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June 13, 2016 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Letter to the Editor: When the Times Benefits From Fabrication
Dealers Help Promote Financial Literacy
Why Car Sales Got Crushed in May and What It Means
Is Ford Moving on Mobility?
At Car Dealers, 'Certified Pre-Owned' Is the New Used
Mercedes-Benz to Start Selling Plug-in Fuel Cell SUV Next Year
Top Stories
Letter to the Editor: When the Times Benefits From Fabrication

Ignoring basic facts and fabricating others seems to be standard procedure for the Times’ editorial board, which leveled a number of irresponsible and blatantly false accusations against auto dealers on Sunday (“When Auto Dealers Profit From Bias,” June 11, 2016).

It is widely known at this point that the Consumer Financial Protection Bureau’s overzealous prosecution of lenders is costing consumers as much as $600 on their auto loans by attempting to limit the discounts that are available at the dealership. It’s also an ineffective and woefully inadequate way to address fair credit risk in auto lending. Addressing such risk is a goal dealers share, which is why NADA recommends to its members a strong voluntary compliance program based on an approach first authored by the Department of Justice. The Times would do consumers a much greater service by encouraging the CFPB to embrace the DOJ approach – which both addresses fair credit concerns and preserves consumer discounts – instead of scaring its readers with inaccurate and misguided allegations.

The Times also accuses bipartisan legislation to bring transparency to the CFPB of being anti-consumer. But the exact opposite is true. The bill, which passed the House with the support of 88 Democrats, would simply let consumers have a say before bureaucrats decide to make their auto loans more costly and make credit harder for everyone to obtain. And contrary to the Times’ allegation, nothing in the legislation would restrict the ability of the CFPB or any other agency to enforce fair credit laws in auto financing. In fact, Democratic views in the official House Financial Services Committee Report accompanying the legislation explicitly state that the bill would not impact the enforcement of the Equal Credit Opportunity Act. Lastly, President Obama did not issue a veto threat regarding the bill.

Of course, the Times ignores all of these facts. But at this point that shouldn’t surprise anyone.

-- Peter Welch (President, National Automobile Dealers Association), Tysons, Va.

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Dealers Help Promote Financial Literacy

With briefcases stuffed with lesson plans, interactive finance timelines and even cardboard models of banks, female dealers and other auto industry leaders are spreading financial literacy to educate car buyers of tomorrow. Women on the National Automobile Dealers Association's board of directors have made community outreach through financial literacy an objective.

Starting financial education in schools, even as early as kindergarten, is vital, said Ivette Rivera, NADA's senior vice president of legislative affairs. "If you don't get to people early enough, they may be making [bad credit] decisions down the road." And that hurts those consumers and the economy. "So many of our issues come down to vehicle affordability," Rivera said.

Last year [NADA's female directors] formed the Women Dealers Financial Literacy Project, led by Ohio dealer and NADA board member Michelle Primm. The project is still in its infancy. So far, it has partnered with programs such as Junior Achievement, MoneySkill and Wallet Wise to help educate their communities.

Rivera volunteers with Junior Achievement, a K-12 program to promote students' work-readiness, entrepreneurship and financial literacy. Primm, managing partner of Cascade Auto Group in Cuyahoga Falls, Ohio, started speaking to high school students about finance 15 years ago. She saw the need for financial education in her community, but "it's hard to start a movement from scratch," she said. So after the women on NADA's board identified the need for outreach, she began working with Junior Achievement.
Source: Automotive News

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Why Car Sales Got Crushed in May and What It Means

May was a pretty good month overall for U.S. auto sales, but it was a bloodbath for passenger cars. The trend has been emerging for several years, but May sales numbers drive the point home and illustrate why automakers are scrambling to alter product development strategies, plant investments and production plans. In May, sales declined for six of eight best-selling cars in the U.S. as sales boomed for small and mid-size crossovers.
Source: Detroit Free Press

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Is Ford Moving on Mobility?

Transforming Ford Motor Co. into a mobility provider as well as an auto company has been a cornerstone of Mark Fields' two-year tenure as CEO. Fields was among the first auto executives to warn about the need to get involved with car-sharing, ride-hailing and other services to keep disruptive outsiders from decimating sales and profits. But as several of its top competitors align themselves with partners from Silicon Valley, Ford has been conspicuously quiet. "You'll hear more from us as this year goes on," Ford's executive chairman, Bill Ford, said at a May entrepreneurship conference in Detroit.
Source: Automotive News

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At Car Dealers, 'Certified Pre-Owned' Is the New Used

In the past, the big question for car shoppers was whether to buy a new or used car. They liked the money they saved by buying used, but feared getting a lemon. New cars were easier to shop for, but that first year’s depreciation was a budget-killer. Now frugal car shoppers are flocking to a third choice: certified pre-owned cars, also called CPO. Introduced more than a decade ago, they keep climbing in popularity, and sales in the first quarter of 2016 exceeded last year’s first quarter by 5.2%.
Source: NerdWallet/USA Today

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Mercedes-Benz to Start Selling Plug-in Fuel Cell SUV Next Year

Mercedes-Benz will start selling a fuel-cell electric version of its GLC sport utility vehicle next year, an effort to broaden the appeal of the technology with the first publicly available battery that can be charged both with hydrogen and at a wall socket. Able to drive about 310 miles before recharging, the car is part of Daimler AG’s $7.9 billion spending effort on green technology through next year.
Source: Bloomberg

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              Quotable
              "It is widely known at this point that the Consumer Financial Protection Bureau’s overzealous prosecution of lenders is costing consumers as much as $600 on their auto loans by attempting to limit the discounts that are available at the dealership. It’s also an ineffective and woefully inadequate way to address fair credit risk in auto lending."

                  -- NADA President Peter Welch in a Letter to the Editor of the New York Times, June 13

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