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Inside this issue
Dealer Associations: CFPB/Honda Consent Order Severely Reduces Consumers' Ability to Negotiate Lower Auto Loan Rates
Marchionne Has No Plans for Another GM Offer, Report Says
Analysts Weigh Implications of New Airbag Investigation
Scion Hopes to Reignite Brand Enthusiasm at Dealer Level
Auto Shows Strongly Influence Car Shoppers, New Study Finds
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Dealer Associations: CFPB/Honda Consent Order Severely Reduces Consumers' Ability to Negotiate Lower Auto Loan Rates

Leaders of the National Automobile Dealers Association, the National Association of Minority Automobile Dealers and the American International Automobile Dealers Association issued the following statements in response to a July 14 consent order entered into by the government and American Honda Finance Corp.:

“The government-imposed order will hamstring the ability of thousands of consumers to negotiate lower interest rates with their local auto dealership,” said NADA Chairman Bill Fox. “This enforcement action artificially constrains the right of consumers to benefit from interest rate reductions of up to 1% of the APR on their next auto loan.”

“Every person deserves to be treated honestly and fairly when purchasing and financing their next car or truck -- no exceptions and no excuses,” said NAMAD President Damon Lester. “Today's restriction of consumer rights is entirely unnecessary because a better alternative exists -- the Fair Credit Compliance Policy & Program recommended by our associations. That alternative, which is modeled on prior Department of Justice consent orders, fully addresses fair credit concerns without displacing the ability of consumers to obtain discounted rates.”

“There's no getting around the fact that this enforcement action is going to reduce the savings consumers depend on when financing a new vehicle,” said AIADA Chairman Brad Hoffman. “Everyone in our industry is mystified as to why the government continues to overlook its own common-sense approach in favor of the anti-consumer methods forced on Honda Finance.”
Source: NADA

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Marchionne Has No Plans for Another GM Offer, Report Says

Fiat Chrysler Automobiles CEO Sergio Marchionne does not plan to make another offer to merge with General Motors after being rejected by its U.S. rival four months ago, the New York Times quoted him as saying. Marchionne has sought to persuade rivals and investors that the auto industry needs another round of consolidation to share the costs of building greener and more intelligent cars. In March, he sent an email to Mary Barra, his counterpart at GM, with a merger proposal but was snubbed. "I was rebuffed once, and I won't go back to get my nose bloodied a second time," Marchionne said on Tuesday, the paper said, speaking on the sidelines of a ceremony to kick off labor contract talks with the UAW.
Source: Reuters
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Analysts Weigh Implications of New Airbag Investigation

Following the recent recall news surrounding the various incidents related to Takata airbag inflator ruptures, it appears as though the National Highway Traffic Safety Administration is playing it extra careful with its recent investigation into another set of incidents involving airbag inflators from a different manufacturer. NHTSA opened an investigation on Monday involving two separate incidents connecting air bag inflator ruptures involving equipment supplied by ARC Automotive. Michelle Krebs, Autotrader’s senior analyst, commented on the potential negative effects bringing the woes of a second airbag manufacturer into the fold could have on the industry if the investigations lead to a recall. “Problems with a second airbag component manufacturer could cause automakers big headaches, since there are so few suppliers of airbags and airbag components as it is,” Krebs said. “For consumers, it could slow the recall repairs even more with such a limited supply base.”
Source: Auto Remarketing
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Scion Hopes to Reignite Brand Enthusiasm at Dealer Level

Scion wants to reignite enthusiasm for the brand at its dealerships and is asking that each of its stores appoint what it is calling an ambassador. It’s a modification of an existing scheme that debuted with the brand 11 years ago. As Scion stores are inside higher-profile Toyota dealerships, Scion wanted to make sure it had an advocate within each building. But the prior program, dubbed Scion Champion, lately had fallen by the wayside. “When we launched the brand we had a request with dealers for something we call a champion, and that person was supposed to be a dedicated individual who did nothing but (represent and sell) Scion in the store,” Doug Murtha, Scion vice president, tells WardsAuto in an interview during a ’16 iA and iM media preview. But Murtha says the drop in Scion’s volume, from a high of 173,034 in 2006 to 58,009 last year, caused the champion program to wane, as financial incentives for those participating were tied to sales per outlet.
Source: WardsAuto
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Auto Shows Strongly Influence Car Shoppers, New Study Finds

More than half of auto show goers who bought vehicles after attending the events say the shows influenced their purchase decisions, according to a new study commissioned by Auto Shows of North America. ASNA, a group consisting of 65 auto shows in the U.S. and Canada, says dealers have noticed upticks in traffic following shows in the past, but that was “largely based on anecdotal evidence.” So the newly released study, titled “The Power of Auto Shows,” dug into this phenomenon to see just how effective the shows really are. Foresight Research, which conducted the study, surveyed 21,000 local market residents who did not attend a show, more than 8,900 visitors of brand displays, 7,500 new vehicle buyers and 3,000 local market show attendees.
Source: Automotive News
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Quotable
"[Tuesday's] government-imposed order will hamstring the ability of thousands of consumers to negotiate lower interest rates with their local auto dealership. This enforcement action artificially constrains the right of consumers to benefit from interest rate reductions."

    -- NADA Chairman Bill Fox, in response to the announcement of American Honda Finance Corp.'s settlement with the CFPB and Justice Department, The Washington Post, July 14

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