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August 31, 2015 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
U.S. Banks' Loans Paving The Way For Auto Purchases
Sergio May Stay Till 2020, Hunts for Next Top Leader
Ford Feels Push to Return to Midsize Trucks
Porsche Dealers Looking to Leverage Posh New Atlanta Experience Center
Where You Should Buy Your Next Used Car
China Crisis: Automakers Like Volkswagen, General Motors Brace for Impact as China Car Sales Fall
New Orleans Dealers Recall Aftermath of the Storm
Top Stories
U.S. Banks' Loans Paving The Way For Auto Purchases

Auto loan originations hit a 10-year high in the second quarter, which means numerous banks and credit unions have been capturing business in this fast-growing sector. Sageworks, a financial information company, analyzed banks of various sizes (those with more than $10 billion in total assets and those with less than $10 billion) to identify banking leaders in aggregate auto lending, which first topped $1 trillion in the second quarter. According to credit bureau and financial information company Experian, banks had the largest share of the auto loan market as of the first quarter, with 34% market share, compared with 26% for so-called “captive” lenders (typically, manufacturer-backed finance companies) and 17% for credit unions. The dollar-value of banks’ auto loans that have become delinquent is relatively stable compared with recent years, even though auto-loan volume has increased, indicating a slight improvement in the banks’ auto-loan credit quality, [Sageworks analyst James Noe] said. Earlier this year, the OCC expressed concerns about the risks being taken in the auto-loan market. “At this point, the delinquency metrics don’t generate any signs of concern,” Noe added.
Source: Forbes
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Sergio May Stay Till 2020, Hunts for Next Top Leader

Sergio Marchionne is 63 and the first to admit that he won't stick around as CEO of Fiat Chrysler Automobiles forever. But he may remain a bit longer than expected. May 2014, Marchionne said he would remain in his role until 2018, but he told Automotive News in August that he could hang on until 2020. "I can do this for another five years if you push me, right? Beyond that, I ain't gonna do it, and I don't want to," he said. So who follows him into the hot seat at FCA? Marchionne said he spends six weeks each year reviewing personnel files, on the lookout for talent in order to groom them for leadership.
Source: Automotive News

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Ford Feels Push to Return to Midsize Trucks

Ranger, Bronco SUV possible as rivals nab sales

Nobody buys small pickups anymore. Nobody wants a truck-based SUV, either. That was the thinking just a few years ago for many automakers, including Ford Motor Co. But Ford executives apparently have changed their tune, as gasoline and oil prices plunge, truck sales soar and discretionary buyers return to the market in droves. Ford and its dealers have become restless on the sidelines as General Motors sells every midsize pickup it can build and Jeep makes bank month after month. “It would be nice to have a piece of that,” said Kevin Shaughnessy, general manager of Phil Long Ford of Denver. He and other U.S. dealers were fired up earlier this week to hear Ford is considering a plan to revive the Ranger pickup and a related SUV that it could call the Bronco.
Source: Automotive News
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Porsche Dealers Looking to Leverage Posh New Atlanta Experience Center

Angela Lanier has bought four Porsche 911s from Hennessy Porsche North Atlanta over the last 12 years. On Aug. 21, she figured out what her fifth purchase likely will be. "I wasn't planning on purchasing another car anytime soon," Lanier said. But after instructors at the Porsche Experience Center here took her for hot laps on the center's test track in three 911 variants at a party hosted by the dealership, Lanier said she now is "thinking of buying a GT3." Such reactions are what Atlanta dealer Peter Hennessy wanted to tap into when Porsche Cars North America opened its new U.S. headquarters and experience center in May on a site next to busy Hartsfield-Jackson Atlanta International Airport. His dealership has hosted two events at the venue since May and given out more than a dozen gift cards so customers can drive the track's six modules.
Source: Automotive News
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Where You Should Buy Your Next Used Car

While buying a used car saves you money over buying new, buying used also presents its own unique set of challenges. There are just so many more places – and people – selling pre-owned vehicles than new cars. According to the latest NADA Data report, published annually by the National Automobile Dealers Association, there were 16,396 franchised new-car dealerships in the United States at the end of 2014. But a July snapshot of the used-car market by IBISWorld, a consulting firm that provides business and economic information, indicates 132,965 “businesses” on the pre-owned side of the industry, which includes franchised and independent dealerships. Those numbers don’t even take into account all the regular people looking to get rid of their own rides. When it comes to buying a used car, you have choices of where you buy. However, individual sellers, franchised dealerships and independent dealerships all have their own unique pros and cons. In contrast to an independent seller, a franchised vehicle dealership will be able to deliver an extensive selection of vehicles and vehicle types, including certified pre-owned cars and trucks, along with simplified financing and warranty opportunities.
Source: U.S. News Rankings & Reviews
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China Crisis: Automakers Like Volkswagen, General Motors Brace for Impact as China Car Sales Fall

Now that the brakes are being applied to China’s economy, automakers are bracing for impact. Lured by China’s rapidly growing rates of household wealth and low level of car ownership, the world’s top car manufacturers have been piling billions of dollars’ worth of investments into an auto market that surpassed the United States at the world’s largest in 2009. But now that China’s economy is slowing to a rate unseen in over two decades, local demand for foreign marques like Chevrolet, Volkswagen and BMW is withering, forcing automakers to slash prices, adjust their global profitability goals and confront a marketplace that won’t be able to soak up all of the vehicles being produced and sold locally. “You’re looking at a Chinese auto market that peaked in profitability last year and is peaking in sales volume this year,” said Steven Szakaly, chief economist at the U.S. National Automobile Dealers Association. “The growth rate in China, and the rate of its debt growth, has been unsustainable, and now we’re seeing this year the start of a prolonged slowdown.” That slowdown has been in the works for more than a year.
Source: International Business Times
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New Orleans Dealers Recall Aftermath of the Storm

Ten years ago, Hurricane Katrina battered the Gulf Coast, killed at least 1,000 people in Louisiana and turned New Orleans into a vast flood zone. A pair of New Orleans-area dealers recall the aftermath of the storm and how it changed their business.
Source: Automotive News
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Quotable
"At this point, the delinquency metrics don’t generate any signs of concern."

   --  James Noe, analyst for Sageworks, commenting on an improvement in banks’ auto-loan credit quality for car buyers, Forbes, Aug. 30

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