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Inside this issue
'No Evidence' of Subprime Auto Loan Bubble, Equifax Economist Says
Auto Sales Headed for Record-Setting August
It's No Coincidence -- Stocks and Auto Sales Are Both Frothy
In Fixing Recalled Cars, GM Dealers Hope to Wow Customers
Will The Toyota Fuel Cell Sedan Target The Tesla Model S?
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
'No Evidence' of Subprime Auto Loan Bubble, Equifax Economist Says

Credit bureau Equifax Inc. has joined other financial data crunching firms that dispute there’s an alarming subprime auto loan bubble that’s about to burst. “There’s no evidence for that at all,” Dennis Carlson, deputy chief economist for Equifax, told Automotive News. “Our position is simply that there’s an easy tendency to decry subprime in general because of what happened in the past, and it’s not fair to do that.” On Monday, Atlanta-based Equifax issued a white paper titled “Not Yesterday’s Subprime Auto Loan,” together with a press release headlined “Evidence Does Not Suggest Bubble is Forming in Subprime Auto Market.”

Like some other analysts, Equifax’s Carlson said there is no data to support the notion that mass numbers of subprime auto loans are about to fail without warning. Carlson said he sympathizes with the customers depicted in the articles. However, he said, “The plural of anecdotes is not data.” Besides Carlson, analysts for Moody’s Analytics, Standard & Poor’s Ratings Services, and the New York Federal Reserve Bank have made similar statements. “There’s little to no evidence that there’s a subprime bubble, in any way, shape or form,” Carlson said. “That doesn’t mean there couldn’t ever be; it doesn’t mean there’s no need to monitor the market.”
Source: Automotive News

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Auto Sales Headed for Record-Setting August

Automakers will be reporting new car sales figures for August next week after the Labor Day weekend. But industry analysts are starting to make their own projections on what the month will hold for the carmakers. WardsAuto forecasts a total SAAR of 16.6 million and total August sales of just under 1.51 million units. For retail sales purposes, August is a 27-day month and gets a boost this year from the inclusion of Labor Day holiday weekend. The Monday holiday is traditionally the single biggest sales day of the year as end-of-model-year promotions and introduction of new models combine to attract a lot of traffic. Total sales for this year are expected to be 3% higher than last August, when adjusted for a 28-day month in 2013.
Source: 24/7 Wall St., LLC
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It's No Coincidence -- Stocks and Auto Sales Are Both Frothy

Not surprisingly, record stock market performance is being matched by continued strength in the U.S. auto markets, with expected August automotive spending of $39 billion, the second highest monthly total in history. Auto sales numbers are among the best economic indicators because they track a major consumer purchase, are reported quickly after the month ends and are almost never revised. Car sales for August are scheduled to be reported on Sept. 3.
Source: TheStreet

Editor's note: NADA Chief Economist Steven Szakaly says consumers are buying new cars because of the fundamentals and pent up demand from years of delaying a purchase. "Cars are older today," he said. "It's not a surprise or a bubble for people who feel better about the economy to buy a new car."

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In Fixing Recalled Cars, GM Dealers Hope to Wow Customers

Months after General Motors announced its big ignition switch recall, parts to fix the affected cars are finally arriving in greater numbers at dealerships. The customers now flooding the service bays are presenting dealers both a challenge and an opportunity. It's summer in Michigan, so there are plenty of other places Kyle Belanger would likely rather be. But on a recent day he's hanging out at DeNooyer Chevrolet, in Kalamazoo. He's here because his 2009 Chevrolet Cobalt was recalled for a faulty ignition switch. But his feelings about GM may have been affected by the recall. This kind of uneasiness among customers means dealers aren't just repairing cars. They're repairing relationships with GM.
Source: NPR
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Will The Toyota Fuel Cell Sedan Target The Tesla Model S?

Imagine a smooth, quiet, comfortable largish sedan that emits nothing, with a range of 250 miles or more-- one that pegs its driver as a person in the vanguard of advanced technology vehicles. The Tesla Model S electric car, you say? No, no, no: That would be Toyota's upcoming hydrogen fuel-cell vehicle, on sale next year. Today, the dedicated sedan model is known only as the "Fuel Cell Sedan." Meanwhile, leasing began in June for the 2015 Hyundai Tucson Fuel Cell crossover. Honda is also expected to launch a next-generation hydrogen fuel-cell vehicle somewhat after Toyota.
Source: Green Car Reports
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Quotable

"There's little to no evidence that there's a subprime bubble, in any way, shape or form."

   
-- Dennis Carlson, deputy chief economist for Equifax, Automotive News, Aug. 27


"The record consumer spending is fueled by both high sales volumes and high transaction prices."

    -- J.D. Power analyst John Humphrey, referring to the expected automotive spending of $39 billion in August, the second highest monthly total in history, TheStreet, Aug. 28

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