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Inside this issue
Lender Group, Aiming to Refute CFPB, Launches Auto Finance Study
Goal for CFPB Chief: Calm Conflict on Loans
GM CEO Could Exit in 2014; No Formal Search Yet, Reuters Says
Hyundai to Publicly Display Customers' Dealership Reviews
NADA Convention: Stay on Schedule in New Orleans with 'myNADAplanner'
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Lender Group, Aiming to Refute CFPB, Launches Auto Finance Study

The American Financial Services Association is launching an independent study into the effects of the indirect lending model on consumers and the auto industry. The move comes in response to accusations from the Consumer Financial Protection Bureau that dealership participation in interest rates on auto loans creates a "significant risk" of discrimination. AFSA, a Washington-based trade association that includes many auto lenders, said the study would include an analysis of the costs and benefits of the status quo vs. changes, such as flat fees, advocated by the bureau. "We take the CFPB's concerns very seriously and plan to share with them the results of our cost-benefit analysis of the present and alternative dealer participation models," AFSA CEO Chris Stinebert said Tuesday.
Source: Automotive News

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Goal for CFPB Chief: Calm Conflict on Loans

This week was shaping up to be a showdown on auto finance. But from a U.S. Senate hearing Tuesday on the work of the Consumer Financial Protection Bureau, it became clear that CFPB Director Richard Cordray wants to thaw the agency's icy relationship with auto lenders and dealers. Asked about the wisdom of tossing out today's predominant auto finance model and instead paying dealers flat fees to arrange car loans, Cordray said he wants to avoid any step that would throw a wrench in car purchases or create new problems. He also promised more "openness and transparency," saying he agrees with the critics who say the CFPB has been too opaque in its handling of auto lending.
 
Dealer groups such as the National Automobile Dealers Association have publicly leveled withering criticism at the CFPB but have been meeting with the agency to try to defuse the tension. In an interview Tuesday, NADA President Peter Welch said he had a one-on-one meeting with Cordray on one occasion and has attended several other meetings between high-level staff at NADA and the CFPB. "Quite frankly, the meetings are pretty lopsided," Welch said. "We sit there. They're always very polite. They're always very professional. They listen. They take notes. But they don't give us anything."
 
With the CFPB planning to host a forum on auto lending [today] at its headquarters in Washington, lenders and dealers will have another good chance to bend the agency's ear. Cordray will be there; industry leaders and consumer advocates have also been invited to attend. But will confrontation turn into compromise? Dealers and many lawmakers on Capitol Hill still have major unaddressed concerns about the CFPB's push into auto lending. Chief among them is the agency has not released the data showing evidence of bias.
 
Welch said the dealers want to see the yardstick they're being measured with. "I've said it before, and I'll say it again: There's no place in the car business, or any business, for discrimination," he said.
Source: Automotive News

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GM CEO Could Exit in 2014; No Formal Search Yet, Reuters Says

General Motors Co. CEO Dan Akerson could step down as early as next year though he has not formally notified the board of his plans and an official search for his successor has not yet begun, according to people close to the matter. GM's board is not in any rush to see Akerson, 65, leave and has not set a timeframe for hiring an executive search firm to weigh potential internal or external candidates, said one of the sources, who is familiar with the board's thinking.
Source: Reuters

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Hyundai to Publicly Display Customers' Dealership Reviews

Hyundai Motor America says it plans to publicly display customer ratings and reviews — whether good, bad or ugly — for all dealerships through online review site SureCritic in an effort to improve customer satisfaction. About half of Hyundai’s 820 U.S. dealers use the service, which the American arm of the South Korean automaker views as a challenger to J.D. Power & Associates’ annual customer service index. The site allows for near-instant customer-dealership dialogue.
Source: The Detroit News

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NADA Convention: Stay on Schedule in New Orleans with 'myNADAplanner'

To help attendees maximize their time over the four-day NADA Convention & Expo, there’s myNADAplanner – a free, easy-to-use online tool for planning, scheduling and networking. Attendees can schedule workshops and meetings with exhibitors before, during and after the convention, search for products and services on the expo floor and create a personalized, printable floor plan map.

The NADA convention mobile app, which will be available in December, works seamlessly with myNADAplanner. The mobile app – available for iPhone, iPad and Android devices – allows attendees to navigate their way around the convention center, create a schedule, download workshop presentations and handouts, view speaker bios, navigate the convention center and shop the expo floor. Search for “NADA 2014” in the App Store or Android Marketplace to download the app.

Access to myNADAplanner is available to all registered convention attendees and exhibitors by using the four or five digit badge ID number sent in the registration/housing confirmation email or by calling (800) 974-3084. Click here to log on to myNADAplanner.

The 2014 NADA convention will be held at the Ernest N. Morial Convention Center from Jan. 24-27. Dealers and their managers who register in advance by Jan. 16 will receive a $75 discount from the on-site rate. To register, visit www.nadaconvention.org.
Source: NADAFrontPage.com

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More Articles
 
Quotable
"We've got strong growth in portfolios, balances are growing, lenders are growing extremely well, but coupled with that we are still seeing strong payment behavior by consumers."

    -- Melinda Zabritski, Experian’s senior director of automotive lending, Detroit Free Press, Nov. 13
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. 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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