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Inside this issue
GM Investors Expect Buybacks, Dividend After U.S. Exit
Editorial: CFPB, Lenders, Dealers are Talking, and That's Progress
Kia, Lincoln Finance Units Score Top Rankings in J.D. Power Survey
Hyundai Motor Unveils New Genesis to Boost Sales in U.S.
Volvo Secures $800 Million Loan from China Development Bank
GM, Toyota Get Boost From Discounted Finance, Lease Deals for Uber Drivers
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
GM Investors Expect Buybacks, Dividend After U.S. Exit

General Motors Co. investors are focused on the possibility of stock buybacks or a dividend on common shares now that the U.S government has outlined its plans to sell the rest of its stake in GM by year end, analysts said. Analysts expect GM next year to buy the rest of its Series A preferred stock owned by the UAW healthcare trust and the Canadian government, and then return cash to shareholders through a buyback and dividend that will draw more interest from potential investors. "The likely clean-up of the Treasury stake by year end moves capital allocation to the forefront for 2014," Barclays' analyst Brian Johnson said in a research note. The U.S. Treasury said it would exit its stake in GM by year end, a move many on Wall Street had expected despite prior announcements that it would sell the rest of its shares by April 2014.
Source: Reuters
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Editorial: CFPB, Lenders, Dealers are Talking, and That's Progress

The Consumer Financial Protection Bureau and U.S. auto dealers appear to have a framework for defusing a squabble over loan discrimination. There were plenty of fireworks at a Nov. 12 Senate Banking Committee hearing and a Nov. 14 agency forum, with auto dealers and lenders protesting the circumstances under which the CFPB plans to regulate the sector. But all sides showed they are starting to listen to one another. That's an improvement. Since the agency issued a bulletin in March citing indications of discrimination in auto lending, the discourse has seemed more like shouting than communicating. It's unsurprising that a new federal agency would quickly address a field as large as auto finance. And if car buyers are indeed paying more for credit for no reason other than their race, national origin or gender, that must be corrected. But selling autos is a complex business, as the CFPB is learning. It's encouraging that the CFPB's Eric Reusch acknowledged several possible replacements for the "dealer reserve" system the agency objects to. That's progress. More is needed.

The CFPB must be transparent about its rules and its methods. As businesspeople, dealers can adjust to new rules if clearly stated and evenhandedly enforced. And the agency needs to share the full methodology and statistics it used to reach its preliminary findings so lenders and dealers can respond. The CFPB, dealers and lenders have started informal negotiations. We applaud that initiative and encourage further efforts to ensure fair and equitable auto lending without excessive enforcement activity.
Source: Automotive News
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Kia, Lincoln Finance Units Score Top Rankings in J.D. Power Survey

Kia Motors Finance was the No. 1 auto lender among mass-market brands and Lincoln Automotive Financial Services the top lender among luxury brands in J.D. Power's 2013 U.S. Consumer Financing Satisfaction Study released [Monday]. Captive finance companies beat banks and independent finance companies for the top spots in the rankings overall, but many lenders weren't ranked because of small sample sizes, including some of the nation's biggest-volume lenders such as bank-based Ally Financial Inc.
Source: Automotive News
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Hyundai Motor Unveils New Genesis to Boost Sales in U.S.

Hyundai Motor Co., South Korea's largest automaker, unveiled a revamped all-wheel-drive Genesis premium sedan that will go on sale in the U.S. next year to revive flagging sales in the model's largest market. The all-new Genesis, which competes with Bayerische Motoren Werke AG's 5-series and Daimler AG's Mercedes Benz E-Class in the midsized premium sedan market, will also be introduced in Europe next year, its first premium model in the market. Hyundai plans to sell 62,000 Genesis sedans worldwide in 2014, the Seoul-based company said in a statement. Hyundai's first revamp of the Genesis, which won the North American Car of the Year award in 2009, comes in the wake of a series of recalls this year by Hyundai and its affiliate Kia Motors Corp. The recalls have been a blow to Hyundai, which has striven for years to upgrade its image as a maker of cheap utilitarian cars, and follow a rapid expansion of production in new markets such as Brazil and China as it competes with Toyota Motor Corp.
Source: Bloomberg
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Volvo Secures $800 Million Loan from China Development Bank

Volvo Cars, struggling to restore profits since Zhejiang Geely Holding Group Co. bought the manufacturer from Ford Motor Co. in 2010 for $1.8 billion, signed a second loan agreement with China Development Bank. The $800 million credit with a maturity in 2021 will be used to further develop products and enhance the automaker's capital structure, Volvo Cars said. The first drawdown of the loan is scheduled for this year, with amortization and terms that match those on a 2012 loan of 922 million euros ($1.25 billion), it said. Volvo CEO Hakan Samuelsson said last week he is confident Volvo Cars will reach break-even this year after vehicle sales improved in the second half.
Source: Bloomberg
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GM, Toyota Get Boost From Discounted Finance, Lease Deals for Uber Drivers

People who sign up as drivers for Uber Technology Inc.'s car-booking service will be able to get discounted financing or leasing for vehicles made by Toyota Motor Corp. and General Motors, Uber said Monday. Drivers registered to pick up passengers, who request and pay for rides using Uber's mobile application, will be able to go to a dealership and buy designated Toyota or GM cars approved for the program at lower rates through vehicle-financing companies, Uber CEO Travis Kalanick said. Uber, based in San Francisco, is racing to keep up with demand as more people sign up and the company expands into new cities. Global usage in October increased more than 20 percent from the previous month, Kalanick said. Uber is seeking to boost the supply of cars on its service while creating opportunities for automakers to sell vehicles, he said.
Source: Bloomberg
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Quotable
"The CFPB must be transparent about its rules and its methods. As businesspeople, dealers can adjust to new rules if clearly stated and evenhandedly enforced. And the agency needs to share the full methodology and statistics it used to reach its preliminary findings so lenders and dealers can respond."

   
-- Automotive News in an editorial on recent discussions between the CFPB, lenders and auto dealers, Nov. 25
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