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Inside this issue
Warren Amendment: New Authority to Inspect and Fine Dealerships
Sen. Warren Seeks to Give Government More Power
Toyota Quarterly Profit Jumps 46% on U.S. Sales, Weak Yen
Subaru Maker Reports 21% Profit Increase; Plans More U.S. Capacity
Takata Says it Will Return to Profit in 2015-16
Pre-war Cars Untouched for Four Decades Rediscovered in a Texas Barn
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Warren Amendment: New Authority to Inspect and Fine Dealerships

According to The Hill, a newspaper that reports on Congress, Sen. Elizabeth Warren (D-Mass.) is drafting legislation that may come up in the form of an amendment next week in the Senate Banking, Housing and Urban Affairs Committee which would repeal the dealer exemption from the jurisdiction of Consumer Financial Protection Bureau (CFPB). If this legislation were enacted, CFPB would have free rein not only to end dealer discounts when offering financing, but also to levy fines and issue rules allowing it to carry out regulatory inspections of dealerships.

“I am skeptical of giving the CFPB more power when it refuses to answer Congress’ questions regarding its treatment of auto dealers and consumers,” said Rep. Frank Guinta, (R-N.H.). Rep. Guinta is the author of H.R. 1737, a bipartisan bill, that will help reverse the negative effects the CFPB has on auto dealers and consumers. “Instead of empowering federal bureaucrats and increasing regulatory burdens on our nation’s auto dealers, I have introduced a bill that protects dealer-assisted financing to increase competition and help American consumers obtain car ownership”

Dealers are currently regulated by the Federal Trade Commission (FTC), the Federal Reserve Board, the Department of Justice, as well as by fifty state attorney generals, and other regulation on the state level. 
Source: NADA Legislative Affairs

Editor's note: Dealers are urged to contact Congress today at 202-225-3121 and ask they cosponsor H.R. 1737. Click here to learn more about H.R. 1737. NADA will vigorously oppose any attempt to repeal the dealer exemption from CFPB.
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Sen. Warren Seeks to Give Government More Power

Sen. Elizabeth Warren is drafting legislation that would give regulators more authority to go after auto dealers, picking a fight with the powerful industry, congressional Republicans and even some within her own party. The Massachusetts Democrat argues that auto dealers engage in selling financial products and loans just like banks, and unsuspecting consumers can easily be taken for a ride with bad deals. She wants to give the Consumer Financial Protection Bureau (CFPB) the authority to supervise the industry. In a speech last month, Warren equated the auto-loan market to the pre-2008 recession housing industry, which many economists say led to the sharp economic downturn. The Dodd-Frank financial reform law passed in response to the crisis and created the CFPB, thanks in large part to Warren, the agency’s chief architect. But to her chagrin, the law precluded the new agency from regulating car loans.

The nation’s car dealers, who are now steeling for a fight against the proposal, have deep ties in Washington. During the 2014 election cycle, the National Auto Dealers Association (NADA) donated about $2 million to Republicans and $803,000 to Democrats, according to financial disclosures from the Center for Responsive Politics. NADA spokesman Jared Allen said the group is "extremely supportive of 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."
Source: The Hill
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Toyota Quarterly Profit Jumps 46% on U.S. Sales, Weak Yen

Booming North American sales and big foreign exchange gains powered surging profits at Toyota Motor Corp. in the latest quarter while propelling record full-year earnings. Operating profit jumped 46 percent to 635.7 billion yen ($5.31 billion) in the carmaker’s fiscal fourth quarter ended March 31, compared with 436.1 billion yen ($3.65 billion) a year earlier, the company said [Friday].
Source: Automotive News
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Subaru Maker Reports 21% Profit Increase; Plans More U.S. Capacity

The maker of Subaru vehicles, Fuji Heavy Industries, reported a 21 percent surge in operating profit in its latest quarter as advantageous exchange rates and surging sales delivered record earnings. The all-wheel-drive specialist also said it would meet its North America sales target five years ahead of schedule and speed up plans to increase local production capacity there. Global operating income climbed to 112.9 billion yen ($943.7 million) in the company’s fiscal fourth quarter ended March 31, Fuji Heavy President Yasuyuki Yoshinaga said [Friday] while delivering fiscal-year financial results.
Source: Automotive News
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Takata Says it Will Return to Profit in 2015-16

Japan's Takata Corp. said it expects to return to profit this financial year on higher Asian and U.S. sales, but the troubled company made few provisions for possible costs related to a massive global recall of its exploding airbags. Around 25 million cars have been recalled worldwide since 2008 over Takata airbag inflators that have erupted with too much force, spraying shrapnel inside the car. Takata [Friday] forecast a net profit of 20 billion yen ($167 million) for the year through next March, on a 9 percent increase in global sales to 700 billion yen. The profit compares with a loss of 29.6 billion yen in the just-ended financial year, when the company booked a special loss of 58.7 billion yen ($489 million) mostly to cover recall costs.
Source: Reuters
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Pre-war Cars Untouched for Four Decades Rediscovered in a Texas Barn

Antonio Brunet found an automotive holy grail — five pre-war cars worth upwards of $500,000 preserved inside a Texas barn. “It’s the Holy Grail for a car guy,” Brunet told Fox News. Brunet, the chairman and founder of Motostalgia Auctions in Austin, Tex., was tipped off to the cars stored only seven miles from his shop. The pre-war cars — up for auction in June — sat untouched for over 40 years.  He told Fox News, “Opening the doors, seeing the cars covered in dust, untouched for years … It’s like you’re in a time machine.”
Source: The Washington Post
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Quotable

"I am skeptical of giving the CFPB more power when it refuses to answer Congress’ questions regarding its treatment of auto dealers and consumers. Instead of empowering federal bureaucrats and increasing regulatory burdens on our nation’s auto dealers, I have introduced a bill that protects dealer-assisted financing to increase competition and help American consumers obtain car ownership"

    -- Rep. Frank Guinta, (R-N.H.), and sponsor of a bipartisan bill (H.R. 1737) to rescind the ‪CFPB‬'s flawed 2013 auto finance guidance.

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