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Inside this issue
CFPB Chief Concedes Need for Balance in Auto-Loan Oversight
U.S. Sells Nearly a Third of Remaining GM Shares
Dealers Pay More, Keep Employees Longer, Study Says
Used Vehicle Prices Fall by Largest Amount in Two Years
Will Shanghai Luxury Rides Rival U.S.?
Three Strategies for Marketing to Millennial Women
She Still Owns the First Mustang Sold
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
CFPB Chief Concedes Need for Balance in Auto-Loan Oversight

Richard Cordray, director of the Consumer Financial Protection Bureau, said he wants more "openness and transparency" for the agency's oversight of auto lending, but added that the agency still has strong concerns about how dealerships arrange loans. The remarks, made during a Senate hearing [Tuesday] afternoon, were Cordray's most detailed public remarks on the subject, and showed an effort to strike a balance in the way the bureau regulates transactions in the auto market. On the one hand, the agency wants to flex its muscle in the market to protect consumers from abusive loan practices. But it also wants to extend an olive branch to dealers and auto lenders, who say the CFPB is pushing them into changing their loan practices without showing the data to explain why.
Source: Automotive News

Editor's note: NADA is participating in a public forum held by the CFPB on auto lending on Thursday, Nov. 14. The event marks the first time the CFPB has accepted public input since issuing its “fair lending” guidance last March. The forum can be viewed live starting at 8:45 a.m. EST on Nov. 14. Click here to view the webcast.
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U.S. Sells Nearly a Third of Remaining GM Shares

The Treasury said Tuesday it sold $1.2 billion in General Motors stock in October — or nearly one-third of its remaining shares — as the government plans to exit the Detroit automaker by the end of March, if not earlier. In October, GM stock traded for around $35 to $36 a share, meaning the government sold about 29 million to 30 million shares. As of September, it had about 101 million shares remaining, so the latest sale leaves the Treasury will around 70 million shares. At current selling rates, Treasury could completely exit sometime in January. The Treasury has vowed to exit GM completely by March 31, but a GM buyback could speed the exit. Once the government exits, GM can again pay a dividend.
Source: The Detroit News

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Dealers Pay More, Keep Employees Longer, Study Says

Dealers experienced less employee turnover and hired more woman and young people in 2012. Dealers also paid higher salaries, in line with increased productivity. Those are among some key findings detailed in the 2013 Dealership Workforce Industry Report released by the National Automobile Dealers Association [Tuesday]. This is the second annual workforce report. More than 2,240 dealerships participated in the study. "This is by far the most comprehensive and timely study on the dealership workforce ever produced, and serves as a tremendous resource to help dealers 'step up their game' to gain an edge on the competition," NADA Chairman David Westcott said in a statement.
Source: Automotive News

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Used Vehicle Prices Fall by Largest Amount in Two Years

Federal government shutdown exacerbates normal seasonal softness, and impacts both new vehicle sales and used vehicle prices

Wholesale used vehicle prices for units up to eight years in age fell by 3.5% in October, nearly a point higher than the decline recorded in September. This marked the largest fall since October 2011's similar drop of 3.5%. “Without the drama created by federal lawmakers that resulted in the shutdown, it's likely that October's rate of decline would have been directly in line with recent seasonal norms,” said Jonathan Banks, executive automotive analyst for the NADA Used Car Guide, in the November edition of Guidelines, a monthly report on new and used vehicle sales trends and price movement.
Source: NADAFrontPage.com
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Will Shanghai Luxury Rides Rival U.S.?

Car makers bet buyers want same in China as in U.S.

When it comes to luxury cars, consumers in Chicago have more in common with Shanghai than Stuttgart. That is the bet that Ford Motor Co. is placing with a new Lincoln luxury model. And many of its rivals in the premium car business are making the same call. Lincoln, best known for cushy, plus-size vehicles, is expected to unveil on Wednesday a new small sport-utility vehicle called the MKC. It will go on sale starting next year in largely identical versions for in the U.S. and China. It won't be sold in Europe. That is significant because for decades, auto makers struggled to design cars that could sell in the U.S. and Europe without significant modifications, the better to spread engineering and design costs over a broader base. The U.S. and Europe were the world's two biggest markets, so the goal made sense. Now, auto makers, and particularly luxury car brands, are shifting their focus, directing more energy toward exploiting an increasing convergence of consumer tastes among affluent drivers in the U.S. and China.
Source: The Wall Street Journal
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Three Strategies for Marketing to Millennial Women

While the rest of us have been busy aging, it turns out Millennials have, too. Take a look at that young mother pushing her stroller into Starbucks. I know you've seen her. Chances are she's a Millennial, a member of the generation born between 1980 and 2000. (Exact definitions vary, but the term Millennial typically refers to the generation that has grown up with technology.) Millennial women are already the newest generation of mothers, with the eldest women in this age group now 33 years old. The early 30's are also an age when many women hit their professional stride. This combination of factors means Millennial women are a prime target audience for everything from cars to furniture to financial services. So what's the best way to reach them? Based on our research at Female Factor, Click here for three strategies for marketing to this influential group.
Source: Forbes
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She Still Owns the First Mustang Sold

Gail Wise, retired Chicago schoolteacher, on her Mustang—believed to be the first one ever sold—as told to A.J. Baime

I bought my Mustang on April 15, 1964, for $3,447.50. I had just graduated from Chicago Teachers College and I told a salesman at Johnson Ford on Cicero Avenue that I wanted a convertible. He had none on the floor, but he invited me into the back room, where he had a baby blue convertible under a tarp. And there it was. I had never heard of the Mustang. It hadn't been launched yet, but they let me drive it out of the showroom that night. Everyone stared at me. I felt like a movie star! Two days later, Lee Iacocca unveiled the Mustang to the rest of the world at the New York World's Fair.
Source: The Wall Street Journal
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More Articles
 
Quotable
"I felt like a movie star!"  

   --- Retired Chicago schoolteacher Gail Wise, commenting on her 1964 Ford Mustang, The Wall Street Journal, Nov. 12

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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