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Inside this issue
NADA Responds to American Banker Article About Proposed Consent Orders Between CFPB and American Honda Finance Corp., Toyota Motor Credit Corp, and Nissan Motor Acceptance Corp.
Car Makers Post Hot First-Half U.S. Sales
U.S. Auto Sales Top Out in 2016, Dealer Association Economist Predicts
Leasing Boost Among Loyalty Drivers
Hyundai Sees Hydrogen-Powered Cars as the Future
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
NADA Responds to American Banker Article About Proposed Consent Orders Between CFPB and American Honda Finance Corp., Toyota Motor Credit Corp, and Nissan Motor Acceptance Corp.

If what was reported by American Banker is accurate, this is indeed a very sad day for consumers. By denying millions of consumers the right to negotiate a better deal for themselves when they finance the purchase of a new vehicle, these types of enforcement actions will bring only economic harm to the very people that the CFPB was mandated by Congress to protect. America's franchised new-car dealerships will continue to fight for consumers, and we applaud the finance sources that have joined us in that fight.

Additionally, bipartisan support continues to grow in Congress for legislation – H.R. 1737 – that would force the CFPB to be transparent in its attempt to alter the mechanics of the auto finance market, and committee action on that bill is expected in the near future. As the CFPB continues to attempt to alter the marketplace without any opportunity for public input or any consideration of the costs it will impose on consumers, the momentum behind H.R. 1737 will only increase.

And as we have stressed, NADA and its members do not believe there is any place for discrimination in the marketplace, so we will continue to encourage the adoption of the NADA Fair Credit Compliance Policy and Program because it remains the most-effective way to address fair credit risks while preserving the robust competition that exists in today’s marketplace.
Source: NADA

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Car Makers Post Hot First-Half U.S. Sales

Analysts lift forecasts for 2015 as only GM among the top manufacturers to report a decline

Several top auto makers posted higher U.S. sales in June, capping a fast-paced first half of the year and prompting many industry analysts to lift annual light-vehicle-sales forecasts. Aided by one more selling day than the prior-year period, six of the top seven selling auto makers in the U.S. reported gains. General Motors Co., which had a decline in sales to rental fleets, was alone in reporting a decline as June volume fell 3% to 259,353 vehicles.American car buyers have long been among the most valued in the world by auto makers, as higher transaction prices and demand for bigger vehicles make sales more profitable. The high concentration of sales of trucks and SUVs amid lower gasoline prices, combined with better capacity utilization and tighter inventory controls, has made the U.S. market even more lucrative during the current boom. Fuel prices are near their highest point in 2015 so far, but they are still 91 cents per gallon lower than a year ago, according to travel service AAA. The National Automobile Dealers Association expects that light trucks will make up 56% of U.S. sales in 2015, a sharp increase from what has been the norm over the past decade.

NADA raised its annual sales forecast to 17.2 million vehicles, representing what would be the second-best year for in the industry’s history behind 2000’s result. NADA, representing the interests of thousands of auto dealers, expects the good times to continue with a 2016 forecast of a record 17.6 million sales. “This will be the longest period of sales growth since 1924,” said Steven Szakaly, the chief economist for the association. “Pent up demand is clearly there. We are seeing it right now. Every forecasters’ question is, ‘When does it run out?’”
Source: The Wall Street Journal

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U.S. Auto Sales Top Out in 2016, Dealer Association Economist Predicts

The National Automobile Dealers Association predicted U.S. auto sales would probably start to decline in 2017, after seven consecutive years of increases. The good news is, 2015 should approach an all-time high, and 2016 should set a new record, according to Steven Szakaly, NADA chief economist. In addition, analysts don’t predict a sudden falloff in U.S. auto sales after 2016, unlike some previous business cycles.
Source: Forbes.com
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Leasing Boost Among Loyalty Drivers

Leasing drives loyalty. This was one of several benefits of the leasing boom mentioned by Experian Automotive’s Melinda Zabritski during an interview with Auto Remarketing at January’s NADA Convention & Expo, and new loyalty data released this week by IHS Automotive indicates this certainly came to fruition during the remainder of the first quarter. The growth in leasing was among a handful of factors mentioned by IHS as “key drivers” of a 10-year high in auto brand loyalty, which reached 52.8 percent in Q1. In this week’s report from IHS, Tom Libby starts with the loyalty boost from a wider selection from OEMs then goes into how ramped-up leasing leads to a more loyal customer.
Source: Auto Remarketing
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Hyundai Sees Hydrogen-Powered Cars as the Future

Hyundai Motor Co. said it believes hydrogen fuel cell vehicles are the future for eco-friendly cars despite challenges of limited infrastructure and slow sales. South Korea’s largest automaker has sold or leased 273 Tucson fuel cell SUVs since beginning production in 2013, lower than its 1,000 target, mostly in Europe and California. Kim Sae Hoon, general manager at Hyundai’s fuel cell engineering design team, said fuel cell cars represent a bigger opportunity than electric cars because competition is less fierce. Hydrogen-powered cars also give more flexibility to designers, he said. They can be scaled to big vehicles such as buses as well as small cars.
Source: Associated Press
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"We just wrapped up the U.S. auto industry’s best six months in a decade, driven by strong demand for pickups and crossovers. People feel good about their jobs and the direction the economy as a whole is taking, so the second half of the year should be strong, too...."

    -- Kurt McNeil, GM’s U.S. vice president of sales operations, The Detroit News, July 1

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