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Inside this issue
Volume Up, Late Payments Flat in 2Q: Experian
Auto Finance Currently 'Working The Way Itís Supposed To'
U.S. Dealership Throughput Poised for New Record in '15, Study Says
IRS Reminds Employers to Prepare Now for 2016 Reporting Requirements
Ford: Regional Hubs, Flexible Platforms Part of Emerging-Markets Strategy
Executive Talent and Digital Disruption in Automotive
Car Dealer Willing to Pay Price for Customer Happiness
Top Stories
Volume Up, Late Payments Flat in 2Q: Experian

Despite record-high outstanding loans, auto loan delinquencies were essentially flat in the second quarter compared with a year ago, Experian Automotive said. “The automotive loan market is gaining momentum while maintaining remarkable stability. It’s a good sign for the economy overall,” said Melinda Zabritski, Experian senior director of automotive finance.

Mathematically, late payments ticked downward ever so slightly for 30-day delinquencies. They increased even more slightly for 60-day delinquencies, Experian said. Outstanding auto loans reached a record $932 billion at the end of the second quarter, an increase of 11% from the year-ago quarter, the credit bureau said. Experian said that was the largest year-over-year quarterly increase since 2006. The 30-day delinquency rate for the second quarter was 2.32%, down from 2.37% a year ago. The 60-day delinquency rate was 0.607%, a barely measurable increase from 0.603%, in the second quarter of 2015.
Source: Auto Finance News
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Auto Finance Currently 'Working The Way Itís Supposed To'

The fastest growing auto loan balances in nearly a decade and record loan dollar volumes? Check. The lowest second-quarter 30-day delinquency rate in five years? Check. Strong auto sales? Check. Oh, and there’s balanced portfolio distribution amongst the credit tiers. “The automotive loan market is working the way it’s supposed to, with loans being made, vehicles purchased and payments made on time,” said Melinda Zabritski, Experian’s senior director of automotive finance. “The automotive loan market is gaining momentum while maintaining remarkable stability,” Zabritski added. “It’s a good sign for the economy overall.”
Source: Auto Remarketing
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U.S. Dealership Throughput Poised for New Record in '15, Study Says

The average number of new-vehicle sales per dealership in the U.S. is trending toward another record in 2015 at a projected 945 units per store based on an annualized U.S. sales rate of 17.1 million vehicles, according to a study released today by Urban Science. At the end of 2014, the average number of new-vehicle sales per dealership was 921 units, and that was a nearly 50-unit increase from 2013.
Source: Automotive News
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IRS Reminds Employers to Prepare Now for 2016 Reporting Requirements

Dealers should note the reminder from the IRS to so-called "large" employers (those with 50 or more full time equivalent employees) that they should act now to prepare for the Affordable Care Act reporting requirements that begin in 2016. The ACA requires large employers to file information returns in 2016 with the IRS and provide statements to their full-time employees about the health insurance coverage the employer offered. The IRS noted that "to prepare for the reporting requirements in 2016, applicable large employers should be tracking information each month of 2015, including: (a) Whether you offered full-time employees and their dependents minimum essential coverage that meets the minimum value requirements and is affordable, and; (b) Whether your employees enrolled in the self-insured minimum essential coverage you offered." Dealers are encouraged to work with their professional health care advisor to ensure compliance with this and other ACA requirements. For more details, click here.
Source: NADA Regulatory Affairs

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Ford: Regional Hubs, Flexible Platforms Part of Emerging-Markets Strategy

Ford will knock another vehicle platform off its roster and move toward refining its regional manufacturing strategy as it looks to continue to shave product-development time and cost and improve its economies of scale, the company’s top purchasing executive says. The automaker also will take a more regional approach to its next generation of vehicles, making sure designs are flexible enough to meet cost targets in more price-sensitive emerging markets, Hau Thai-Tang, group vice president-global purchasing, tells attendees at the J.P. Morgan Automotive Conference in New York.
Source: WardsAuto
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Executive Talent and Digital Disruption in Automotive

Automakers and suppliers are looking for leaders to guide them through the digital transformation, but only a minority of executives surveyed believes their company has the right people in place.

Digital is impacting the entire automotive value chain, from point of design to engineering and production to sales. It is facilitating communication like never before among manufacturers, consumers and their cars. Automotive companies are looking for leaders to guide them through this transformation, giving rise to new positions such as chief digital officer, chief digital marketing officer and chief information security officer, while simultaneously demanding changes in more traditional roles, including chief information officer and chief technology officer. To attract and retain the right candidates for these positions, it is important to understand the growing role digital technology is playing within the automotive industry and the evolving skill set needed at leadership levels.
Source: WardsAuto
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Car Dealer Willing to Pay Price for Customer Happiness

Shaun Del Grande tells how his stores use social media for fun and profit.

Making people happy comes at a price, as California dealer Shaun Del Grande has discovered. He’s willing to pay it, seeing a return on investment. The second-generation dealer discusses ways to do that during a presentation at the Automotive Social Media Summit [in Los Angeles]. The group uses social media and storytelling videos to get across that buying a car should be joyful. It distributes “Be Happy” license plate holders. “If nothing else, we’re trying to reduce road rage,” Del Grande quips. It also seems to increase sales for the 15-brand, 14-store group.
Source: WardsAuto
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Quotable
"The automotive loan market is gaining momentum while maintaining remarkable stability. It’s a good sign for the economy overall."

    -- Melinda Zabritski, Experian’s senior director of automotive finance, commenting on a strong auto loan market, Auto Remarketing, Aug. 12

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