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July 19, 2016 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
NADA Chairman's Commentary: YES! State Franchise Laws Lower Prices and Benefit Consumers
NADA Urges Action on CFPB Auto Finance Guidance
Booming SUV Sales Are Undermining the Government's Fuel-Economy Targets
Maryland Official Says States Plan to Sue VW Over Cheating
Fiat Chrysler Auto Sales Probed by Justice Department, SEC
With Apple, Google And Every Automaker In The Race, Tesla Crash Won't Slow Self-Driving Cars
Top Stories
NADA Chairman's Commentary: YES! State Franchise Laws Lower Prices and Benefit Consumers
By Jeff Carlson


A new economic report from the Phoenix Center for Advanced Legal and Economic Public Policy Studies makes one overriding conclusion: state auto franchise laws lower retail prices of new cars, which benefits consumers. The study, "State Automobile Franchise Laws: Public or Private Interests?" was released in July after years of debate and speculation about the benefits of the dealer franchise network. Professor T. Randolph Beard and Dr. George S. Ford, authors of the study, found that franchise laws do not limit competition or lead to higher prices. Quite the opposite, they found that "all the evidence suggests there is intense competition leading to very low margins on new car sales." This, in turn, demonstrably lowers prices for consumers and alters the way they buy cars and service in a very positive way. Click here for the full commentary. Visit nada.org/getthefacts to learn more about the benefits of the dealer franchise system.
Source: NADA

Carlson is 2016 NADA chairman and a Ford and Subaru dealer in Glenwood Springs, Colo.


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NADA Urges Action on CFPB Auto Finance Guidance

NADA has welcomed a bipartisan vote in the House of Representatives which would nullify the Consumer Financial Protection Bureau's (CFPB) auto finance guidance, which the association says is aimed at removing the ability for dealers to set loan discount rates.
 
The amendment was added to the fiscal year 2017 Financial Services appropriations bill on the House floor, and was passed by a majority of 260-162. It was brought by Republican Rep. Frank Guinta and is intended to prevent the CFPB from spending any funds to enforce the guidance. NADA says this House action is another reverse for the CFPB's auto finance guidance, which it claims threatens a consumer's ability to receive a discounted auto loan from a dealer.
 
Last November, the House passed a bill put forward by Guinta which would nullify the CFPB's 2013 auto finance guidance and establish a transparent process with public participation to determine future auto finance guidance. Congressional attention on this matter now returns to the Senate, and NADA is urging dealers to lobby their senators for support.
Source: Asset Finance International

Editor's note:  NADA's Legislative Affairs office is urging dealers to contact their Democratic Senators today to ask for their vote on S. 2663, which will keep auto loans accessible and affordable for consumers.  S. 2663 is of utmost importance and U.S. Senate members need to hear directly from dealers today.  Click here for NADA’s issue brief and visit www.nada.org/cfpb for more information.

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Booming SUV Sales Are Undermining the Government's Fuel-Economy Targets

The U.S. government says the nation's cars and trucks are well on their way to meeting fuel economy and emissions standards set for 2025. But if gas prices stay low and consumers keep buying less-efficient vehicles like SUVs, the government could lower those standards. Automakers argue that meeting the requirements is difficult. A report on the standards was issued Monday by the U.S. Environmental Protection Agency, the U.S. Department of Transportation and the California Air Resources Board. The report kicks off a two-year review that will determine whether to keep the 2025 fuel economy and greenhouse gas emissions targets in place or change them.
Source: Associated Press


Editor's note: NADA will review in detail and intends to submit comments on the Midterm Evaluation Draft Technical Assessment Report for Model Year 2022-2025 Light Duty Vehicle GHG Emissions and CAFE Standards, especially as it relates to consumer acceptance and willingness to pay for fuel economy and new technologies, and to vehicle affordability and safety.

We are proud to have repeatedly met and exceeded regulatory requirements for fuel economy, but our top priority will always be providing our customers with the ability to purchase the fuel-efficient cars they need at a price they can afford.

Manufacturers and dealers are committed to bringing new, innovative and effective technologies to market in order to provide our customers with the vehicles and features they truly want while moving fuel and emissions efficiencies forward. However, these new technologies cost real money to real people, and our customers are already telling us that car prices are increasingly out of range. Air quality matters to everyone on every side of this conversation, but buyers should always have the right to choose the vehicle that is right for them. Ever-escalating standards that price hardworking Americans out of the new car market is not a reasonable or realistic approach, and it will ultimately lead to Washington denying our customers the choices they deserve.

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Maryland Official Says States Plan to Sue VW Over Cheating

New York and Maryland are among several states planning to sue Volkswagen AG over the environmental damage done by devices that were designed by the carmaker to cheat on pollution-control tests. Maryland Attorney General Brian Frosh said Monday in a statement that he’s acting in coordination with the attorneys general of New York and Massachusetts, among others. He said a press conference is scheduled for Tuesday in Baltimore.
Source: Bloomberg

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Fiat Chrysler Auto Sales Probed by Justice Department, SEC

Fiat Chrysler Automobiles NV is under investigation by U.S. authorities amid allegations that the maker of Dodge and Jeep vehicles inflated sales figures. Fiat Chrysler is cooperating with investigations by the Justice Department and the Securities and Exchange Commission into the reporting of vehicle sales to customers in the U.S., the company said in a statement Monday. Bloomberg News reported earlier that prosecutors had opened a criminal investigation of the company for potential securities fraud, according to people familiar with the matter.
Source: Bloomberg

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With Apple, Google And Every Automaker In The Race, Tesla Crash Won't Slow Self-Driving Cars

Tesla Motors cast a cloud over self-driving cars on June 30 when it revealed the first known fatal crash of a vehicle using its Model S Autopilot system. The next day, BMW teamed up with Intel and Mobileye to develop a fully automated driving system, a partnership one analyst called a "turning point" for autonomous vehicles. Safety questions or not, the self-driving car era is arriving fast, perhaps even this decade. Automakers and tech companies are plowing billions of dollars into research and forging alliances in a rush for the inside lane on the automobile's most revolutionary track since the Model T.
Source: International Business Daily

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Quotable
"As regulators such as the Federal Trade Commission continue to probe the benefits of the franchise system, we urge them to remember that the franchise laws in place not only promote competition in the free market but public safety for all. And YES, that is a win-win for consumers and dealers alike."

    -- NADA Chairman Jeff Carlson, monthly commentary, July 18

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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 .