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Friday, Sept. 23, 2011 RSSSEND TO A FRIENDPRINT
Inside This Issue
Video: General Motors: From Bailout to Shanghai
The Incredible Shrinking Auto Boom
Fed Delays New Small Business Data Collection and Reporting Requirement for Dealers
U.S. New-Car Sales Expected to Improve this Month, J.D. Power Says
Hyundai's Enviable New Problem
UAW Turns to Ford to Negotiate After Extending Its Contract With Chrysler
Red McCombs Dealership Group Eyes New Franchises
Groundbreaking MV-1 Puts Disabled in the Driver's Seat
Click here for NADA's online newsroom at NADAFrontPage.com. .
Top Stories
Video: General Motors: From Bailout to Shanghai

CBS News business and economics correspondent Rebecca Jarvis reports from General Motors' new advanced technology center in Shanghai, where it hopes to design lighter, safer and more efficient cars for China -- a market that has proved crucial to the American automaker's survival.
Source: CBS MoneyWatch.com

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The Incredible Shrinking Auto Boom

Fears of a global recession, brought on by slowing China growth and financial panic in Europe, are dampening hopes for a strong U.S. recovery in auto sales. That could have consequences that ripple far beyond Detroit, Wolfsburg, and Toyota City. Until very recently, autos have been holding up as one of the few bright spots in U.S. manufacturing. New assembly plants are opening and automakers are adding to their payrolls. Autoworkers have entertained visions of fat profit-sharing checks as they concluded contract negotiations with GM and continue them at Chrysler. No more.
Source: Fortune

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Fed Delays New Small Business Data Collection and Reporting Requirement for Dealers

The Federal Reserve Board has issued a final rule that temporarily exempts motor vehicle dealers engaged in indirect (three-party) vehicle financing transactions from a new, comprehensive data collection and reporting requirement that is mandated by section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The new requirement amends the Equal Credit Opportunity Act (ECOA) and is designed to “facilitate [the] enforcement of fair lending laws.”

Section 1071 requires financial institutions, including motor vehicle dealers, to inquire into whether a credit applicant is a small business or a women-owned or minority-owned business and to compile, retain, and report to the federal government certain information related to credit applications received from those businesses. Section 1071 also requires financial institutions to perform other duties and to make the data they collect available to the public upon request.

Because of the complexity of the new requirements and the need for greater clarification of dealers’ compliance obligations before they take effect, NADA recommended that the Board exercise its authority under the ECOA to exempt dealers from the duties imposed by section 1071 until the effective date of final regulations explaining those duties. The Board’s final rule provides this relief for motor vehicle dealers covered by the dealer exclusion from the authority of the new Consumer Financial Protection Bureau (which is set forth in section 1029 of the Dodd-Frank Act).
Source: Federal Reserve

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U.S. New-Car Sales Expected to Improve this Month, J.D. Power Says

U.S. new-car sales showed improvement in the first half of September as the recovering inventory of cars helped bring buyers back into the market, research firm J.D. Power and Associates said [Thursday]. The sales rate for September on an annual basis looks set to reach 12.9 million vehicles, compared with the 12.1 million rate in August, according to J.D. Power, which collects data from 8,900 U.S. dealers. "Coming off a solid Labor Day sale, retail sales exhibited unexpected strength in the second week of September as the recovering inventory levels have helped to bring buyers back into the market," Jeff Schuster, executive director of global forecasting at J.D. Power, said in a statement.
Source: Reuters

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Hyundai's Enviable New Problem

New-car shoppers who fly to another city often do so in search of a hard-to-find Mercedes, Lexus or other high-price vehicle. Lately they're looking for Hyundai models. In short order, the once-dodgy brand is suddenly being associated with one of the most desirable problems in the auto industry: scarcity. "We're doing everything we can. Some of our dealers are quite upset they can't get enough cars." Marc Cannon, a spokesman for AutoNation, the nation's biggest auto retailer called demand for Hyundais "overwhelming," resulting in shortages at the chain's five franchises.
Source: Fortune

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UAW Turns to Ford to Negotiate After Extending Its Contract With Chrysler

The United Auto Workers will shift to bargaining with Ford Motor Co., an automaker it can strike, after extending its contract with Chrysler Group LLC. The union will “focus its attention on Ford” while continuing to negotiate with Chrysler, Michele Martin, a spokeswoman for the Detroit-based UAW, said [Wednesday] in an e- mailed statement. Ford has said it has the highest labor costs of the three U.S. automakers, at $58 an hour including benefits. GM’s labor costs are $56 an hour, according to the Center for Automotive Research in Ann Arbor. Chrysler has said its labor costs are about $50 an hour.
Source: Bloomberg

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Red McCombs Dealership Group Eyes New Franchises

The Red McCombs Automotive Group runs eight dealerships in Texas, but is seeking to expand beyond the Lone Star State. “We’re actively looking for other dealership groups, even outside of Texas,” says Tony Rimas, group operations director for the San Antonio-based business. It currently operates two Toyota and Scion stores, two Hyundai outlets and two Ford dealerships in southern Texas. Desirable brands the organization is eyeing include BMW, Nissan, VW, Honda, Toyota, Lexus, Ford, Chrysler, Jeep and Fiat, Rimas says.
Source: Ward's Auto

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Groundbreaking MV-1 Puts Disabled in the Driver's Seat

There are times when a car is more than a car. "It's a way to regain your freedom and independence," Marc Buoniconti told me Wednesday as he received the keys to the very first MV-1 to roll off the assembly line in Mishawaka, Ind. "Without it, you can't do anything." The MV-1, dubbed the "first mobility vehicle" by its parent company, is the only vehicle built today that comes out of the factory ready for wheelchair-bound owners. The Florida-based Vehicle Production Group hopes to sell about 10,000 units next year.
Source: The Detroit News

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More articles

Sept. 22 - Ford: U.S. Sales to Rise in September

Sept. 21 - Underriner to Lead Auto Dealer Group in 2012

Sept. 20 - UAW-GM Contract to Create or Retain 6,400 Jobs as Union Releases Terms

Sept. 19 - Union Pact With GM Puts Pressure on Ford, Chrysler

Sept. 16 - Volkswagen to Invest Record $86.1 Billion through 2016

 
Quotable
"Transportation means everything to people with disabilities."

   
-- Marc Buoniconti, owner of the first MV-1, dubbed the "first mobility vehicle" because it is the only vehicle built today that comes out of the factory ready for wheelchair-bound owners, The Detroit News, Sept. 22
Videos

 
Update on Adverse
Action Requirements

(AutoFocus)

 
NADA Foundation:
A Success Story
 
(AutoFocus)

 More videos

Chairman's Column
Economic Fears May be Rising, But New-Car Sales are Still Expected to Rise

Dodd-Frank Law Takes Effect with Implications for F&I Office

NADA U Webinar
-- Oct. 19 at 1 p.m., EDT: “Performing a Monthly Parts Inventory Reconciliation,” presented by Chris Bavis, NADA-ATD Academy instructor.

Call 800.557.6232 to learn more and register.

Foundation News
NADA Foundation Ambassador Supports Reading Program in Michigan

NADA Foundation Program Reaches 500th Ambassador

Marketplace
Seats Available in Five Remaining Academy Classes of 2011

NADA 20 Groups for Fixed Ops Managers Meeting this Fall; Controllers/CFO Groups Now Forming

HP's Small but Mighty PC

Save More Than 50% on Lenovo in September

   
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