For optimal viewing through your web browser or PDA, click here.

SPONSORED BY
 
NADA.org
Monday, Jan. 31, 2011 RSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training
Top 5 Stories
Dealers Say U.S. May Curb Auto Loans, Hurt Rebound
U.S. Auto Sales May Reach Second-Fastest Rate in 17 Months
Chrysler Posts 4th-Quarter Operating Profit of $198M
Ford's NADA Challenge: Win Over Lincoln Dealers
Scam Alert: Bogus Website and Fake Survey Have No Connection to NADA
Top 5 Stories
Dealers Say U.S. May Curb Auto Loans, Hurt Rebound

U.S. auto dealers say a new government regulator may crack down on loans, including those to consumers with poor credit, a move that might slow the industry's recovery. Dealers, who were exempted from direct regulation under Dodd-Frank, "do have concerns" they could be regulated anyway through the bureau's authority over auto-finance contracts, said Andy Koblenz, vice president for legal and regulatory affairs at the National Automobile Dealers Association. "We're not sitting here with any notion of exactly how they are going to exercise the authority," Koblenz said in an interview near the trade group's McLean, Virginia, office. Koblenz called the Center for Responsible Lending's assertion that dealers make $20 billion a year on loan markups a "myth" because the calculation is based on rates consumer cannot get. The NADA, which represents about 16,000 new car and truck dealers, argues consumers would have a more difficult time getting loans directly from banks. "Our ultimate goal is to ensure the broad availability of consumer credit to the largest universe of buyers at rates that are appropriate to their circumstance," he said.
Source: Bloomberg Government (Subscription required)

Editor's note: The new Bureau of Consumer Financial Protection will have direct federal oversight over all auto loans. All banks, finance companies, credit unions and dealerships that directly underwrite, fund and service auto loans will be regulated by the bureau. In the final Dodd-Frank compromise, dealers' indirect retail financing activity will remain under the jurisdiction of the Federal Trade Commission, the Federal Reserve Board and state consumer protection agencies, a system that allows millions of car buyers to conveniently and affordably finance new-vehicle purchases.

[back to top]

U.S. Auto Sales May Reach Second-Fastest Rate in 17 Months

U.S. automobile sales in January may have reached the second-fastest pace in 17 months, aided by rising business spending and consumer confidence. January vehicle deliveries, to be released tomorrow, may have run at a 12.4 million annual rate, the average of six analysts’ estimates compiled by Bloomberg. The seasonally adjusted rate in December was 12.6 million, the fastest since the government’s “cash for clunkers” program in August 2009. U.S. consumer confidence rose more than forecast in January to the highest in eight months, the Conference Board reported last week, while the Thomson Reuters/University of Michigan final index of consumer sentiment fell less than analysts estimated. Analysts at Deutsche Bank AG and J.D. Power & Associates this month raised their estimates for 2011 light-vehicle sales after auto demand topped expectations in the fourth quarter. “There was such a strong close in December, and we aren’t expecting an equally strong payback,” said Jeff Schuster, the director of forecasting at J.D. Power who raised his full-year sales estimate to 13 million from 12.8 million. “That sets the year up for a good start.”
Source: Bloomberg

[back to top]

Chrysler Posts 4th-Quarter Operating Profit of $198M

Automaker sees ‘11 net profits as high as $500M

DETROIT - Just a year and a half after emerging from its government-sponsored bankruptcy, Chrysler Group posted an operating profit of $198 million for the fourth quarter and $763 million for the full year. The automaker – helped by new and redesigned models, as well as higher industry sales forecast for the U.S. market – also said it expects to generate net profits of $200 million to $500 million this year on revenues of $55 billion.That compares to a net loss of $652 million last year, tied to interest payments on its U.S. rescue loans, on revenues of $41.9 billion. Chrysler posted a net loss for the fourth quarter of $199 million. Chrysler said U.S. dealer inventories increased from 231,000 at the end of the third quarter to 236,000 at the end of the fourth.
Source: Automotive News

[back to top]

Ford's NADA Challenge: Win Over Lincoln Dealers

Last week, Ford Motor Co. reported its best profits in more than a decade and a sharp drop in its debt load, adding credence to the automaker's recovery. Ford's next challenge: Convince Lincoln dealers during a Feb. 6 make meeting at the National Automobile Dealers Association convention that the brand can be rebuilt. "NADA for us -- for Lincoln -- is absolutely a critical milestone," Jim Farley, Ford's group vice president of global marketing, sales and service, told Automotive News. "My experience is that if you cannot show concretely that you have to spend x amount of resources and you get this out of it in terms of volume, margin and profit, they'll never invest, no matter how much credibility we have," Farley said. The Lincoln make meeting is just one of the events that will draw dealers from across the country and the world to San Francisco for the NADA convention, which starts Saturday, Feb. 5, and continues through Monday.
Source: Automotive News

[back to top]

Scam Alert: Bogus Website and Fake Survey Have No Connection to NADA

NADA's legal affairs department is investigating an email, Web site and survey that falsely claim to have a connection to NADA. Dealers and others may have received email messages from "NADA Dealer Services" (nadanews@nadadealerservices.com) referring to an "AdTrack" survey described as an "NADA program" that rates automotive direct mail companies. NADA did not conduct such a survey. NADA does not have an "AdTrack" program. NADA’s legal affairs department will take necessary action to stop these misrepresentations.
Source: NADA Legal Affairs

[back to top]

 
Quotable
 
"Our ultimate goal is to ensure the broad availability of consumer credit to the largest universe of buyers at rates that are appropriate to their circumstance."

    -- Andy Koblenz, NADA vice president for legal and regulatory affairs, in response to concerns that a new government regulator could unduly regulate retail auto financing, a move that could slow the industry's recovery, Bloomberg Government, Jan. 28

Video Highlights
 

90 Seconds with Fiat's Laura Soave (Automotive News)
Soave will be a featured speaker at NADA's Women Dealers' Breakfast Feb. 5 in San Francisco.


NADA Charitable Foundation Provides Canine Companion (NADA-TV)


What UNICAP Victory Means to Dealers (NADA-TV)

NADA Convention
 



 NADA Guide Book


Providing the most reliable
and most comprehensive
used-vehicle values since 1933


PC Purchase Program

 

Learn more about discounts on PCs, printers and servers at NADA's PC Purchase Program site (member log in required).

 
Search Back Issues | Unsubscribe | Subscribe | Manage your subscription | email us
NADA For more information on NADA, visit www.nada.org or contact NADA, 8400 Westpark Drive, McLean, VA 22102. This email may contain an advertisement of NADA products and services. Any opinions or statements contained herein do not necessarily reflect the views of NADA. Factual errors are the responsibility of the listed publication. If you are a franchised new-car or -truck dealer and would like to become a member of NADA, please visit the Join NADA section of www.nada.org. Questions or comments concerning NADA Headlines content may be directed to media@nada.org.