View Mobile Version | View Web Version

NADA.org
February 27, 2014 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training
Inside this issue
NADA Supports Efforts to Reform CFPB
Car Buyers Commit to Longer Auto Loans
Ford Motor Said to Seek Expansion of Credit Lines to $12 Billion
February Auto Sales Forecast Cut to 15.5 Million Pace, LMC Says
Prices Continue Near-Term Spike in the Lanes
GM Takes Next Step to Strengthen Relationship with Suppliers
Honda to Halt Production of Insight Hybrid Vehicle
Beauty on Inside of Overhauled Ford Mustang
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
NADA Supports Efforts to Reform CFPB

The National Automobile Dealers Association (NADA) sent a letter on Wednesday, Feb. 26, to House Members in support of H.R. 3193, a bill to be considered by the House of Representatives today that would bring greater accountability to the Consumer Financial Protection Bureau (CFPB). 

NADA's letter highlights the bureau's effort to eliminate a consumer's right to negotiate a better interest rate on an auto loan offered by a dealership. As the letter notes, “If the CFPB, like other agencies, were subject to customary congressional oversight, it is doubtful it would have attempted to fundamentally change and regulate the $783 billion auto loan market via guidance without (1) prior public comment or hearing; (2) answering direct and specific questions by Congress for nearly a year; and (3) first assessing the impact of its guidance on consumers."

To view NADA's letter to Capitol Hill on H.R. 3139, click here. For talking points and more information on the issue, visit www.nada.org/cfpb.
Source: NADA Legislative Affairs

Share: LinkedIn Twitter Facebook

[back to top]

Car Buyers Commit to Longer Auto Loans

Talk about a long-term commitment

According to a new study, American car buyers are growing more comfortable with making monthly auto loan payments that stretch out over six years. Data from J.D. Power's Power Information Network (PIN) found that 33 percent of retail auto loans taken out this month have term lengths of at least 72 months. If that pace continues, it will break the previous monthly record for six-year loans set in September 2012, when 30.6 percent of all loans were at least 72 months. "Longer loan terms, coupled with the current low interest rate environment, increases the affordability of new vehicles for consumers," said Thomas King, senior director of consulting and analytics at J.D. Power.
Source: CNBC
Share: LinkedIn Twitter Facebook

[back to top]

Ford Motor Said to Seek Expansion of Credit Lines to $12 Billion

Ford Motor Co., the second-largest U.S. automaker, is seeking to expand its credit lines by $1.3 billion to $12 billion. The company is planning to raise a $9 billion revolving loan that expires in five years and a $3 billion financing pact that lapses in three years, according to a person with knowledge of the offering, who asked not to be identified because terms aren't set. The Dearborn, Michigan-based company may pay 150 basis points, or 1.5 percentage points, more than the three-month London interbank offered rated on both portions that replace a $10.7 billion credit line due 2017. The company has improved its finances to about the best level since 1999 after Chief Executive Officer Alan Mulally has revived the company by cutting costs and overhauling a lineup of vehicles. Ford plans to spend heavily this year as it introduces more vehicles than ever.
Source: Bloomberg

Related Story:


Share: LinkedIn Twitter Facebook

[back to top]

February Auto Sales Forecast Cut to 15.5 Million Pace, LMC Says

LMC Automotive reduced its estimate for U.S. auto sales in February after retail transactions last week were weaker than anticipated, Jeff Schuster, senior vice president of forecasting, said in an e-mail. LMC now projects an annualized selling rate, adjusted for seasonal trends, of 15.5 million, down from an earlier estimate of 15.7 million. Retail sales, those to individual consumers, didn't snap back as much as expected, Schuster said. Sales may increase only about 1 percent, leaving automakers at risk of carrying too much inventory.
Source: Bloomberg
Share: LinkedIn Twitter Facebook

[back to top]

Prices Continue Near-Term Spike in the Lanes

After declining through most of January, wholesale prices are on the way up — right in line with tax season's arrival. According to NADA Used Car Guide, prices are expected to increase slightly this week, likley moving up 0.3 percent (or $50) versus the two-week average. And even as gas prices remain relatively low — according to Energy Information Administration data, the average price of regular grade gasoline sites at $3.44 — the biggest price hikes this week are expected in the compact car segment, indicating there is continued consumer interest in more fuel-efficient rides.
Source: Auto Remarketing
Share: LinkedIn Twitter Facebook

[back to top]

GM Takes Next Step to Strengthen Relationship with Suppliers

General Motors is rolling out an initiative to forge deeper strategic partnerships in its supply base, promising a better business relationship with suppliers that work more closely and openly with the automaker to speed innovations to market. The Strategic Supplier Engagement program will offer such perks as better access to GM purchasing brass, joint strategic planning and even training to those suppliers that rate highly on several key measures -- from cost containment and other basics to "cultural" aspects such as open communication and technology sharing. GM purchasing chief Grace Lieblein was expected to outline the plan during a conference call with about 400 of GM's largest suppliers, which represent about 90 percent of GM's global spending. The move underscores how GM is leaning on its suppliers more than ever to deliver technology in areas such as safety and fuel efficiency that are becoming the key competitive battlegrounds for automakers.
Source: Automotive News
Share: LinkedIn Twitter Facebook

[back to top]

Honda to Halt Production of Insight Hybrid Vehicle

Honda Motor Co. will end production of its Insight model, the first hybrid vehicle introduced in the U.S., after demand plunged and sales lagged behind Toyota Motor Corp.'s Prius. Honda informed dealers in November that the current generation of the Insight will be discontinued this month and asked them to stop taking orders, Yuka Abe, a Tokyo-based spokeswoman for the carmaker, said by phone. Nothing has been decided whether there will be a future Insight, she said. The Insight was the first hybrid vehicle in the U.S. market when Honda introduced it in 1999, seven months earlier than the Prius. The Toyota hybrid went on to become the best-selling dual-powered car of all time, with cumulative sales of 3.19 million vehicles as of January, according to the company.
Source: Bloomberg
Share: LinkedIn Twitter Facebook

[back to top]

Beauty on Inside of Overhauled Ford Mustang

The 2015 Ford Mustang sports a new grille, engine and interior creature features. But some of the biggest changes are ones not seen to the naked eye. The Dearborn automaker has beefed up the material and structure of its convertible top, added grille shutters to accompany its EcoBoost engine and has dropped the mirrors off the front pillar, all in an effort to improve aerodynamic drag while reducing wind noise inside the cabin. The result of the hard-to-see changes — compared to the last-generation Mustang, it took twice as long to test, both analytically and in one of Ford's many wind tunnels — is a car that's 3 percent slipperier in the wind. In real terms, that translates to a 1 percent boost in highway fuel efficiency, at least on the fastback version of the new Mustang. The 2015 Mustang, first unveiled in late 2013, will be available to U.S. consumers later this fall.
Source: The Detroit News
Share: LinkedIn Twitter Facebook

[back to top]

More Articles
 
Quotable
"The American people rightfully demand accountability from this administration, and H.R. 3193 is a step in the right direction." 

   
--- House Financial Services Committee Chairman Jeb Hensarling, R-Texas, commenting on the bill designed to bring more accountability and transparency to the CFPB, HousingWire, Feb. 25
NADA Market Beat
Light-vehicle Sales Drop in January
Chairman's Column
NADA Releases Fair Credit Compliance Program for Dealers
Videos

 Meet NADA Chairman Forrest McConnell (NADA-TV)


NADA Used Car Guide's Jon Banks Highlights Feb.'s Guidelines (NADA-TV)

Sponsored by
 

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

ADESA and NADA Donate $37,000 to Canine Companions

NADA and Ally Donate $50,000 to Second Harvest Food Bank in New Orleans 
Search Back Issues | Unsubscribe | Subscribe | Manage your subscription | email us
NADA For more information on NADA, visit www.nada.org or contact NADA, 8400 Westpark Drive, McLean, VA 22102. This email may contain an advertisement of NADA products and services. Any opinions or statements contained herein do not necessarily reflect the views of NADA. Factual errors are the responsibility of the listed publication. If you are a franchised new-car or -truck dealer and would like to become a member of NADA, please visit the Join NADA section of www.nada.org. Questions or comments concerning NADA Headlines content may be directed to publicaffairs@nada.org .