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April 13, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
New Report: New-Car Dealership Employment Sets Record in 2016
Automakers Aim to Strike Deal with EPA, Calif. Over 2025 Emissions Targets
Falling Used-Car Prices Could Hurt New Sales, Analyst Warns
Toyota: Full Self-Drive Is a Long Way Off
Dealers Urged to Promote Teen Driving Safety during Prom Season
Top Stories
New Report: New-Car Dealership Employment Sets Record in 2016

Employment, wages and payroll at U.S. new-car dealerships all continued to rise in 2016, according to a new report released by the National Automobile Dealers Association. In 2016, new-car dealerships directly employed a record 1,131,900 workers, a 2.4% increase from the previous year, according to NADA Data 2016, the annual financial profile of new-car dealerships.

“Total dealership employment has consistently risen every year since the Great Recession,” said NADA Chief Economist Steven Szakaly. “In addition, hundreds of thousands of other local jobs are dependent on dealerships.”

Total dealership sales revenue, including new- and used-car sales (including F&I), parts, service and body shop was $995.6 billion in 2016, an increase of 6.1% from 2015. The average per dealership was $59.6 million.

Despite rising auto sales and back-to-back record sales in 2015 and 2016, net pretax profit at new-car dealerships as a percent of total sales has remained flat, hovering at 2.5 percent for several years.

In addition to the Average Dealership Profile section, NADA Data 2016 now includes a new expanded financial profile section covering Domestic, Import, Luxury and Mass Market dealerships.

NADA Data 2016 was updated with completely re-benchmarked data and methodologies. Revisions and expansions within the Average Dealership Profile series influenced how dealership sales were calculated. As a result, data and figures from previously released reports will not be comparable to the 2016 report.

There are two versions of NADA Data 2016. One is a general overview of the retail-auto industry, with infographics that can be shared by print and broadcast news outlets as well as on social media. The other, more detailed version looks at each dealership department, employment and payroll, trends in dealership advertising, as well as the entire retail-auto industry.

Click here for the full news release. To download either version of NADA Data 2016, visit www.nada.org/nadadata.
Source: NADA

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Automakers Aim to Strike Deal with EPA, Calif. Over 2025 Emissions Targets

NEW YORK -- A trade group representing automakers said on Tuesday it hopes to reach a deal with California and the Trump administration over vehicle fuel efficiency standards. Mitch Bainwol, chief executive of the Alliance of Automobile Manufacturers, a trade group representing General Motors, Toyota Motor Corp., Volkswagen AG and others, said at a forum [hosted by NADA and J.D. Power] ahead of the New York auto show that automakers were not seeking a rollback of existing standards. “What we want is rational, predictable, stable policy," he said. Automakers hope "that over time responsible parties will come together and have an honest conversation about what the data is."
Source: Reuters

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Falling Used-Car Prices Could Hurt New Sales, Analyst Warns

Prices for used cars and trucks could fall 15 to 20 percent as dealerships become awash in off-lease vehicles, creating “a big problem for the new-vehicle segment,” auto analyst John Murphy said Tuesday. A big drop in used-vehicle prices will prompt some consumers to buy used instead of new, explained Murphy, of Bank of America Merrill Lynch. That’s one reason Murphy said he expects new-vehicle sales to start declining in 2018. “As all these cars come back, we’re expecting there to be significant pressure on used-vehicle pricing,” Murphy said at the NADA/J.D. Power Automotive Forum in New York.
Source: Automotive News

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Toyota: Full Self-Drive Is a Long Way Off

Amid a flurry of self-driving announcements this month, the where and when for such technology still depends on who you ask. Toyota says fully self-driving technology may not show up for another 10 years or more, while Mercedes-Benz says a car that allows you to watch a movie while it drives could be coming soon. The responses aren't as inconsistent as they sound. Bob Carter, who heads up Toyota's U.S. operations, describes two different paths to self-driving.

"One we call the guardian path, which is more autonomous driving but the driver is still driving the car, still engaged with the car," Carter said on April 11 at an automotive forum held by J.D. Power and the National Automobile Dealers Association ahead of the 2017 New York International Auto Show. "The other path, I call chauffeured — I sit in the backseat, I read my paper," Carter said. Toyota is working on both, but he thinks the latter will come in the "second half of the next decade, if that at all."
Source: Cars.com

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Dealers Urged to Promote Teen Driving Safety during Prom Season

The National Foundation for Teen Safe Driving is calling on new-car dealerships to help raise awareness of Senior Promise 2017. The campaign kicks off on April 15 and runs through Memorial Day.

“The campaign’s messages are targeted to the high school graduating class of 2017, with a similar call-to-action to other members of the community, reminding us that safety is a shared responsibility,” said Roy Bavaro, NFTSD executive director. “The goal of the campaign is to guard against poor choices that can have tragic consequences during a time that is among the deadliest times of the year for teens.”

NFTSD will provide participating dealerships – at no cost – with all campaign materials, ready for co-branding, instruction, tips and guidance. The campaign slogan is “Dance with your date, not with your fate.” Dealerships can choose the level of participation and duration that works best. Schools, local organizations and others interested in joining the campaign are invited to partner with a participating dealership in their community. 

“The call-to-action begins with a knowledge and understanding of the facts, followed by a pledge from each of us to behave responsibly, drive safely, abide by and enforce the rules and lead by example,” Bavaro added.

For information on how to participate, send an email to RBavaro@nftsd.org or call 732.952.0218. Visit www.nftsd.org or www.SeniorPromise2017.com for more details.
Source: NFTSD

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Quotable
"Total dealership employment has consistently risen every year since the Great Recession. In addition, hundreds of thousands of other local jobs are dependent on dealerships."

    -- NADA Chief Economist Steven Szakaly, NADA Data 2016, April 13

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