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Inside this issue
NADA: Takata II -- Something New or (a Lot) More of the Same?
Can Takata Survive Historic U.S. Airbag Recall?
Marchionne Says He Doesn't Plan to Testify at July Hearing
Subprime Loans Fall to Lowest Share Since 2012
If the FTC Comes to Call
American Driving in '15 Hits All-Time Record
Mazda's New Mantra: 'Driving Matters'
Margaret Dunning Did Laps Around Competition into 100s
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
NADA: Takata II -- Something New or (a Lot) More of the Same?

What does it mean that the number of vehicles recalled for potentially defective Takata airbags inflators “is now up to 33.8 million?” 

Takata entered into an agreement with NHTSA on May 19 to work with 11 vehicle manufacturers to recall additional vehicles identified as having driver and/or passenger airbags containing their old phase-stabilized ammonium nitrate driver inflators. The agreement roughly doubles the potential number of vehicles with passenger-side bags containing those inflators to 16 million and the number with driver-side bags to 17 million. The defect involves airbag inflators that can degrade over time in part due to exposure to heat and humidity. Many Takata airbags have deployed properly through the years, but a relatively few have ruptured during crashes causing injury and even death. 

Important: The exact models and VINs covered by the expanded recall are being determined by Takata in conjunction with the manufacturers who equipped vehicles with these inflators dating back to MY 2001. Working with other airbag manufacturers, Takata is producing replacement airbags for use in recalled vehicles. Replacements will be allocated over time based on risk factors. Impacted manufacturers will communicate directly with their dealerships and with vehicle owners as soon as they know which vehicles are being recalled, when replacement parts will made be available, and the interim steps (if any) vehicle operators should take. 

For now, NADA is recommending that dealerships tell their concerned customers that they will get a first class letter in the mail from their vehicle manufacturer if their car or light truck becomes subject to a federal safety recall. For more information on the Takata recall, click here.

NADA members can log in to download Safety Recalls Q&A for Franchised Dealers, which includes information on how to handle recalls impacting new and used inventory and service vehicles, and on NHTSA’s VIN-searchable safety recall database at http://www.safercar.gov/vinlookup, an online tool to help identify cars and light trucks with uncompleted recalls prior to making purchases or taking in trades, for used vehicles in inventory, or to help consumers learn about the recall status of their vehicles. Also available is Dealer Tips for VIN Lookup and Vehicle Recalls, a NHTSA document prepared in conjunction with NADA.

Questions on vehicle safety recall issues or the new VIN-searchable database may be directed to NADA Regulatory Affairs at regulatoryaffairs@nada.org or (703) 821-7040.
Source: NADA Regulatory Affairs

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Can Takata Survive Historic U.S. Airbag Recall?

Unlike industries in which companies have been quick to drop offending suppliers to protect their brands, automakers have largely stood behind airbag component maker Takata Corp., taking the hit to their own reputations from a series of recalls related to the Japanese company’s products that began in 2008. One reason: The tight supply of air bag parts amid the post-recession rebound has left them little choice. Takata commands almost a quarter of the market for airbag inflators --a critical part in a modern vehicle. That loyalty is about to be put to the test.
Source: Automotive News

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Marchionne Says He Doesn't Plan to Testify at July Hearing

Sergio Marchionne, Fiat Chrysler Automobiles NV’s chief executive officer, said he doesn’t intend to speak at the hearing the U.S. National Highway Traffic Safety Administration set for July 2. “We have a person who is responsible for regulatory compliance,” he said on the sidelines of an event Tuesday evening in Detroit. “He’s much better briefed than I am.” NHTSA on Monday scheduled a rare public hearing into how Fiat Chrysler is handling 20 recalls, covering about 10 million vehicles. NHTSA Administrator Mark Rosekind said it was a pattern of potential violations, rather than a specific recall, that brought the unusual action.
Source: Bloomberg
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Subprime Loans Fall to Lowest Share Since 2012

Subprime and deep subprime auto loans in the first quarter dropped to their lowest share of the market since 2012, Experian Automotive said this week. Together, subprime and deep subprime loans made up 19.7 percent of the market, compared with their 19.6 percent slice three years earlier, according to Experian’s first-quarter State of the Automotive Finance Market report. Experian defines the subprime risk category as credit scores of 501 through 600 and the deep subprime category as scores of 300 through 500. “Over the last year, there has been a tremendous amount of conversation around the growth in subprime loans, and the concern over the automotive finance industry approaching a potential ‘bubble,’” Melinda Zabritski, senior director of automotive finance for Experian, said in a statement on Monday. Consumers’ timely loan payments have stabilized the market and brought down delinquency rates, Zabritski said. But dealers and lenders should continue to monitor market trends.
Source: Automotive News
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If the FTC Comes to Call

The FTC recently provided some insight into the sources for FTC investigations into data security, along with what to expect if you are the target of such an investigation. The FTC guidance provides some important factors the FTC considers when pursuing their investigations and outlines the steps the FTC will generally take as they proceed. Click here for the full article.
Source: FTC
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American Driving in '15 Hits All-Time Record

American drivers in the first three months of the year hit a record high in miles driven — up 3.9 percent over 2014 — amid low gas prices. The U.S. Transportation Department said Wednesday that Americans drove 261.7 billion miles in March, which is the most ever driven in that month. Through the first quarter, the nation drove 720.1 billion miles — the highest for any year’s first quarter, and 35 billion more than the same period last year. The 720.1 billion miles driven on U.S. roads in the first quarter of the year beats the previous record of 705.7 billion set in 2006, and doubles the 345.5 billion miles in the first quarter of 1982. Americans drove 3.9 percent more miles in March, the 13th consecutive month of increased growth.
Source: The Detroit News
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Mazda's New Mantra: 'Driving Matters'

Fifteen years after coining the slogan "Zoom Zoom" to pitch its cars to customers who see driving as a pleasure and not a chore, Mazda Motor Corp. is hoping to refine its fun-to-drive message by launching its biggest U.S. marketing campaign in two years under a new tagline: "Driving Matters." As a small, independent automaker, Mazda lacks the name recognition and marketing dollars of rivals like Honda and Toyota. But executives hope a round of emotionally charged advertising will draw customers to its pint-sized CX-3 crossover and a redesigned version of the iconic MX-5 Miata roadster. Mazda will begin its push Friday with a 60-second spot called "A Driver's Life" that will air on television and in movie theaters nationwide.
Source: Automotive News
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Margaret Dunning Did Laps Around Competition into 100s


(Photo credit: John M. Galloway / Special to The Detroit News)

Margaret Dunning of Plymouth, [Mich.] was a month shy of 105 when she died Sunday, and her friends were surprised at her passing — which says a lot about the way she lived. A 2013 Detroit News Michiganian of the Year, she was in California on a weekend trip where she competed in a charity road rally, charmed Jay Leno and sat in the Batmobile. Only two years ago, Dunning drove three laps at the Indianapolis Motor Speedway in her beloved 1930 Packard 740 roadster. That earned her a spot last fall in the annual book of amazements from Ripley's Believe It Or Not, which left her laughing. "Life has been wonderful," she said then. "I thoroughly recommend it." Both famed and revered in her city for her generosity and her sense of adventure, Dunning was a success in business, a renowned automobile collector, and a fair hand with a wrench. Until recently, she would personally change the oil and spark plugs in her Cadillacs — a 1966 DeVille and a 1975 Eldorado convertible, and the 2003 DeVille that served as her daily commuter.
Source: The Detroit News
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Quotable

"Americans are driving their cars at near-record levels ..."

    -- Transportation Secretary Anthony Foxx, commenting on American driving hitting record levels, The Detroit News, May 20

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