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February 6, 2014 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
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Inside this issue
Public Dealer Groups Receptive to NADA Compliance Plan
Popular Vehicle Financing Resource Updated
Snow Job? Why Some Carmakers Were On The Sunny Side Of The Street In January
Automaker Daimler Rebounds in Q4
GM, Isuzu to Invest $60 Million in Engine Joint Venture
NADA Presents Five 'Best in Show' Awards to Convention Exhibitors in New Orleans
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Public Dealer Groups Receptive to NADA Compliance Plan

Some of the big public retail groups are reacting positively to the National Automobile Dealers Association's recommendations that dealerships adopt a hard percentage cap on dealer reserve and then document any discounts offered. "We appreciate where [NADA is] going, to try to nail down something concrete," said Craig Monaghan, CEO of Asbury Automotive Group, during a conference call on Tuesday. "We don't feel like our industry or the [Consumer Financial Protection Bureau] has given us the clarity we would very much like to have." Asbury already has its own fixed caps on dealer reserve and on F&I products, but it doesn't document why customers may have gotten a discount, company officials said.

Meanwhile, AutoNation Inc. said on Jan. 30 it would try out the NADA approach at a few stores. Group 1 Automotive was more enthusiastic, saying on Jan. 24 it would implement the changes across its entire U.S. dealer network. NADA announced the recommendations on Jan. 24 as a way for dealerships to try and head off potential discrimination charges stemming from the Consumer Financial Protection Bureau's oversight of auto lenders. The CFPB can't regulate dealerships directly, but it is trying to get lenders to eliminate dealer discretion in setting dealer reserve. When dealerships offer discounts from their fixed cap on dealer reserve, to be competitive with rival financing offers, for example, NADA proposed they be documented based on a set of preapproved reasons. NADA e-mailed the "NADA Fair Credit Compliance Policy & Program" to members after it was announced, the association said.
Source: Automotive News

Editor's note: To strengthen compliance with fair credit laws and protect the affordability and accessibility of auto credit, NADA has created a new optional program for dealers entitled the NADA Fair Credit Compliance Policy and Program. NADA members can download the information by clicking here. (Dealership username and password required. To recover your username and password or to join NADA, call Membership at 800-252-6232.)
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Popular Vehicle Financing Resource Updated

Understanding Vehicle Financing, an educational brochure for vehicle shoppers, has been updated to reflect relevant vehicle finance laws, terms and statistics. The brochure takes consumers through the vehicle financing process and highlights the importance of budgeting, checking one's credit report, and shopping around. Originally produced in 2003, the brochure has provided important information to help millions of potential borrowers understand vehicle financing options and evaluate their own financial situations before financing or leasing a new or used vehicle. It was developed by the American Financial Services Association Education Foundation (AFSAEF) and the National Automobile Dealers Association (NADA), and prepared in cooperation with the Federal Trade Commission (FTC). "The collaboration between AFSAEF, FTC, and NADA enhanced the content of this already excellent one-stop guide for vehicle shoppers," said Dave Westcott, former NADA chairman. "NADA encourages its dealers to provide copies of this great educational tool to their customers."
Source: AFSA Education Foundation/NADA
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Snow Job? Why Some Carmakers Were On The Sunny Side Of The Street In January

It's curious, isn't it, that January's wintery weather affected some carmakers more than others? General Motors, Ford Motor, and Toyota Motor all saw substantial sales declines for the month. “January was off to a solid start, but the weather conditions slowed industry sales in key markets late in the month,” said Bill Fay, Toyota division group vice president and general manager, after reporting a 7.2 percent sales decline. Ford's sales fell 7.5 percent and GM's declined 11.9 percent compared to a year ago. But the snow and frigid temperatures didn't seem to bother others, like Chrysler or Nissan. Both reported healthy sales increases in January, up 7.6 percent and 11.8 percent, respectively. Nor did it affect Subaru, which specializes in all-wheel-drive cars that are well-suited for winter driving. It had the biggest gain of any carmaker, up 19.3 percent. Regional differences no doubt explain some of the results. Asian carmakers outsell domestic brands in large West Coast markets where bad weather wasn't a factor so generally speaking, their customers weren't hunkered inside like many GM and Ford buyers. If that's true, does that mean Chrysler shoppers are just heartier, then – more willing to brave the elements?
Source: Forbes
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Automaker Daimler Rebounds in Q4

Automaker Daimler AG finished 2013 strongly after a rough start to the year that included a profit warning. Fourth-quarter operating earnings jumped 45 percent to 2.53 billion euros ($3.41 billion) from 1.74 billion euros, excluding a one-time gain from the sale of a stake in aerospace company EADS, the company said Thursday. Revenues increased 8 percent to 32.09 billion euros, boosted by a stronger lineup of small vehicles from the core Mercedes-Benz luxury brand, such as the A-Class, B-Class and CLA.
Source: The Associated Press
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GM, Isuzu to Invest $60 Million in Engine Joint Venture

General Motors Co. and Isuzu Motors Ltd. will invest $60 million to upgrade technology in their diesel engine joint venture in Ohio. The investment in DMAX Ltd. will allow the companies to make design changes to meet future emission requirements and retain 500 jobs at a plant in Moraine, Ohio, GM said in a statement [Wednesday]. DMAX Ltd. was established in 1998 and has produced almost 1.6 million diesel engines for heavy-duty trucks in the United States since starting operations in 2000, GM said. The U.S. automaker owns 60 percent of the venture and Japanese truck maker Isuzu owns the rest.
Source: Reuters
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NADA Presents Five 'Best in Show' Awards to Convention Exhibitors in New Orleans

Future days of the NADA Convention & Expo are now scheduled Thursday through Sunday

NADA presented five “Best in Show” awards last week to companies that exhibited at the 2014 NADA and American Truck Dealers Convention & Expo in New Orleans. The first annual “Best in Show” awards, which are categorized by exhibit size, recognize companies for excellence in design and construction, including the use of innovative materials and creativity in color, lighting and attractions. The exhibits were also evaluated on branding, company imagery, messaging and incorporating the theme of the NADA convention.

Here are the 2014 “Best in Show” winners: Cree, Inc. – Best Linear Booth (100 to 400 square feet); Chrome Data Solutions – Best Small Island Booth (400 to 1,000 square feet); TD Auto Finance – Best Medium Island Booth (1,000 to 2,000 square feet); Reynolds & Reynolds – Best Large Island Booth (2,000 square feet and above); and Procede Software – ATD “Best in Show” award.
Source: NADAFrontPage.com 

Future convention dates

Below are the upcoming dates of the NADA and ATD Convention & Expo. (The days are now Thursday through Sunday.)

  • 2015:  Jan. 22-25 in San Francisco
  • 2016:  March 31-April 3 in Las Vegas
  • 2017:  Jan. 26-29 in New Orleans
  • 2018:  March 22-25 in Las Vegas

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More Articles
 
Quotable
"We appreciate where [NADA is] going, to try to nail down something concrete. We don't feel like our industry or the [Consumer Financial Protection Bureau] has given us the clarity we would very much like to have." 

   
-- Craig Monaghan, CEO of Asbury Automotive Group, commenting on the new NADA Fair Credit Compliance Policy and Program, Automotive News, Feb. 5
NADA Market Beat
Light-vehicle Sales Drop in January
Chairman's Column
New-Car Dealers Face Both Challenges and Opportunities Ahead
Videos

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NADA Foundation News
New Orleans' High Schools Receive CPR Training Manikins from NADA Foundation

ADESA Auction at NADA Convention Raises $27,000 for Canine Companions

NADA and Ally Donate $50,000 to Second Harvest Food Bank in New Orleans

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