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Inside this issue
Senators Question Bias Claim on Car Loans
Marchionne Wants Chrysler IPO By Year's End
GM CEO Dan Akerson: 'We Want People to Start Buying Cars Over the Internet'
Car Prices Are Going Up, And So Are Automakers' Profits
Banks: Don't Be Misled by October's Data
Video: 'Night of Living Dead 3' Hearse Livens Up Halloween
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Senators Question Bias Claim on Car Loans

A bipartisan group of senators is criticizing the Consumer Financial Protection Bureau's effort to combat alleged discrimination in the auto-lending market, saying the regulator hasn't shown enough evidence that problems exist. The 11 Republicans and 11 Democrats, led by Sens. Rob Portman (R., Ohio) and Jeanne Shaheen (D., N.H.) sent a letter to CFPB Director Richard Cordray Wednesday asking for details on how it analyzes auto loans for potential discrimination against minorities or women. The topic is a priority for the bureau. As a way to avoid discrimination, it has pushed to standardize or limit interest-rate charges added by auto dealers. In the letter, the senators asked why the CFPB warned auto lenders about the discrimination issue without an official rule-making process, and whether it conducted a cost-benefit analysis of changes to the auto lending market.

In a statement, Mr. Portman said he is “concerned about the Bureau's lack of transparency and unwillingness to make public the basis for its policy decisions, especially those that could negatively impact competition and consumers.” Ms. Shaheen said the CFPB's discrimination guidelines “could restrict legitimate credit options and increase costs for many Americans looking to finance their cars.” Bailey Wood, senior director for legislative affairs at the National Automobile Dealers Association, said the CFPB needs to be more open about its analysis. “If a government agency is hiding their statistics and methodology, it means it doesn't have to stand up to public scrutiny,” he said.
Source: The Wall Street Journal

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Marchionne Wants Chrysler IPO By Year's End

Fiat-Chrysler CEO Sergio Marchionne says he hopes a Chrysler initial public offering will be ready by the end of 2013. Marchionne, who had opposed taking the Auburn Hills automaker public again, told analysts and reporters Wednesday that talks with the United Auto Workers trust that owns a minority stake in Chrysler have failed and that he no longer believes he can negotiate a purchase of the trust's shares. Fiat owns 58.5 percent of Chrysler, but wants the 41.5 percent held by the UAW trust in order to complete a planned merger of the two companies.
Source: The Detroit News

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GM CEO Dan Akerson: 'We Want People to Start Buying Cars Over the Internet'

General Motors wants to make it easier to buy a car online. “We want people to start buying cars over the Internet,” CEO Dan Akerson said on conference call focused on the company's third-quarter earnings. He called it “a potential half-step away from our traditional channels.”

Akerson was quick to add that it “doesn't mean we're going to bypass our dealers.” GM spokeswoman Ryndee Carney said about 1,000 customers have bought vehicles after using the Shop-Click-Drive system, but fewer than 10 used the application to make the purchase without ever visiting a dealership. “The dealers like it because they're getting very high-quality leads and they're closing these leads at a much higher rate than other third-party leads that they get from other sources,” Carney said. “It's not like Tesla at all.” Asked for comment, the National Automobile Dealers Association pointed to a recent speech by its chairman, David Westcott, who said “car buyers who want to buy over the Internet do so today from dealers.”

“But most want to shop on the Internet and then come into the dealership to take a test-drive and finalize the overall transaction,” Westcott said.
Source: Detroit Free Press

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Car Prices Are Going Up, And So Are Automakers' Profits

The big lesson for U.S. automakers during the third quarter was this: if you build a better product, people will pay more for it. All three U.S. automakers reported higher operating profits for the third quarter, driven largely by stellar results in their home market. North American profit margins were some of the best these carmakers have seen in years. General Motors' margin was 9.3 percent (before interest and taxes), while Ford Motor earned 10.6 percent pre-tax and Chrysler earned 4.9 percent. Together, the three domestic carmakers earned about $5.7 billion in pre-tax profit in North America between July and September. That's up $1 billion from a year ago. One big reason: higher car prices. GM said better pricing lifted its third-quarter earnings by $600 million in the quarter, while Chrysler got a $343 million bump and Ford added $100 million from higher prices.
Source: Forbes
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Banks: Don't Be Misled by October's Data

With today being Halloween, Jonathan Banks warned about being tricked by the data being generated by the industry recently. The executive automotive analyst from NADA Used Car Guide explained his points during a recent online video post after the firm released its latest issue of Guidelines. “When taken at face value, statistics for both the new- and used-vehicle markets indicate a pullback in demand compared to prior months. However, this month's statistics are misleading,” Banks said. “The automotive industry is continuing to maintain a steady pace even with the uncertainty revolving around the contentious debate of the budget and debt ceiling,” he continued.
Source: Auto Remarketing
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Video: 'Night of Living Dead 3' Hearse Livens Up Halloween

This old hearse couldn't be creepier. And to Greg Carter, who maneuvers it around Southern California, it couldn't be more fun -- especially on Halloween. "I like to drive around on Halloween night and give the kids a thrill," says Carter. "I get all kinds of reactions." He has pretty much always been attracted to hearses, because, well, they're perfect for carrying around surfboards. And besides, he was an Alice Cooper fan. But come Halloween, he and his 1938 Pontiac hearse can be the most popular pair in town. He says people refer to the long, black car as the "ghost car." And they may be right, considering the hundreds of bodies it must have transported to their final rest over the decades.
Source: USA Today
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More Articles
 
Quotable
"That horse left the barn."

   --- Fiat SpA CEO Sergio Marchionne, commenting on the failed effort to purchase the rest of Chrysler from a UAW trust and how he now plans to take the automaker public again, The Detroit News, Oct. 30

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.) 

- 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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