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February 10, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Mexican Tariff Could Hit Lower-Income Car Buyers
Senators Urge Trump to Talk Autos with Japan's Prime Minister
Wall Street Journal Commentary: How We’ll Stop a Rogue Federal Agency
Lenders Should Aim For Moderate Growth in 2017, Equifax Says
Feb. 16 Webinar: NADA and FTC to Discuss the Recently Revised Buyers Guide
At Chicago Auto Show, Trucks and SUVs Hit the Gas
Top Stories
Mexican Tariff Could Hit Lower-Income Car Buyers

President Trump's proposed 20% tariff on products from Mexico could hit hardest against lower-income car buyers, a new study finds. That's because more than a third of subcompact cars sold in the U.S. with price tags less than $20,000 come out of Mexico. They are models that tend to attract those in need of basic transportation who don't have much money to spend on a car. The analysis by Carjojo, an auto-buying site, finds that at an average cost of $16,850 among the dozen models from various makers that are made in Mexico, buyers would face an added $2,679 tariff costs per vehicle including a 6% average sales tax.
Source: USA Today

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Senators Urge Trump to Talk Autos with Japan's Prime Minister

With Japanese Prime Minister Shinzo Abe visiting the White House on Friday, several U.S. senators want President Donald Trump to press for changes that will open Japan to more competition from American automakers. Michigan's U.S. Sens. Debbie Stabenow and Gary Peters, both D-Mich., as well as senators from Missouri and Ohio, sent a letter to Trump on Thursday asking him to address "Japan’s longstanding unfair trade practices in the auto sector" in the meeting with Abe. Trade between the two countries is expected to be a key issue.
Source: Detroit Free Press

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Wall Street Journal Commentary: How We’ll Stop a Rogue Federal Agency
By Jeb Hensarling

Congress can defund Elizabeth Warren’s unaccountable and unconstitutional CFPB.

The Obama presidency placed no greater burden on America’s growth potential than the avalanche of regulations that smother the U.S. economic system. The most destructive and dangerous of the new regulatory bureaucracies created by the Democrat-dominated 111th Congress is the Consumer Financial Protection Bureau ...

The CFPB is arguably the most powerful, least accountable agency in U.S. history. CFPB zealots have the power to determine the “fairness” of virtually every financial transaction in America. The agency defines its own powers and can launch investigations without cause, imposing virtually any fine or remedy, devoid of due process. It requires lenders essentially to read their clients’ minds, know and weigh their clients’ comprehension levels, and forecast future risk. It can compel the production of reams of data and employ methodologies that “infer” harm without finding any specific instance of harm or knowing violation ...

No corner of American finance is beyond the CFPB’s grasp, even auto dealers—which are specifically excluded from its jurisdiction by the Dodd-Frank Act. To dodge this legal constraint, the CFPB regulates auto dealers through enforcement “bulletins” on auto lenders, employing statistical analysis rather than specific acts to charge lenders with discriminatory lending. The race of borrowers is inferred based on the borrowers’ names and home addresses. Through this ruse they smear and shake down lenders.

The House in 2015 voted 332-96—with 88 Democrats in support—to force the CFPB to rescind its auto-lending guidance. Sen. Elizabeth Warren, the intellectual mother of the CFPB, led Senate Democrats’ opposition to the bipartisan bill. This is a sign the 52-member Senate Republican majority probably will be unable to overcome Democrat filibusters on legislation limiting the CFPB’s powers.

Mr. Hensarling, a Texas Republican, is chairman of the House Financial Services Committee.
Source: The Wall Street Journal

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Lenders Should Aim For Moderate Growth in 2017, Equifax Says

The auto finance industry is stable now, but it’s also probably not growing at record-breaking figures in 2017, which will put lenders in the unfamiliar scenario of only moderately improving, said Lou Loquasto, vice president of the auto lending and dealership verticals at Equifax. “Things got bad [after the great recession], so we tightened things up considerably,” Loquasto told Auto Finance News during a meeting at the National Automobile Dealers Association Convention & Expo. “Now that we’re at this house-in-order stage, and we know growth isn’t going to be significant — it’s not going to go up 10%, but it’s not going to go down 10% — so now, what kind of things can you do to fine tune the dealers that you do business with?”
Source: Auto Finance News

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Feb. 16 Webinar: NADA and FTC to Discuss the Recently Revised Buyers Guide

Join NADA and FTC attorney John Hallerud in a webinar covering the changes to the Used Car Rule and the revised Buyers Guide.  Learn how to properly produce, use and complete the revised Buyers Guide, and ask your questions directly to the FTC.  This webinar is open to dealers, dealership staff, dealer attorneys, dealership compliance professionals, and dealership forms providers.  Click here to register.

Date:  Thursday, Feb. 16, 2017
Time: 1 p.m. ET
Duration: 75 minutes
Source: NADA

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At Chicago Auto Show, Trucks and SUVs Hit the Gas

Less than a decade ago, Americans traded trucks and SUVs for more fuel-efficient cars, sacrificing utility to save money at the gas pump. What a difference a few years make. Last year, sales of pickups, SUVs and crossovers accounted for nearly 60 percent of all sales in the United States, an uptick of almost 4 percentage points from the year before.
Source: The Detroit News

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Past Articles
       
      Quotable
      "The regulatory web spun by the CFPB can make every provider of financial services guilty until proven innocent, inviting selective enforcement and financial shakedowns."

          -- Congressman Jeb Hensarling, chairman of the House Financial Services Committee, The Wall Street Journal, Feb. 8

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      Automotive Forum -- April 11

       
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