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2. 2 Headlines 2008 1

3. 3 Headlines 2009 2

4. 4 U.S. Automotive Industry Economic Impact $576 billion in retail sales in 2008 $576 billion in retail sales in 2008 More than 14% of total retail sales are generated at new-vehicle dealerships More than 14% of total retail sales are generated at new-vehicle dealerships 18,943 new-vehicle dealerships in U.S. 18,943 new-vehicle dealerships in U.S. Over 1 million jobs at new-vehicle dealerships Over 1 million jobs at new-vehicle dealerships 3

5. 5 Number of Franchised New-Car Dealerships (Reduction from 50,000 in 1950) Source: NADA Industry Analysis Recession 1990-92 Recession 2007 Recession 1980-82 Recession 2001 4

6. 6 Source: NADA Industry Analysis 13.2 Million Light Vehicles sold in 2008 (Truck/SUV accounted for 48% of Sales) Forecast for 2009 is 10.1-10.4 million 15.1 16.9 15.5 17.117.4 16.6 16.8 16.9 16.8 16.1 16.5 13.2 5

7. 7 CUV’s and Small Cars Sell Down during Clunker Program Source: Ward’s Automotive 6

8. 8 Source: R.L. Polk, Ward’s Automotive Sales of Hybrids were 315,688 in 2008 7

9. Total Dealership Advertising Expenditures Source: NADA Industry Analysis 8

10. Dealership Advertising Expenditures Per New Light Vehicle Sold Source: NADA Industry Analysis 9

11. 11 Television 16.6% Direct mail 10.2% Newspaper 52% Newspaper 23.2% Other 15.1% Other 16.6% 1998 2008 Advertising Expenditures at New Car Franchised Dealers Radio 15.3% Television 18.8% Radio 15.2% Internet 17.2% Source: NADA Industry Analysis 10

12. 12 Percentage Internet Advertising as a percentage of Total Advertising Expenditures Source: NADA Industry Analysis 11

13. 13 National “Buy Now” PSA campaign Most extensive public advertising campaign in NADA history Most extensive public advertising campaign in NADA history Extraordinary support from media Extraordinary support from media Ads are running: Ads are running: In nearly 350 marketsIn nearly 350 markets On 343 TV stations or cable systemsOn 343 TV stations or cable systems On 189 radio stations or groupsOn 189 radio stations or groups In 172 newspapers or publishing groupsIn 172 newspapers or publishing groups 12

14. 14 U.S. Auto Industry 2009  Industry has declined to 10.1-10.4 million units, but outlook is better for 2010: 12 million units  Dealer network continues to downsize as GM, Chrysler restructure  “Cash for clunkers:” 700,000 vehicles sold 13

15. 15 Advertising Outlook, 2009 and Beyond  Expect advertising spending to increase with new- vehicle sales in 2010.  Expect even higher rates of ad spending by 2012, lifted by new-vehicle sales reaching 15 million units for total advertising spending of well over $7 billion.  Larger dealerships use more TV, and industry consolidation will drive relatively higher TV use.  2009 advertising spending has dropped 19.5 percent as of mid-year (June), but ad spending during Clunkers period will reduce this rate of decline slightly. 14

16. 16 “Cash for Clunkers” Top Sold: 1.Toyota Corolla 2.Honda Civic 3.Toyota Camry 4.Ford Focus 5.Hyundai Elantra Top Traded: 1.Ford Explorer 4WD 2.Ford F-150 Pickup 3.Jeep Grand Cherokee 4.Ford Explorer 2WD 5.Dodge Caravan Source: Department of Transportation 15

17. 17 Clunkers Impact in August: August vs. Year-to-Date Share Share of U.S. New Light Vehicle Market Source: Ward’s Automotive 16

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