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Inside this issue
Broad Industry Coalition Backs Congressional Repeal of Flawed CFPB Guidance
Confusion Clouds Count of Cars Hit By Takata Airbag Recall
Auto Lenders' Decision Times Drop
Ally Boosts Nonprime Lending, Non-GM Business
Bill Would Add High-Tech Features to New Car Stickers
Car Sales Slow in China’s West, Denting Hopes of Global Auto Industry
FTC Action Leads Car Dealer to Pay $90,000 Civil Penalty for not Displaying 'Buyers Guides' on Used Cars
GM to Reveal Plan for Secondary Use of Chevy Volt Vehicle Battery
Dodge Brothers Return in a New Set of Ads
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Broad Industry Coalition Backs Congressional Repeal of Flawed CFPB Guidance

Groups also reiterate support for NADA Fair Credit Compliance program
 
A broad coalition of auto industry organizations, led by the National Automobile Dealers Association (NADA), has expressed strong support for bipartisan legislation that would rescind a 2013 guidance from the Consumer Financial Protection Bureau (CFPB) designed to pressure lending institutions into eliminating the availability of auto financing discounts for car buyers.

This week, nine industry groups representing businesses that manufacture, sell, service, auction, and finance the purchase of cars, trucks, recreational vehicles and motorcycles urged Congress to support H.R. 1737, the Reforming CFPB Indirect Auto Financing Guidance Act. The legislation, which has 45 Republican and 37 Democratic cosponsors, would rescind the CFPB's flawed 2013 guidance on auto finance and require the CFPB to reissue it only after going through a transparent, collaborative and informed process.
 
"H.R. 1737 is needed to produce a more informed guidance compared to the 2013 guidance, which lacked public input, transparency, consultation with the CFPB's sister agencies and, by the CFPB's own admission, any study of the impact of the guidance on consumers," the groups wrote in a letter to members of the House Financial Services Committee, which is scheduled to discuss the bill on Thursday as part of a hearing on "legislative proposals to preserve consumer choice and financial independence."

NADA President Peter Welch said it was no surprise that such a wide swath of the industry signed the letter in support of H.R. 1737. "There is increasing recognition that there is a way to address fair credit concerns that doesn't involve Washington stripping away the right every consumer has to negotiate and benefit from a better deal on an auto loan," Welch said.
 
H.R. 1737 was introduced by Reps. Frank Guinta (R-N.H.) and Ed Perlmutter (D-Colo.), and is identical to legislation (H.R. 5403) that garnered 149 bipartisan cosponsors in the 113th Congress. Click here for the letter.
Source: NADA
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Confusion Clouds Count of Cars Hit By Takata Airbag Recall

The number of vehicles on U.S. roads with potentially defective Takata airbags appears to be less than half the 34 million initially estimated by federal regulators, according to a Reuters analysis of recall records submitted to the watchdog and confirmed by the car companies. About 16.2 million vehicles -- roughly one out of every 16 cars on U.S. highways -- may have one or two defective airbags supplied by Japan’s Takata Corp., vehicle manufacturers confirmed to Reuters. How many times those vehicles may have to be repaired is still unclear.
Source: Reuters
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Auto Lenders' Decision Times Drop

The industrywide effort to speed the F&I process is making strides due to a stronger focus on technology, according to results of the 2015 Non-prime Automotive Financing Survey. The time between lenders’ receipt of loan applications to lenders’ first decision dropped to 39.8 minutes in 2014, a 16 percent, or 7.6-minute, decline from 2013. “Automation and technology should continue to decrease first response times,” Dwayne Furmidge, director of the Americas for Benchmark Consulting International, the firm that conducted the survey, told Automotive News in an email. “The cost of automation previously reserved for large finance sources has become more available and cost effective for the medium and small finance source segment.” The survey, conducted each spring for the prior year, is sponsored by the American Financial Services Association and the National Automotive Finance Association. The survey began in 1996.
Source: Automotive News
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Ally Boosts Nonprime Lending, Non-GM Business

Ally Financial Inc. has stepped farther away from General Motors in recent months, increasing nonprime lending and doing more business with non-GM brands, Ally CEO Jeffrey Brown said this week. The effort was spurred, he said, after GM made GM Financial its preferred lender for subsidized leases in February, pulling business from Ally. As part of the effort, Ally became Mitsubishi’s preferred lender in April and Aston Martin’s preferred lender in May.
Source: Automotive News
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Bill Would Add High-Tech Features to New Car Stickers

A bipartisan group in Congress introduced legislation on Wednesday that would force the National Highway Traffic Safety Administration to include active safety systems in assessing vehicle five-star safety ratings. Sens. Dean Heller, R-Nev., and Edward Markey and Reps. Todd Rokita, R-Ind. and Earl Blumenauer, D-Wash., introduced the Safety Through Informed Consumers Act that would require NHTSA to integrate active safety technology into its crashworthiness rating system. It’s not clear if the legislation would require NHTSA to simply disclose what technologies were available on new car window stickers — or if future cars would need to have the technologies to get a five-star rating.
Source: The Detroit News
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Car Sales Slow in China’s West, Denting Hopes of Global Auto Industry

Sales shift down a gear in region where auto makers saw potential for faster growth

A surprise sales slump is hitting what had been a fast-growing part of the world’s biggest car market. That could be bad news for mass-market global brands like Volkswagen AG and Ford Motor Co. and luxury names such as Volvo Car Corp., Mercedes-Benz and BMW AG. The global auto industry in recent years has been betting heavily on China’s west, where they see potential for faster growth than in the more affluent—and car-saturated—cities along the coast and in the country’s eastern and southern manufacturing belts. Instead, the region has been hard hit by China’s economic slowdown, curbing auto sales and leaving residents like Chen Liang pinching pennies.
Source: The Wall Street Journal
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FTC Action Leads Car Dealer to Pay $90,000 Civil Penalty for not Displaying 'Buyers Guides' on Used Cars

An Arkansas auto dealer and its owners have agreed to pay a $90,000 civil penalty to settle Federal Trade Commission charges that they failed to display a “Buyers Guide” on used vehicles offered for sale, as required by the FTC’s Used Car Rule.  The FTC charged Abernathy Motor Company, Wesley Abernathy and David Abernathy with violating the Rule, which is designed to ensure that consumers have important purchasing and warranty information when shopping for a used car.
Source: FTC
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GM to Reveal Plan for Secondary Use of Chevy Volt Vehicle Battery

Auto maker to announce additional uses at a conference on June 16

General Motors Co. will reveal a plan for secondary use of the costly batteries installed in Chevrolet Volt plug-in hybrid cars at a conference next week, a move that could generate interest in a redesigned version of the car set to go on sale later this year. The Detroit auto maker has been building the $34,000 Volt since 2010 that uses two propulsion systems. A rechargeable lithium-ion battery is the primary energy provider for the small car, and a gasoline engine serves as a backup power supply in case the battery runs out. Auto makers, including GM, have contended that these batteries can be used for other power needs after the several years during which they have been used in an automobile. GM’s plans for how these batteries can be reused will be outlined June 16 at a battery conference near Detroit.
Source: The Wall Street Journal
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Dodge Brothers Return in a New Set of Ads

Dodge is going back to its roots again in a new round of Dodge Brothers commercials, which launch this week. The four ads, which highlight the 2015 Dart and Durango and the Scat Pack trims of the Challenger and Charger, were directed by Oscar-winning actor Adrien Brody. The spots, produced by agency Wieden+Kennedy, will air on network and cable broadcast channels during prime-time sports and entertainment programming such as NASCAR races, Major League Baseball and “Undercover Boss.” The spots also include social media components on Facebook, Instagram and Twitter that fans can follow with the #DodgeBrothers hashtag.
Source: Automotive News
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More Articles
 
Quotable
"Today’s Dodge vehicles have the same passion for performance as John and Horace Dodge established in the first vehicles they crafted more than one hundred years ago."

    -- Olivier Francois, chief marketing officer of Fiat Chrysler Automobiles, commenting on the automaker going back to its roots with a new round a Dodge Brother commercials, Automotive News, June 10

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