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February 1, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
January Auto Sales: Volume Flat; Prices Up; Discounts Up, Too
Auto Loans Remain Easy To Get (Mostly) For 2017, Analysts Say
Federal Trade Commission, Class Action Settlements Require Volkswagen to Repair or Buy Back 3.0 Liter TDI Diesel Vehicles
VW to Pay $1.2 Billion or More to US Owners of Big Diesels
Cash for VWs Clunkers: Diesel Buybacks Boost U.S. Auto Demand
Auto Dealers Announce Nationwide Initiative at Centennial Celebration
Top Stories
January Auto Sales: Volume Flat; Prices Up; Discounts Up, Too

Forecasters expect relatively flat U.S. auto sales for the month of January, a good thing overall, considering auto sales finished 2016 last month at a record high for the year. A high level of incentives is sustaining U.S. auto sales on a high plateau, analysts said. Average incentive spending per unit was $3,614 in January, according to a joint auto sales forecast from LMC Automotive and J.D. Power and Associates. That was up $232 from January 2016.

“Incentive spending was up, but transaction prices were up,” said Mark LaNeve, Ford Motor Co. vice president, U.S. marketing, sales and service, in an interview last week at the National Automobile Dealers Association convention in New Orleans.
Source: Forbes.com

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Auto Loans Remain Easy To Get (Mostly) For 2017, Analysts Say

The U.S. auto industry has some worries for 2017, like higher new-car prices, falling used-car prices, and what to make of the Trump Administration. But for most auto lenders and most buyers, the availability of credit is not one of them. “Credit is a really big deal,” said Jonathan Banks, vice president, vehicle analysis and analytics for J.D. Power and Associates, in a presentation at the National Automobile Dealers Association convention here last week.

On the same panel at the NADA convention, Melinda Zabritski, senior product director of automotive finance for Experian Automotive, said auto lenders are becoming “a little bit more conservative in lending,” especially at the risky end of subprime. She said the percent of buyers with subprime credit who purchase used cars at franchised dealerships was reaching record lows – partly because more buyers with prime credit are also opting to buy used, in response to higher new-car prices. “The used loan market becomes increasingly prime,” Zabritski said in her presentation.
Source: Forbes.com

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Federal Trade Commission, Class Action Settlements Require Volkswagen to Repair or Buy Back 3.0 Liter TDI Diesel Vehicles

VW must fully compensate vehicle owners

The Federal Trade Commission announced a settlement today that requires Volkswagen Group of America to fully compensate consumers who purchased 3.0-liter TDI diesel vehicles through a combination of repairs, additional monetary compensation, and buybacks for certain models.
Source: FTC

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VW to Pay $1.2 Billion or More to US Owners of Big Diesels

Volkswagen has agreed to pay at least $1.2 billion in buybacks and compensation to settle claims from U.S. owners of cars with larger diesel engines that the company rigged to cheat on emissions tests. And the German automaker could pay even more - as much as $4 billion - if it can't repair many of the cars in a way that satisfies regulators. The proposed settlement filed late Tuesday before Judge Charles R. Breyer in U.S. District Court in San Francisco covers owners of some 78,000 Audi, Volkswagen and Porsche cars with 3.0-liter diesel engines. Volkswagen has already agreed on a $15 billion settlement for some 500,000 smaller, 2.0-liter diesel engines.
Source: The Associated Press

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Cash for VWs Clunkers: Diesel Buybacks Boost U.S. Auto Demand

VW must buy back or fix as many as 562,000 diesel vehicles in the U.S. into 2019. This will lead the German automaker to essentially mimic the U.S. government and its cash-for-clunkers program, which lured Americans into buying cars during the recession. Just as the feds doled out $3 billion to get Americans trading in gas guzzlers, VW could spend about $10 billion subsidizing new-vehicle purchases to replace diesels spewing excessive emissions.

VW is managing to keep some diesel owners in the fold. About 20 percent of customers selling back their cars at Linden Volkswagen in New Jersey are sticking with the brand, said Mike DiFeo, who runs the outlet and heads VW’s national dealer council. “I wouldn’t be surprised if that number starts to creep up,” he told reporters Saturday at the National Automobile Dealers Association convention in New Orleans. Angrier customers may be selling their VWs back first, and less-dissatisfied owners could be more inclined to cut the brand some slack.
Source: Bloomberg

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Auto Dealers Announce Nationwide Initiative at Centennial Celebration

In his first official speech as NADA chairman, Mark Scarpelli unveiled a new project designed to help local dealerships showcase the myriad benefits they bring to their customers, their employees, and to communities across the nation. The initiative – MyDealership.org – utilizes videos, social media platforms, and PSAs to communicate the advantages of a strong and vibrant franchise system.

"There are five hallmarks of any local dealership in America today: We are local; We are modern; We are diverse; We save people money; And we create great jobs," Scarpelli said.
Source: NADA

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Past Articles
       
      Quotable
      "That is certainly one of the reasons we expect vehicle sales to continue to grow this year and next. Without the 'VW Effect,' sales probably would start to slide a little."

        -- Jeff Schuster, LMC Automotive's senior vice president of forecasting, commenting on VW buying back or fixing up to 562,000 diesel vehicles in the U.S. into 2019, Bloomberg, Jan. 31

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