SANTA BARBARA, Calif.,
April 11, 2011 /PRNewswire/ -- The
recent Japan disaster could result
in a nearly 10 percent jump in new vehicle pricing for some key
models, among other effects to the automotive industry, according
to a just-released report by ALG, a subsidiary of DealerTrack
Holdings, Inc. (Nasdaq: TRAK) and the industry benchmark for
residual values and depreciation data.
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With the disaster causing suspensions in operations for a
majority of Japanese vehicle production facilities, dramatic
disruptions to supply chains and damage to manufacturers'
fully-assembled vehicle inventory in the region, the ALG report
analyzes the impact on new vehicle transaction prices, current new
and future used vehicle supply, and residual values. The ALG
analysis reveals that while a short 20-day interruption may have
little or no impact, longer interruptions equating up to 100 days
of vehicle production could cause an eight-to-nine percent increase
in vehicle pricing on some models and a 0.2 to 0.7 percent increase
in 36-month residual values as a result of changes in future used
supply.
"With the eyes of the world focused on recovery efforts in
Japan, ALG is carefully measuring
the impact this disaster may have on future residual values and
current market pricing," said Eric
Lyman, director, Residual Value Solutions, ALG. "Based
on current available data and OEM plans, we believe there will be
minimal long term impact, and a short term spike in new car pricing
on some models manufactured or sourced from Japan. However, further complications and
supply shortages could have a slight positive impact on residual
values," added Lyman.
In a recently released report that focuses on a handful of key
affected models, ALG predicts that a 20-day production delay will
cause new transaction prices to rise by approximately 1.5 percent
on average, except for the Honda Accord. The impact to the
Accord is mitigated by the fact that a large share of its
production occurs in the U.S. If Japanese manufacturing
interruptions caused by plant shutdowns, supply chain
shortages and energy supply issues equate to roughly 100 days of
production disruption, ALG forecasts a 0.7 percent increase in
36-month residuals for the entire Entry Compact segment. This
is mainly driven by a reduction in supply of vehicles currently
only produced in Japan; for
example, the Honda Fit and the Toyota Yaris.
For the complete ALG Japan Crisis Report, visit:
http://www.alg.com/pdf/whitepaper_japan_crisis.pdf
About ALG (www.alg.com)
Based in Santa Barbara,
California, ALG is a leading provider of data and consulting
services to the automotive industry. ALG publishes the
"Automotive Lease Guide" – the standard for residual value
projections in North America, and
has been forecasting automotive residual values for over 45 years
in both the U.S. and Canadian markets. ALG is a company of
DealerTrack Holdings, Inc. (Nasdaq: TRAK).
About DealerTrack
(www.dealertrack.com/)
DealerTrack's intuitive and high-value software solutions and
services enhance efficiency and profitability for all major
segments of the retail automotive industry, including dealers,
lenders, OEMs, agents and aftermarket providers. The Company,
whose solution set for dealers is the industry's most
comprehensive, operates the largest online credit application
network in the United States,
connecting approximately 17,000 dealers with more than 1,000
lenders. DealerTrack's Dealer Management System (DMS) provides
dealers with easy-to-use tools and real-time data access to enhance
their efficiency, while DealerTrack AAX delivers the inventory
management tools and services needed to accelerate used-vehicle
turn rate and help increase profits for dealers. The
Company's Sales and F&I solutions allow dealers to streamline
the entire sales process as they structure deals from a single
integrated platform, while also giving dealerships the ability to
leverage vehicle registration and titling services through
DealerTrack. Its Compliance Solution helps dealers meet legal
and regulatory requirements and protect their assets. For lenders,
DealerTrack's Processing Solutions offers services including
titling, collateral management, and digital document services.
DealerTrack's family of companies also includes data and consulting
service providers ALG and Chrome Systems. For more information,
visit www.dealertrack.com.
Safe Harbor for Forward-Looking and Cautionary
Statements
Statements in this press release regarding the effects of the
recent disaster in Japan on the
automotive industry and ALG forecasts are forward-looking
statements (as defined in the Private Securities Litigation Reform
Act of 1995). These statements involve a number of risks,
uncertainties and other factors that could cause actual results,
performance or achievements of DealerTrack to be materially
different from any future results, performance or achievements
expressed or implied by these forward-looking statements.
Factors that might cause such a difference include the extent of
the impact of the recent disaster on the automotive industry and
other risks listed in our reports filed with the Securities and
Exchange Commission (SEC), including our Annual Report on Form 10-K
for the year ended December 31, 2010.
These filings can be found on DealerTrack's website at
www.dealertrack.com and the SEC's website at www.sec.gov.
Forward-looking statements included herein speak only as of the
date hereof and DealerTrack disclaims any obligation to revise or
update such statements to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events or
circumstances.
TRAK-G
SOURCE DealerTrack Holdings, Inc.