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Wednesday, Aug. 17, 2011 RSSSEND TO A FRIENDPRINT
Inside This Issue
Automakers Rebound in July to Lift Factory Output
Honda Struggles With Supply
AutoFocus: What Dealers Should Know about New 'Adverse Action Notice' Requirements
New Ethanol Blend Raises Ire of Car Buffs
Opinion: New Auto Fuel Economy Standards Will Regulate Us To Death
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Top 5 Stories
Automakers Rebound in July to Lift Factory Output

U.S. automakers rebounded in July to boost factory production by the most since the Japan crisis. Factory output, the biggest component of industrial production, climbed 0.6 percent. It was the greatest increase since the March 11 earthquake in Japan disrupted supply chains and slowed production at some U.S. auto plants. The auto industry accounted for nearly all of the factory production gains. Motor vehicles and parts jumped 5.2 percent. Auto production will likely stay high this year. Manufacturers are racing to replace inventories depleted by the Japan disruptions.
Source: The Associated Press

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Honda Struggles With Supply

Dealers Say Shortages of Civic, CR-V, Odyssey Vehicles Portend Tough Month

Honda Motor Co.'s U.S. dealers say they are headed for their most difficult month of sales since the March 11 earthquake in Japan disrupted production at the auto maker's factories at home and in North America. "This will definitely be the worst month as it relates to Honda dealers," said Florida dealer Rick Case, whose Fort Lauderdale Honda store is one of the largest in the U.S. by sales. "We're out of Civics, we are out of Accords, we don't have any Odysseys," Mr. Case said. Honda spokesman Ed Miller ... said production at the company's U.S. plants is near normal levels but acknowledged it will take time before new cars arrive on dealer lots.
Source: The Wall Street Journal

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AutoFocus: What Dealers Should Know about New 'Adverse Action Notice' Requirements

A provision in last year’s Dodd-Frank financial reform bill adds to the disclosures dealers must make when they turn down an applicant for credit. The new disclosures must be included in dealers’ adverse action notices beginning July 21, 2011, said attorney Brad Miller, who discussed the new federal requirements during an episode of “AutoFocus” with David Hyatt. “Generally, an adverse action notice is a document that notifies an applicant they were denied credit,” says Miller, assistant director of legal and regulatory affairs for the National Automobile Dealers Association. “If a dealer is not able to get a credit applicant financed, the dealer needs to issue a notice that informs the customer of the denial and gives the customer an opportunity to request the reasons why they were turned down for credit.” As of July 21, 2011, “if a credit report is used to make an adverse action decision,” dealers must include the new disclosures: the applicant's credit score, the date the credit score was created, key factors that affected the consumer's score, a range of possible credit scores from the model used to score the applicant and the name of the credit bureau or entity that provided the score.

Miller noted that the new Dodd-Frank disclosures contain information that dealers generally cannot obtain on their own, and a dealer’s immediate action item is to contact their vendor or other source for the applicant’s credit report information to ensure they can obtain the information required to complete the adverse action notice properly. “NADA has put together all of the background information dealers need to understand the new rule, as well as a sample adverse action form specifically tailored for dealers," which is contained in the NADA University publication, “A Dealer Guide to Adverse Action Notices,” he said.
Source: AutoFocus

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New Ethanol Blend Raises Ire of Car Buffs

Classic car buffs say 10 percent ethanol already in widespread use hurts their vehicles. But the U.S. Environmental Protection Agency says it's safe. This year, the EPA approved allowing even more ethanol — a 15 percent mix. That proposal upset automakers and small-engine companies, who said that at 15 percent ethanol even newer cars and newer small engines would be damaged. "We're basing our concerns on the cars that are on the road today," and on the corrosive effect that 15 percent-ethanol fuel could have on fuel pumps, fuel tanks, hoses and emissions parts, said Gloria Bergquist, vice president of the Alliance of Automobile Manufacturers ... The alliance, along with other trade groups, sued the EPA in January to stop the introduction of E15.
Source: Detroit Free Press

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Opinion: New Auto Fuel Economy Standards Will Regulate Us To Death
By Larry Bell

On July 29, President Barack Obama announced a deal with General Motors, Chrysler, Ford, Honda and Hyundai that is likely to change all of that by increasing Corporate Average Fuel Economy (CAFE) standards to 54.5 miles per gallon by 2025. While 2025 may seem like a long way off, and the new standards will be reviewed in 2018, real consequences will occur rapidly. These changes will have important safety ramifications. A 2003 NHTSA study estimated that every 100 pounds of weight taken off a car weighing more than 3,000 pounds increases the accident death rate slightly less than 5%, and the rate increases as vehicles become lighter than that. Two years earlier a National Academy of Sciences study estimated that CAFE standards at that time were responsible for as many as 2,600 highway deaths in a single year.
Source: Forbes

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More articles

Aug. 16, 2011 - GM, Toyota Brands Top Satisfaction Index

Aug. 15, 2011 - Low Rates May Do Little to Entice Nervous Consumers

Aug. 12, 2011 - Obama Claims Connection Between Fuel Standards, Jobs, But Reality is Complicated

Aug. 11, 2011 - Many Buyers Spurn Small Cars Despite High Gas Prices

Aug. 10, 2011 - Confidence Over Autos Stays Firm

"We're out of Civics, we are out of Accords, we don't have any Odysseys."

-- Rick Case, a Honda dealer in Fort Lauderdale, Fla., who says dealers are headed for their most difficult month of sales since the March 11 earthquake in Japan disrupted production, The Wall Street Journal, Aug. 16

Update on Adverse
Action Requirements


NADA Foundation:
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NADA U Webinars
“New Technology, New Data, a New Method of Stocking,” led by Dale Pollak of vAuto, Inc., Aug. 17 at 1 p.m. EDT

“Buy and Sell Smart with Today’s Mobile Tools,” with Chad Goodson of CARFAX, Aug. 24 at 1 p.m. EDT

Convention News
Register Online Now for NADA's Vegas Convention

Registration is now open online for the 2012 NADA and ATD Convention and Expo, Feb. 3-6 in Las Vegas. The 2012 convention will mark the first time the NADA and ATD conventions will be held together. Dealers are urged to register early to take advantage of discounted pricing and reduced hotel rates. Click here to register.

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Texas Dealer Academy Taps Online Resources of NADA University for NextGen Program -- The Texas Auto Dealers Association, a subscriber of NADA U's premium online training option, NADAvt, has launched a new program to help the next generation of dealers and managers succeed when it's their time to run the business.

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