View Web Version

SPONSORED BY
 
NADA.org
May 18, 2016 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Obama Administration Extends Overtime Pay to Millions
NIADA Opposes Blumenthal's Recall Effort
VW Seeks Dismissal of Some U.S. Emissions Claims
Takata Declares 14 Million Airbags Defective as Part of Expanded Recall
NHTSA Extends Oversight of GM Safety Efforts
Mitsubishi Motors President to Resign as Japan Auto Scandal Engulfs Suzuki
GMC Exec Sees No Easing of Pickup, SUV Surge
GM Car-Sharing Unit Maven Grows in Ann Arbor, Chicago
Top Stories
Obama Administration Extends Overtime Pay to Millions

Overtime salary threshold doubled to $47,476 a year

Millions more Americans are set to qualify for overtime pay under a final Labor Department regulation, in what could be President Barack Obama’s last big push to shore up workers’ wages. The rule will increase the annual salary threshold that generally determines who qualifies for overtime pay when they log more than 40 hours a week. It will likely have a sweeping effect on workers, employers and industries, including retailers, the fast-food industry, universities and nonprofits.
Source: The Wall Street Journal

Editor's note: NADA’s advocacy on this rulemaking included the filing of extensive comments opposing any increased salary thresholds, dealer participation at SBA/DOL listening sessions, and work with a broad industry coalition. NADA is developing outreach materials on the rule’s impacts on dealerships and their employees and is evaluating potential participation in potential litigation and Congressional oversight.  

For an overview of how the new rule will impact dealerships and their employees, see NADA’s FAQ on the new “white collar” rule. NADA’s Dealer Guide to the Fair Labor Standards and Equal Pay Acts, available here, will be revised to reflect the new threshold mandates well before the December 1, 2016 effective date. The Guide contains details on how dealership employees generally qualify for the “white collar” overtime exemptions. For more information, please contact NADA Regulatory Affairs at regulatoryaffairs@nada.org or 703-821-7040. 


Share: LinkedIn Twitter Facebook

[back to top]

NIADA Opposes Blumenthal's Recall Effort

What options exist for vehicle owners with an open safety recall? Trade it in at a loss? Continue to drive it? If parts were unavailable, most would want to trade it in. This would be done at a loss of $1,210 per vehicle, according to a recent J.D. Power study for the National Automobile Dealers Association. ... The Transportation Department has consistently concluded that it’s acceptable to drive vehicles under safety recalls while waiting for parts, including vehicles with GM ignition switch or Takata air bag concerns. This is where the federal government says one thing and does another. ... A new law will not solve this complex issue, especially one that raises more questions than it answers.
Source: USA Today

Editor’s note: A previously-rejected proposal to prohibit dealers from selling or even wholesaling any used vehicle under open recall has resurfaced, despite the fact that parts availability is the central impediment to a 100% recall completion rate. Today, Sen. Blumenthal (D-CT) plans to introduce an amendment to a spending bill which would create a “trade-in tax” of $1,210 on average for recalled vehicles where parts are not available, making it harder for consumers to afford a newer, safer vehicle. As a direct result, consumers would have an economic incentive to sell their cars in the private market, where the recall completion rate is much lower. Congress should focus on parts availability and consumer education efforts that will actually increase recall completion rates, and reject the Blumenthal trade-in tax that would diminish the value of millions of customer trade-ins and likely reduce the number of completed recalls. NADA opposes the Blumenthal Amendment to the Senate transportation appropriations bill. For more information, visit www.nada.org/recalls/. For more information, contact legislative@nada.org.

Share: LinkedIn Twitter Facebook

[back to top]

VW Seeks Dismissal of Some U.S. Emissions Claims

Volkswagen Group asked a federal judge in California to dismiss some claims in a suit filed by the U.S. government over diesel vehicles rigged to cheat pollution controls. The government sued VW in January, accusing the automaker of installing illegal devices to defeat emissions controls on almost 600,000 Volkswagen and Porsche models with 2.0-liter and 3.0-liter engines in the U.S. The U.S. claims over 3.0-liter engines, covering about 85,000 vehicles, are "inconsistent" and lacking facts to support that "any of the VW defendants knew about any defeat devices in 3.0-liter subject vehicles," VW said in court papers Monday.
Source: Bloomberg

 
Share: LinkedIn Twitter Facebook

[back to top]

Takata Declares 14 Million Airbags Defective as Part of Expanded Recall

Japan's Takata Corp. declared nearly 14 million airbag inflators defective as part of an expanded U.S. recall, but it said it considered the recall investigative, leaving the thorny question of cost-sharing with automakers unresolved. The question of just how much Takata will have to pay for a deepening crisis over potentially deadly airbags has been hanging heavily over the company, with management saying that can be worked out only when there is clarity on the root cause of the problem.
Source: Reuters

Share: LinkedIn Twitter Facebook

[back to top]

NHTSA Extends Oversight of GM Safety Efforts

The National Highway Traffic Safety Administration is extending its oversight of General Motors' safety practices for another year as part of a sweeping consent order signed in 2014 when the company issued a broad recall of cars for faulty ignition switches. Paul Hemmersbaugh, chief counsel at NHTSA, said Tuesday that the agency unilaterally extended the order for a third and final year and that terms of the oversight won't change. He was a panelist at Crain’s General & In-House Counsel Summit on Tuesday. GM, Hemmersbaugh said, thought it was appropriate to have another year of oversight.
Source: Automotive News

Share: LinkedIn Twitter Facebook

[back to top]

Mitsubishi Motors President to Resign as Japan Auto Scandal Engulfs Suzuki

Mitsubishi’s Tetsuro Aikawa to leave company in June; Suzuki admits to testing vehicles improperly

A fuel-economy rigging scandal broadened in Japan Wednesday after Mitsubishi Motors Corp. said its president would resign to take responsibility for overstating mileage in some cars and Suzuki Motor Corp. admitted to improperly testing its vehicles. Mitsubishi President Tetsuro Aikawa will step down in June at its annual shareholders’ meeting, the company said Wednesday. Mitsubishi and Suzuki are among global auto makers under scrutiny after Volkswagen AG late last year said it used illegal software on some of its diesel-powered vehicles to cheat on U.S. emissions tests.
Source: The Wall Street Journal

Related Story:


Share: LinkedIn Twitter Facebook

[back to top]

GMC Exec Sees No Easing of Pickup, SUV Surge

Sales of tricked-out pickups and SUVs are booming, rivaled only by the equally red-hot CUV segment, and GMC marketing executive Tony DiSalle sees no limit to their popularity or profitability. “We have no idea how high” truck demand will go, DiSalle confesses. Traditional body-on-frame trucks closed April with 22.6% of the U.S. market, according to WardsAuto data, with pickups earning a 15.1% market share and SUVs nailing down 7.6% in a seasonally adjusted 17.3 million-unit sales environment.
Source: WardsAuto

Share: LinkedIn Twitter Facebook

[back to top]

GM Car-Sharing Unit Maven Grows in Ann Arbor, Chicago

General Motors Co.’s new car-sharing service Maven is expanding, adding vehicles and users in Ann Arbor and Chicago, as the Detroit automaker continues to develop a business catered to people who may not own a car. Maven, GM’s personal mobility brand that launched earlier this year, has more than 1,300 approved users in Ann Arbor and quietly launched a few weeks ago in Chicago. Maven is expected to add service in additional major U.S. metro areas this year.
Source: The Detroit News

Share: LinkedIn Twitter Facebook

[back to top]

More Articles
           
          Quotable
          "Demand is strong. We’ve seen no falloff."

              -- Tony DiSalle,  marketing executive for GMC, on strong truck demand in the U.S., WardsAuto, May 17

          Sponsored by

          Save the Date


          NADA Chairman's Column
          To Drive or Not to Drive: On Recalls, That is the Only Question – and Only Because of Parts
          Videos -- 2016 NADA Convention

           NADA 2016: Sunday


           NADA 2016: Saturday


           NADA 2016: Friday


           NADA 2016: Three Square Food Bank

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

          May 18: 10 Questions You Should Ask Your Digital Partners

          May 25: How Social Media and Online Reviews Complete the SEO Puzzle 

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

           
          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 .