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Wednesday, July 13, 2011 RSSSEND TO A FRIENDPRINT
Inside This Issue
House Panel Votes to Bar EPA, California Tailpipe Rules
Sources: UAW, Detroit Automakers Meet on Obama Fuel Efficiency Proposal
New Privacy Rules Require Homework and Training
Nissan Sees Continued Share Gains
Michigan Dealer is First in U.S. to Offer Groupon Deal
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Top 5 Stories
House Panel Votes to Bar EPA, California Tailpipe Rules

The House Appropriations Committee approved an amendment Tuesday evening to bar the Environmental Protection Agency from settling vehicle tailpipe emissions limits for the 2017-25 model years, or allowing California to set its own rules. Rep. Steve Austria, R-Ohio, proposed an amendment that would bar the EPA from setting new limits or granting a waiver to California to impose its own vehicle emissions rules. At least a dozen other states want to adopt California's rules. The Republican panel approved the Austria amendment, 27-20. The National Automobile Dealers Association praised the amendment. NADA said the amendment "seeks to keep cars and trucks affordable while meeting consumers' desire to protect the environment and get more out of a gallon of gasoline." The amendment would put "a one year hold on EPA and California writing duplicative and unnecessary fuel economy regulations," NADA said. But the amendment's future is far from certain. The Obama administration supports EPA's efforts to regulate tailpipe emissions. "New car dealers support fuel economy increases, but additional hikes in standards for model years 2017-2025, coming three years earlier than the law requires, may prevent car buyers from finding the vehicles that fit their needs at prices they can afford," the group said. The amendment would allow the National Highway Traffic Safety Administration to move ahead with setting Corporate Average Fuel Economy requirements for 2017-25. But the amendment may give automakers another argument as they hold talks with the White House over the 2017-25 rules.
Source: The Detroit News

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Sources: UAW, Detroit Automakers Meet on Obama Fuel Efficiency Proposal

The UAW, which is concerned about how automaker profits, jobs and wages could be impacted by higher fuel economy standards, met with Detroit automakers [Tuesday] to discuss new regulations proposed by the Obama administration. Among those meeting with the union were Pete Lawson, Ford's vice president for government relations, and executives from General Motors and Chrysler, according to people familiar with the session. The automakers, UAW and National Automobile Dealers Association have argued that the proposed corporate average fuel economy standard of 56.2 m.p.g. would add thousands of dollars to the cost of vehicles and eliminate jobs assembling larger and heavier vehicles such as full-size pickups and SUVs. The UAW is concerned about the potential impact the higher CAFE standard would have on profitability, jobs and wages, Sean McAlinden chief economist for the Center for Automotive Research said last week.
Source: Detroit Free Press

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New Privacy Rules Require Homework and Training

Federal privacy rules are a potential minefield for dealers. There are several to keep track of, they require dealership training programs, and the fines for failing to comply can be hefty. There are some new requirements this month; others were revised or began to be enforced Jan. 1. The rules, chiefly under the Fair Credit Reporting Act and the Gramm-Leach- Bliley Act, cover dealerships' handling of customers' personal information, especially their financial information. A dealership must tell applicants what action it took on their credit application within 30 days. If the answer is no, the store must send an Adverse Action Notice. Starting July 21, if the credit score is used in the decision, this notice must provide a credit score disclosure with specific details, including which credit bureau was used and the high and low range of scores. Also changing on July 21: The Risk-Based Pricing Notice given to customers who get credit on unfavorable terms must disclose their credit score. But few dealers use that form, instead giving a Credit Score Disclosure Notice to all credit applicants -- an alternative recommended by ... Paul Metrey, NADA's chief regulatory counsel for financial services, privacy and tax. Metrey recommends that starting July 21, dealers use the model forms for both notices published by the FTC in early July.
Source: Automotive News

Editor's note: To help dealers meet the July 21 deadline, NADA has issued a new "Dealer Guide to Adverse Action Notices," explaining when dealers must issue an adverse action notice, what the notice must say, when dealers can rely on a finance source’s notice, and other important issues. The guide is now available at www.nadauniversity.com. To access the guide, sign in or sign up for NADA University; once you have logged in, visit the Resource Toolbox, select “Driven Management Guides,” then “Legal/Regulatory.”

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Nissan Sees Continued Share Gains

Nissan Motor Co.'s new North American chief expects to continue to gain market share on Toyota Motor Corp. and Honda Motor Co. this year after outproducing the pair in the region for half the year for the first time in the company's history. "I don't see any reason why we shouldn't be in position" to gain market share, said Bill Krueger, who was named Vice Chairman of Nissan Americas on May 30 ... Mr. Krueger would not predict that Nissan would pass Honda this year in U.S. sales. But Honda told U.S. dealers that it hopes to sell 142,500 cars total in July and August, which would be a decline of 36% over the previous year.
Source: The Wall Street Journal

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Michigan Dealer is First in U.S. to Offer Groupon Deal

Chicago-based Groupon - testing America's appetite for bigger online deals - offered its first voucher on a new car or light truck today at a Michigan dealership. The company, already known for popular restaurant and hotel vouchers, launched its first auto dealership deal at LaFontaine Buick GMC Cadillac in Highland Township, Mich. Consumers spend $199 for a voucher worth $500 toward the purchase of a car, redeemable this year. LaFontaine and Groupon split the consumer's money. Between giving up $300 to consumers and $100 to Groupon, each sale will cost the dealership $400.
Source: Automotive News

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More articles

July 12, 2011 - Dealers Put More Muscle into F&I Training

July 11, 2011 - Federal Agencies Release Final Credit Score Disclosures Rules

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

 
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Quotable
"New car dealers support fuel economy increases, but additional hikes in standards for model years 2017-2025, coming three years earlier than the law requires, may prevent car buyers from finding the vehicles that fit their needs at prices they can afford."

    -- NADA, in a statement praising Congressional efforts to bar the EPA from settling vehicle tailpipe emissions limits for the 2017-25 model years or allowing California to set its own rules, The Detroit News, July 12

Events
NADA U Webinar: "Retail Leasing Rewards" Wednesday, July 13, from 1 to 2 p.m. EDT
Marketplace
HP's Built-in Connectivity at Your Fingertips

July Specials from Lenovo

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
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