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March 11, 2016 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
NADA Statement on Departure of VW of America CEO Michael Horn
NADA Praises Sen. Moran for Introducing Pro-Consumer Auto Finance Bill
House Panel to Question CFPB Official Targeted in Ally Case
NADA Preview: Chairmanís Take on CPO & More
GM to Buy Autonomous-Driving Startup Cruise
Top Stories
NADA Statement on Departure of VW of America CEO Michael Horn

This week's departure of Volkswagen of America's President and CEO Michael Horn is a significant blow to the VW dealer network, which has been operating in crisis mode for more than six months. What's most regrettable about Mr. Horn's departure is that it leaves more questions than answers for the 652 Volkswagen dealers across the U.S.

The impact of the diesel defeat-device scandal has not only negatively impacted dealership profitability due to a limitation of product available to sell, but, more significantly, has severely damaged the reputation of the brand in the eyes of consumers - damage we all know could take many years to overcome.

A critical step in this recovery will be for VW to honor the future product plan that Mr. Horn and VW dealers fought vigorously for in Wolfsburg. Volkswagen's U.S. dealers have made significant investments in buildings, technology, and people over the past several years based these product commitments that we hope are not in jeopardy.

NADA calls on Volkswagen AG CEO Matthias Mueller, and brand chief Herbert Diess to meet personally with their dealers at the upcoming Volkswagen franchise meeting during the NADA Convention in Las Vegas. VW dealers deserve to hear first-hand from the company about its vision for the future of Volkswagen in the United States.
Source: NADA

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NADA Praises Sen. Moran for Introducing Pro-Consumer Auto Finance Bill

Legislation will ensure consumer interests are protected in the regulation of auto financing

The National Automobile Dealers Association (NADA) today commended Sen. Jerry Moran (R-Kan.) for introducing legislation in the U.S. Senate to protect consumers by bringing transparency and accountability to the Consumer Financial Protection Bureau's (CFPB) regulation of the auto finance market. On Thursday, Sen. Moran – a member of the Senate Banking, Housing and Urban Affairs Committee – introduced S. 2663, the “Reforming CFPB Indirect Auto Financing Guidance Act,” which would require the CFPB to withdraw the flawed guidance that attempts to eliminate a dealer’s ability to discount auto financing for consumers. The legislation also requires the minimal safeguards the agency failed to follow, such as public participation and transparency. Nothing in the bill would restrict the CFPB’s ability to enforce fair credit laws in auto financing. The bill is identical to legislation introduced by Reps. Frank Guinta (R-N.H.) and Ed Perlmutter (D-Colo.), which passed the House in November of 2015 by an overwhelmingly bipartisan vote of 332-96. The Guinta-Perlmutter bill (H.R. 1737) won the support of 244 Republicans and 88 Democrats.
Source: NADA

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House Panel to Question CFPB Official Targeted in Ally Case

The House Financial Services Committee on Tuesday will hold a deposition to question CFPB assistant director Patrice Ficklin, who is at the center of a Republican investigation into whether the agency distributed money from an Ally Financial settlement without verifying that it went to the right people, sources familiar with the matter said.

The committee claims the bureau wasn't verifying who was getting a share of the $80 million in settlements with Ally and that white borrowers are getting checks meant for minorities who were discriminated against, according to documents released in January.

The bureau has said it is reviewing how the settlement is being handled. A CFPB spokesman did not immediately reply to questions about the deposition. A House Financial Services Committee spokesman declined to comment.

Ficklin had been scheduled to testify before the committee earlier this year but the hearing was postponed.

CFPB Director Richard Cordray will testify before the committee Wednesday and is expected to meet with the panel's Democrats earlier in the week.
Source: POLITICO Pro

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NADA Preview: Chairmanís Take on CPO & More

In an emailed Q&A with National Automobile Dealers Association chairman Jeff Carlson ahead of the annual NADA Convention & Expo, Auto Remarketing asked Carlson what he believes has made the certified pre-owned market such a strong option for franchised dealers these past five years, and whether he expects the momentum to continue. “There is tremendous consumer demand for manufacturer-certified pre-owned vehicles, and we expect that trend to continue,” Carlson said.
Another impactful trend in the car business has been the digitalization of parts or all of sales process and the online sales model, particularly over the past year or two. Auto Remarketing asked Carlson where he see franchised dealers fitting into this process, and how they might use it to their advantage. “Customer satisfaction is the nature of auto retailing, and dealers strive daily to exceed the expectations of their customers. Car buyers have the power of the Internet, through many third-party sites, to review dealerships,” Carlson said. “The result is that dealers are not only competing for customers based on price, but also on the value of the total package from sales, service, customer friendliness and community involvement,” he said. Click here for the article.
Source: Auto Remarketing

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GM to Buy Autonomous-Driving Startup Cruise

General Motors is acquiring a California technology company that sells an aftermarket, roof-mounted autonomous-driving kit, the latest in a string of investments by GM in startups involved in alternative modes of mobility. GM said in a statement that it’s acquiring San Francisco-based Cruise Automation for its “deep software talent and rapid development capability to further accelerate” GM’s development of autonomous vehicles. GM didn’t disclose terms of the deal, which is expected to close in the second quarter.
Source: Automotive News

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      Quotable
      "Every consumer deserves access to competitive financing and great rates when they buy a new car or truck, but the CFPB’s misguided policy of eliminating consumer discounts on auto loans is making financing more expensive and harming many of the very people the agency is trying to help."

          --- NADA President Peter Welch, on Sen. Jerry Moran's (R-Kan.) introduction of S. 2663, a bill that would require the CFPB to withdraw the flawed guidance that attempts to eliminate a dealer’s ability to discount auto financing for consumers, NADA, March 11


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