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Inside this issue
U.S. Uses Race Test to Decide Who to Pay in Ally Auto-Loan Pact
GM Commits to Spend $8.3 Billion, Upgrade 12 U.S. Plants Under UAW Pact
VW to Shift Focus to Profits Over Volume, Mueller Says
Ford to Launch One of its Biggest Sales Since Recession
Recall Costs Detrimental to Fiat Chrysler 3Q Earnings
World Vehicle Sales Up 3.2% in September
Top Stories
U.S. Uses Race Test to Decide Who to Pay in Ally Auto-Loan Pact

At stake is at least $80 million in payments to borrowers

By the end of this week, the U.S. government will be a step closer to sending out millions of dollars to minority borrowers who were allegedly discriminated against by auto lender Ally Financial Inc. But there is a potential hitch: No one knows for certain whether all the people getting the checks will actually be minorities. The attempt to sort that out is the end result of a unique settlement in which Ally agreed to pay borrowers at least $80 million to settle allegations of racial or ethnic discrimination, even though the lender is prohibited by law from collecting data on the race or ethnicity of its borrowers. Ally, formerly known as GMAC and spun off from General Motors in 2006, didn’t admit or deny wrongdoing as part of the 2013 settlement focused on “dealer markups.”
Source: The Wall Street Journal
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GM Commits to Spend $8.3 Billion, Upgrade 12 U.S. Plants Under UAW Pact

Deal includes $60,000 bonus for up to 4,000 workers who retire in 2016

The UAW’s tentative labor contract with General Motors includes a commitment to spend $8.3 billion over four years on upgrades to 12 U.S. plants, along with the union’s first significant wage increases in a decade and an $8,000 signing bonus to persuade workers to support the package. The union said the $8.3 billion in investment would “create and/or retain” more than 3,300 jobs. About $6.4 billion of the planned outlays have previously been announced by GM. The investment “is designed to ensure optimal utilization of the company’s U.S. facilities and provide job growth,” the union said in its contract summary.
Source: Automotive News
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VW to Shift Focus to Profits Over Volume, Mueller Says

Priorities include reducing number of models produced by VW Group

Volkswagen Group is working on a new business plan - dubbed Strategy 2025 - that will focus on improving the automaker's profitably rather than on volume growth, said CEO Matthias Mueller. Strategy 2025 will be developed over the coming months and will be unveiled mid-way through next year, Mueller said in a statement on Wednesday. Mueller outlined key steps that will help the automaker restructure amid its diesel emissions cheating scandal.
Source: Automotive News

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Ford to Launch One of its Biggest Sales Since Recession

Ford Motor Co. plans to start running one of its biggest sales promotions since the recession next week, offering most vehicles at no-haggle prices within about $200 of dealer invoice for the rest of the year. The “Friends & Neighbors Pricing Event” runs Nov. 3 through Jan. 4, according to a 20-page guide distributed to dealers. Automotive News obtained a copy of the guide, which is marked confidential, from a source outside Ford’s dealer network and confirmed it to be authentic. The guide shows discounts of up to 10 percent of the suggested retail price and says they can be combined with other incentives it already offers. In addition, the sale enables dealers to earn more from each transaction than they otherwise would — for example, $126 more on a 2015 Focus and $471 more on a 2015 F-150.
Source: Automotive News
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Recall Costs Detrimental to Fiat Chrysler 3Q Earnings

A $334 million loss in the third quarter for Fiat Chrysler Automobiles NV did not deter CEO Sergio Marchionne on the automaker’s ambitions to increase North American profit margins and achieve global company goals. The loss was due to two charges of more than $1 billion: $850.2 million (761 million euro) pre-tax charge for estimated future recall campaign costs for vehicles sold in prior periods in North America; and a $158.6 million (142 million euro) hit from costs related to vehicles damaged in the massive August explosion at a port in northern China — expenses the company expects to recover through insurance. Barring the special items, the company performed fairly well.
Source: The Detroit News
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World Vehicle Sales Up 3.2% in September

Results were positive in North America, Europe and Asia-Pacific.

World vehicle sales climbed 3.2% in September, the highest year-over-year monthly gain of 2015, aided by strong demand in North America and Europe. Global automakers delivered 7.685 million units in the month, compared with 7.444 million year-ago, according to WardsAuto data. North America posted the largest increase, with 227,000 additional deliveries pushing results up 14.7% from year-ago to 1.77 million units, giving it a 24.3% share of global auto sales. September was the 20th consecutive month that the region outpaced prior-year. Sales in the U.S. rose 15.5% to 1.47 million. Canada and Mexico hit best-ever September results. Deliveries in Canada were up 4.0% to 179,000, and Mexico’s total shot up 24.4% to 114,130 units.
Source: WardsAuto
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Quotable
"... We will be comprehensive in learning from it so something like this never happens again."

   -- VW CEO Matthias Mueller, on the automaker's new business plan to restructure after its diesel emissions cheating scandal, Automotive News, Oct. 29

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