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June 2, 2016 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Chevy Store Fined $40,000 for Selling Recalled New Vehicles Without Repairs
7 Automakers Add 4.4M Vehicles to Takata Recall
U.S. Auto Sales Show Signs of Flattening Out After Long Run Up
Another Reason to Pitch the Value of Service Contracts
Senior Drivers Confront New Car Technology
Top Stories
Chevy Store Fined $40,000 for Selling Recalled New Vehicles Without Repairs

Federal regulators have fined a suburban Phoenix Chevrolet dealership $40,000 for selling recalled new vehicles without the proper repairs. Sands Chevrolet of Surprise, Ariz., agreed to pay the civil penalty as part of a settlement with the National Highway Traffic Safety Administration after a two-year investigation, the agency said in a report posted on its website. Federal law prohibits dealers from selling new vehicles subject to open recalls without fixing them first. The dealership also has changed its procedures to ensure that all vehicles are checked for open recalls before they are delivered to customers, NHTSA said. The dealership now checks every vehicle that comes into its service department for recalls and “takes steps to have all used trade-in vehicles repaired prior to retail sale,” the agency said.
Source: Automotive News
 
Editor’s note: Federal law imposes a “stop sale” on all new, undelivered vehicles (and parts) subject to safety recalls. Once a dealer receives a safety recall notice, affected new vehicles or parts may not be delivered until the defect or noncompliance is remedied. But Federal law also mandates that manufacturers both reimburse dealers for the cost of remedying recalls and provide additional compensation of at least 1 percent per month of the OEM’s or distributor’s selling price (prorated from the date of a recall notice until the date a motor vehicle recall is remedied). Questions on this matter may be directed to regulatoryaffairs@nada.org or 703.821.7040.

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7 Automakers Add 4.4M Vehicles to Takata Recall

Seven automakers are adding nearly 4.4 million vehicles in the U.S. to the massive Takata air bag inflator recall. Documents detailing recalls by General Motors, Volkswagen, Ford, Daimler Vans, BMW, Jaguar-Land Rover and Mercedes-Benz were posted Thursday by the government. Recalls from eight other companies were posted last Friday. Thursday's recalls are part of a massive expansion announced in May.
Source: Associated Press


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U.S. Auto Sales Show Signs of Flattening Out After Long Run Up

U.S. car buyers are tapping the brakes. Sales of cars, trucks and SUVs fell 6 percent last month, to 1.54 million, according to AutoData Corp. It was the biggest monthly drop in nearly six years. The decline was unusual for May, a month when Americans typically buy cars ahead of summer road trips. Most major automakers reported lower sales.
Source: Associated Press

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Another Reason to Pitch the Value of Service Contracts

Most consumers weigh the cost of replacement parts in their vehicle purchase decision, a recent survey shows. That could mean an opportunity for F&I managers to sell more service contracts. The survey, conducted in 2015 and 2016 by AutoMD, found that 74 percent of respondents said the cost of replacement parts would affect their vehicle purchase decisions. According to Tim Meenan, executive director of the Service Contract Industry Council, when customers buy a service contract, parts and labor “is what you’re really making a bargain for.” Forty-three percent of new-vehicle buyers purchased a service contract in 2015, according to the National Automobile Dealers Association.
Source: Automotive News

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Senior Drivers Confront New Car Technology

Before settling on a new 2014 Ford Edge SE, Cynthia Manson resisted sales pressure to move up to a trim level that had, along with a bigger price tag, more onboard technology and available options. It’s hard to avoid too much technology. New vehicles feature an ever-growing array of gizmos, a lot of which are standard. The proliferation of technology is confusing to anyone, not just seniors, which is why the National Safety Council recently launched the “My Car Does What?” website, which simplifies advanced safety features into an interactive guide.
Source: Chicago Tribune

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