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Inside this issue
Opinion: Consumer Protection Bureau Bad for Business
Fiery Tesla Crash Torpedoes Stock Price
A Year Later, Lessons From Sandy's Fury
NADA Assists with Pension Reform
Register Now for Webinar Presented by NADA Academy Instructors
Award-Winning Lifestyle and Wellness Experience Returns to NADA Convention & Expo in New Orleans
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Opinion: Consumer Protection Bureau Bad for Business
By Jeffrey H. Joseph, a business professor at the George Washington University School of Business

The options for creative Halloween costumes in Washington, D.C., are endless — who wouldn't be scared to see Nancy Pelosi show up on their door step looking for handouts, or a Ted Cruz lookalike ranting about loafer-wearing lobbyists? But the award for best disguise in D.C. this year won't go to a trick-or-treater, but to the purposefully misnamed Consumer Financial Protection Bureau. A recent report from the Bipartisan Policy Center's Financial Regulatory Reform Initiative Task Force details the Jekyll and Hyde nature of this unaccountable bureaucracy—and why taxpayers have good reason to be scared.

When it comes to the bureau's standard operating procedure, the Dr. Jekyll CFPB “operated in a transparent, open, and iterative manner, repeatedly seeking input from all stakeholders throughout a process,” producing “generally positive” results. While the Mr. Hyde CFPB “made unilateral decisions, rolled out initiatives, rules, or processes as a result of a more closed, internal deliberation process,” producing results that were “far more likely to be problematic.” The problem for business and consumers, though, is that unlike the classic musical, the Mr. Hyde CFPB is the norm, and Dr. Jekyll the exception.

A specific example cited in the report was the agency's handling of hearings and meetings regarding payday lending: “By excluding the public from such meetings, and by providing inadequate notice for other hearings, the CFPB has limited the ability of both consumer groups and industry members to participate in the policymaking process.” The agency's approach in this instance was particularly harmful to low-income communities where access to credit is enormously important. Without taking into consideration the input from all parties involved —including consumers — the agency ran the risk of eliminating a financial product many low-income communities desperately need. Another example of Mr. Hyde CFPB harming consumers comes in the area of auto lending, where recently the bureau has been seeking to eliminate dealer-negotiated car financing and replace it with a flat fee method of compensation. According to one analysis, such a move would eliminate a key source of price competition between auto dealers — the ability to vary interest rates — and ultimately result in restricting consumer choice.
Source: The Detroit News
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Fiery Tesla Crash Torpedoes Stock Price

Skittish investors in high-flying Tesla, maker of expensive electric cars, bid down the company's stock price 4 percent Monday after reports that a Tesla model S burned after slamming into a concrete barrier and a tree in Mexico. Tesla noted that the driver was unhurt in the Oct. 18 wreck near Merida, Mexico, which the automaker says should be viewed as a demonstration of the car's high level of crashworthiness rather than any inclination to catch fire. It was the second high-profile Tesla fire.
Source: USA Today
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A Year Later, Lessons From Sandy's Fury

Protect the inventory, check insurance policy

One year ago, as soon as Hurricane Sandy had finished beating the Atlantic coast and rolled back out to sea, car dealers across the New York-New Jersey region rushed in to take stock of the damage. Dealers are taking practical steps to protect their inventory -- for example, moving car-storage lots to higher ground -- and reviewing their insurance coverage. But in the post-Sandy world, insurers are charging higher fees and want to see detailed disaster plans by the businesses they insure. In late October 2012, Sandy wreaked $65 billion in property damage and flooding from South Florida to Maine to Lake Huron. More than 230,000 automobiles were ruined, and for months the flow of business-as-usual was derailed. There is no hope of avoiding natural disasters. A hurricane in Louisiana, a tornado in Alabama, a freak blizzard in South Dakota -- no business planning can stop the wind. But after Sandy's widespread destruction, auto dealers and insurers say there are lessons to be learned.
Source: Automotive News
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NADA Assists with Pension Reform

Today's hearing in the House Education and Workforce Committee will highlight the need for pension and withdrawal liability reform.

NADA is aiding a national task force of dealers seeking relief from withdrawal liability from multi-employer pensions that are facing insolvency in the next few years. Withdrawal liability is the penalty a business would face for leaving a pension fund whose liabilities exceed their assets. In many cases, a dealership's penalty can be in the millions.

Over 10 million Americans are members of multi-employers pension funds. An estimated 30 percent of those individuals are in funds that the government has identified as being in “critical” status. Congress will soon consider reforms to the pension system as a part of the reauthorization of the Pension Protection Act. Union and business groups are petitioning Congress for some reform as well. The dealer task force is part of the chorus of the business interests asking Congress for some relief from the burdensome withdrawal liability law.

Any dealership with a multi-employer pension fund that is in distress and faces a growing withdrawal liability should contact the Task Force Chairman, Scott Lambert, at the Minnesota Automobile Dealers Association at lambert@mada.org.
Source: NADA Legislative Affairs
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Register Now for Webinar Presented by NADA Academy Instructors

The time spent with a customer allows you to identify upsell opportunities, add hours per repair order and increase your part sales -- but many dealerships lack a process for handling the arriving customer. Register for the webinar -- "The Four Service Sheets" -- to find out how four service sheets and a standard procedure for greeting your service customers can put structure into the chaos that characterizes the morning write-up. The free NADA University webinar will be presented by NADA Academy instructors Robert Atwood and Christopher Bavis, this Wednesday, Oct. 30 at 1:00 p.m. Click here to register.
Source: NADA University
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Award-Winning Lifestyle and Wellness Experience Returns to NADA Convention & Expo in New Orleans

The NADA Convention's award-winning Lifestyle Experience is back for 2014 offering both men and women numerous activities to relax their minds, bodies and souls while walking through the Expo floor in New Orleans. The four Lifestyle Experience pavilions encompass Beauty and Fashion; Lifetime; Mind, Body and Spirit; and Relax. Highlights for 2014 include a professional portrait studio; a golf clinic and putting green; psychics and tarot card readers; yoga; health screenings; manicures and hair care; massage therapists; an oxygen bar; aromatherapy; jewelry making and more. “The NADA convention has taken the lifestyle and wellness concept to the next level with four specialty zones,” said Melissa Wolpert, director of convention services and operations for NADA. “Attendees can take a quick break from the action throughout the day. The activities last about 10 to 15 minutes.” NADA has partnered with Saks Fifth Avenue to offer skin care and makeup consultation from Lancôme, clothing accessory bars for men and women, Hermes fragrance bar and fashion show. Click here for the complete schedule.
Source: NADAFrontPage.com

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More Articles
 
Quotable
"Such a move [replacing dealer-negotiated car financing with a flat fee method of compensation] would eliminate a key source of price competition between auto dealers — the ability to vary interest rates — and ultimately result in restricting consumer choice."

   --- Jeffrey H. Joseph, a business professor at the George Washington University School of Business, in an opinion in The Detroit News, Oct. 29

NADA Market Beat
Auto Sales Subdued for September
Chairman's Column
NADA Endorses Hiring Our Heroes Program
Videos

  NADA Chairman Speaks to Detroit Auto Press (NADA-TV)
NADA Webinars
(All webinars begin at 1 p.m. ET. Click webinar title to register.) 

- Oct. 30: The Four Service Sheets

- Nov. 6: Buy-Sell Transaction Tips and Tricks

- Nov. 13: U.S. Car Sales – The Year in Review and a Look Ahead

- Nov. 20: DMS Access Concerns (Part II)

For more information about the webinars, click here.

NADA Foundation News
Ambassador Spotlight: Richard Kull Promoted Charitable Giving through the NADA Foundation
 
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