programs


NADA President and CEO Peter Welch delivers remarks at Automotive News World Congress in Detroit on Jan. 10, 2017. (Photo: Automotive News)

National Automobile Dealers Association CEO Peter Welch called on automakers to end “unfair” incentive programs and get parts to dealers faster to repair recalled vehicles. Welch in remarks Tuesday at the 2017 Automotive News World Congress here, also urged government actions to keep new-vehicle sales humming. Welch said automakers should end stair-step incentive programs, which he dubbed “trust killers.”

He also said manufacturers need to do a better job of getting dealers replacement parts to fix recalled vehicles. “The current situation we’re in, where millions of vehicles are under recall, and millions of customers have to wait months-on-end for repair parts, is completely unsustainable for any brand that expects to thrive in the future,” Welch said.
Source: Automotive News

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Welch Offers Charge to Industry to Confront Affordability Problem Together

“This is not a time to rest on our laurels,” NADA President says ahead of Trump inauguration

NADA President and CEO Peter Welch on Tuesday challenged the entire automotive industry to acknowledge and confront the numerous threats to vehicle affordability with a strong and unified voice, calling the next four years a “unique opportunity” to ensure that personal transportation remains affordable for millions of Americans.

Welch, speaking at the 2017 Automotive News World Congress in Detroit, cautioned against taking a lax or tepid approach to advocating on behalf of Americans consumers – who are the ultimate arbiters of the industry’s success or failure – particularly at a time when government regulations and mandates are adding enormously to already increasing prices for new cars and trucks.

“Over the past 20 years, the single biggest driver of vehicle price increases has been excessive government regulations and mandates,” Welch said. He warned that further unchecked regulatory costs could lead to a period of “demand destruction” where millions of Americans lose out on the technological, safety and fuel efficiency benefits that come with new vehicles.
Source: NADA

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Toyota Sees $2 Billion-a-Year U.S. Spend After Trump Attack

Toyota Motor Corp., whose investments in Mexico have drawn criticism from U.S. President-elect Donald Trump, said it plans to invest $10 billion in the U.S. over the next five years, maintaining the pace of spending it established during the last half decade. Jim Lentz, Toyota’s chief executive officer for North America, outlined the company’s intentions during an interview with Bloomberg Television at the North American International Auto Show in Detroit. The Japanese corporation’s president, Akio Toyoda, also made careful mention of its American investments and employment as he introduced the eighth generation of the Camry, the best-selling U.S. car for 15 years running.
Source: Bloomberg

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Detroit Tries to Find the Upside of Trump's Hostile Tweets

The way Bill Ford tells it, you’d think he and Donald Trump are like two old buddies chitchatting all the time about cars, economics and taxes. “When needed, I can always get to him or he calls me,” Ford, the chairman of Ford Motor Co., said in an interview Monday at the North American International Auto Show in Detroit. “I find that he’s very accessible and very interested.” To the average American, the Trump-versus-Detroit saga seems like an awfully one-sided affair, with the president-elect berating auto executives and pressuring them into scaling back plans to shift jobs from the U.S. to Mexico. But the comments from Bill Ford, the great-grandson of founder Henry Ford, provide a window into another crucial aspect of the relationship: In exchange for submitting to the public cajoling, industry bosses are trying to forge a close relationship with the Trump administration already and coax it into adopting much of their regulatory wish list.
Source: Bloomberg

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Volkswagen Expecting $4.3B Criminal, Civil Settlement

Volkswagen Group expects to reach a multi-billion-dollar criminal and civil settlement with the U.S. Justice Department and U.S. Customs and Border Protection over its emissions scandal, the company confirmed Tuesday. The German automaker said Tuesday that it expects to plead guilty to criminal charges and pay $4.3 billion to settle accusations that it rigged more than half a million U.S. diesel vehicles with software to cheat emissions standards.
Source: Automotive News

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Rising Used-Vehicle Supply Seen Pushing Prices Down in 2017

Used-vehicle prices could fall next year as the number of off-lease and other used vehicles is slated to increase, said Tom Webb, Cox Automotive’s chief economist. Webb, speaking at a Cox media briefing on Sunday ahead of the Detroit auto show, said used-vehicle sales are set to rise again in 2017 after jumping 4 percent last year, the fastest pace since the Great Recession.
Source: Automotive News

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Past Articles
       
      Quotable
      "Unless we as an industry, working with policy makers at all levels of government, start looking through the lens of customer affordability, we risk imposing a new luxury tax on the vehicles our members sell which, in turn, will depress the SAAR, reduce fleet turnover, and deprive large swaths of Americans of the opportunity to obtain and benefit from the ownership of a new car or truck."

          -- NADA President and CEO Peter Welch, in comments at Automotive News World Congress in Detroit, NADA.org, Jan. 10

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