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Inside this issue
Ally May Face Fines on Auto Lending
Automakers, States to Discuss Zero-Emission Vehicle Plan
Toyota Profit Jumps 70 Percent Despite Sales Slip
Tesla Posts Loss as Output Climbs
Survey: Lack of Diesel Driving Experience Hurts Market
Three Longtime Execs to Leave Ford
NADA Chairman's Column: A Season of Thanks
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Ally May Face Fines on Auto Lending

Detroit-based Ally Financial Inc. announced Tuesday that the federal consumer finance watchdog says the auto lender may have failed to abide by anti-discrimination laws, including ensuring that dealers who use Ally financing don't overcharge minorities and women. The Consumer Financial Protection Bureau has been investigating credit practices in the automotive finance industry and whether dealers and lenders treat prospective buyers fairly. “In connection with these investigations, the staff of the CFPB has recently advised us that they believe we have an obligation to prevent independent automotive dealers with which we do business from engaging in certain retail financing practices that the CFPB staff believes violate the anti-discrimination provisions of the Equal Credit Opportunity Act, and that we have failed to fulfill this obligation. We understand that the CFPB has similarly advised other automobile finance companies,” Ally said in a securities filing on Tuesday. Ally, the bank holding company that is 74 percent owned by the U.S. Treasury as part of $17.2 billion in bailouts, said it is in talks with CFPB.
Source: The Detroit News
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Automakers, States to Discuss Zero-Emission Vehicle Plan

Automakers and eight U.S. states led by California that want to get more than 3 million zero-emission vehicles on the nation's roads by 2025 will meet in Washington this week to discuss the ambitious plan. At a two-day meeting starting Thursday, automakers, officials from the states, California Air Resources Board and the Environmental Protection Agency will meet to discuss the new zero emission requirements. The schedule includes one-on-one meetings with states and automakers. Last week, governors from eight states — California, Connecticut, Maryland, Massachusetts, New York, Oregon, Rhode Island and Vermont — signed a cooperative agreement in an effort to get 3.3 million zero-emission vehicles on the roads by 2025. California previously announced it wants to require 1.5 million EVs, plug-in hybrid and hydrogen-fuel cell vehicles on its roads by 2025.
Source: The Detroit News
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Toyota Profit Jumps 70 Percent Despite Sales Slip

Toyota's quarterly profit soared 70 percent, and the world's top-selling automaker raised its earnings forecast, as cost cuts and the weaker Japanese yen compensated for slightly weaker vehicle sales. The Tokyo-based maker of cars such as the Prius and the Camry said Wednesday its July-September net profit rose to 438.4 billion yen ($4.4 billion) from 257.9 billion yen a year earlier. Profits at Japanese automakers have surged in yen terms as the Japanese currency weakened against the U.S. dollar over the past year, helped by a mammoth Bank of Japan effort to expand the money supply and ignite inflation to end years of economic stagnation.
Source: Associated Press
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Tesla Posts Loss as Output Climbs

Luxury electric car maker delivered 5,500 vehicles last quarter

Tesla Motors Inc. reported a narrower third quarter net loss on higher production but its shares fell sharply in after-hours trading as investors worried the luxury electric car maker's outlook for revenue and profit fell short. The Palo Alto, Calif., company said it delivered 5,500 of its $70,000 and up Model S electric cars in the three months ended Sept. 30, including 1,000 vehicles shipped to Europe. That was more than the company had projected earlier but below the whisper number of as many as 7,000 cars. Tesla's shares fell 12% in after hours trading on Tuesday after the company told investors to expect fourth quarter adjusted profit would be similar to the third quarter. Excluding stock-based compensation costs and accounting for Model S leases and "noncash interest expense," the company said it had adjusted income of $16 million, or 12 cents a share, in the quarter.
Source: The Wall Street Journal
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Survey: Lack of Diesel Driving Experience Hurts Market

One of the biggest challenges facing diesel-powered vehicles in the U.S. is that most people have no experience driving cars or trucks that run on diesel, according to a new survey. Seven in 10 Americans have never driven a diesel-powered vehicle, and three-quarters of Millennials — those under age 30 — have never been behind the wheel of a diesel car or truck, according to an online survey by Harris Interactive on behalf of Honeywell International Inc. Harris surveyed 3,014 adults ages 18 and older. But consumers are aware of the attributes of diesel, most notably that diesel engines can produce more power than traditional gasoline engines (though that fact is being challenged by newer, advanced turbocharged gas engines). Most of those surveyed also believe a diesel-powered car is more efficient than a car of similar size with a gas engine. Many analysts believe the trajectory of U.S. diesel vehicle sales will be prompted by Millennials. Though that generation has little experience with diesels, that could be a good thing, as many baby boomer car buyers have stayed away from diesels because they remember the dirty, smokey, cars from their younger years.
Source: The Detroit News
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Three Longtime Execs to Leave Ford

Three long-time Ford Motor Co. executives — including the Dearborn automaker's design chief, who helped inspire many of Ford's current popular nameplates — will retire at the end of the year. J Mays, 59, Ford's chief creative officer and design chief, will retire after a 33-year automotive career. Jim Tetreault, 58, North American manufacturing chief, will retire after a 25-year career at the Dearborn automaker. And Marty Malloy, 57, labor affairs vice president, will call it a career after 34 years at Ford. The retirements and appointments associated with those retirements are effective Jan. 1. There were no announcements made regarding the CEO position held by Alan Mulally, who has been rumored as a possible candidate to take over the same position at Microsoft Corp., but it is likely Ford is preparing for the post-Mulally era.
Source: The Detroit News

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NADA Chairman's Column: A Season of Thanks
By David Westcott, NADA chairman

November is a special month. As the leaves change to bright, fall foliage outside NADA's headquarters, it is a good time to take stock of what we're thankful for. For one, I'm thankful to be a franchised dealer, and I bet you are too. I'm proud to be part of a group of resilient entrepreneurs that do what nobody else can: keep America moving. Meeting the transportation needs of our customers is essential to a strong economy, a strong community and a strong country. But there's more. As I travel and meet dealers around the country, I can't help but be impressed with what dealers do outside of their showrooms. Dealers are philanthropists, civic leaders and the cornerstones of their communities. They fund hospitals, support schools and back local police and fire departments. That is why NADA is proud to co-produce the TIME Dealer of the Year Award, a national initiative that recognizes the industry's most successful new-car dealers who also demonstrate a longstanding commitment to community service. The award, sponsored by Ally Financial, is now in its 45th year. And it's still considered the industry's most prestigious award for new-car dealers. TIME recently announced 57 nominees from a field of more than 8,700 dealers nationwide. This select group from across the country will be honored at our 97th annual Convention & Expo in New Orleans. And the national winner will be announced on Saturday, at the opening session of the convention, on January 25.

NADA's ties with the awardees extend beyond the award show. In fact, of all the previous TIME Dealer of the Year national winners, 11 are Ambassadors of the National Automobile Dealers Charitable Foundation. These winners also include past NADA chairmen and presidents and current board members. NADA is extremely proud to be part of this legacy. The NADA Foundation, which serves as the philanthropic arm of our association, was established in 1975. The foundation has expanded beyond the Ambassador program to include emergency relief for dealership employees, educational and road safety grants, and support for Canine Companions, including its Wounded Warrior initiative, as well as CPR training manikins to organizations in all 50 states. This is all made possible by the contributions from our members to the foundation. If you are not already an Ambassador, you should become one. A dealer, company, association or individual makes a contribution of $10,000 in his or her own name or in the name of someone they would like to recognize and honor. The Foundation then guarantees that a grant of at least $1,000 will be presented to an entity the Ambassador selects every three years in perpetuity. It's like having your own foundation without having to bother with administration and overhead. Today, there are 650 Ambassadors who donate an average of $250,000 each year to charities of their choice, usually in their local communities.
Source: NADA Public Affairs
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More Articles
 
Quotable
"I'm proud to be part of a group of resilient entrepreneurs that do what nobody else can: keep America moving." 

   --- NADA Chairman David Westcott, commenting on why he is thankful to be a franchised dealer, NADA Chairman's Column, Nov. 6

NADA Market Beat
October Sales Up From Last Year
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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