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August 27, 2015 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Dealers Urged to Polish Fair Lending Practices as CFPB Rule Looms
Acura, Mercedes, Mazda Get Top Rating in IIHS Collision Prevention Tests
Crossover Vehicles Shed One-Size-Fits All Approach
Ford Said to Weigh Return of Bronco, Ranger Output to U.S.
Dodge Barracuda Convertible, Next-Gen Charger Among Surprises for FCA Dealers in Las Vegas
NHTSA Provides Online Resources to Promote Child Passenger Safety Week
Top Stories
Dealers Urged to Polish Fair Lending Practices as CFPB Rule Looms

Dealers, learn your lenders’ fair lending policies and polish your own. That’s legal experts’ advice to retailers looking to prepare for the Consumer Financial Protection Bureau’s final larger participant rule, which takes effect Aug. 31. The rule will allow the CFPB to supervise and examine any nonbank finance company that originates, in aggregate, at least 10,000 auto loans and leases a year. There are 34 nonbank auto lenders, including automakers’ captive finance companies, in that group. Together, they generate 90 percent of nonbank auto loans and leases. The rule will indirectly affect dealers since the CFPB will have authority over more of their lenders. Those lenders, in turn, will monitor more closely dealers’ discretionary markups on customer auto loans. The CFPB has told lenders to put into place a system for monitoring dealers on loan markup, said Nick Smyth, a financial services regulatory attorney at Reed Smith law firm in Pittsburgh.

After the CFPB contacts the top 34 nonbank lenders, the lenders will likely send their dealer clients a letter to explain that they expect dealers to be compliant and follow a fair lending program, Henrick said. Dealers should “be proactive when they get the first letter,” Henrick said. “If the dealer has implemented the National Automobile Dealers Association’s fair lending policy, they should let the lender know that in response.” If dealers haven’t adopted NADA’s policy, they should, he said. [NADA/NAMAD/AIADA] Fair Credit Compliance Policy & Program recommends dealerships adopt a set method for determining the amount of compensation they earn for arranging customer financing.
Source: Automotive News

Editor's note: To download the NADA/NAMAD/AIADA Fair Credit Compliance Policy & Program, click here.
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Acura, Mercedes, Mazda Get Top Rating in IIHS Collision Prevention Tests

Acura, Mercedes and Mazda made an impressive showing in the most recent IIHS testing of vehicles with front collision prevention technology. More than a dozen of the 19 vehicles tested by the Insurance Institute for Highway Safety earned a “superior” rating -- the highest rating offered in this test, the IIHS reported [Wednesday]. The institute rates vehicles as “basic,” “advanced” or “superior” depending on how they perform in tests at 12 mph and 25 mph. The tested vehicles are equipped with collision warning or automatic braking systems, which can stop the vehicle to prevent a crash without driver intervention.
Source: Automotive News
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Crossover Vehicles Shed One-Size-Fits All Approach

In the still booming world of crossover vehicles, automakers have gone from a one-size-fits-all approach to a small, medium and large strategy. Two car companies with fresh offerings in the crossover or CUV market are Mazda and Hyundai. In Mazda’s case, the Japanese automaker has produced its first entry in the small crossover segment, with the CX-3, while Hyundai has completely redesigned its Tucson, a midsized CUV in an effort to re-energize its U.S. sales. The small CUV segment is especially popular with consumers currently and Mazda estimates the sector will climb from around 118,000 annual sales currently to 458,000 by 2017.
Source: The Detroit News
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Ford Said to Weigh Return of Bronco, Ranger Output to U.S.

Ford Motor Co. is considering a revival of the Bronco sport utility vehicle and Ranger small pickup in the U.S., where truck demand is booming, said a person familiar with company’s plans. The two models would be built at a Wayne, Michigan, factory that now makes small cars, said the person, who asked not to be identified discussing product plans. The move would help Ford preserve some U.S. union jobs amid contract talks. The company may assemble the Focus and C-Max in Mexico, a person familiar with the matter had said. The return of the Ranger and Bronco, which drew unwelcome renown as O.J. Simpson’s getaway car two decades ago, gives Ford key models to compete with offerings by Toyota Motor Corp. and General Motors Co. The Bronco would also bring back an iconic name that has struck a chord with young buyers despite being out of production for almost 20 years.
Source: Bloomberg
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Dodge Barracuda Convertible, Next-Gen Charger Among Surprises for FCA Dealers in Las Vegas

Up to 30 new or refreshed products coming within 2 years, they're told.

Fiat Chrysler dealers meeting in Las Vegas on Tuesday were wowed by a parade of new products coming to their dealerships, including a Dodge Barracuda convertible and a swoopy next-generation Dodge Charger said to resemble a popular 1999 concept designed by Tom Gale. Also in the mix, the next-generation Jeep Wrangler that, according to one dealer, “stays pretty true to its current form,” as well as a Jeep Grand Wagoneer luxury SUV with seating for eight. The long-rumored Jeep Grand Cherokee SRT Track Hawk -- which is to be powered by FCA’s 6.2-liter supercharged Hellcat V-8 engine -- also was shown. The dealer meeting, which was closed to the media, took place at Mandalay Bay Resort and Casino on the Las Vegas Strip. It included addresses from FCA’s multiple brand heads as well as remarks by CEO Sergio Marchionne.
Source: Automotive News
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NHTSA Provides Online Resources to Promote Child Passenger Safety Week

The National Highway Traffic Safety Administration is promoting Child Passenger Safety Week from Sept. 13-19. NHTSA is providing numerous resources, which include posters, banner ads, infographics, PSAs and more, to organizations interested in participating in the campaign. Car crashes are a leading cause of death for children 1- to 13-years-old. Many times deaths and injuries can be prevented by the proper use of car seats, boosters and seat belts. NHTSA’s toolkit provides information and ideas on how to generate awareness about child car safety during Child Passenger Safety Week and National Seat Check on Saturday, Sept. 19, and throughout the year. Click here for the toolkit.
Source: NHTSA
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Quotable
"If dealers haven’t adopted [NADA/NAMAD/AIADA Fair Credit Compliance Policy & Program], they should."

   -- Randy Henrick, associate general counsel for Dealertrack, commenting on how dealers need to be proactive and prepare for the CFPB's final larger participant rule that takes effect Aug. 31, Automotive News, Aug. 26

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