New-car traffic increased 3 percent month-over-month but dropped 23 percent year-over-year. The steep year-over-year decline in traffic was largely due to the Cash for Clunkers program in July and August of 2009. Domestic brands stayed steady while luxury brands saw a 7 percent increase month-over-month, although year-over-year shopper activity has dropped by 16 percent for domestic brands and 7 percent for luxury brands. Luxury brands did not experience the drastic year-over-year decrease experienced by the non-luxury brands due to their ineligibility to participate in Cash for Clunkers. Import and non-luxury brands saw a 4 percent and 2 percent increase (respectively) over last month; however, year-over-year both import and non-luxury brands saw a decrease in shopper activity of 25 and 26 percent, respectively. All the major segments were down year-over-year. Hybrids experienced the greatest decline with a 49 percent decrease. However, month-over-month shopper activity remained steady across all segments with the exception of minivans/vans, down 3 percent month-over-month. Kia and Saab made the most notable gains among brands tracked...

For the full report, please visit: http://mediaroom.kbb.com/market-watch-highlights

**Top News**

U.S. highway deaths drop to 60-year low

http://www.autonews.com/apps/pbcs.dll/article?AID=/20100909/OEM/100909885/1143

U.S. traffic fatalities fall to lowest level in 60 years

http://www.detnews.com/article/20100910/AUTO01/9100393/1148/U.S.-traffic-fatalities-fall-to-lowest-level-in-60-years

Traffic deaths lowest since 1950

http://money.cnn.com/2010/09/09/autos/nhtsa_traffic_deaths/index.htm

Traffic deaths at lowest in 60 years

http://www.usatoday.com/money/autos/2010-09-09-1Aroaddeaths09_ST_N.htm

Highway deaths hit lowest level since 1950

http://www.freep.com/article/20100910/BUSINESS01/9100333/1210/business01/Highway-deaths-hit-lowest-level-since-1950

**KBB Commentary on Top News**

Controlled Chaos

NHTSA's announcement that the number of highway deaths in 2009 was the lowest recorded in 60 years is excellent news. They credit tougher drunk driving policy and active enforcement, as well as an ongoing "Buckle Up" campaign that has helped to make seatbelt use as common as turning on the car's radio. Both issues have a direct and proven relationship with the frequency and severity of automobile accidents, and we applaud and support zero-tolerance toward drivers who ignore these facts.

However, we join other safety groups with concern over deeper use of communication devices and entertainment interfaces while driving. At highway speeds, frequent glances away from the road quickly translate into thousands of "out of control" miles when extrapolated onto the millions and millions of drivers on the road at any given time. Today's youth expect to be in constant contact thanks to smartphones and social media networks they have grown up knowing, loving and using. Further, this large generation is joining the ranks of America's drivers at an alarming rate of nearly 1,000 per day. Proof of their impact and anticipated buying power already is being felt with rapidly developing in-car services such as Ford's SYNC, Kia's UVO, BMW's Assist and GM's OnStar, which just this week foreshadowed its ability to connect with Facebook while driving. Research firm CSM Worldwide recently predicted that 45 percent of all cars sold in North America by 2016 will have the ability to connect to the Internet. We feel that if NHTSA wants to continue this winning streak and further reduce the threat of death on U.S. highways, this next generation of drivers and their communication habits will need to be addressed and strictly regulated.

- James Bell, executive market analyst, Kelley Blue Book’s kbb.com

**OEM/Vehicle News**

Global auto industry outlook dims as U.S., China markets slow

http://www.bloomberg.com/news/2010-09-09/carmakers-replace-subsidies-with-incentives-as-outlook-state-support-fade.html

Ghosn: ‘No hesitation’ in declining GM CEO offer

http://www.autonews.com/apps/pbcs.dll/article?AID=/20100910/OEM/100909880/1179

Ford summons dealers to discuss Lincoln’s future

http://www.autonews.com/article/20100909/RETAIL07/309099968/1256

Lincoln dealers invited to meeting

http://www.freep.com/article/20100910/BUSINESS01/9100337/1331/Business01/Lincoln-dealers-invited-to-meeting

Ford to roll back lineup revisions

http://www.detnews.com/article/20100910/AUTO01/9100332/1148/auto01/Ford-to-roll-back-lineup-revisions