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Inside this issue
NADA and NAMAD Question CFPB's Approach in Its Guidance on Auto Lending
Dan Akerson Meets with Members of Congress to Boast of GM's Resurgence
New Trucks Mean Big Bucks For Ford and GM
In Ghosn We Trust Tested as Nissan Electric Push Falters
Connecticut Body Shop Faces Over $50,000 in OSHA Fines
Clint Bowyer Buys Car Dealership Where He Used to Work
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
NADA and NAMAD Question CFPB's Approach in Its Guidance on Auto Lending

The National Automobile Dealers Association (NADA) and the National Association of Minority Automobile Dealers (NAMAD) issued the following statement today in response to the guidance from the Consumer Finance Protection Bureau (CFPB) regarding dealer-assisted financing:

“The guidance issued by the CFPB today attempts to force auto finance sources into changing the way they compensate dealers without any indication that the Bureau has examined the effect this change could have on the cost of credit for consumers. The dealer-assisted financing model (indirect auto lending) has been enormously successful in both increasing access to, and reducing the cost of, credit for millions of Americans. Consumers overwhelmingly choose optional dealer-assisted financing because it’s convenient and competitive. The CFPB’s attempt to eliminate the dealer’s ability to discount the APR that it offers to consumers will only weaken the consumer’s ability to secure financing at the lowest possible cost. This anti-competitive approach is not in the interests of consumers and should not be accomplished through guidance and enforcement actions that lack transparency, the opportunity for public comment, and the benefits of a data driven analysis into the effects they would have on consumers and the automobile financing marketplace. It also should not be accomplished without the full participation of the Federal Reserve Board and the Federal Trade Commission, which are the two agencies that Congress vested with authority over auto dealers engaged in indirect lending. 

“NADA and NAMAD strongly oppose any form of discrimination in auto lending, and the CFPB guidance appropriately explains that unlawful discrimination has no place in the marketplace. However, it is relying on a theory of discrimination that is based on a statistical analysis of past transactions – not intentional conduct – and the CFPB has not provided any information about how it is conducting its analysis. Without such basic information as how the CFPB is identifying different groups of consumers, how it is controlling for factors that can affect finance rates but are unrelated to the consumer’s background, and what constitutes a finding of disparate impact, one can have little confidence that the CFPB is conducting its analysis in a statistically-reliable manner. Regrettably, no one is well served by such an opaque process. While NADA and NAMAD stand ready to work with all of the federal agencies with responsibilities in this area, NADA and NAMAD encourage the CFPB to approach this issue in a more considered, transparent and coordinated manner.”
Source: NADAFrontPage.com

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Dan Akerson Meets with Members of Congress to Boast of GM's Resurgence

General Motors CEO Dan Akerson paid a courtesy call on members of Congress this morning, asking for nothing but bringing news of a resurgent automaker. Asked after his meetings at the Capitol Hill Club if there was anything the automaker needs from Washington, he said, "No, we're fine." A bipartisan group gathered for his short, closed-door talk including several members of the Michigan delegation. Following that talk, Akerson spoke briefly to the Indiana delegation. In talking to members of Congress, Akerson spoke about how it has returned to profitability since a government-sponsored bankruptcy in 2009. GM says it has created or retained 23,000 jobs since exiting bankruptcy.
Source: Detroit Free Press

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New Trucks Mean Big Bucks For Ford and GM

General Motors' and Ford's already robust North American profits and market share should grow in the next couple years, fueled by new large pickups hitting the U.S. market. GM's new trucks are rolling out in the next few months, and Ford is expected to replace the F-150 next year. The two domestic automakers are forecast to outperform the industry, and pickups will account for the majority of volume gains until 2015, Itay Michaeli of Citi Research told investors Wednesday.
Source: Detroit Free Press

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In Ghosn We Trust Tested as Nissan Electric Push Falters

Carlos Ghosn laid a $5 billion bet in 2009 that the world's next Ford Model T would be electric, and that Nissan Motor Co. would lead a revolution embraced by nations such as Denmark. Three years later, sales of Leaf plug- in vehicles in the Nordic country: 73. Nissan's chief executive officer has long fronted a campaign to convince the world that by the end of the decade, 1 in 10 cars sold will be electric. Customers haven't bought in, as prices remain high and charging stations are few and far between. Sales for 2012 were half their target in the U.S. Ghosns response has been to double down. Last week, he put his chief operating officer directly in charge of electric cars, elevating the Leaf's importance for the future of Japan's second-biggest carmaker.
Source: Business Week

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Connecticut Body Shop Faces Over $50,000 in OSHA Fines

Hoffman Auto Body Shop has been cited by the U.S. Department of Labor's Occupational Safety and Health Administration for nine alleged violations of workplace safety standards at its Connecticut Avenue facility in East Hartford. The auto body repair shop faces proposed fines of $54,300. OSHA's Hartford Area Office began their inspection on Dec. 6, 2012, to verify correction of hazards cited during a 2011 inspection. In the 2012 inspection, OSHA identified hazards similar to those cited during the 2011 inspection. Specifically, equipment and materials, some of it flammable, were stored near paint spray booths and electric panels. The stored materials limited access to extinguish potential fires, presented fire and shock hazards and impeded cleaning around the booths, which allows potentially combustible materials to accumulate.
Source: U.S. Department of Labor

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Clint Bowyer Buys Car Dealership Where He Used to Work

Clint Bowyer didn't just buy a car dealership Tuesday in his hometown of Emporia, Kan. He bought the dealership where he used to be employed. Bowyer finalized Tuesday the purchase of the Davis-Moore Auto Group, a Toyota dealership that is across the street from the Clint Bowyer Community Building. Bowyer used to be a dent repair specialist and detailer when it was an Emporia Motors dealership. “This is really a dream come true for me in so many ways,” Bowyer said in a news release. “I used to work at that dealership before I ever got to the Sprint Cup Series. I was the young guy running around doing anything and everything that needed to be done." The Davis-Moore Auto Group will handle the day-to-day operations.
Source: AOL Sporting News

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