Automotive Sales Outlook Paul Taylor, NADA Chief Economist National Automobile Dealers Association TVB Annual Conference March 27, 2008

U.S. Retail New & Used Unit Sales New Used - Retail 2006 = 11.5 million units ( Used at Retail ) 2007 = 11.4 million units ( Used at Retail ) Source: Ward’s Automotive, NADA Industry Analysis 2

Crossovers: Only Segment with Strong Growth in 2007 Small Car Sales Up 0.7 Percent in 2007 Crossovers: Only Segment with Strong Growth in 2007 Small Car Sales Up 0.7 Percent in 2007 Source: Ward’s Automotive 3

Crossovers and Small Cars: Growth in Sales, Year-to-Date February, 2008 Crossovers and Small Cars: Growth in Sales, Year-to-Date February, 2008 Source: Ward’s Automotive 4

U.S. Retail New SUV & CUV Sales Crossovers are Only Sales Segment with Double Digit Growth CUV (Unibody construction) SUV (Truck-based, Body-0n-Frame) Source: Ward’s Automotive 5

Total Dealership Advertising Expenditures Source : NADA Industry Analysis

Dealership Advertising Expenditures Per New Light Vehicle Sold Source : NADA Industry Analysis

Franchised New Car Dealers 2007 Advertising Outlays by Media Source : NADA Industry Analysis

9 Percentage Internet Advertising as a percentage of Total Advertising Expenditures Source : NADA Industry Analysis

Television 15.7% Direct mail 10.2% Newspaper 52% Newspaper 26.7% Other 12.2% Other 14.5% Advertising Expenditures at New Car Franchised Dealers 10 Radio 16.9% Television 17.4% Radio 17.8% Internet 16.6% Source : NADA Industry Analysis

Paul Taylor, NADA Chief Economist National Automobile Dealers Association 11