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Inside this issue
Why NADA Says the CFPB's Wrong on Reserve
Auto Finance Growth Outlook Sparks Confidence
Volkswagen Urges Regulators to Back Diesel Vehicles
Michigan Gets Role in Shaping Toyota's Future
Forever Young: Corvette's 60th Anniversary
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Why NADA Says the CFPB's Wrong on Reserve

The National Automobile Dealers Association has come up with a catchy way to describe the Consumer Financial Protection Bureau's attack on dealer reserve. "Why would they want to take 17,000 price discounters out of the market?" NADA President Peter Welch said during an Automotive News editorial board meeting on Tuesday. Dealer reserve is the amount dealerships add to the lender's buy rate on an auto loan as compensation for having arranged the loan. But Welch said high competition today drives interest rates down. To get more business, lenders cut buy rates and dealerships cut dealer reserve, he said. That means the nation's 17,000-plus dealerships are price discounters, he said.
 
The CFPB wants dealerships to take flat fees instead of dealer reserve so that dealerships can't charge legally protected groups, such as minorities, more than other groups, not even accidentally. Under a flat fee system, Welch said, lenders looking for more business would increase fees paid dealers instead of cutting buy rates. That would put upward pressure on customer costs, Welch said, adding: "There is no free lunch."
Source: Automotive News
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Auto Finance Growth Outlook Sparks Confidence

The outlook for auto finance growth is encouraging, the latest TransUnion report on auto loan volume and delinquencies shows. "We've seen credit availability play a big role with the increase in car sales, and credit availability is still good," Peter Turek, TransUnion's vice president of automotive, said Wednesday in a phone interview discussing the report. The combination of higher loan volumes and low delinquencies builds confidence in the auto finance market, he said. "Dealers have confidence lenders are going to be around. Lenders have confidence dealers are not putting consumers in vehicles they can't handle when they hit a rough patch," Turek said. Completing the picture, he said, consumers have enough confidence to take on more debt.
Source: Automotive News

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Volkswagen Urges Regulators to Back Diesel Vehicles

Volkswagen AG wants federal and state regulators to do more to encourage fuel-efficient diesel vehicles. “We're not feeling the love,” said Anna Schneider, vice president for industry and government relations at VW Group of America, at a forum on the future of diesel vehicles Tuesday held by the automaker's luxury unit Audi. “This is one of the greenest choices... It's time the U.S. government included clean diesel in its 'all of the above' strategy' for greening U.S. roads. Putting these vehicles on the road should be incentivized and not penalized, and that's our goal. Federal regulators setting the 2012-2025 fuel economy standards to nearly double fleetwide requirements to 54.5 mpg didn't give diesel vehicles additional credits, as VW and other automakers had lobbied for. Schneider said allowing single-driver vehicles with diesels would cost the government nothing and “would be a huge boost to sales.”
Source: The Detroit News
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Michigan Gets Role in Shaping Toyota's Future

Few jobs are more coveted in Toyota Motor Corp. than that of chief engineer. The equivalent of a vice president in the automaker's product-focused reckoning, it is an exalted position weighty with responsibility that has historically been reserved for only the most talented Japanese employees. Until now. Over the past three years, Toyota has quietly elevated four Michiganians to this rarefied tier in its corporate hierarchy and transferred responsibility for five vehicle lines to its technical center south of Ann Arbor. The moves are part of a broader effort to transform the once-insular Toyota into a more global company, one worthy of the title of world's largest automaker. And they demonstrate the growing importance of Michigan to Toyota today.
Source: The Detroit News
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Forever Young: Corvette's 60th Anniversary

'14 Stingray arrives with more speed, style

The Corvette and I were born the same year. The Chevrolet sports car is actually eight months older than me, but as I celebrate my 60th birthday Friday, it's clear we are headed in opposite directions. The 2014 Corvette Stingray is faster, better looking, more efficient, more capable, and more sophisticated. And me? I'm just older. But I'm OK with this so long as there are exciting machines like the seventh generation of America's sports car that the motoring press drove on public roads for the first time last week. The Corvette has always been an exciting car — to look at and to drive — but it's always been considered less than the finest Europe has to offer, no matter how many times the two-seater from Detroit bested Europe's elites at the 24 hours of LeMans. After spending hours behind the wheel and in the passenger seat with Corvette's Chief Engineer Tadge Juechter driving, I can tell you the new generation comes with a level of refinement that banishes the last vestiges of its crude American image.
Source: The Detroit News
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More Articles
 
Quotable
"Why would they want to take 17,000 price discounters out of the market?"

    -- NADA President Peter Welch describing the Consumer Financial Protection Bureau's attack on dealer reserve during an Automotive News editorial board meeting, Aug. 21
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