View Mobile Version | View Web Version

SPONSORED BY
 
NADA.org
April 20, 2015 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training

Inside this issue
NADA to Dealers: Contact Congress Today Regarding the CFPB Transparency Bill
CFPB Faces Mounting Criticism, New Bipartisan Bill
Dealership Employees, Payrolls Top Prerecession Levels
FCA Puts the Squeeze on Dealer Profits
Small-Car Production Migrates to Mexico
Millennials Embrace Cars, Defying Predictions of Sales Implosion
NAMAD Contest to Challenge Dealer Candidates and Managers
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
NADA to Dealers: Contact Congress Today Regarding the CFPB Transparency Bill

An NADA-backed bill, H.R. 1737, which would rescind the flawed Consumer Financial Protection Bureau (CFPB) auto finance guidance and allow the bureau to reissue it under a more transparent process, already has 19 cosponsors (10 Republicans and 9 Democrats). The bill, the “Reforming CFPB Indirect Auto Financing Guidance Act,” was introduced April 13 by Reps. Frank Guinta (R-N.H.) and Ed Perlmutter (D-Colo.).

It is important that this legislation garner bipartisan support to ensure its passage in the House, NADA says. Dealers should call their Democratic Representatives today and urge them to cosponsor H.R. 1737. Click here to find your Representative’s contact information.

“Dealers should emphasize that H.R. 1737 has strong Democratic support. The bill provides improved consumer protection by allowing consumers access to discounted auto financing and an improved process that studies the impact of the auto finance guidance on consumers,” said Ivette Rivera, vice president of NADA Legislative Affairs.

H.R. 1737 is identical to H.R. 5403 from the last Congress, which garnered 149 cosponsors (92 Republicans and 57 Democrats).

To view the bill text and the issue brief, click here. For more information, visit www.nada.org/cfpb or contact the Legislative Office at legislative@nada.org
Source: NADA

[back to top]

CFPB Faces Mounting Criticism, New Bipartisan Bill

The Consumer Financial Protection Bureau’s targeting of the indirect auto financing channel is taking fire once again. On April 13, the The Wall Street Journal published its second op-ed piece questioning the bureau’s tactics. Later that evening, Congressional lawmakers introduced a new bipartisan House bill that aims to rescind the CFPB’s March 2013 guidance on dealer participation.

The Wall Street Journal’s April 13 editorial was titled, “Do Two Half-Victims Make a Whole Case?” It centered on Ally’s December 2013 settlement with the CFPB and the U.S. Department of Justice (DOJ), noting that the CFPB “still hasn’t distributed a nickel to the alleged victims.” On April 13, two of the committee members, Rep. Frank Guinta (R-N.H.) and Ed Perlmutter (D-Colo.), introduced a bipartisan bill, H.R. 1737, that aims to repeal the CFPB’s March 2013 bulletin, which warned finance sources that they would be held liable for discriminatory markups on the part of dealers. It also laid out the bureau’s expectations for how rate participation policies should be managed and monitored.

“In 2013, the CFPB implemented guidance without providing a public comment period for consumers, small businesses or stakeholders to prevent families and individuals from obtaining auto financing discounts,” Congressman Guinta said in a statement issued to F&I and Showroom. “From the single, working mother in Manchester to the small business owner on the Seacoast to the hunters of the north country — this bipartisan bill will provide as many opportunities as possible for Granite Staters to receive the best financing required to achieve car ownership.”
Source: F&I and Showroom

[back to top]

Dealership Employees, Payrolls Top Prerecession Levels

Dealerships added to their employee count for the fifth year in a row last year, causing the average store's payroll to rise sharply above its prerecession level. The average new-car dealership employed 64 people in 2014, up from 57 in 2013 and a steady 53 in 2005-08. That lifted the average dealership's payroll to $3.6 million in 2014, up 5.9 percent from 2013 and 38 percent from 2005. Those are among the findings of NADA Data 2014, the National Automobile Dealers Association's annual report on dealership sales and financial trends, released this month.
Source: Automotive News

Editor's note: Click here to download NADA Data 2014.
Share: LinkedIn Twitter Facebook

[back to top]

FCA Puts the Squeeze on Dealer Profits

Fiat Chrysler is squeezing U.S. dealerships' profits by increasing vehicle invoice prices -- but not the corresponding sticker prices. Dealers now will pay 1 percent more for the Chrysler, Dodge, Jeep and Ram vehicles they sell, or $300 on a vehicle with a $30,000 invoice. The increase is part of a larger effort by FCA US to boost profits. The automaker's corporate profit margin is half that of General Motors and one-third that of Ford Motor Co., says an analyst. The National FCA Dealer Council was informed this month via a conference call from Reid Bigland, FCA US' head of sales. Bigland said the price increase was effective immediately, according to people on the call. "It will impact some dealers' profits. It will reduce their front-end gross," said one Midwest dealer, speaking on condition of anonymity. Notably, both Fiat and Alfa Romeo brand vehicles were exempted from the pricing move.
Source: Automotive News
Share: LinkedIn Twitter Facebook

[back to top]

Small-Car Production Migrates to Mexico

Free-trade deals, lower labor costs lure automakers

Mexico is becoming a giant in small cars. The southern neighbor of the U.S. has seen a surge in automaking capacity in the last five years as manufacturers built plants to take advantage of Mexico's low labor costs, easy access to the American market and free-trade deals with Europe, Brazil and more than three dozen other nations. But Mexico is making the biggest impact on production of subcompact and compact cars -- vehicles with both narrow profit margins and wide appeal in markets outside North America.
Source: Automotive News

Related Story:


Share: LinkedIn Twitter Facebook

[back to top]

Millennials Embrace Cars, Defying Predictions of Sales Implosion

In recent years, it has become widely accepted that millennials don’t like cars. According to conventional wisdom, the generation born from about 1980 to 2004 prefers public transportation or Uber. They get jazzed about the latest iPhone, not the new Ford Focus. Cue dire predictions for the auto industry. Turns out the doomsayers may be wrong. Millennials -- also known as Generation Y -- accounted for 27 percent of new car sales in the U.S. last year, up from 18 percent in 2010, according to J.D. Power & Associates. They’ve zoomed past Gen X to become the second-largest group of new car buyers after their boomer parents. Millennials are starting to find jobs and relocating to the suburbs and smaller cities, where public transport is spotty.
Source: Bloomberg
Share: LinkedIn Twitter Facebook

[back to top]

NAMAD Contest to Challenge Dealer Candidates and Managers

The top prize is a full tuition scholarship to the NADA Academy.

The National Association of Minority Automobile Dealers has rolled out a new contest for its members to identify innovative ways to improve the car-buying process and customer experience at new-car dealerships. "The competition seeks to challenge the next generation of minority dealer candidates and managers to think creatively about the retail-auto industry and to reward the most innovative ideas," said Damon Lester, NAMAD president.

The winner will receive a full tuition scholarship to the NADA Academy in McLean, Va. Qualifying submissions must include a 500-word executive summary on the idea or innovation. Additional supporting materials, data and research – which are not required – must not exceed 50 pages.

Judging will be based primarily on the written executive summary. Entries must be submitted between May 1 and June 5, 2015. Northwood University faculty and staff will judge the entries. One winner and two runner-ups will be selected and will be recognized at NAMAD's annual meeting in July. Only NAMAD members are eligible to participate in the contest.

For additional rules and information, click here. For more information or questions, contact Damon Lester at damon.lester@namad.org. Click here to submit entries.
Source: NAMAD

[back to top]

More Articles
 
Quotable

"We are seeing a realignment of capacity in North America. The smaller platforms are going to Mexico." 

   ---
Andrew Csicsila, director of the operations practice of AlixPartners, commenting on small-car production migrating to Mexico, Automotive News, April 20

Sponsored by

NADA Market Beat
February Sales Up 5.4% from Last Year
Chairman's Message
Commentary: Navigating the Maze of Federal Regulations
Videos

Warren Buffett and Larry Van Tuyl Interview
(NADA-TV)


Q&A: Warren Buffett, Larry Van Tuyl
(NADA-TV)


Buffett & Van Tuyl: Tesla Not a Threat (CNBC)



Get the Facts: The Benefits of Franchised Auto Dealers


NADA Foundation: On the Go(Pro) with Canine Companions

NADA Foundation News
University of Portland Receives Grant from the NADA Foundation

ADESA Auction Raises $40,000 for Veterans’ Canine Companions

 
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 .