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July 21, 2016 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Dealers Still Not Convinced the CFPB Understands Their Business
GM Raises Full-Year Forecast after Strong Second-Quarter Profit
Alan Mulally: 'I'm in Awe' of Ford's Turnaround
Fiat Chrysler's Strange Track Record of Controversy
U.S. Rep. Pete Olson Shines a Light on Auto Safety and Getting Defective Vehicles off the Road
Mazda Faces a Huge Challenge Keeping Customers
Top Stories
Dealers Still Not Convinced the CFPB Understands Their Business

Texas dealer Robert Turner gave Patrice Ficklin, fair lending director at the Consumer Financial Protection Bureau, a piece of his mind following her presentation Tuesday evening at the annual National Association of Minority Automobile Dealers conference in Miami. She took the criticism and responded. Turner, who owns two Chevrolet dealerships and a Subaru store, told the CFPB official: “You guys have your view of what we do; I would hope at some point you’d talk to some of us and get our view of what we do.” Many dealers, such as Turner, believe the agency ... is out to get them.

As his dealer colleagues listened intently, Turner went on to ask Ficklin whether she realizes that dealers earn their margin rates from financial institutions the same way “banks earn that discount rate that the feds give them” and that a consumer’s finance rate is not the rate the dealer gets. He said every business buys goods at a wholesale price and sells them at a retail price -- that is where the disparity lies. Ficklin said the CFPB agrees that dealers provide a valuable service by matching consumers with financial services and that dealers should be compensated for the work they perform. She said the problem is the discriminatory outcomes that result. She also noted that she has spoken directly with dealers in sessions sponsored by the National Automobile Dealers Association and the American Financial Services Association.
Source: Automotive News

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GM Raises Full-Year Forecast after Strong Second-Quarter Profit

General Motors Co. raised its forecast for full-year earnings after reporting a record second-quarter profit that handily beat Wall Street expectations. Shares in the world's third-largest automaker rose more than 6 percent to $33.45 in premarket trading. GM said second-quarter net income rose to $2.87 billion, or $1.81 a share, from $1.1 billion, or 67 cents a share, a year ago. Adjusted earnings were $1.86 per share while Wall Street expected $1.52 per share. More than 90 percent of its pretax profits came from North America, where profit margins rose to 12.1 percent from 10.5 percent a year before. The improvement was driven by demand for pickup trucks and large sport utility vehicles.
Source: Reuters

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Alan Mulally: 'I'm in Awe' of Ford's Turnaround

On the eve of his induction into the Automotive Hall of Fame, former Ford Motor Co. President and CEO Alan Mulally credits his “wonderful” relationship with Executive Chairman Bill Ford for his ability to save the Dearborn automaker from financial collapse. Mulally, in an interview with The Detroit News, said he wouldn’t have left control of Boeing Co. in 2006 to travel across the country to join a near-bankrupt automaker without Ford, whom he described as a “phenomenal leader.”
Source: The Detroit News

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Fiat Chrysler's Strange Track Record of Controversy

From skirmishes with NHTSA to dealing with a Jeep Cherokee being hacked, FCA has faced an assortment of controversies over the past three years

Somehow, for some reason, Fiat Chrysler Automobiles can't seem to keep itself out of trouble. Just when one controversy, or dust-up with the federal government, dies down, it seems another problem pops up. FCA is now entwined in what could become its biggest problem in recent years — a federal fraud investigation revealed Monday into how the automaker reports sales figures. It's hard to tell how long the investigation will take, or if the government will bring any charges. The U.S. Securities and Exchange Commission and the Justice Department are both asking questions.
Source: The Detroit News

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U.S. Rep. Pete Olson Shines a Light on Auto Safety and Getting Defective Vehicles off the Road

“It’s important to check and act if your vehicle has an open recall.”

To prevent another tragic death from a faulty Takata airbag, Energy and Commerce Committee member Rep. Pete Olson (R-Texas) took to the Houston Chronicle to alert constituents to the importance of automobile safety as it relates to the largest automobile recall in U.S. history – the Takata airbag recall.

The Energy and Commerce Committee has jurisdiction over the National Highway Traffic Safety Administration (NHTSA) and Rep. Olson writes, “as the largest and most complex safety recall in U.S. history, NHTSA, manufacturers and many of us in Congress, have committed to seek a 100 percent recall-completion rate. … In an attempt to improve recall-completion rates, Congress included a provision in the recently passed highway bill to initiate a pilot program where automobile manufacturers will work with states to notify consumers if their car has a recall at the time of vehicle registration.”

Rep. Olson also encouraged vehicle owners to check to see if their vehicle is under recall by visiting www.safercar.gov and entering their vehicle identification number. Olson concludes, "It is important to check and act if your vehicle has an open recall. The life you save could be your own. ... Working together, we must increase awareness of the importance of completing recalls to save lives."
Source: Rep. Olson's Office


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Mazda Faces a Huge Challenge Keeping Customers

Mazda is about halfway through a 10-year plan aimed at changing how the company is perceived globally. The Japanese automaker has a reputation  for fun-to-drive cars but also as an entry-level brand. In the U.S., many customers move to other brands after owning a Mazda. The ultimate goal is to move Mazda's brand perception to  great driving dynamics and value because of improved design, performance, and fuel economy.
Source: Detroit Free Press

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Past Articles
 
Quotable

"We keep America rolling. And we seem to get hit left and right for trying to do a good job of that."

    -- Texas dealer Robert Turner, criticizing Patrice Ficklin, CFPB fair lending director, following her presentation Tuesday evening at the National Association of Minority Automobile Dealers conference, Automotive News, July 20



"I'm in awe of what we all accomplished."

    -- Former Ford Motor Co. President and CEO Alan Mulally, who will be inducted into the Automotive Hall of Fame tomorrow, The Detroit News, July 21


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