View Web Version

SPONSORED BY
 
NADA.org
January 22, 2016 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Video: NADA Chief Economist Steven Szakaly Provides an Economic Outlook for 2016
Record 51.26 Million Vehicles Recalled in U.S. in 2015
F&I and Showroom: Outing the CFPB
CFPB Charges Dealer-Finance Company for 'Abusive' Ads
U.S. Suppliers Urged to Prepare for 'Plateau' After Record Year
OSHA Injury and Illness Posting Required by February 1
NYC Area Auto Retailers Deliver 6,000+ Winter Coats to Support New York Cares Winter Coat Drive
Top Stories
Video: NADA Chief Economist Steven Szakaly Provides an Economic Outlook for 2016

Low gasoline prices and rising incentives are among the key factors that will sustain the new-vehicle sales momentum in 2016, said Steven Szakaly, chief economist of the National Automobile Dealers Association in an NADA-TV interview. "This year, we'll start to see sales struggle a bit, and we'll see incentives come up. OEMs have a lot of capacity," Szakaly said. "This is a great industry right now. You look at the shows: Los Angeles, Detroit, New York coming up and the NADA convention as well, and they're all looking at banner years." Szakaly added that the auto industry has achieved an unprecedented recovery since the economic recession. "Wages are up, and automobile dealerships are averaging growth of over 3 percent, well above the national average," he added. Click here to view the video.
Source: NADA
 
Related Story:


Share: LinkedIn Twitter Facebook

[back to top]

Record 51.26 Million Vehicles Recalled in U.S. in 2015

Automakers recalled a record 51.26 million vehicles in 2015 in 868 campaigns — another record, the National Highway Safety Transportation Administration said Thursday. The tally is slightly above 2014’s record, which stood at 50.99 million vehicles after being adjusted downward. “Clearly, massive recalls are still a prominent feature of the safety landscape,” NHTSA Administrator Mark Rosekind said at the Washington Auto Show. “NHTSA has made major efforts in the last year to improve our processes for identifying vehicle defects, and that effort will continue. ... But identifying defects is not enough. We have to make sure they get fixed.” Rosekind said he believes the recalls went up in part because of increased vigilance by regulators at his agency, following reforms in the office of defect investigations.
Source: The Detroit News
Share: LinkedIn Twitter Facebook

[back to top]

F&I and Showroom: Outing the CFPB
By Gregory Arroyo

The House Financial Services Committee’s decision to release confidential CFPB documents was a big win for the industry. But will it be enough to stop the bureau’s attack on dealer participation? If you didn’t already realize the significance of the dealer exemption the National Automobile Dealers Association (NADA) won prior to the passage of the Dodd-Frank Act, go to the House Financial Services Committee’s website and look up the 33 internal Consumer Financial Protection Bureau (CFPB) documents Republican committee members posted on Nov. 24.

There you’ll find an April 2013 briefing memo showing that the bureau had considered writing an unfair, deceptive or abusive acts or practices rule banning dealer participation. You’ll also discover the bureau considered a rule that would clarify the liability of finance sources operating in the indirect financing channel under the Equal Credit Opportunity Act (ECOA). It also considered using the Truth in Lending Act to force dealers to disclose markups to consumers. But the dealer exemption stood in its way. All the bureau could do was issue guidance explaining that the provision in the ECOA’s Regulation B that lets creditors off the hook for another creditor’s violation doesn’t apply to dealer participation. But the discussion continued, internally, as recently as this past August.

The confidential documents also make clear that there was a lot more going on behind the scenes than any of us really knew. There isn’t enough space to delve into what else I found. Just know the release of those documents came shortly after a CFPB reform bill, H.R. 1737, passed the House of Representatives. It would repeal the CFPB’s March 2013 guidance and add a few more steps to its guidance-writing activities. Whether the release of those internal documents and the committee’s report bashing the bureau’s activities are enough to get the U.S. Senate and President Barack Obama to approve the legislation is anyone’s guess. Personally, I’d like to see the disparate impact theory have its day in court. Hey, if it doesn’t happen with this regulator, there will be another to take up the torch.
Source: F&I and Showroom
Share: LinkedIn Twitter Facebook

[back to top]

CFPB Charges Dealer-Finance Company for 'Abusive' Ads

The Consumer Financial Protection Bureau has charged the auto dealer-finance company Herbies Auto Sales up to $800,000 for using allegedly misleading and abusive loan advertising. Colorado-based Herbies, a buy-here, pay-here dealer which sells and originates loans, was cited Thursday by the CFPB for hiding extra fees when advertising low rates to consumers. The company has agreed to pay $700,000 in restitution to affected borrowers and an additional $100,000 civil penalty if the restitution is not fully paid, without admitting or denying the allegations. Herbies, also known as Y King S Corp., was accused of misleading consumers by advertising a 9.99% annual percentage rate but not disclosing additional charges such as a required repair warranty of $1,650 and $100 for a GPS payment reminder device. The CFPB also said Herbies would negotiate with cash customers but not with credit customers.
Source: American Banker
Share: LinkedIn Twitter Facebook

[back to top]

U.S. Suppliers Urged to Prepare for 'Plateau' After Record Year

U.S. car and truck buyers drove up sales to an unprecedented 17.4 million units in 2015, beating the previous record set in 2000 and maintaining a pace of growth that has many wondering how long it can continue. While industry experts expect 2016 will continue on pace, the outlook isn’t so bright a little further ahead. Sales volumes are forecasted to flatten out going forward to 2022, and some predict a potential recession in 2019 when volumes could dip, said longtime industry analyst Laurie Harbour, CEO of Harbour Results Inc.
Source: Plastics News

Related Story:


Share: LinkedIn Twitter Facebook

[back to top]

OSHA Injury and Illness Posting Required by February 1

By February 1, 2016, light-duty and commercial truck dealerships in "federal" states and in states that have adopted the Occupational Health and Safety Administration's (OSHA) injury and illness recordkeeping and reporting rules, must post a summary of work-related injuries and illnesses that occurred in 2015 using OSHA Form 300A. Click here to check your jurisdiction. Note that 2016 is the first year light-duty dealerships must do so.
 
Once work-related injuries and illnesses from 2015 are recorded on OSHA Form 300A, it must be certified by a company executive prior to being posted in a conspicuous place (or places) where employee notices are customarily hung. Certification indicates a reasonable belief, based on an examination of the dealership's 2015 OSHA Form 300 Injury and Illness Log, that Form 300A is correct and complete. An executive is: (1) an owner of the company (if a sole proprietorship or partnership); (2) an officer of the corporation; (3) the highest-ranking company official working at the establishment; or (4) the immediate supervisor of the highest-ranking company official working at the worksite.
 
OSHA Form 300A must be kept posted through at least April 30, 2016. Additional information on OSHA injury and illness recordkeeping is available here. Please direct questions on this matter to NADA Regulatory Affairs at regulatoryaffairs@nada.org.
Source: NADA
Share: LinkedIn Twitter Facebook

[back to top]

NYC Area Auto Retailers Deliver 6,000+ Winter Coats to Support New York Cares Winter Coat Drive

[Thursday's] freezing temperatures are a stark reminder of the difficulties facing New York City's homeless and many low income families this winter. To help, area auto dealers delivered more than 6,000 winter coats to boast New York Cares Winter Coat Drive. The coats were delivered to New York Cares distribution center at West 31 St. in Manhattan. New York Cares executive director Gary Bagley was on hand to receive the coats from Mark Schienberg, president of the Greater New York Automobile Dealers Association (GNYADA), whose organization coordinated the collection through the Association's auto dealer network.

"New car dealers have always had a strong sense of community and our relationship with New York Cares is no exception. Thanks to this spirit of helping others, GNYADA was able to present New York Cares with 6,000 coats that will be given to those in need. The coats were collected by 100 dealers and thanks to their generosity, and that of their customers and staff, the total number of coats collected by the Association over the past four years now tops 25,000. That says an enormous amount about auto dealers in greater New York, and I am very proud of them all," said Mark Schienberg, GNYADA president.  
Source: Greater New York Automobile Dealers Association
Share: LinkedIn Twitter Facebook

[back to top]

More Articles
 
Quotable
"This is a great industry right now. You look at the shows: Los Angeles, Detroit, New York coming up and the NADA convention as well, and they're all looking at banner years."

   
-- NADA Chief Economist Steven Szakaly, on his outlook for 2016, NADA-TV, Jan. 22

Sponsored by

NADA Market Beat
 
New-Car Sales Set Record in 2015
Chairman's Message
Commentary: Grassroots Advocacy – Getting Involved Makes a Difference
Videos

Consumers Benefit When Dealers Discount Rates


Register Today for the 2016 NADA Convention in Las Vegas
  


Dealer Financing Benefits Car Buyers


NADA University Online: The Next Generation 
  


Get the Facts: The Benefits of Franchised Auto Dealers

NADA Webinars
All webinars will be held at 1 p.m. ET unless otherwise noted.

Jan. 27: Increase Profit Through Smarter Advertising

NADA members can view past webinars on-demand at no charge at NADA University Online. Member must create an NADA account before viewing.

Your content here
NADA Foundation News
NADA Foundation Presents Grants to Wesley College

NADA Foundation Presents Grants to Wheeling Jesuit University

 
Search Back Issues | Unsubscribe | Subscribe | Manage your subscription | email us
NADA For more information on NADA, visit www.nada.org or contact NADA, 8400 Westpark Drive, McLean, VA 22102. This email may contain an advertisement of NADA products and services. Any opinions or statements contained herein do not necessarily reflect the views of NADA. Factual errors are the responsibility of the listed publication. If you are a franchised new-car or -truck dealer and would like to become a member of NADA, please visit the Join NADA section of www.nada.org. Questions or comments concerning NADA Headlines content may be directed to publicaffairs@nada.org .