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August 28, 2015 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
NADA Releases Testimonials Supporting Fair Credit Compliance Program
In Landmark Case, Labor Board Will Let More Workers Bargain with Their Employer's Employer
Monthly Payments, Loan Terms Up in Q2, Experian Says
Marchionne Tells Dealers Fiat Chrysler Can Stand On Its Own After All
Why Automakers Shouldn’t Forget the Boomers
NADA Foundation Spotlight: Sophie Ann Johnson Named an Ambassador
Top Stories
NADA Releases Testimonials Supporting Fair Credit Compliance Program

Some of the most respected fair credit compliance attorneys across the country have expressed strong support in testimonials for the optional NADA/NAMAD/AIADA Fair Credit Compliance Policy & Program. Dealers are encouraged to review the many reasons why these professionals believe that the faithful implementation of the NADA/NAMAD/AIADA program can protect dealers and consumers from the risk of credit discrimination, while preserving the availability of auto loan discounts for car buyers. Click here for the testimonials.
Source: NADA Regulatory Affairs

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In Landmark Case, Labor Board Will Let More Workers Bargain with Their Employer's Employer

A federal labor board voted Thursday to redefine the employee-employer relationship granting new bargaining powers to workers caught up in an economy increasingly reliant on subcontractors, franchisees and temporary staffing agencies.

The decision by the National Labor Relations Board could upend the traditional arms-length relationship that has prevailed between corporate titans such as McDonald’s and its neighborhood fast-food franchises… In a case that drew intense lobbying by both business and union groups, Democratic appointees on the panel split 3-2 with Republicans to adopt a more expansive definition of what it means to be an “joint employer," making it more difficult for companies to avoid responsibility through various forms of outsourcing.

As a result of the decision, some businesses may be able to distance themselves from their partners to avoid joint employer status, but others may find they need to exert more control… While this case did not address franchising directly, the new standard will apply in a major series of cases against McDonald’s scheduled for arguments in the fall.
Source: The Washington Post

Editor’s note: Under the NLRB’s new test, a company can be considered a joint employer even if it has only indirect control over employee working conditions or if it has the right to control certain conditions even if it doesn’t exercise that right. Working conditions can include the hiring, firing, wage rates, hours, or any other terms of employment of a franchisee’s or contractor’s employees. The new test is not expected to significantly impact the relationship between manufacturers and franchise dealerships, however, if it does, the ruling is expected to incentivize vehicle manufacturers to exert less control over their dealers.

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Monthly Payments, Loan Terms Up in Q2, Experian Says

The average monthly payment increased and new-vehicle loan terms grew during the second quarter as average U.S. transaction prices for new cars and light trucks rose, Experian Automotive reported [Thursday]. “It’s a typical growth. Those are trends we’ve seen constantly grow as vehicles become more expensive,” Melinda Zabritski, Experian’s senior director of automotive finance, told Automotive News. Lease penetration rates also increased, reflecting consumer demand for low monthly payments.
Source: Automotive News
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Marchionne Tells Dealers Fiat Chrysler Can Stand On Its Own After All

Sergio Marchionne apparently told Fiat Chrysler dealers this week: “Never mind.” All of the Chicken Little-ism that he demonstrated a few weeks ago — controversially conducting an open campaign to find a merger partner — should be relegated to yesterday like the K-Car, he indicated. After trying to hector General Motors CEO Mary Barra and others into acknowledging that a merger with Fiat Chrysler would be the best way for both companies to cope with the intense capital demands and low financial returns in their industry, Marchionne this week reportedly told his company’s 7,000 dealers at a meeting in Las Vegas that Fiat Chrysler actually could stand on its own just fine. He said he “isn’t under pressure to merge with another car company, and … the company can finance a competent product portfolio on its own,” the Wall Street Journal reported.
Source: Forbes
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Why Automakers Shouldn’t Forget the Boomers

Carmakers continue to target young millennials, but the cold, hard numbers point to another trend

The best 30 seconds on TV right now features three comely ladies of a certain age ogling the proffered buttocks of a young 20-something while pretending to shop for a Passat during what they think is Volkswagen’s annual “Rear End Event.” Although Volkswagen claims the spot is not specifically targeted to an elderly crowd, the septuagenarian-centric TV spot pointedly highlights the biggest, yet most ignored, trend in the automobile industry: boomers, rather than going quietly into that good night, are determinedly reasserting their dominance over the automotive industry. The numbers, especially compared to cohorts of aging drivers past, are staggering. In the United States, drivers over the age of 75, for instance, register six times as many new cars as those aged 18 to 24. The result, says the U.S. National Automobile Dealers Association’s chief economist, Steven Szakaly, is that, while the average age of the American population is 38 years old, the average age of a new car buyer is almost 52. In fact, because of the strength of their accumulated savings, “it takes four millennials to replace one boomer in terms of economic impact,” Szakaly told a Center for Automotive Research seminar.
Source: Driving
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NADA Foundation Spotlight: Sophie Ann Johnson Named an Ambassador

New-car dealer Eugene Johnson of Rainer Dodge in Olympia, Wash., named his granddaughter Sophie Ann Johnson as an Ambassador of the NADA Foundation.

To become an Ambassador, an individual, association or a company makes a tax-deductible contribution of $10,000 in their name or in recognition of someone living or deceased. They are then eligible to provide a $1,500 grant to an organization of their choice every three years in perpetuity.

This year, 210 Ambassadors will provide more than $250,000 in grants to organizations supporting a variety of causes from emergency medical services and education to civic organizations. For more information about the Ambassador program, contact the NADA Foundation at (703) 821-7102 or foundation@nada.org.
Source: NADA Foundation

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Quotable
"It takes four millennials to replace one boomer in terms of economic impact."

   --  NADA Chief Economist Steven Szakaly, says 52 is the average age of a new-car buyer, Driving, Aug. 28

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