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Top 5 Stories
FTC Finds Broad Compliance Among Auto Dealers with Rule that Protects Consumers with Car Loans
Nissan Says Quake-Damaged Plant Restored
Honda Working to Quicken Return to Normal Operations
Recovery from Tornado Onslaught Will be Long, Expensive
Opinion: Store Profits Rise, Small Thanks to GM, Chrysler Cuts
Top 5 Stories
FTC Finds Broad Compliance Among Auto Dealers with Rule that Protects Consumers with Car Loans

As part of its ongoing efforts to ensure that auto dealers’ financing practices comply with federal consumer protection laws, the Federal Trade Commission has completed investigations of nearly 50 automobile dealers across the country to assess their compliance with the FTC’s Rule Concerning Preservation of Consumers’ Claims and Defenses, more commonly known as the “Holder in Due Course” Rule. The FTC’s investigations found broad compliance with the Rule among auto dealers. The Holder in Due Course Rule protects car buyers when dealers sell the buyers’ credit contracts to other lenders. Specifically, the Rule preserves consumers’ rights to raise claims and defenses against purchasers of consumer credit contracts – with automobile sales, it protects consumers who buy cars from dealers on credit. In November 2010, the FTC staff asked nearly 50 franchised and independent auto dealers in 45 states, and two large online automobile dealers, for copies of consumer credit contacts executed after October 1, 2009. FTC staff’s review of these contracts found broad compliance with the Holder in Due Course Rule.
Source: FTC news release

Editor's note: The FTC's finding that randomly selected dealers throughout the country are routinely complying with the FTC Holder Rule is consistent with a similar finding the FTC announced in 2004 after it conducted a nationwide sweep of automobile dealer compliance with the FTC Safeguards Rule. The results of both investigations highlight a salient point that NADA made in recent comments to the FTC in connection with the vehicle financing roundtables that the agency is conducting; namely that in recent years there has been "a significant push within the industry to frequently and thoroughly train dealership employees on ethics, regulatory compliance, and the value of transparency and professionalism." This underscores why the FTC's current examination into dealer-assisted financing needs to reflect today's marketplace and the positive efforts dealers have made to develop a vehicle financing process that is fair, efficient, and competitive.

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Nissan Says Quake-Damaged Plant Restored

IWAKI, Japan—Nissan Motor Co. repaired production lines at its most earthquake-damaged plant in northeastern Japan a few weeks ahead of schedule, and will be able to resume full output there once parts supplies get back to normal, the auto maker's chief executive, Carlos Ghosn, said Tuesday. The repair of the engine plant in Iwaki, Fukushima prefecture, means that all of Nissan's domestic vehicle assembly and engine factories are back online after the March 11 quake and tsunami, but lingering problems in the parts supply chain means it won't be able to resume full production in Japan and overseas until October.
Source: The Wall Street Journal

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Honda Working to Quicken Return to Normal Operations

TOKYO -- Honda Motor Co. expects to recover from the March 11 earthquake earlier than expected and return to normal production before the end of the year. Honda plans to prioritize U.S. and China markets to supply parts, Chief Financial Officer Fumihiko Ike told reporters in Tokyo today. Honda has said it expects its global output to return to normal by the end of the year.
Source: Bloomberg

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Recovery from Tornado Onslaught Will be Long, Expensive

TUSCALOOSA, Ala. -- Among the auto dealers in the South in the path of the tornadoes on April 27, Jack Leigh got off easy. His Leigh Mercedes-Benz in Tuscaloosa, Ala., received not even a paint scratch from the storms that killed 350 people and battered communities in eight states in a single day. But Leigh faces a lingering catastrophe. His city is in ruins. This is not an auto industry disaster. It is a human crisis, a community disaster. But for a second-generation auto retailer like Leigh, 61, a former director of the National Automobile Dealers Association who just spent $1 million renovating his store, those words -- "auto industry" and "community" -- are linked.
Source: Automotive News

Editor's note: The National Automobile Dealers Charitable Foundation has mobilized its Emergency Relief Fund to aid dealership employees recovering from the tornadoes that devastated parts of Iowa and Alabama. Already, six people have received grants from the foundation to help them get back on their feet after losing their homes and most of their possessions. And the foundation continues to seek donations to help more dealership employees in the South, as the need for aid rises. To make a donation to the Emergency Relief Fund, click here to download a contribution form. To contact the foundation, call (703) 821-7233 or e-mail foundation@nada.org.

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Opinion: Store Profits Rise, Small Thanks to GM, Chrysler Cuts

Source: Automotive News

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Dealer Executive Education at Babson College August 2011 Class Forming Now
Babson College has the nation's No. 1 ranked MBA program for entrepreneurship, a distinction it has earned for 17 consecutive years.

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NADAFrontPage.com
For comprehensive auto industry news, visit the online news magazine NADAFrontPage.com.
Quotable
"You wake up every morning assuming today will be just like every other day. And then one day it's not. A disaster comes along and changes everything."

    -- Jack Leigh, Tuscaloosa, Ala., dealer and former NADA director, who says his community "is really pulling together" after the tornadoes on April 27 that killed 350 people, Automotive News, May 16

Video Highlights
 
GM Sales Chief Discusses Progress, Challenges Ahead (AutoFocus) 

 
2011 NADA-IHS Auto Forum Offers Insiders' View of Present, Future (NADA-TV)

 
Analyst Says Gas Prices Affecting Small, Midsize Used Markets (AutoFocus)


NAD Charitable Foundation Supports Wounded Veterans Initiative (NADA-TV)

Tornado Relief


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