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Inside this issue
Commentary: NADA's Solution Reduces Fair Credit Risks
Two Senators Want Air Bag Recall Expanded Nationwide
Ford's Q3 Pretax Operating Profit Falls 54% to $1.18B
Study: Handheld Phone Enforcement Doesn't Cut Crashes
Toyota's Ad Agency Will Join Move to Texas
Ally Financial Honors 2015 TIME Dealer of the Year Nominees
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Commentary: NADA's Solution Reduces Fair Credit Risks
By Forrest McConnell

When I met with the Automotive Press Association in Detroit earlier this month, I had one goal in mind: inform the journalists and industry executives about how the real dealer franchise system works and set the record straight. There’s been a lot of misinformation reported in the news lately about the business model of new-car dealerships. The fact of the matter is that the dealer retail network is the most competitive, cost-effective and pro-consumer model for buying and financing vehicles.

Fierce competition between local dealers in any given market drives down prices for car buyers both in and across brands. If a factory owned all of its stores, it could set prices and car buyers would lose virtually all bargaining power and would be stuck paying the full sticker price. And dealer-assisted financing—which is always optional—provides car buyers with competitive rates on auto financing, which are frequently more affordable than what car buyers can get from a bank or credit union. But the federal government is trying to take away the right of car buyer’s to get discounted rates from dealers. Click here for the full commentary.
Source: NADA
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Two Senators Want Air Bag Recall Expanded Nationwide

Two U.S. senators want the Transportation Department to demand a nationwide recall for millions of vehicles that may have defective air bags that could explode sending shrapnel into vehicles causing serious injuries or deaths. The National Highway Traffic Safety Administration this week issued an urgent warning asking the owners of 7.8 million vehicles with vehicles recalled since 2013 for defective Takata air bag inflators to get them repaired. NHTSA's focus is currently on high humidity states and whether exposure to moisture is prompting the problems. Most of the vehicles recalled — led by Honda Motor Co. with 5.1 million — have been in warm weather states.
Source: The Detroit News

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Ford's Q3 Pretax Operating Profit Falls 54% to $1.18B

Ford Motor Co.'s third-quarter pretax operating profit tumbled 54 percent from a year earlier to $1.18 billion, hurt by lower sales volume and higher warranty costs. Net income was $835 million, down 34 percent, Ford said in a statement [Friday]. The company took a $160 million charge for special separation actions related to its European restructuring plan. In the year-earlier quarter, special pretax charges of $498 million dragged down net. Ford was profitable in its North America and Asia Pacific regions, but lost money in Europe, South America and Middle East & Africa. Revenues fell 3 percent to $34.9 billion.
Source: Automotive News
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Study: Handheld Phone Enforcement Doesn't Cut Crashes

High enforcement of bans on hand-held driver phone use bans led to a drop in violations, but no decline in insurance claims for crashes, a study released Friday said. The Insurance Institute for Highway Safety looked at claims after two high-profile federally funded enforcement efforts by local and state police in the Hartford, Connecticut, and Syracuse, New York between April 2010 and April 2011. The National Highway Traffic Safety Administration project was aimed at cracking down on hand-held phone use and texting — both illegal under state laws.
Source: The Detroit News
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Toyota's Ad Agency Will Join Move to Texas

Toyota's Los Angeles-based U.S. advertising agency is following its longtime client to Dallas in a bid to prolong their nearly 40-year relationship. Toyota, which had been the sole client of Saatchi LA, a branch of Publicis Groupe's Saatchi & Saatchi agency, announced in April that it's shifting its sales and marketing headquarters during the next two years to the Dallas suburb of Plano from Torrance, Calif., a move that affects most of its 5,000 employees there. The announcement of that move coincided with realignments within Toyota's marketing department that integrated its U.S. multicultural and general market advertising agencies into a single team, led by Saatchi, and aimed to organize marketing teams more by product than by discipline.
Source: Advertising Age
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Ally Financial Honors 2015 TIME Dealer of the Year Nominees

Ally Financial is pleased to announce that 55 U.S. auto dealers have been selected as nominees for the 2015 TIME Dealer of the Year award. Now in its 46th year, this prestigious and highly coveted honor recognizes the nation's most successful auto dealers who also demonstrate a long-standing commitment to community service. These nominees are part of a select group of dealers from across the country that will be honored at the 98th annual National Automobile Dealers Association (NADA) Convention & Exposition in San Francisco, Calif., on Jan. 23, 2015. The announcement of this year's nominees was made by Jed Hartman, group publisher, worldwide, TIME, and Tim Russi, president of Auto Finance for Ally. "The dealers nominated for this award are dedicated business owners, auto lovers, and most importantly, champions for their local communities, with a willingness to give back on a grand scale," said Russi. "Ally is proud to honor and support these dealers as they work today and tomorrow to build better places to live, work and do business."

Click here for the list of nominees.
Source: Ally Financial

Editor's note: To register for the 2015 NADA Convention and Expo, visit www.nadaconvention.org.
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Quotable
"The NADA Fair Credit Compliance Policy and Program presents the industry with a realistic and effective means of addressing fair credit risks at all levels and in a manner that preserves robust competition in the marketplace. The federal government should encourage its broad adoption." 

   
-- NADA Chairman Forrest McConnell, in a commentary, NADAFrontPage.com, Oct. 23

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