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June 21, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
ATD Supports New House Bill to Repeal Federal Excise Tax on Heavy-Duty Trucks
May Auto Default Rate Ties 10-Year Low
Ford's Big Bet: Americans, and Trump, Are Ready for Chinese Cars
Tata Group Said to Consider IPO of Jaguar Land Rover
FCA Announces Dealer-Allocation Plan for 18 Demon
Top Stories
ATD Supports New House Bill to Repeal Federal Excise Tax on Heavy-Duty Trucks

Current 12-percent tax adds $12,000 to $22,000 to the price of a new heavy-duty truck.

American Truck Dealers (ATD) Chairman Steve Parker praised U.S. Rep. Doug LaMalfa’s (R-Calif.) introduction of H.R. 2946, a bill that would repeal the harmful and outdated federal excise tax (FET) on the retail sale of most heavy-duty trucks, tractors and trailers. The bill was introduced June 20.

“The 12-percent federal excise tax on heavy-duty trucks is the highest percentage rate of any federal excise tax that Congress levies, and it adds $12,000 to $22,000 to the price of a new heavy-duty truck,” said ATD Chairman Steve Parker. “The FET depresses new heavy-duty truck sales and delays the deployment of cleaner, safer and more fuel-efficient trucks.”

Rep. LaMalfa’s bill, “Heavy Truck, Tractor and Trailer Retail Federal Excise Tax Repeal Act of 2017,” is supported by ATD, a division of the National Automobile Dealers Association. ATD is hosting its annual legislative fly-in to Washington, D.C., on June 21 and 22 to rally congressional support for the legislation. ATD represents more than 1,800 U.S. commercial truck dealers.

“The excessive 12-percent federal excise tax on heavy trucks adds tens of thousands of dollars to truck purchases and directly impacts the cost of food, consumer goods and other products Americans need. Even worse, truck owners large and small pay this tax whether a truck is driven 100,000 miles or never driven at all, forcing them to pay taxes on an investment that may not be generating any revenue,” Rep. LaMalfa said. “Repealing the truck tax will help small businesses invest in new equipment while jump-starting domestic manufacturing, and Congress should address this issue as we consider how to reform our outdated tax code.”
Source: ATD/NADA

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May Auto Default Rate Ties 10-Year Low

The expert who oversees the S&P/Experian Consumer Credit Default Indices explained how May’s auto default movement should put discussions about a “crisis” in subprime auto financing “behind us.” S&P Dow Jones Indices and Experian released data through May and reported that the auto finance default rate dropped 5 basis points from the previous month to settle at 0.85 percent. The latest reading also is 7 basis points lower compared to the same month last year.
Source: SubPrime Auto Finance News

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Ford's Big Bet: Americans, and Trump, Are Ready for Chinese Cars

Americans buy millions of dollars of stuff made in China every day. So why not add the Ford Focus to the mix? To hear Joe Hinrichs, Ford Motor Co.’s president of global operations, talk about the plan to move the car’s production to a factory in Chongqing, it’s no big deal. “Consumers care a lot more about the quality and the value than they do about the sourcing location,” Hinrichs said. “iPhones are produced in China and people don’t really talk about it.”
Source: Bloomberg

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Tata Group Said to Consider IPO of Jaguar Land Rover

Tata Group is considering an initial public offering of Jaguar Land Rover, the luxury carmaker the Indian conglomerate bought in 2008 for $2.4 billion, people with knowledge of the matter said. Senior Tata Group officials have held preliminary internal discussions over the past few months about the potential listing of Jaguar Land Rover on an international stock exchange, according to the people, who asked not to be identified because the information is private. The conglomerate is weighing London and New York as possible listing venues for Jaguar Land Rover, which is a unit of Tata Motors Ltd., one of the people said.
Source: The Detroit News

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FCA Announces Dealer-Allocation Plan for 18 Demon

With FCA US’s Dodge Challenger SRT Demon going on sale this fall, the automaker announces its plan for how the 840-hp muscle car will be allocated to its dealers. Dealers can begin ordering the Demon as early as Wednesday if they sold more than one Dodge Challenger SRT Hellcat in the past 12 months, but can order only as many Demons as they are allocated.
Source: WardsAuto

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Quotable
"The 12-percent federal excise tax on heavy-duty trucks is the highest percentage rate of any federal excise tax that Congress levies, and it adds $12,000 to $22,000 to the price of a new heavy-duty truck. The FET depresses new heavy-duty truck sales and delays the deployment of cleaner, safer and more fuel-efficient trucks."

    -- ATD Chairman Steve Parker, commenting on the introduction of H.R. 2946, a bill that would repeal the harmful and outdated FET on the retail sale of most heavy-duty trucks, tractors and trailers, NADA Headlines, June 21

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