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Inside this issue
Bipartisan House Bill Seeks to Thwart CFPB's Attack on Auto Financing
Wall Street Journal Editorial: Do Two Half-Victims Make a Whole Case?
Marchionne Wants to Complete Mega Deal Before Stepping Down, Report Says
GM Fund Approves Four New Death Claims to 84
Indian Carmaker Has American Aspirations
Toyota Said to Plan Mexico Car Factory in Resumed Expansion Bid
Cleveland Auto Show Donates CPR Training Units
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Bipartisan House Bill Seeks to Thwart CFPB's Attack on Auto Financing

NADA applauds bipartisan leadership to prevent the elimination of consumer discounts

The National Automobile Dealers Association [Monday] applauded the continued bipartisan efforts in Congress to rescind a flawed guidance from the Consumer Financial Protection Bureau that would harm consumers by limiting their ability to obtain discounted auto financing. On Monday evening, April 13, Reps. Frank Guinta (R-N.H.) and Ed Perlmutter (D-Colo.) introduced H.R. 1737, the Reforming CFPB Indirect Auto Financing Guidance Act of 2015. The legislation would repeal a CFPB bulletin from 2013 that was designed to pressure lending institutions into eliminating the availability of auto financing discounts. These discounts save consumers millions of dollars every year.

The CFPB’s lack of transparency and accountability has prompted 91 members of Congress to request additional information from the agency on how it arrived at the conclusions it used to justify its original March 2013 guidance, but none of these requests have been completely fulfilled, and many have gone unanswered altogether. The Reforming CFPB Indirect Auto Financing Guidance Act was initially introduced at the end of the 113th Congress and garnered the support of 149 House Republicans and Democrats.
Source: NADA
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Wall Street Journal Editorial: Do Two Half-Victims Make a Whole Case?

Banks pay for allegedly discriminating against fractions of humans.

Welcome to the new frontier of progressive law enforcement: extorting damage awards from businesses without naming anyone who’s been damaged. More than a year after persuading Ally Bank to pay $80 million to allegedly abused borrowers, the Consumer Financial Protection Bureau (CFPB) still hasn’t distributed a nickel to the alleged victims. Is it possible that victims aren’t getting paid because there are no victims? Recently we told you about the bizarre federal campaign against auto lenders in which bureaucrats guess the ethnicity of borrowers based on their last names and addresses. The feds then claim discrimination in interest rates if the people they assume are minorities on average pay more than similar borrowers that the feds assume are white. This is not a joke.

By law, auto dealers who offer financing to car buyers are not allowed to record a borrower’s race. But bureau staff and their colleagues at the Obama Justice Department still want to sue the banks that provide these loans. So they assign probabilities for the race of the borrowers based on their names and where they live. It’s good enough for government work. But what if one day the government has to identify the victims, verify that they really are members of minority groups and confirm that they suffered discrimination? That task is proving to be difficult.

Economist Marsha Courchane of Charles River Associates recently co-authored a critique of the bureau’s methods for spotting discrimination in auto lending. She tells us that if the bureau used its current methodology in the 2013 Ally case, fractions of borrowers would be added together to generate the total. In other words, if two borrowers each have a 50% chance of being black, they would count as one black borrower. In reality, both could be white, black, Asian, or members of any other racial category. But at the CFPB two fractions can add up to one victim.
Source: The Wall Street Journal

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Marchionne Wants to Complete Mega Deal Before Stepping Down, Report Says

GM getting particular interest from FCA's boss, Agnelli family

Fiat Chrysler CEO Sergio Marchionne is hoping for a big deal, possibly in the United States, to plug the carmaker's weaknesses and cement his legacy before stepping down in early 2019, sources familiar with the situation told Reuters. However, the world's seventh-largest carmaker -- which has one of the highest debt piles in the industry, barely breaks even in Europe and is expected to burn cash for years to revamp its neglected Alfa Romeo brand -- may struggle to find a partner. Marchionne and Fiat's founding Agnelli family are showing particular interest in General Motors, several sources say, as the U.S. market has been core to FCA for years, GM is strong in Asia where FCA is weak and the U.S. carmaker is keen to expand in Europe after its move to tie up with PSA failed. But a GM spokesman said the company was focused on executing its own strategy while one person at a U.S. bank close to the matter said GM is "really not interested."
Source: Reuters
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GM Fund Approves Four New Death Claims to 84

General Motors Co.’s ignition switch compensation fund on Monday said it has approved four additional death claims linked to its delayed recall of 2.6 million cars, raising the latest total to 84 deaths. The fund also said it approved nine new injury claims. Of the 157 injury claims approved, 11 are for serious injuries and 146 are for less severe injuries. All of the new approvals were for less serious injuries.
Source: The Detroit News

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Indian Carmaker Has American Aspirations

India's largest manufacturer of SUVs is laying the groundwork to potentially drive into the U.S. auto market. Mumbai-based Mahindra & Mahindra Limited, known in America more for information technology services and tractors than for automobiles, is working on raising its brand awareness in the United States with a long-term goal of introducing a vehicle here. Mahindra's current endeavor in the U.S. essentially started about a year ago, when the company invested $4 million to open two facilities in Michigan: an engineering technical center in Troy and a small, Ann Arbor-based production facility for GenZe, an electric bicycle and scooter subsidiary.
Source: The Detroit News
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Toyota Said to Plan Mexico Car Factory in Resumed Expansion Bid

Toyota Motor Corp. will open its first passenger-car factory in Mexico, ending a freeze on new assembly plants, two people with direct knowledge of the plan said. The world’s largest automaker will give details about the plan on Wednesday in Mexico, the people said, asking not to be named as the official announcement hasn’t been made. The Japanese company will spend about $1 billion building the plant, which will be able to assemble 200,000 Corolla cars annually for the North American market, one person said.
Source: Bloomberg
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Cleveland Auto Show Donates CPR Training Units


Richard Peterson (from left) adjunct instructor of the Emergency Services Department at Stark State College, Scott Arcangeli, firefighter/paramedic, Michael Coyne, paramedic of the Garfield Heights Fire Department, and Fred Bertram, department chair of Emergency Services at Stark State College, show off a CPR unit donated by the Greater Cleveland Auto Dealers Association and the NADA Foundation.

More than 375 firefighters, police and first responders from across Northern Ohio visited the Cleveland Auto Show last month to attend the 13th Annual First Responders Safety Seminar. In addition to the seminar, the Greater Cleveland Auto Dealers Association, in conjunction with the National Automobile Dealers Charitable Foundation, donated CPR training units to Stark State College, Boardman Fire Department, Mentor Fire Department, Oberlin Fire Department and Garfield Heights Fire Department.
Source: Cleveland Auto Show

Editor's note: Since 1975, the NADA Foundation's Medical Grants Program has donated more than 4,800 CPR training units to organizations throughout the country for a total of more than $3 million in grants. If you would like to see a worthy organization in your community receive a CPR training unit, click here for an application. For more information, contact NADA Foundation Director Naxhieli Acosta at foundation@nada.org.
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Quotable

"Consumers have the right to obtain auto financing at discounted rates, and those rights should be protected, not threatened. There is bipartisan support in Congress to require the CFPB to consider how harmful its guidance could be to consumers, and we applaud Reps. Guinta and Perlmutter for their leadership on this issue."

   -- NADA President Peter Welch, commenting on H.R. 1737, the Reforming CFPB Indirect Auto Financing Guidance Act of 2015, NADA, April 13

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