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Monday, July 11, 2011 RSSSEND TO A FRIENDPRINT
Top 5 Stories
Federal Agencies Release Final Credit Score Disclosures Rules
Asian Car Makers Cry Foul on Gas Rules
Some Dealers Battle Ford Over Mercury Termination Settlements
Lexus Dealers to be Stocked with RX Models by December
Hatchbacks Are Making a Comeback
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Top 5 Stories
Federal Agencies Release Final Credit Score Disclosures Rules

The Federal Reserve Board (FRB) on July 6 released its long-awaited final modifications to its model adverse action notice forms to incorporate new credit score disclosures that apply to creditors who use a credit score in taking adverse action. Also on July 6, the FRB and the Federal Trade Commission (FTC) released their joint final amendments to the Risk-Based Pricing Rule (RBPR) to incorporate new credit score disclosures that must be included in Risk-Based Pricing Notices. (Note, however, that the changes to the RBPR do not affect dealers who issue Credit Score Disclosure Exception Notices in lieu of Risk-Based Pricing Notices.) The new disclosures, which are mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, take effect July 21, 2011, and thus must be included in dealers’ adverse action notices beginning on that date. NADA University will soon post at www.nadauniversity.com revisions to A Dealer Guide to Adverse Action Notices that explain and provide the FRB’s new model adverse action notice forms to accommodate these new disclosures.

Note that the FRB and the FTC generally stated in the final rule that dealers who do not obtain credit reports may nevertheless be deemed to use credit reports for the purposes of the RBPR if they forward a credit application to a finance source that uses a credit report as part of its underwriting process. Consequently, the agencies have formally determined that dealers who meet these requirements must comply with the RBPR, even though they never order or review credit reports. Although not entirely clear, the FRB appears to take the same approach regarding whether dealers who do not order credit scores nevertheless use credit scores in taking adverse action. Therefore, such dealers should discuss with their counsel whether, beginning July 21, they should order credit scores so they can provide the new disclosures in their adverse action notices.
Source: NADA Regulatory Affairs

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Asian Car Makers Cry Foul on Gas Rules

Timing differences of proposed fuel-economy standards for large trucks could give Detroit an edge

As the Obama administration pushes for a deal in the next few weeks with auto makers over fuel-economy standards that would roughly double existing mileage requirements, the treatment of large trucks is pitting Detroit auto makers against some of their Asian rivals. Plans being floated by the White House initially would permit more lenient mileage improvements for the largest pickup trucks and sport-utility vehicles—vehicles made primarily by General Motors Co., Ford Motor Co. and Chrysler Group LLC, according to people familiar with the matter. In meetings with U.S. officials, Japanese and Korean car makers have argued the proposed rules would give Detroit manufacturers an unfair advantage. They and others argue that the leeway will encourage consumers to buy the least fuel-efficient vehicles, undermining the proposal's goal.
Source: The Wall Street Journal

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Some Dealers Battle Ford Over Mercury Termination Settlements

Six months after Ford Motor Co. built its last Mercury, the automaker is still battling with dealers who object to what they call low-ball settlement offers. Ford says 98 percent of the 1,712 Mercury dealerships in business as of June 2010, when Ford said it would kill Mercury by year end, have signed termination agreements. Pete Adcock, owner of Francis Scott Key L-M Inc. in Frederick, Md., ... is suing Ford for at least $2.9 million in federal court in Maryland. Ford has presented him with a buyout offer of $181,026, the lawsuit says. Adcock said he spent $5.5 million on a dealership expansion that was completed in 2007.
Source: Automotive News

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Lexus Dealers to be Stocked with RX Models by December

Toyota Motor Corp. plans to restore Lexus RX production in Canada to full speed in September and have dealers stocked with RX sport-utility vehicles by December, said Mark Templin, the U.S. chief of Lexus. “June was the bottom of the trough,” Templin said [Friday] at a media luncheon in Chicago. “We see a bright future.” The RX is the top-selling Lexus model. Through June, dealers sold 39,838 in the U.S., 9.1 percent fewer than in last year’s first half.
Source: Bloomberg

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Hatchbacks Are Making a Comeback

The hatchback — a car with a top-hinged rear door, or hatch, instead of a separate trunk — has for years been held in such low esteem by buyers that automakers invented euphemisms to describe them, if they offered them at all. Now, they're making a comeback, driven by a push to roomy, fuel-efficient alternatives to crossovers or bigger cars. Sales of hatchbacks from all brands increased 63% from the 2006 to the 2010 model years, says Ford Motor, citing data from Ward's Automotive. "A surprising number of people are taking the hatch," says Robert Parker, group marketing manager for Ford.
Source: USA Today

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More articles

July 8, 2011 - Study: 56 MPG Standard by MY2025 to Cost 220,000 Jobs

July 7, 2011 - Auto Industry, Seeing New Life, is on Hiring Spree

July 6, 2011 - Hyundai, Lexus and Subaru Top Rankings in NADA Survey

July 5, 2011 - Detroit 3 Tops Light-Vehicle Sales to U.S. Consumers Last Month

July 1, 2011 - FTC to Review Dealers' Treatment of Military Customers

 
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Quotable
"Our dealers currently ask for more cars than we can deliver. Our delivery times are still too high."

    -- Audi CEO Rupert Stadler, referring to the automaker’s plan to build a vehicle assembly plant in North America, Automotive News, July 11

Marketplace
HP's Built-in Connectivity at Your Fingertips

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Foundation News
NADA's Bruce Kelleher and Wife Honored as 'Family Ambassadors of Distinction'

Boston Dealer Creates 'Family Ambassadors of Distinction'


NADA Foundation Program Reaches 500th Ambassador
Events
NADA U Webinar: "The Impact of Different Media Platforms on Auto Buyers," Monday, July 11, from 1 to 2 p.m. EDT

NADA U Webinar: "Retail Leasing Rewards," Wednesday, July 13, from 1 to 2 p.m. EDT

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