Light Vehicle Sales and the U.S. Economy John Thomas, Industry Analyst National Automobile Dealers Association McLean, VA August 2005

Status of the Retail Automotive Industry At almost a trillion dollars per year, the auto retailing business is the largest retail business in the U.S. New car dealers account for over 714 billion dollars. Over twenty percent of total retail sales in the U.S are generated at new car dealerships. There are almost 22,000 new-car dealerships in the U.S. New-car dealerships provide over 1.1 million jobs. New light vehicle sales have enjoyed the six best years in history, is on track to make it seven. 3

U.S. Light-Vehicle Sales YTD Dec 2004 and YTD July 2005 Source: Wards Automotive 4

Percentage Change in U.S. Sales New Light-Vehicle Sales by Manufacturer YTD Dec 2004 & YTD Jul 2005 Source: Wards Automotive 5

Large Cars and CUVs Lead Sales Growth in 2005 YTD Dec 2004 & YTD Jul 2005 Source: Wards Automotive 6

Source: R.L.Polk,NADA Industry Analysis Hybrid Vehicle registrations: 83,153 Units in Projected

Average monthly Customer Incentives Source: Autodata 8

Source: R.L. Polk Median Vehicle Age 9

Source: Nationwide Personal Transportation Survey, NADA Industry Analysis Vehicles per Household Up 10

Source: National Transportation Statistics, NADA Industry Analysis Average Miles Traveled per Passenger Vehicle 11

Number of Dealerships Modest, Orderly Consolidation Since 1970 Source: NADA Industry Analysis Recession 12

The Conference Boards Consumer Confidence Index Source: Conference Board Gulf WarIraq War 13

NADA Dealer Optimism Index Remains at Relatively Strong Levels Source: NADA Industry Analysis 14

China Vehicle Production Source: Wards Automotive 15

Brazil Vehicle Production Source: Wards Automotive 16

Brazil Vehicle Production, Sales & Exports Source: Wards Automotive 17

Light Vehicle Sales YTD May 2005 Source: Wards Automotive 18

NADAs 2006 Convention and Exposition Orlando, Florida Feb The largest exposition of its kind-exclusive, spacious and convenient One out of three automobile dealers will attend, most bring key members of their staff. All major automotive manufacturers are represented. Innovative, resourceful workshops that tackle tough issues of the day. Network with peers to develop friendships and find solutions. 19