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October 9, 2015 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Dealers Play Key Role in Recall Completion Rate, Study Says
VW: Most Diesel Cars Will Need 'Major Fix'
Do-Not-Call Rules Do Not Prohibit Dealers from Calling Consumers about Vehicle Recalls
Government Meddling is Costing Car Buyers
U.S. Close to Naming Fiat Chrysler Safety Monitor
NADA Foundation Presents Grants to Wheeling Jesuit University
Top Stories
Dealers Play Key Role in Recall Completion Rate, Study Says

Consumers who have a relationship with their dealer participate in recalls more often than those who don't, according to a new survey by the Auto Alliance and the Association of Global Automakers. In addition, people who service their vehicles at a dealership respond to safety recalls more than those who take their vehicle for service elsewhere, the study found. The survey provides insights on consumer behavior in an era of record recalls, including the massive recall for defective Takata airbags and the looming recall of Volkswagen diesel vehicles with "defeat devices" that are rigged to pass strict emissions tests but spew pollution in everyday use. The research was launched to help understand why roughly 25 percent of owners of recalled vehicles never complete the free repair. A key finding is that many consumers are doing their own "risk assessments" when they receive a recall notice. In other words, they decide if the recall seems important enough to schedule a service appointment.
Source: Edmunds
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VW: Most Diesel Cars Will Need 'Major Fix'

Volkswagen of America says most of the 482,000 diesel cars that used software to evade emissions standards will need a “major fix,” including a hardware upgrade that won’t start for at least another year. VW U.S. CEO Michael Horn told a House Energy and Commerce subcommittee Thursday that 325,000 of the 482,000 cars with 2-liter diesel engines in the U.S. — those with “Generation 1” engines, which includes all 2009-14 models, including Passats through model-year 2011 — will need both a hardware and software fix. VW may have to add a urea tank or other exhaust system upgrades to those cars. Horn said such modifications could require five to 10 hours of work at a dealership, and repairs are not expected to start until late 2016. He said the automaker is considering compensation to owners, including possibly buybacks.
Source: The Detroit News

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Do-Not-Call Rules Do Not Prohibit Dealers from Calling Consumers about Vehicle Recalls

As a reminder to dealers, the National Do-Not-Call (DNC) rules do not prohibit dealers from calling consumers to alert them that their vehicles have been recalled because of a product safety or defect concern and to schedule appointments to correct the defect. The Federal Communications Commission granted a 2005 NADA petition clarifying the rules, and noted that the clarification applies when the defect repair work involves no cost to the consumer. Calls that encourage the purchase of other goods and services “will be deemed a prohibited telephone solicitation.”  However, please note that this clarification only applies to the National Do-Not-Call rules, and not the separate restrictions under the Telephone Consumer Protection Act (TCPA) for text messages, prerecorded calls, calls made to cell phones, or calls made using autodialers. Dealers should consult their counsel to ensure that any recall telephone calls also meet these and other TCPA requirements. Click here for the full text of the FCC ruling.
Source: NADA Regulatory Affairs

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Government Meddling is Costing Car Buyers

“Today, customers can afford new cars because dealers compete fiercely,” said Bill Fox, chairman of the National Automobile Dealers Association (NADA) while speaking at an Automotive Press Association meeting in Detroit. “Customers have the right to negotiate … to seek a better deal,” said Fox, who owns numerous franchises in upstate New York. However, he also noted that Washington regulations are making things difficult – and expensive – for car buyers.

For starters, according to Fox, around 80 percent of drivers finance vehicle purchases through a dealership. This is because many times they can provide customers the best rate by sending their credit information to 20 or 30 different lenders at once. “You should have every possible financial advantage,” said Fox, and dealers can provide this. But more ominously he noted that the U.S. Consumer Financial Protection Bureau (CFPB) is pushing for a flat fee across the board, something that could make vehicles more expensive and consequently inaccessible to more people. Fox said this move “will destroy competition.”
Source: AutoGuide
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U.S. Close to Naming Fiat Chrysler Safety Monitor

The head of the National Highway Traffic Safety Administration said Thursday the agency is close to naming a monitor to oversee Fiat Chrysler Automobiles NV’s three-year consent decree over its handling of nearly two dozen recalls. Separately, NHTSA Administrator Mark Rosekind said Fiat Chrysler’s admitted failure to turn over a significant number of early warning reports of death and injuries broader and went back further than some anticipated. Rosekind told reporters Thursday at a roundtable the agency has three finalists and may pick a monitor this week.
Source: The Detroit News
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NADA Foundation Presents Grants to Wheeling Jesuit University


The NADA Foundation presents Wheeling Jesuit University with two grants. (Pictured left to right:) Dan Wharton, NADA Foundation trustee and president of Wharton Auto Group; Fr. Fleming, university president; Roberta Robinson-Olejasz of Bob Robinson Chevrolet Buick GMC Cadillac; and Ruth Lemmon, president of the West Virginia Auto and Truck Dealers Association.

The National Automobile Dealers Charitable Foundation presented Wheeling Jesuit University in West Virginia with two grants totaling $14,000. The donations were made through the Joseph J. Sanchez Memorial Fund, which supports the emergency needs of students; and the John P. Winston, Sr. Memorial Fund, which is dedicated to the study of ethics. “We are grateful to the National Automobile Dealers Charitable Foundation for its support of Wheeling Jesuit University. This generous gift provides our students access to an affordable, Jesuit education – an education that will allow them to lead lives of leadership and service in their workplaces and communities,” said Rev. James Fleming, S.J., president of Wheeling Jesuit University.
Source: NADA Foundation
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