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Inside this issue
FTC Announces Enforcement Action Against Dealer for Alleged Data Security Violations
New NADA Bulletins on Safety, Fuel Economy Will Help Sales Staff, Consumers
More Jobs, Stores for Auto Dealers
Car Buyers Getting Better Interest Rates, Loan Terms
GM Directors Praise Akerson, Say Successor Should Come from Within
Dealers: Dart Allocation Tied to Caliber Sales
Shaky Battery Maker Claims a Breakthrough
Driving Miss Siri
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
FTC Announces Enforcement Action Against Dealer for Alleged Data Security Violations

The Action Focuses on Customer Information Made Available on P2P Networks

The FTC has announced an enforcement action against, and a proposed settlement agreement with, a franchised dealer for allegedly (i) violating the FTC Privacy Rule, (ii) violating the FTC Safeguards Rule, and (iii) engaging in an unfair or deceptive act or practice (UDAP). The enforcement action alleges that, as a result of the dealership’s failure to implement reasonable security measures, the personal information of 95,000 consumers was made available on a peer-to-peer (P2P) network. In addition to the data security violations, the FTC alleged that the dealership engaged in a UDAP violation by misrepresenting in its privacy notice the measures it takes to protect customer information from unauthorized access. The proposed consent order between the parties contains, among other elements, a requirement that the dealership undergo data security audits by independent auditors every other year for 20 years. In conjunction with its announcement, the FTC posted a blog on the topic of P2P file sharing software. The FTC announcement states that this is the agency’s first action charging an auto dealer with violations of the Gramm Leach Bliley Act (which the FTC Privacy and Safeguards Rules implement). Click here for the full article.  
Source: NADA Regulatory Affairs

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New NADA Bulletins on Safety, Fuel Economy Will Help Sales Staff, Consumers

Two new NADA bulletins will help new-vehicle sales staff respond to consumer questions on safety and fuel economy: (1) A two-page Q/A bulletin issued jointly by NADA and the National Highway Traffic Safety Administration aims to help sales staff respond to consumer questions on “stars-for-cars” safety information. This new information is required on Monroney labels starting with Model Year 2012 light-duty vehicles rated and manufactured after Jan. 31, 2012. The Dealer Guide to NHTSA’s 5-Star Safety Rating Label describes how vehicles are rated, what the new labels look like and how consumers can compare between vehicles. (2) A four-page Q/A bulletin, Revised EPA/NHTSA Fuel Economy Labels, addresses the revised fuel economy and emissions information required for MY 2013 and later vehicles. Click here for the full article.
Source: NADA Regulatory Affairs 

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More Jobs, Stores for Auto Dealers

Sixty-six auto dealerships opened in the first three months of the year, and the number of people employed in that part of the automotive industry is up, too. The uptick comes amid growing auto sales. Last year, U.S. auto sales rose 10.2 percent and sales are up 10 percent through May. The NADA says 933,500 people worked at U.S. new-car and -truck dealerships in 2011, a 4.6 percent increase from the previous year; and 17,540 new car dealerships were in business at the end of 2011.
Source: The Detroit News

Related Articles

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Car Buyers Getting Better Interest Rates, Loan Terms

Consumers in the market for a new vehicle might find getting an auto loan easier than it was a year or so ago. In the past six months, credit has been generally more available to prime borrowers and borrowers “with less than perfect credit histories,” said Paul Taylor, chief economist with the National Automobile Dealers Association. Interest rates are also extremely low, which has helped more people qualify for a new car loan, he said. “If the average credit score for auto loans ... has fallen in recent quarters, then credit is clearly more available to a wider range of customers,” Taylor said.
Source: The Augusta Chronicle

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GM Directors Praise Akerson, Say Successor Should Come from Within

General Motors Co. directors praised Dan Akerson's performance as CEO while saying he must now fix the automaker's European operations and begin grooming a successor. Akerson, who gave himself a 'B' grade during an interview last month, can stay on as long as he wants, directors Robert Krebs, Neville Isdell and Patricia Russo said last week in separate interviews before the company's annual meeting in Detroit.
Source: Bloomberg

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Dealers: Dart Allocation Tied to Caliber Sales

Chrysler Group started accepting dealer orders last week for the new 2013 Dodge Dart and will tie dealer allocations in part to how many slow-selling Dodge Calibers dealers sold before the Caliber was canceled, dealers say. The first salable Darts will arrive in showrooms in late July or early August.
Source: Automotive News

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Shaky Battery Maker Claims a Breakthrough

A123 Systems was supposed to be a centerpiece of [the Obama] administration’s effort to use $2 billion in government subsidies to jump-start production of sophisticated electric batteries in the United States. Instead, the company, which makes lithium-ion batteries for electric cars, has stumbled along with the rest of the nascent industry and now threatens to give more ammunition to critics of the president’s heavy spending on new energy technologies. Yet as much as A123 represents the risks of the government’s battery technology program, it also represents its promise. On Tuesday, A123 Systems will unveil a new battery technology that the company says is a breakthrough in the industry. The president’s prediction of a million electric cars on the road by 2015 seems unattainable, given the tepid demand for the first models on the market. So far this year, combined sales of the Chevrolet Volt plug-in hybrid and Nissan Leaf electric car total less than 10,000 vehicles.
Source: The New York Times

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Driving Miss Siri

Apple announced an expansion of Siri at the opening of its developers’ conference on Monday; new devices and apps will work with the voice-command service. One of the more intriguing areas of that expansion was the addition of automakers to Siri’s roster of partners. Apple announced that Audi, BMW, Chrysler, GM, Honda, Land Rover/Jaguar, Mercedes-Benz and Toyota would all have “Eyes Free” buttons in their cockpits starting in the next 12 months or so.
Source: The New York Times

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The NADA Story

The NADA story began in 1917 when 30 auto dealers traveled to the nation’s capital to convince Congress not to impose a luxury tax on the automobile. They successfully argued that the automobile is a necessity of American life, not a luxury. From that experience was born the National Automobile Dealers Association. Today, NADA represents nearly 16,000 new-car and -truck dealerships with 32,500 franchises, both domestic and international. For more information, visit www.nada.org.

 
Quotable
"The arrival of new brands and new dealerships is a sign that even more vigorous competition is on the way in the U.S. vehicle marketplace."

   
-- Paul Taylor, NADA chief economist, in an excerpt from NADA Data 2012, The Detroit News, June 11




NADA Data 2012

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