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Inside this issue
CFPB, Critics Go to the Mat this Week
Show Your Support this Veterans Day with Hiring Our Heroes
U.S.-EU Trade Talks Aim at Barriers, Not Tariffs
Volkswagen Roller Coaster Is in a Down Cycle: Sales Are Off, Products Are Aging and Dealers are Restless
For Hyundai, Korean Factory Footprint Becomes a Millstone
Diesel, Fuel Cells Get Spotlight as Plug-Ins Lose Favor
Past NADA President John Peterson Dies
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
CFPB, Critics Go to the Mat this Week

The ongoing confrontation between the Consumer Financial Protection Bureau and automotive retailers and lenders is heating up, with two events in Washington this week and a disclosure from Ally Financial Inc. last week that illustrates the growing tension. CFPB Director Richard Cordray likely will face some critics in the U.S. Senate on Tuesday, Nov. 12, when he gives the Senate Banking Committee the bureau's semiannual report. Some senators -- including six of the 20 committee members -- and U.S. representatives have exchanged letters with Cordray in recent weeks, pressing for more details on the bureau's methodology -- an implied criticism of what the CFPB's detractors see as a lack of transparency. Then on Thursday, Nov. 14, the bureau plans to host an auto finance forum at its Washington headquarters. The event comes in the wake of Ally's disclosure, in a filing with the Securities and Exchange Commission, that the CFPB believes Ally and "other automobile finance companies" have failed to fulfill what the CFPB defines as the lenders' obligation to prevent dealers from engaging in discrimination. According to the CFPB's Web site, the forum will include remarks from Cordray and "a discussion with consumer groups, industry representatives and members of the public," but the site doesn't provide any other agenda beyond a "save the date" item that was posted on Nov. 4.
Source: Automotive News
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Show Your Support this Veterans Day with Hiring Our Heroes

This Veterans Day, NADA met with leadership from the Hiring Our Heroes program, which is a nationwide effort by the U.S. Chamber of Commerce Foundation to help veterans and their spouses find employment in communities across the country. As part of its effort, Hiring Our Heroes has hosted 645 job fairs in all 50 states, Puerto Rico and the District of Columbia. Through these employment fairs, 21,600 men and women have obtained jobs and more than 1,200 businesses have hired veterans and their spouses.

Since partnering with the program earlier this fall, NADA has been working with new-car and -truck dealerships across the country, as well as the state and metro dealer associations, to raise awareness of the skills veteran employees contribute to the civilian workforce. Veterans face huge hurdles when trying to find jobs after leaving the military. With 773,000 veterans currently jobless and 1.5 million service-members expected to leave the military in the next 5 years, there is clearly much to be done. "We all want to thank our service men and women for their service," said Donald Esmond, co-chair, Veterans Employment Advisory Council. "A great way to show your appreciation is to provide them with meaningful employment."

For more information on Hiring Our Heroes and what you can do to get involved, visit www.nada.org/hiringourheroes.
Source: NADAFrontPage.com
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U.S.-EU Trade Talks Aim at Barriers, Not Tariffs

Negotiators seeking a new trade deal between the U.S. and Europe are aiming to chip away at regulations that limit trans-Atlantic trade. Standing in their way are fundamental differences between how the European Union and the U.S. approach regulation. The EU and the U.S. will hold a second round of talks over five days starting on Monday. Roughly 50 U.S. officials are expected to travel to Brussels, half of whom aren't from the Office of the U.S. Trade Representative, which is leading the U.S. position in the talks, but from U.S. regulatory agencies—some independent from the federal government. That reflects the focus of the negotiations: The juiciest economic gains will come from ending regulations that limit trade, not from cutting tariffs. In some sectors, such as automobiles, this could be relatively easy. EU auto safety regulations have caught up with U.S. standards over the past 15 years. And because of new rules passed by the Obama administration, U.S. rules on fuel efficiency and emissions have nearly caught up with European standards. "Both sides are quite convinced that there is a lot of potential to harmonize regulation in the sector," said a senior EU negotiator.
Source: The Wall Street Journal

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Volkswagen Roller Coaster Is in a Down Cycle: Sales Are Off, Products Are Aging and Dealers are Restless

For three straight years, Volkswagen turned skeptics into believers, filling U.S. showrooms with vehicles that struck a chord in a way that no VW had since the original Beetle. Now some of those believers are skeptics again. After doubling U.S. sales from 2009 to 2012, the VW brand is sliding. Sales have declined for seven straight months, including a dramatic 18 percent drop in October, and are down 4 percent for the year in a market up 8 percent. Behind the decline is a product cadence that has left aging VW models competing against fresher rivals, and a product mix that has limited VW's success in some of the industry's fastest-growing segments. This reversal has cast doubt on the VW brand's goal of selling 800,000 vehicles a year in the United States by 2018 -- a milestone Volkswagen AG CEO Martin Winterkorn is counting on to help his company overtake Toyota as the largest automaker by then. It has also put U.S. executives in the tough position of having to pacify their restless dealers, who worry that the German automaker won't follow through on its goal of turning VW into a top-tier U.S. brand.
Source: Automotive News
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For Hyundai, Korean Factory Footprint Becomes a Millstone

It takes twice as long on average -- over 28 hours -- for Hyundai Motor Co. to make a car in South Korea than in the United States, even though its domestic plants have far more workers for each production line. Add in high wages, frequent work stoppages and outdated facilities, and Hyundai's hourly labor costs per worker in South Korea, at 24,778 won ($22.26), are 16 percent higher than at its U.S. factories, and triple what they are in China. Its seven domestic plants have helped drive Hyundai to become the world's fifth-largest auto manufacturer, but are now a legacy asset that needs to be addressed to sustain profit growth. It may make more sense, economically, for the company to close a plant it built 45 years ago -- one of five in Ulsan -- that is now its oldest and costliest facility. But Hyundai says it won't give up its Korean base -- much as Toyota Motor Corp. rejects the idea of stopping production in Japan -- and says that fixing productivity issues with its strong domestic union is a top priority.
Source: Reuters

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Diesel, Fuel Cells Get Spotlight as Plug-Ins Lose Favor

With U.S. sales of plug-in electric vehicles on pace to reach half of President Barack Obama's goal, regulators are following customers and automakers to vehicles powered by other fuels, from hydrogen to diesel. California, which leads 10 states that require automakers to sell zero-emission vehicles, may alter its system of tradable credits to stop favoring plug-ins over hydrogen-powered cars. That would hurt Tesla Motors Inc. while helping Honda Motor Co. Automakers that sell vehicles in the U.S. must double their vehicles' average fuel economy by 2025 under rules Obama adopted. The target is considered impossible to achieve just by improving the gasoline engine. Auto-industry executives surveyed by Booz & Co. and Bloomberg LP predicted vehicles running on electricity and other alternative powertrains would account for 20 percent of sales by 2020 -- unless the government stopped its support, in which case their predicted share fell to 12 percent.
Source: Bloomberg
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Past NADA President John Peterson Dies

John Philip Peterson of Edina, Minn., 84, passed away Thursday, Nov. 7, 2013. He served 2 years in the U.S. Army prior to beginning his automotive career as a part-time lot boy at a Buick dealership in Minneapolis. Over the years, Peterson worked his way up through various dealership sales and management positions. In 1968, he purchased a dealership in Bloomington, Minn., and he operated the dealership, Peterson Pontiac GMC Truck, for 32 years. Peterson was past president of the Greater Metro Auto Dealers Association, Minnesota Auto Dealers Association and the National Automobile Dealers Association in 1996. He received the TIME Quality Dealer Award in 1993. He is survived by his wife of 60 years, Jean (Galen) Peterson; son Brad Peterson (Traci); and grandchildren, Amanda, Tyler, Alexandra, and Zachary. Click here for funeral details.
Source: Star Tribune (Minneapolis)/NADAFrontPage.com
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More Articles
 
Quotable
"You're having a great time at a party. Everybody is celebrating. The punch bowl is full. The glasses are full. Everything is great. And all of a sudden, somebody comes in and they take the punch bowl away. The party's over." 

   --- Jimmy Ellis, a VW dealer from Atlanta and chairman of the brand's national dealer council, commenting on the automaker's declining U.S. sales, Automotive News, Nov. 11

NADA Market Beat
October Sales Up From Last Year
Chairman's Column
A Season of Thanks
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. 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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