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Inside this issue
Dealer Groups Charge CFPB Is Unresponsive
UAW President Condemns Adding Lower-Tier Paying Jobs
Toyota North American Chief: Truck, SUV Sales Stay Strong in March
Energy Department Revives Fuel-Efficient Vehicle Loan Program
Sheriff's Office Awarded CPR Manikins through NADA Foundation Grant
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Dealer Groups Charge CFPB Is Unresponsive

Dealer trade groups are asking members to seek help from their elected representatives to prod the Consumer Financial Protection Bureau into responding to a lender study released last fall that was highly critical of the bureau's method of determining discrimination in auto finance. The National Automobile Dealers Association is ... encouraging members to complain to Congress, spokesman Jared Allen told Automotive News. “It’s regrettable that the CFPB seems intent on continuing its go-it-alone strategy,” he said. Allen expressed frustration over what dealer groups see as tardiness by the CFPB to reply to the study, which was released Nov. 19 by the American Financial Services Association, the lender trade group that commissioned it. “Given that the CFPB’s guidance will cost American consumers millions of dollars every year [by potentially driving up the cost of credit] and bring economic harm to the very people it intends to help, you would think the agency would actually examine a rigorous peer-reviewed study that discredited its methodology,” Allen said.

[The] study, conducted by financial consultants Charles River Associates, found that the CFPB’s method of using proxies such as names, addresses and census data to assign a probability as to whether a particular consumer with a particular name and a particular address belongs to a protected class of borrowers was flawed. According to the study, the CFPB’s method identified African-American borrowers just 24 percent of the time. The methodology also produced a lot of false positives, exaggerating the number of minorities, according to the study, which looked at about 8.2 million loans originated for new and used vehicles in 2012 and 2013.
Source: Automotive News

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UAW President Condemns Adding Lower-Tier Paying Jobs

Winning raises for hourly workers is a top priority in the upcoming contract negotiations with Detroit automakers this year, United Auto Workers President Dennis Williams said Wednesday, condemning any idea of adding a third tier of lower wages for autoworkers. "You can't keep dividing workers up and think you're going to have a quality workforce with a quality product," Williams said Wednesday at a news conference. His comments came after hundreds of union delegates in Detroit approved a resolution during a Special Bargaining Convention that will act as a strategy for contract negotiations over the next four years.
Source: The Detroit News

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Toyota North American Chief: Truck, SUV Sales Stay Strong in March

Toyota Motor North American CEO Jim Lentz said March auto sales are strong as buyers continue to favor light trucks over cars. In a Detroit News interview Tuesday in Washington, Lentz said automakers face a challenge as trucks and SUV sales remain strong. “The biggest challenge is everybody is kind of draining their pipeline of light trucks and SUVs and everybody’s a little heavier on passenger cars and I don’t know if that’s going to change,” Lentz said. “The demand right now, the sales volume is almost 55 percent truck and SUV — the true demand may be a few points higher — just because inventories are low.”
Source: The Detroit News

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Energy Department Revives Fuel-Efficient Vehicle Loan Program

Alcoa receiving $259 million, the first loan from the program in four years

The U.S. Energy Department is dusting off a controversial loan program meant to help auto makers and their supply chain finance investments in fuel-efficient vehicles, announcing a $259 million loan to Alcoa Inc. The New York-based aluminum producer will use the money for a continuing expansion project at a Tennessee factory that makes sheet for automobile bodies.
Source: The Wall Street Journal

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Sheriff's Office Awarded CPR Manikins through NADA Foundation Grant

The Brown County Sheriff’s Office [in Hiawatha, Kan.] was recently awarded two CPR training units consisting of two four packs of infant baby Anne CPR manikins. The manikins were awarded by Lance Clark, general manager of Hiawatha Ford as part of a grant program from the National Auto Dealers Charitable Foundation. The manikins were accepted by Sheriff John Merchant and Public Resource Safety Officer J. D. Clary. 

“We cannot begin to express our gratitude for the generous donation of these manikins by Lance Clark of Hiawatha Ford on behalf of the NADA Charitable Foundation,” he said. “We intend to put these manikins to good use as part of our Teen Lifesaver initiative. These manikins will be used to train nearly 400 high school students in Brown County. That’s 400 more certified lifesavers in our community. We would like to publicly thank Lance Clark and Hiawatha Ford for sponsoring our grant submission making today possible.”

The NADA foundation has devoted a great part of its resources to this emergency CPR training program through its Medical Grants Program. New-car dealers throughout the country have devoted much of their time and money to the development of projects that enrich the lives of people in their communities. Since the NADA Foundation’s Medical Grant program began in 1975, more than 4,600 CPR training units with a value of about $3 million have been donated to organizations in all 50 states and Washington, D.C.
Source: Hiawatha World (Hiawatha, Kan.)

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Quotable

"It's regrettable that the CFPB seems intent on continuing its go-it-alone strategy. Given that the CFPB’s guidance will cost American consumers millions of dollars every year [by potentially driving up the cost of credit] and bring economic harm to the very people it intends to help, you would think the agency would actually examine a rigorous peer-reviewed study that discredited its methodology."

   
-- NADA spokesman Jared Allen, commenting on the CFPB's lack of responsiveness to a peer-review study of its guidance on auto lending, Automotive News, March 25

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