Industry News

Future bright for dealers, says Tonkin

At the general session, incoming NADA chairman Ed Tonkin emphasized unity and meeting 2010’s challenges head-on.
 
“NADA stands for the National Automobile Dealers Association. The key word here is ‘association.’ It means ‘together.’ It means we all come together in a united front to face the challenges of our industry, and they continue to be many,” said Tonkin, who is vice president and general counsel of Ron Tonkin Dealerships in Portland, Ore.
 
Tonkin added that his theme of unity is the same theme his father, Ron Tonkin, used during his 1989 speech as NADA chief. (Tonkin is the second NADA chairman in a row to follow his father in the position.)
 
Tonkin mentioned the many crushing blows the auto industry faced in the past year, but added that NADA had aggressively represented dealers on Capitol Hill to address dealer terminations, a crumbling market and major manufacturers going through bankruptcy.
 
“Last year, through much hard work, we avoided Armageddon for many in our industry,” Tonkin said. “Now we’re able to focus on some serious issues that face us this year.” NADA is ready to “hit the ground running” to tackle a fresh slate of issues with a new attitude and new agenda that relies heavily on feedback from members, he added. They include the Internal Revenue Service’s UNICAP and LIFO, and new Corporate Average Fuel Economy requirements.
 
And though much uncertainty remains, Tonkin said dealers should be optimistic. With sales expected to be nearly 12 million in 2010, rising employment and improved lending, the future is bright. In good times or bad, he said, “dealers will be there. Dealers are the most resilient people on earth.”  Source:NADAFrontPage.com

Revenge receives industry recognition at North American International Auto Show (NAIAS)

The 2010 NAIAS was an overwhelming success. The public response to the new Revenge designed concept Supercar was phenomenal, however the best was yet to come with the Industry recognition not only being included in the prestigious EyesOn Design awards but for Revenge to be amongst the finalists, this is a great achievement for Revenge.

During the two weeks of the Auto show it was clearly revealed the demand for the next American High performance Supercar was needed, not only here in the USA but more so internationally. With Ford releasing their 5.0 Supercharged V8 605 Hp engine and now the availability of the GM ZR1 638 Hp Supercharged motor Revenge will take advantage of the two automakers' powertrains for the RSC Blade Supercar. "Blade" the brand name stands for the cutting edge design and technology that will be carried throughout the vehicle.

For Revenge to secure the assistance of two leading manufacturers plus the assistance of two well renowned production and race winning affiliates including the respect Revenge received from its peers at the NAIAS EyesOn Design team of extraordinary people, shows the Automotive industry is welcoming new companies with forward thinking and job creation in mind. Source:CNNMoney.com

Car dealers last in, first out of recession

When it comes to recessions, car dealers are a lagging indicator going in and a leading indicator coming out. That puts big dealerships like AutoNation, Penske Automotive, Asbury Automotive Group, Group 1 and Sonic Automotive in a position to recover from the current downturn faster than the car companies they serve.

 AutoNation reported a profit of $198 million for 2009, versus a net loss of about $1.2 billion in 2008. Other groups will report earnings in the coming weeks. General Motors is successfully charging higher prices for some of its newest models, an achievement it hopes to repeat as it replaces more and more cars. Chrysler and Ford hope to follow the same pattern.

In addition, the car dealers can simply drop a slow-selling franchise and pick up a hot-selling one, much faster than the car companies can roll out hot-selling new models. Almost all the biggest U.S. auto dealer chains get most of their revenues from luxury and import franchises - around 95 percent for Penske Automotive, for instance. In all, the big auto retail chains for the most part weren’t hurt as badly as smaller dealers, or as badly as Chrysler and General Motors, which went bankrupt last year. Source: BNET

Ford looks to create greener dealership

If Ford's new sustainability initiative goes as planned, the dealership where you buy a Fusion Hybrid will be as green as the car itself. At this month's annual National Automobile Dealership Association convention in Orlando, Ford announced its "Go Green" dealer sustainability program, a voluntary project to push Ford, Mercury and Lincoln dealerships to be more energy efficient. The program is part of a larger effort by dealerships across the country to put a more environmental face on an industry traditionally beset with environmental complaints. NADA has been working with U.S. EPA and dealerships across the country to reduce energy output. While dealerships can take traditional, simple steps like installing more energy-efficient lighting, the complex design of dealerships poses problems in crafting any industry standards, said Doug Greenhaus, NADA's director of environment, health and safety.

NADA, at its February convention, highlighted the ways dealers have invested more than $1 billion in eco-friendly changes. NADA partnered with U.S. EPA and the Energy Star program in 2004 to improve facilities. NADA has also given dealerships the option of becoming "Green Checkup" dealers. Those stores would offer free green checkups for drivers to help make their cars more fuel efficient. Source: Environment & Energy Daily

Cities prepare for life with the electric vehicle

“Recognizing that public safety is paramount, we urge the subcommittee to carefully examine the facts related to this recall and, in doing so, help diminish any unsubstantiated rhetoric or shrill alarmism regarding the Toyota brand,” NADA states.

As automakers prepare to introduce the first mass-market electric cars late this year, it is increasingly evident that the cars will get their most serious tryout in just a handful of places. In cities like San Francisco, Portland, Ore., and San Diego, a combination of green consciousness and enthusiasm for new technology seems to be stirring public interest in the cars.

The first wave of electric car buying is expected to begin around December, when Nissan introduces the Leaf, a five-passenger electric car that will have a range of 100 miles on a fully charged battery and be priced for middle-class families.

Several thousand Leafs made in Japan will be delivered to metropolitan areas in California, Arizona, Washington state, Oregon and Tennessee. Around the same time, General Motors will introduce the Chevrolet Volt, a vehicle able to go 40 miles on electricity before its small gasoline engine kicks in. Source: The New York Times

Toyota's president to testify before Congress

Toyota's president Akio Toyoda, under fire for his handling of sweeping recalls, will testify before a congressional hearing next week, appealing to U.S. lawmakers and aggrieved customers for understanding while the company fixes its safety problems. Japanese officials praised the decision by Toyoda, grandson of the company's founder, to accept a formal invitation to explain the recalls and outline plans by the world's largest automaker to ensure safety and satisfy worried car buyers. "I will be happy to attend. I will speak with full sincerity," Toyoda told reporters Friday in Nagoya, near where the company is headquartered. Earlier this week, he said he did not plan to attend the hearings unless invited. That decision drew heated criticism in the United States. Source: The Associated Press