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January 29, 2016 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Dealer Magazine: Interview with 2016 NADA Chairman Jeff Carlson
Honda Motor Profit Slides on Recall Costs
GM, Lithia, Koons Settle Advertising Allegations by FTC
Takata Says CEO Has No Plans 'As of Now' to Stand Down
Toyota Will Buy Out Rest of Daihatsu for $3 Billion Amid Push into Small Cars
GM Forms a Team to Oversee Self-Driving Vehicles
Top Stories
Dealer Magazine: Interview with 2016 NADA Chairman Jeff Carlson



Jeff Carlson assumes the gavel this month as the National Automobile Dealers Association’s chairman for 2016. He began his automotive career in 1973 with Ford Motor Co. At the urging of a dealer he knew, he decided to enter the retail world and joined a Ford dealership in Glenwood Springs, Colo. Click here for the full interview.
Source: Dealer Magazine

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Honda Motor Profit Slides on Recall Costs

Japanese auto maker to recall another 5 million vehicles globally; expects another year of record sales

Rising costs related to recalling tens of millions of air-bag inflaters made by Takata Corp. are taking a growing toll on Honda Motor Co.’s profit. Japan’s third-biggest auto maker by global sales volume said Friday that in 2016, it expects another year of record vehicle sales in the U.S. and China, its two biggest markets. But Honda, which has recalled nearly 25 million air-bag inflaters made by Takata that are at risk of exploding, said Friday it is preparing to recall another 5 million vehicles world-wide after a death in a Ford Motor Co. pickup truck in the U.S. last month. It also raised its estimate for recall-related costs for this financial year. Honda now expects to spend around 2.2% of its expected revenue for the year through March 31, or around ¥320 billion ($2.6 billion), on recall-related costs, Executive Vice President Tetsuo Iwamura said Friday. Three months ago, he estimated such spending at 1.9%.
Source: The Wall Street Journal
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GM, Lithia, Koons Settle Advertising Allegations by FTC

There is no law prohibiting the sale of used cars and trucks that are subject to open safety-related recalls. But advertising that those vehicles have undergone rigorous inspections can draw unwanted attention from the Federal Trade Commission. Just ask General Motors, Jim Koons Automotive Cos. and Lithia Motors Inc. All three companies came under fire in separate FTC complaints, released Thursday, that they deceived customers when they failed to disclose in advertising that some of the used cars they were selling were subject to safety-related recalls. The FTC and the companies said [Thursday] that settlements have been reached regarding the allegations. The settlements do not involve any fines or penalties. None of the companies admitted any wrongdoing.
Source: Automotive News
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Takata Says CEO Has No Plans 'As of Now' to Stand Down

Takata Corp. said [Friday] that CEO Shigehisa Takada had no intention "as of now" to resign as the airbag maker struggles with a long-running safety recall crisis. In a brief statement to the stock market, Takata said it had not announced Takada's resignation and "as of now he has no intention to resign." Citing two people close to Takata, Reuters earlier reported that the supplier would tell its automaker customers at a meeting that Takada, grandson of the group's founder, was willing to step down and take responsibility for the recalls. "There are plans for management reforms," said one of the individuals, adding this would involve expressing the willingness of Takada and other executives to resign. The sources said Takata has not taken any formal decision on Takada's future and no successor has been designated.
Source: Reuters
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Toyota Will Buy Out Rest of Daihatsu for $3 Billion Amid Push into Small Cars

Toyota Motor Corp. said it would buy out the rest of Daihatsu Motor Co. in an all-stock deal worth about $3 billion as part of its strategy to strengthen its push into small cars for emerging markets. The companies intend to develop Daihatsu into a global brand as they focus on growing markets for small cars, noting that entry-level car markets were expanding due to economic development and that vehicles were becoming smaller due to environmental and traffic concerns. Acquiring full control of Daihatsu, of which Toyota currently owns 51.2 percent, will allow it to better leverage the lower-cost brand and enable Daihatsu to more easily adopt next-generation technologies developed by Toyota.
Source: Reuters

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GM Forms a Team to Oversee Self-Driving Vehicles

To accelerate efforts to get self-driving vehicle technology on the road, General Motors is creating a team to focus on autonomous vehicles effective Feb. 1. The dedicated team is being formed under Doug Parks, who will shift from vice president of global product programs to the new position of vice president of autonomous technology and vehicle execution. Parks reports to Mark Reuss, head of global product development. The new Autonomous and Technology Vehicle Development Team will recruit from across GM with a mandate to map out a strategy that includes engineering as well as identifying investments and partnerships to ensure leadership in self-driving technology.
Source: Detroit Free Press

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"The passage of H.R. 1737 represented a big step forward for consumer rights and ensuring that the regulation of the auto finance market is transparent, coordinated, based on sounds analysis and ultimately fair for all consumers."

   
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