View Mobile Version | View Web Version

November 1, 2013 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training
Inside this issue
Congress Puts Major Focus on CFPBs Lack of Transparency
How General Motors Was Really Saved: The Untold True Story of the Most Important Bankruptcy in U.S. History
Nissan Appoints Munoz New N. America Head
Ford Sees 30% Jump in Lincoln October U.S. Sales as Ads Debuted
Boys and Girls Club of Vineland Gets a Boost from Local Toyota Dealer
Click here for more auto industry news at .
Top Stories
Congress Puts Major Focus on CFPBs Lack of Transparency

The CFPB's effort to curtail a dealer's ability to offer interest rate discounts to customers was a top issue before Congress this week. On March 21, the CFPB issued “guidance” that pushes lenders to eliminate the ability dealers currently have to “meet or beat” a competitor's rate.

On Tuesday, Rep. Andy Barr, R-Ky., in a hearing reviewing legislation to reform the CFPB, highlighted that the Bureau hasn't offered any opportunity for public review or scrutiny of its proposed changes to indirect financing. Stressing the lack of accountability by the CFPB, Rep. Barr, in exchange with a witness from the U.S. Chamber of Commerce, clearly established that the Bureau had not received any input from either the industry or from car and truck buyers before issuing its “guidance.” (To view that hearing, click here -- the Barr-Sharp exchange begins at 1:27:51)

Late in the week, Reps. Colleen Hanabusa, D-Hi., Frederica Wilson, D-Fla., and David Cicilline, D-R.I., sent a letter—the fifth from Congress on this topic—asking for further disclosures and noting that previous Congressional letters were largely ignored by the Bureau. (Click here to view the letter.)

"To date, the Bureau has not provided all the materials requested by Congress and deemed necessary for proper oversight," the letter reads.

On Oct. 30, a bipartisan letter from 22 senators was sent to the CFPB demanding greater transparency regarding its methodology and statistical analysis that led the Bureau to seek to eliminate a dealer's ability to discount an interest rate for a customer. (Click here to view the letter.)

Even after numerous letters and inquiries, the CFPB has not publicly justified how eliminating “meet or beat” financing helps consumers finance a vehicle that meets their daily transportation needs.

“If the CFPB is purposely hiding their data and analysis, it could mean that their methodology and justification won't stand up to public scrutiny,” said Ivette Rivera, NADA vice president of Legislative Affairs.

“Dealers applaud the leadership of Reps. Barr, Hanabusa, Wilson and Cicilline, as well as the signers of the Portman-Shaheen letter," Rivera added."These members of Congress all recognize the need for greater public and industry input as the Bureau tries to further regulate a highly competitive and efficient auto finance marketplace.”
Source: NADA Legislative Affairs
Share: LinkedIn Twitter Facebook

[back to top]

How General Motors Was Really Saved: The Untold True Story of the Most Important Bankruptcy in U.S. History

For months the news was horrific, a pounding beat of warm-up obituaries for what once had been America's greatest and most influential corporation: General Motors. At death's door or already in the graveyard were Bear Stearns, Lehman Brothers, Merrill Lynch, AIG and Citibank. The mood was apocalyptic. With car sales in a free fall from the worst economic downturn since the Great Depression, GM was losing billions and running out of cash. By the time the company closed its books on 2008 it would be in the red by a staggering $30.9 billion. Chief executive Rick Wagoner led the auto delegation in Washington seeking government funding to save the industry and keep GM out of bankruptcy.

Five years later, after an unprecedented government equity investment, GM is thriving and the Treasury plans to sell its remaining stake in the coming months. With countless articles and books now written about the GM restructuring and turnaround–not to mention three years of trumpeting by the Obama Administration taking full credit for the turnaround's success–the most startling aspect of the prevailing narrative is that the core of how the restructuring really happened, inside GM, is yet to be fully told. The real GM turnaround story, significant in saving the auto industry and the economy, is contrary to the one that has been published. In fact, the plan that was developed, implemented and then funded by the government was devised inside GM well before President Obama took office. In what follows, the inside story of this historic chapter in American business unfolds, laying bare the key facts. GM's extraordinary turnaround began long before Wagoner went to Washington in search of a massive loan to keep GM alive.
Source: Forbes

Related Stories:

Share: LinkedIn Twitter Facebook

[back to top]

Nissan Appoints Munoz New N. America Head

Ghosn shuffles management, downgrades outlook

Nissan Motor Co., in a wide-ranging management shuffle, has appointed Jose Munoz its new chief of North America. He replaces Colin Dodge, who will be assigned to special projects and report directly to CEO Carlos Ghosn, spokesman Jeff Kuhlman said. Dodge will remain on Nissan's board. Munoz steps up from his role as senior vice president of sales and marketing for Nissan and Infiniti brands in North and South America and the Caribbean. He started that job April 1, after serving as president of Nissan's operations in Mexico. Munoz will become an executive vice president at the Japanese parent company and a member of its important executive committee, Kuhlman said. He will not be a member of the board.
Source: Automotive News

Related Story:

Share: LinkedIn Twitter Facebook

[back to top]

Ford Sees 30% Jump in Lincoln October U.S. Sales as Ads Debuted

Ford Motor Co., a laggard in the U.S. luxury-auto market, said its Lincoln brand sales rose about 30 percent this month as it introduced new advertising for the revamped MKZ sedan ahead of rivals' holiday promotions. MKZ led the brand's gains, surging about 70 percent from a year earlier, when Ford was selling down inventory of the previous model, Kevin Cour, Lincoln's sales and service operations manager, said today in a telephone interview. The Dearborn, Michigan-based company introduced the Luxury Uncovered campaign for MKZ on Oct. 9. “We are very happy that we got engaged in October versus waiting for Wish List,” Lincoln's annual holiday sales event, Cour said. “The campaign is now seeded in the market, and as people begin their purchase consideration, Lincoln can be a bigger part of the conversation.”
Source: Bloomberg
Share: LinkedIn Twitter Facebook

[back to top]

Boys and Girls Club of Vineland Gets a Boost from Local Toyota Dealer

Bob McCormick, vice-president of Toyota of Vineland, (back row, left) presents $1500 contribution to Chris Volker of the Vineland Boys and Girls Club (back row, right). Front row (left to right) Foster Grandmom Hilda Velez and members Nashley Collazo, Shaquan Hatch and Eugenio Cintron.

The Boys and Girls Club of Vineland was recently recieved a $1500 contribution from Bob McCormick, vice president and general manager of Toyota of Vineland [in N.J.] as part of the National Auto Dealers Charitable Foundation Ambassadors program. McCormick is entitled to make a contribution to the charity of his choice every three years. The Boys and Girls Club was seen by him as "the perfect choice" due to its work in the community.

Boys and Girls Club of America is ranked the number one youth organization by the Chronicle of Philanthropy. The Boys and Girls Club of Vineland, targeting at risk and disadvantaged youths, has over 500 members and has been active with Vineland youths since 1997.
Source: Toyota of Vineland

Editor's note: For more information or to become an Ambassador, click here or contact the NADA Foundation at (703) 821-7102 or

[back to top]

More Articles
"General Motors is rapidly becoming the company that everyone hoped when the government rescued the auto industry after the Great Recession of 2008 — producing cars that win in the marketplace under sound, smart management." 

   --- Heather Rosenker, GM spokeswoman, commenting on the automaker's turnaround, The Detroit News, Oct. 31

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

  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
Search Back Issues | Unsubscribe | Subscribe | Manage your subscription | email us
NADA For more information on NADA, visit or contact NADA, 8400 Westpark Drive, McLean, VA 22102. This email may contain an advertisement of NADA products and services. Any opinions or statements contained herein do not necessarily reflect the views of NADA. Factual errors are the responsibility of the listed publication. If you are a franchised new-car or -truck dealer and would like to become a member of NADA, please visit the Join NADA section of Questions or comments concerning NADA Headlines content may be directed to .