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Inside this issue
House CFPB Bill (H.R. 1737) Vote Expected Wednesday or Thursday
New Video: Consumers Benefit When Dealers Discount Rates
Inventory is Tight for This Time of Year
Unlikely Hitch for VW Dealers
The Biggest Auto Recall in the U.S. is Also a Really Big Mess
Emissions Harmony, Finally?
Los Angeles Auto Show Preview: Detroit is Back
Top Stories
House CFPB Bill (H.R. 1737) Vote Expected Wednesday or Thursday

The U.S. House of Representatives is likely to vote on H.R. 1737 on Wednesday or Thursday — an NADA-backed bill that would rescind the Consumer Financial Protection Bureau's (CFPB) flawed guidance on auto lending from 2013.

The guidance attempts to radically change the auto finance market without public comment, a hearing or transparency. H.R. 1737 would rescind that guidance and require a transparent process for any future guidance, as well as input from affected parties.

Dealers should contact their members of Congress and urge a "Yes" vote on H.R. 1737. Call Congress NOW at 202.225.3121 to reach your Representative or visit www.house.gov/representatives/find to find your Representative.

For more information on H.R. 1737, visit www.nada.org/cfpb or contact NADA legislative affairs at 202.547.5500.
Source: NADA

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New Video: Consumers Benefit When Dealers Discount Rates

Today, the National Automobile Dealers Association released a new video highlighting how dealers can discount interest rates on loans for new cars and trucks -- and how these dealer discounts benefit consumers by lowering the cost of loans.

“Dealers frequently offer better financing rates than banks … but some government regulators are pushing a proposal to eliminate the dealers’ ability to discount those rates, pressuring banks to prevent dealers from discounting rates for their customers by making it difficult or impossible to discount the compensation they receive. This would give consumers fewer choices, limit competition and according to the Wall Street Journal these policies could raise the cost of a four-year car loan for some consumers by nearly $600,” the video states. “That’s not what Washington is supposed to do.”

The release of the video coincides with an effort in the U.S. House of Representatives on H.R. 1737, a bill that would repeal the flawed auto lending guidance issued by the Consumer Financial Protection Bureau (CFPB) in March 2013, which seeks to prevent dealer discounts. The bill would also bring much-needed transparency and accountability to the CFPB's regulatory efforts.

“Consumers benefit from today’s auto financing market. Dealers and banks compete on financing with dealers discounting rates for consumers and that competition drives prices down helping consumers everywhere,” the video says.

NADA encourages dealers and automotive trade association executives to use the video in their efforts to educate policymakers and the general public, through website posts, social media promotion, and airing it in other venues.

For more information, visit at www.nada.org/autofinance.
Source: NADA
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Inventory is Tight for This Time of Year

Automakers and dealers started November with lean stocks after booming October auto sales. U.S. inventories normally jump between Oct. 1 and Nov. 1 as automakers stock up for the brisk year-end selling season. Units on hand did increase during October but only by 124,000 to 3.58 million. That's just over half the 210,000 units added on average the previous 10 years. It's the smallest October increase since 2006, when the bump was 114,500 in a market trending downward.
Source: Automotive News
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Unlikely Hitch for VW Dealers

Retailers say they don't have enough vehicles

Two months into the emissions cheating scandal that has sullied the Volkswagen brand, dealers are running into an unexpected challenge: They don't have enough vehicles to sell. VW-brand supplies are at their lowest levels of the year, and dealers from Washington state to South Carolina say they have only a few -- and sometimes none -- of the most in-demand nameplates in stock. Instead of seeing customers flee the brand in the wake of its emissions debacle, the VW brand posted flat year-over-year U.S. sales in October as demand for gasoline models surged amid heavy incentives, including a $2,000 loyalty discount for returning VW owners. The deals helped VW offset the loss of diesel sales, which are frozen by the emissions-related stop-sale order. They also helped clean out much of VW's salable inventory.
Source: Automotive News

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The Biggest Auto Recall in the U.S. is Also a Really Big Mess

Craig Jorgensen owns a Honda CR-V and a Toyota Avalon, both originally fitted with potentially deadly air bags made by Takata Corp. His experience in the biggest safety recall in U.S. automotive history shows just how complicated the process is. The Honda was fixed within days after Jorgensen received letters saying the air bags had to be swapped out. But five months later, he said, his local Toyota dealer still has no idea when replacement parts will arrive. The 70-year-old from Issaquah, Washington, is still driving the Avalon anyway -- something most Americans with Takata-equipped vehicles are doing.

The U.S. has ordered a dozen automakers to replace Takata air bags in 19 million vehicles, and the National Highway Traffic Safety Administration has said the initial phase of the process won’t be completed until 2019. Regulators may yet widen the recall. And substitute devices being installed now may need to be replaced as they get older, the agency has warned, calling them “interim fixes.”
Source: Bloomberg
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Emissions Harmony, Finally?

GM exec: VW crisis could be the trigger

Tired of tying up talented engineers and "hundreds of millions" of dollars, General Motors' global powertrain chief sees a one-time opportunity in the wake of the Volkswagen emissions scandal to persuade governments to adopt a single, harmonized agreement on what should be allowed to emerge from a car's tailpipe. Dan Nicholson told Automotive News he plans to use his upcoming presidency of the International Federation of Automotive Engineering Societies to knock heads together, especially between two of the biggest and most influential regulatory environments: Europe and the U.S.
Source: Automotive News
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Los Angeles Auto Show Preview: Detroit is Back

The auto show circus rolls into environmentally conscious Los Angeles this week, but the emphasis will be less on green technology and more on making the cash registers ring green with cash. Manufacturers, led by resurgent Detroit automakers once left for dead in import-friendly California, will lure crowds to the Los Angeles Auto Show with meat-and-potatoes vehicles such as small sedans and SUVs, while catering to one of the nation’s richest luxury markets. Green tech, long an LA showcase, will take a back seat.
Source: The Detroit News

Editor's note: The NADA/J.D. Power AutoConference LA will be held tomorrow, November 17, which precedes press days at the Los Angeles Auto Show. For more information and to register, click here.

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More Article
 
Quotable
“Dealers frequently offer better financing rates than banks … but some government regulators are pushing a proposal to eliminate the dealers’ ability to discount those rates, pressuring banks to prevent dealers from discounting rates for their customers by making it difficult or impossible to discount the compensation they receive."

    -- A new NADA video highlighting how dealer discounts benefit consumers by lowering the cost of auto loans, Nov. 16

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