Autoblog

Mitsubishi leaving US? No, it's doubling its marketing budget

Jeffrey N. Ross — Tue, 12 Feb 2013 19:00:00 EST

Filed under: Marketing/Advertising, Mitsubishi, Earnings/Financials

We rarely hear any major news coming out of the National Automobile Dealers Association (NADA) annual meeting in Orlando, FL, but Mitsubishi executives found this a fitting place to announce a big push for increased advertising here in the US. A report in Automotive News states that the struggling Japanese automaker is returning to advertising in prime time television for the first time since 2005, with the push slated to begin in June and July for the launch of the 2014 Mitsubishi Outlander shown above.

Despite dwindling sales and a shrinking lineup, Mitsubishi's new North American chairman, Gayu Uesugi, has said on multiple occasions that the automaker has no plans to abandon the US market. Spending extra money on marketing and advertising should be a good start to help improve sales, but a lack of fresh and competitive products is also keeping showrooms empty. Aside from the new Outlander, the AN report says that Mitsubishi spokesman Roger Yasukawa said that a "yet-to-be-named subcompact" will arrive this year, which suggests the unnamed hatchback shown below (known elsewhere as the Mirage), could be heading to the US after its North American introduction at the Montreal Auto Show last month.

Mitsubishi leaving US? No, it's doubling its marketing budget originally appeared on Autoblog on Tue, 12 Feb 2013 19:00:00 EST. Please see our terms for use of feeds.

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Lincoln dealers frustrated over slow MKZ production ramp-up

Chris Paukert — Tue, 12 Feb 2013 17:30:00 EST

Filed under: Sedan, Plants/Manufacturing, Lincoln, Luxury

Lincoln has clearly been working hard to get the word out about its 2013 MKZ sedan. The Dearborn automaker has taken out lavish spreads to trumpet its boldly styled new model in magazines of every description, along with placing commercials for both the vehicle and the reborn brand behind it on all manner of television programs, including the super-costly Super Bowl earlier this month.

Pity, then, that Lincoln dealers don't have enough MKZs to sell. According to The Detroit News, parent company Ford has spent a good portion of its time at this week's National Automobile Dealers Association meeting in Florida attempting to pacify upset dealers who don't have enough examples of the pivotal new vehicle in stock.

As the DetNews notes, Lincoln only sold 453 MKZs last month, a whopping 73-percent decrease over the same period last year when the sedan's predecessor was on sale. In fact, the stunted supply had enough impact that Lincoln's January figures worked out to a 32-year low for the brand, just as it's trying to get back on its feet. This, despite the fact that the MKZ is said to have the biggest number of pre-orders in the marque's history.

According to Bloomberg reports earlier this month, the slow distribution issue is because workers are taking pains to conduct quality checks on vehicles as they roll off the line at its Hermosillo, Mexico assembly plant. In fact, the company is shipping some of the vehicles to a factory in Flat Rock, Michigan for closer inspection. According to industry analysts, Ford is likely looking to avoid the quality and resultant recall issues that have dogged recent launches including its Escape crossover and Fusion sedan, a model with which the MKZ shares a great deal under the skin.

Ford expects dealers to have adequate supplies of the midsize luxury car by early April, at which point we hope the company's marketing coffers will still be full enough to take advantage of having cars in showrooms.

Lincoln dealers frustrated over slow MKZ production ramp-up originally appeared on Autoblog on Tue, 12 Feb 2013 17:30:00 EST. Please see our terms for use of feeds.

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Dealers confront carmakers over two-tier pricing, forced upgrades

Jonathon Ramsey — Thu, 25 Oct 2012 09:33:00 EST

Filed under: Car Buying

In a speech for the Automotive Press Association in Detroit, the chairman of the National Automobile Dealers Association (NADA), Bill Underriner, laid out the two most important issues it seeks to address with carmakers: two-tier pricing and compulsory dealership facility upgrades.

The former is more easily understood as bonuses for sales targets - sell X amount of cars, receive X amount of extra gravy from the carmaker. The bonuses also escalate, so that a certain sales target beyond X means a proportionally larger bonus than was had at the previous target. NADA's contention is that practice results in favortism that ignores the size and diversity of dealerships. Larger dealers can offer lower prices and sell more cars than smaller outlets, with the effect of potentially creating different pricing in the same markets, the bulk of the bonus money then going to the larger dealerships and improving their positions.

The second issue is about giving dealers a larger voice in the matter of "facility image programs," such as what dealers had to do to get the Fiat 500 and, more recently, the SRT guidelines about what dealers will be required to do in order to sell the new Viper. Building out a new showroom with mandated facilities can cost millions, and NADA wants earlier and more input into the programs to ensure they work on the local scale and that the changes endure. Said Underriner, "We want to know whether we are investing in the kind of dealership that will be most competitive in 2020 and beyond."

The dealer body has created task forces to investigate both issues. An NADA press release is below, Underriner's full speech can be found here.

Continue reading Dealers confront carmakers over two-tier pricing, forced upgrades

Dealers confront carmakers over two-tier pricing, forced upgrades originally appeared on Autoblog on Thu, 25 Oct 2012 09:33:00 EST. Please see our terms for use of feeds.

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Values of small used cars fall in lockstep with gas prices

Zach Bowman — Thu, 31 May 2012 09:15:00 EST

Filed under: Car Buying, Hybrid, Etc., Earnings/Financials

The Detroit News reports used small-car prices are plummeting right along with fuel prices. The news comes courtesy of a National Automobile Dealers Association study, which says gas prices have dropped an average of 3.5 percent compared to last year. In yet another shocking reminder of just how short buyers' memories can be, analysts predict light trucks will take home the largest share of car sales this month. Even so, used car sales in general are expected to fall off by around two percent. Truck sales, meanwhile, will likely only see a 1 percent dip.

Compare that to used compact and mid-sized models, which are expected to see their values drop by 2.4 percent. Dealers may have a hard time selling used hybrids in the coming months. That's good news for buyers who've been waiting to jump into a more fuel efficient model. After all, it's not a question of if gas prices will climb back up, but when.

Values of small used cars fall in lockstep with gas prices originally appeared on Autoblog on Thu, 31 May 2012 09:15:00 EST. Please see our terms for use of feeds.

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NADA: 7 million car buyers to be pushed out of the market by fuel economy rules

Dan Roth — Fri, 13 Apr 2012 13:45:00 EST

Filed under: Car Buying, Government/Legal, Earnings/Financials

If the National Highway Traffic Safety Administration makes its proposed 2025 fuel economy standards official, cars are going to be more expensive, and that's going to shut millions of buyers out, argues the National Automobile Dealers Association. "If the price of a vehicle goes up by the government estimate of almost $3,000," says David Wagner, an analyst for the NADA Used Car Guide, "millions of people will no longer be able to finance a new vehicle." The proposed standard is aiming for an average of 54.5 mpg for both cars and trucks by 2025, and is predicted to add $2,000 to the cost of a vehicle. Add to that the $1,000 or so that's going to be added to the price of vehicles as the current fuel economy requirements phase-in between now and 2016, and the $30,000 average price of a new car rises to the point where lower income buyers may not be able to qualify for financing.

If that happens, the net effect would be a reduction in the buyer pool for the more fuel efficient, cleaner cars these fuel economy regulations are intended to create. While the increased fuel efficiency is estimated to save average owners of $8,000 over the life of the vehicle (offsetting the higher monthly payments), if people can't afford the payments or secure lending, the total ownership cost will be a moot point. "Disregarding vehicle affordability will undermine the environmental and national security benefits the administration is seeking," says Doug Greenhaus, chief regulatory counsel for environment, health, and safety for NADA.

The government's 2017-2025 rules aren't yet final, and Grenhaus and NADA suggest the Obama Administration and NHTSA study the impact the rules will have on buyers before moving forward.

NADA: 7 million car buyers to be pushed out of the market by fuel economy rules originally appeared on Autoblog on Fri, 13 Apr 2012 13:45:00 EST. Please see our terms for use of feeds.

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NADA, J.D. Power shack up

Jonathon Ramsey — Thu, 12 Apr 2012 08:01:00 EST

Filed under: Etc.

J.D. Power and Associates created the Power Information Network (PIN) in 1993 to collect and analyze dealer transactions on new and used cars. Power uses the data from more than 10,000 dealerships to "improve business for automotive dealers, manufacturers, lenders, and other companies in the industry." The wider use of consumer data captured at the point-of-sale is what concerns dealers, and it's probably that reasoning which has led to the National Automobile Dealers Association (NADA) partnering with J.D. Power to codify how the information is used and to enhance its application.

It isn't yet spelled out clearly how the tie-up will alter the relationship between dealers and J.D. Power, but it appears to give the NADA a better position in the food chain and flow of customer data, and more protection for dealers and for the data itself. Follow the jump for a press release about the announcement.

Continue reading NADA, J.D. Power shack up

NADA, J.D. Power shack up originally appeared on Autoblog on Thu, 12 Apr 2012 08:01:00 EST. Please see our terms for use of feeds.

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NADA: Dealers most happy with Hyundai, Subaru and Lexus

Jeff Sabatini — Sat, 28 Jan 2012 16:03:00 EST

Filed under: Car Buying, Hyundai, Kia, Lexus, Mercedes-Benz, Subaru

Car dealers have a strange and oftentimes contentious relationship with the carmakers. Stories of automakers shoveling unsaleable models down the pipeline with unreasonable expectations are legion in the car sales world. With the number of family-owned, single-brand dealerships dwindling, dealers often field competing franchises. The concept of loyalty is as quaint as a Lincoln Town Car. So it's worth noting the automotive brands that are actually liked by the guys selling them.

The National Automobile Dealers Association conducts its Dealer Attitude Survey twice each year, and results from the summer survey are in. Hyundai stayed on top for the third time in a row, followed by Subaru, Lexus, Kia, and Mercedes-Benz. The survey measures three factors: "franchise value, automaker policy decisions that affect the dealership and the automaker's field staff who visit dealerships."

Sixth place went to Toyota, while Volkswagen, Porsche, and Audi followed. Cadillac and Honda tied for tenth. NADA received responses from over 14,700 dealerships, representing almost 54 percent of all dealers nationwide.

Click past the jump to read the full press release.

Continue reading NADA: Dealers most happy with Hyundai, Subaru and Lexus

NADA: Dealers most happy with Hyundai, Subaru and Lexus originally appeared on Autoblog on Sat, 28 Jan 2012 16:03:00 EST. Please see our terms for use of feeds.

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Average age of car is record-setting 10.8 years old [w/poll]

Jeff Sabatini — Wed, 18 Jan 2012 13:30:00 EST

Filed under: Car Buying, Etc., Earnings/Financials

Americans are driving their vehicles longer, as the average age of vehicles has nearly hit 11 years, according to a new study by Polk. Blame a wretched economy and more reliable modern automobiles, but cars and trucks continue to stay on the road much longer than they did 15 years ago, when the average age was just 8.4 years.

According to a report in The Detroit News, there are other reasons for the change, including a decline in the number of miles driven last year and improved resistance to rust and corrosion. Regardless of the reason for the record-setting age of our American fleet, the news has the auto industry salivating at the prospect of boom times ahead. The National Automobile Dealers Association is predicting that new vehicle sales this year will hit 13.9 million.

"The economy, unemployment are still going to be stubborn, but there's so much pent-up demand I think the industry is going to have an awesome year," Toyota President and CEO Jim Lentz told the Detroit News.

How old is your ride? We know that Autoblog readers have more cars than the average consumer, so join our poll below by answering how old your daily driver is.

View Poll

Average age of car is record-setting 10.8 years old [w/poll] originally appeared on Autoblog on Wed, 18 Jan 2012 13:30:00 EST. Please see our terms for use of feeds.

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NADA and banks working to curb new federal oversight efforts

Jeff Glucker — Wed, 25 May 2011 17:32:00 EST

Filed under: Car Buying, Government/Legal

In 2010, the Federal Trade Commission received 1,339,265 complaints. According to the National Automobile Dealer's Association, less than one percent of those complaints were related to new or used auto sales. That relatively low number (compared to the 250,854 people who complained of identity theft) has NADA upset over the government's decision to pursue the creation of an automotive lending consumer advocacy agency.

NADA has given its official support to the congressional Republicans who are looking to put the clamps on this new oversight group.

This agency will be formed as part of legislation that seeks to simplify auto loan disclosure forms, and the entire process of borrowing money to obtain a new set of wheels. On the contrary, NADA believes this advocacy agency could lead to financing abuses related to the level of power granted to those in charge.

NADA and banks working to curb new federal oversight efforts originally appeared on Autoblog on Wed, 25 May 2011 17:32:00 EST. Please see our terms for use of feeds.

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NADAguides reveals 2011 "Must Consider" list... do you agree?

Jeff Glucker — Tue, 12 Apr 2011 15:30:00 EST

Filed under: Car Buying

NADAguides presents the cars to consider for 2011 - Click above for high-res image gallery

Consumer vehicle valuation and information website NADAguides has prepared a list of cars you should be looking at in 2011. Called the "Must Consider" list, the analysts at NADAguides have chosen seven vehicles they feel represent the intersection of value, performance, design and fuel efficiency. The vehicles on this list are also reportedly chosen because NADAguides feels the average consumer might not be considering it amongst their new-car candidates.

The Germans, Japanese, Americans, Koreans and even an Italian have a representative vehicle on the list. For 2011, the NADAguides Must Consider list is comprised of the following vehicles:

Per Troy Snyder, NADAguides Director of Product Development:

"Every year our team is excited to announce the NADAguides Must Consider List. The data for these vehicles highlight them as a smart choice for consumers, but the industry buzz or consumer awareness just isn't there for one reason or another. NADAguides recognizes why these vehicles are a great option for consumers and wants to ensure they do not go unnoticed."

The reasoning behind each choice is provided in the full press release waiting after the jump. While the machines themselves are all fine vehicles for consumers to consider, we have to wonder whether or not they were really off the consideration lists for many consumers in the first place... feel free to agree or disagree yourselves in the 'Comments.'

Gallery: NADAguides 2011 Must Consider List

[Source: NADAguides]

Continue reading NADAguides reveals 2011 "Must Consider" list... do you agree?

NADAguides reveals 2011 "Must Consider" list... do you agree? originally appeared on Autoblog on Tue, 12 Apr 2011 15:30:00 EST. Please see our terms for use of feeds.

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Report: Hyundai may be piling on the sales, but dealers aren't piling on the profits

Jeff Glucker — Tue, 22 Mar 2011 16:29:00 EST

Filed under: Car Buying, Hyundai, Earnings/Financials

2011 Hyundai Sonata 2.0T - Click above for high-res image gallery

Hyundai is holding a hot hand with its current lineup. Sales are climbing and perception of the brand is swinging strongly in the right direction. Not everyone is singing just yet, however, because Hyundai dealers are apparently lagging behind the competition in one very important area: profits.

In 2010, the industry-wide average dealer profit was 2.1 percent of total sales. Hyundai has seen its average dealer profit rise over the last few years, but according to Automotive News, it's still below industry average; last year, Hyundai dealers earned 1.9 percent. On the flip-side, Honda dealers enjoy an average profit of nearly three percent of total sales.

One area where dealers see hefty profits is from the service bays and parts sales. Ford and Chevrolet dealerships might see 85 percent of their overhead costs taken care of by the service department. A typical Hyundai dealer may earn enough to handle 40 percent.

Hyundai dealers also have to contend with shortages of their popular models and weak used-car sales. Yet as more folks buy Hyundai vehicles, the dealers will increase the speed at which they catch up with the competition. More vehicles on the road will lead to a rise in trips to the service bay and parts sold. More used current-generation vehicles will help turn around used-car sales. Hyundai dealers know this, and 85 percent of the nearly 800-strong network is operating in the black.

Gallery: 2011 Hyundai Sonata 2.0T: First Drive

Photos copyright (C)2011 Zach Bowman / AOL

[Source: Automotive News - sub. req.]

Report: Hyundai may be piling on the sales, but dealers aren't piling on the profits originally appeared on Autoblog on Tue, 22 Mar 2011 16:29:00 EST. Please see our terms for use of feeds.

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Report: Ford spells out new standards for Lincoln dealers

Chris Shunk — Mon, 07 Feb 2011 16:29:00 EST

Filed under: Car Buying, Ford, Lincoln

Being a Lincoln dealer in the 21st century has been anything but easy, as Ford has been looking to shed its luxury brand dealers the past couple years. Then Blue Oval recently killed off Mercury, a brand Lincoln dealers traditionally used as a feeder program. And perhaps the biggest challenge has been coaxing buyers into the showroom, as the brand's 2010 sales total of just 85,828 units clearly illustrates.

The sledding apparently won't get much easier for 2011 either, as Automotive News reports that Ford has added a few more regulations to be completed by October of this year. Fortunately, at least one of those standards is focused directly towards customers, as each Lincoln dealer will be required to feature owners' privileges perks like a car wash with every service stop and a loaner for when vehicles are being worked on. Ford will also ask each Lincoln dealer to have a dedicated service manager and sales staff. That could be a tough pill to swallow for dealers who have Ford and Lincoln stores on the same site. Lincoln dealers will also be required to ditch all that old Lincoln-Mercury signage and instead feature a Lincoln-only sign featuring the four-pointed star. Lastly, all dealer lots will need to be filled with at least 30-percent certified pre-owned vehicles.

Those demands don't sound all that unreasonable to us, but we're betting Lincoln dealers won't be too pleased with the prospect of spending more money without a lot of new products in the next year or so. Then there is the fact that Ford is reportedly looking to cut another 100 dealers in the top 130 markets in the year ahead. But while dealers likely won't love these changes, there may not be much choice in the matter. Dealers who don't comply with the new rules will reportedly receive smaller discount profit margins.

[Source: Automotive News - sub. req.]

Report: Ford spells out new standards for Lincoln dealers originally appeared on Autoblog on Mon, 07 Feb 2011 16:29:00 EST. Please see our terms for use of feeds.

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Report: Ex 'car czar' Rattner forcasting 14M sales this year

Jeff Glucker — Thu, 27 Jan 2011 08:32:00 EST

Filed under: Car Buying

Steven Ratner, the ex-Car Czar, has a healthy prediction for US automotive sales this year. Ratner believes the magic number will be 14 million for 2011. In 2012, the number will climb to 15 million, per Ratner's estimates. Why the optimism?

Ratner sees shrunken fleets, improved business conditions in Detroit and signs of sustained recovery in the US economy. Prior to ousting Rick Wagoner at General Motors, the automaker would only be able to make a profit in an environment when 16-17 million cars were being sold. Now they have been reworked and profits can be produced from 10-11 million sales per year. Ratner believes that Chrysler is following the same pattern as well.

If Steven Ratner's estimates are true, it would be a strong sign that our economy is heading in the right direction. For what it's worth, the National Automobile Dealer Association analysts are predicting a more conservative climb to just under 13 million units sold in 2011. Who will be correct? Who knows... but if either prediction comes true, we'll be in better shape than we were just a few years ago.

[Source: Ward's Auto | Image: Neilson Barnard/Getty]

Report: Ex 'car czar' Rattner forcasting 14M sales this year originally appeared on Autoblog on Thu, 27 Jan 2011 08:32:00 EST. Please see our terms for use of feeds.

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NADA projects 11.3% rise in auto sales in 2011

Jeff Glucker — Sun, 09 Jan 2011 12:05:00 EST

Filed under: Car Buying, Etc.

The US Auto Industry may be looking at a 2011 filled with sales gains, if NADA's forecasters are correct. The National Automobile Dealer's Association predicts that US auto sales will rise 11.3 percent. That puts total volume just shy of 13 million units.

The reason for the increase? The average age of cars and trucks on the road is approximately 10.3 years. Therefore, the increased sales will be driven by consumer needs rather than desires. Basically, people will have to upgrade their heaps for something shiny and new (and running).

[Source: Automotive News - sub. req. | Image: Kevork Djansezian/Getty]

NADA projects 11.3% rise in auto sales in 2011 originally appeared on Autoblog on Sun, 09 Jan 2011 12:05:00 EST. Please see our terms for use of feeds.

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Report: NADA chairman urges Fed to reconsider fuel rules

Zach Bowman — Fri, 22 Oct 2010 18:30:00 EST

Filed under: Car Buying, Government/Legal

The National Automobile Dealers Association has joined the ranks of those opposed to upping Corporate Average Fuel Economy standards to 60 mpg by 2025. The dealer group says that with fuel prices still low, consumers are more interested in horsepower and style than they are super-efficient vehicles. That means that if the federal government starts mandating ever more efficient vehicles that are significantly costlier to manufacture, dealers are likely to see sales falter as automakers have to elevate MSRPs to keep from losing their shirts. That's the fear of NADA chairman Ed Tonkin and his constituents. Tonkin should know - he himself owns a mutli-brand dealership in Portland.

Of course, Tonkin's argument hinges against further upping CAFE numbers hinges upon fuel prices staying at their current levels -- something that even the most optimistic minds are hesitant to believe. The federal government is expected to unveil its plan for increasing fuel economy standards early next year. So far, word has it that the Obama Administration is looking to impose an average of 35 mpg by 2016 and as much as 60 mpg by 2025.

[Source: The Detroit News | Image: NADA]

Report: NADA chairman urges Fed to reconsider fuel rules originally appeared on Autoblog on Fri, 22 Oct 2010 18:30:00 EST. Please see our terms for use of feeds.

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2011 Dodge Challenger priced on NADA site... big price increases on the way?

Jonathon Ramsey — Mon, 05 Jul 2010 17:44:00 EST

Filed under: Car Buying, Coupe, Performance, Chrysler, Dodge

Chrysler hasn't officially let loose with 2011 Dodge Challenger pricing, but you can build the car at the NADA Guide site and there are prices attached to the various options. It appears to be legit - even though the pictured coupe is a 2010, the new 3.6-liter Pentastar V6 and 6.4-liter Hemi for the SRT8 are listed as available options, though their horsepower ratings are shown as TBD.

Interestingly, if NADA's numbers are accurate, MSRPs have climbed substantially - a couple thousand dollars across the range. A base 2010 Challenger SE with the 3.6-liter V6 presently retails for $23,695, according to NADA, a 2011 needs $2,310 more, coming in at $26,055. The Coupe R/T jumps by $1,910, from $31,610 to $33,520. Get the R/T with the J Package and 20-inch wheels and pay $3,085 more, at $36,500, or go for the R/T Classic and pay $2,460 more than for a 2010, at $37,400. The 2011 SRT8 is $1,921 more, at $45,601. All prices include the $750 destination charge.

When it comes to paint colors, there's even more mixing and matching to do. Redline 3 Pearl, Green With Envy, Billet Metallic and Mango Tango Pearl are variously available (depending on the model you want to configure), and a number of colors on the Dodge site, like Inferno Red Crystal Pearl, aren't available anywhere. But don't take our word for it - Challenger lovers, you know where to unite. Hat tip to Mike!

[Source: NADA Guides]

2011 Dodge Challenger priced on NADA site... big price increases on the way? originally appeared on Autoblog on Mon, 05 Jul 2010 17:44:00 EST. Please see our terms for use of feeds.

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NADA opposes Senate's financial reform bill

Dan Roth — Thu, 24 Jun 2010 18:32:00 EST

Filed under: Car Buying, Etc., Government/Legal

Congress is working on reforming financial oversight in the wake of the sub-prime mortgage meltdown, and if the House and Senate come together on a compromise bill, a new Bureau of Consumer Financial Protection will be created. The House's bill exempted auto dealers from more strict lending scrutiny. As currently written, the Senate's bill includes the 18,000 new car dealers in the United States under its umbrella. There is a non-binding resolution that urges adoption of the House car dealer exemption, and dealers suggest they're already regulated plenty.

As a source of financing, auto dealers work like any other lender, including some scams and shady practices that put people into situations they can't afford or insert hidden fees into fine print. Despite the National Association of Auto Dealers protests that auto dealers are already well-regulated, anyone who's fallen prey to these exploitative lending practices would beg to differ. The fight is not resolved, with Senator Sam Brownback of Kansas arguing on behalf of car dealers on Main Street, and the White House arguing on behalf of consumers. Debate is ongoing, but a vote is expected soon.

[Source: The Detroit News]

NADA opposes Senate's financial reform bill originally appeared on Autoblog on Thu, 24 Jun 2010 18:32:00 EST. Please see our terms for use of feeds.

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NADA criticizes Obama over president's praise for GM dealer reinstatements?

Chris Shunk — Mon, 05 Apr 2010 09:01:00 EST

Filed under: Government/Legal, GM

One of the most contentious aspects of General Motors' 2009 bankruptcy was the forced closing of 1,160 dealerships across the country. GM brass and the Obama Administration Task Force insisted that a smaller dealer body was necessary to make the Detroit, MI-based automaker viable again, while also helping to make the remaining dealers stronger. Opponents of dealer closings pointed to the thousands of dealership employees who would lose a job at a time when jobs are harder than ever to find. Dealers are also often among the most powerful small business owners in small towns, and that meant that the local congressmen were put in a tough spot, indeed.

Congress was able to appease its constituencies to a point by pushing through legislation that gave dealers a second chance at life. Ultimately, it looks like 661 GM dealers have been given a new lease on life after going through the arbitration process, which, it seems, would make the National Automotive Dealers Association mighty happy, but The Detroit News reports that recent comments from President Obama have NADA spokesperson Bailey Wood hopping mad.

The President reportedly gave The General a pat on the back for reinstating the 661 dealers, adding "a year later, GM is hiring again, on the verge of reopening hundreds of dealerships." President Obama brought up the dealer reinstatement in part to show that the U.S. government's $50 billion loan was the right thing to do. But Wood was upset that President Obama would bring up the dealers after the administration spearheaded the effort to cut dealers in the first place. Even as the legislation that led to the arbitration process was taking hold, the administration was reportedly against the bill.

Does NADA have good reason to be upset over President Obama's comments? Maybe, but we're thinking the dealers NADA represents would have been in much worse shape had the administration not stepped in and bailed out GM in the first place. It's hard to sell cars when no one's making 'em.

[Source: The Detroit News | Image: Mark Wilson/Getty]

NADA criticizes Obama over president's praise for GM dealer reinstatements? originally appeared on Autoblog on Mon, 05 Apr 2010 09:01:00 EST. Please see our terms for use of feeds.

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LA 2009: 2010 Kia Forte and Forte Koup crowned NADAguides.com COTY

Frank Filipponio — Fri, 04 Dec 2009 10:59:00 EST

Filed under: LA Auto Show, Coupe, Budget, Sedan, Etc., Kia

2010 Kia Forte - Click above for high-res image gallery

With a brief press release and a trophy handoff at the LA Auto Show, car pricing authority NADAguides.com has heaped the first of what we could be many accolades upon the stylish and affordable 2010 Kia Forte and Kia Forte Koup by naming the duo their Car of the Year for 2009. Citing the pair's "best in class" features and stylish interior and exterior design, the group said these Kia compacts were standout vehicles in a pretty impressive field. Other contenders for the crown included such significant and praiseworthy vehicles as the Ford Fusion Hybrid, Mercedes-Benz E350 and Nissan 370Z Roadster.

In our own review of the Kia Forte, we praised its styling, build, layout and performance, and especially its budget-minded pricing, so we see where NADA is coming from. Sometimes, we have to scratch our heads a bit when one of these sorts of awards are announced, but in this case, we certainly think the cars are deserving.

Gallery: Review: 2010 Kia Forte SX

[Source: NADAguides.com]

Continue reading LA 2009: 2010 Kia Forte and Forte Koup crowned NADAguides.com COTY

LA 2009: 2010 Kia Forte and Forte Koup crowned NADAguides.com COTY originally appeared on Autoblog on Fri, 04 Dec 2009 10:59:00 EST. Please see our terms for use of feeds.

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Long-Term Thinking: "Cost to Own" mindset grabs hold?

Sebastian Blanco — Sat, 21 Nov 2009 10:51:00 EST

2011 Chevy Volt - Click above for high-res image gallery

So many things are changing in the new automotive reality, it's hard to know where to start. Everything from the kind of hose we connect to our cars (liquid filled? electric?) to the sounds the vehicles make is different now than it used to be. What else needs to change? How about how we think about the costs to own and operate a car.

Naturally, it's always been possible to estimate this cost, but NADAguides.com has just released a "Cost To Own" calculator for new cars, so you can factor in fuel prices in your region into the cost of the car. It's entirely useful. For example, to own a 2010 Prius in Michigan for five years will cost an estimated $33,232. On top of the cost of the car, NADA tells us that the car's depreciation will make up 39 percent of the ownership costs, while fuel equals just 12 percent. A pie chart of the cost breakdown is pictured at right.

On a similar thread, Edmunds recommends a shift away from MPG and towards a cost-of-energy window sticker on a new car. With all of those electric plugs being added to cars, MPG is becoming less valuable and relevant to our understanding how much it costs to get around. Two quick examples: per month, Edmunds estimates it'll cost $53.55 to drive the forthcoming Chevrolet Volt, but $66.78 to operate a Prius. Check out their chart here, and remember that according to a recent study, more efficient vehicles can (and often do) cost less.

[Source: NADAguides.com, Edmunds]

Continue reading Long-Term Thinking: "Cost to Own" mindset grabs hold?

Long-Term Thinking: "Cost to Own" mindset grabs hold? originally appeared on Autoblog on Sat, 21 Nov 2009 10:51:00 EST. Please see our terms for use of feeds.

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