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Inside this issue
NADA Sticks to 2017 U.S. Sales Forecast of 17.1 Million
NADA Predicts Not-Bad 17.1 Million Year for Auto Sales
One Reason for Fading Sedan Sales: Low Wage Growth
12 p.m. ET Webinar Today: FTC Update on Court-Ordered Buyback of Certain VW and Audi Vehicles
U.S. Sen. Pat Toomey Asks GAO to Review CFPB Guidance on Indirect Auto Lending
FTC Finalizes Three More Consent Orders with Dealers Over Certain Used-Vehicle Ads
What to Expect at the 2017 New York Auto Show: Video
Top Stories
NADA Sticks to 2017 U.S. Sales Forecast of 17.1 Million

A 1.6 percent decline in U.S. new-vehicle sales in the first quarter isn’t overly concerning for the National Automobile Dealers Association. NADA, which represents more than 16,500 U.S. new car and light-truck dealerships, on Wednesday maintained its U.S. sales forecast of 17.1 million vehicles for the year, which would be a 2.5 percent decline in sales compared with the record 17.5 million sold in 2016.
Source: Automotive News

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NADA Predicts Not-Bad 17.1 Million Year for Auto Sales

U.S. automakers and their dealers will sell a forecasted 17.1 million light vehicles this year, not a record, yet nothing to beef about either, says Steve Szakaly, chief economist for the National Automobile Dealers Assn. It would come in under 2016's record-breaking 17.5 million deliveries, but “it’s another year above 17 million,” Szakaly says in a media conference call during which he and NADA Chairman Mark Scarpelli offer first-quarter economic insights affecting auto retailing.
Source: WardsAuto

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One Reason for Fading Sedan Sales: Low Wage Growth

Americans are shunning new cars. Wage growth, or the lack of it, is a contributing factor, especially for low-wage earners and first-time vehicle buyers, who tend to be millennials just starting out in their careers. New cars can be out of reach for many of them, especially when you consider that the average new car buyer earns more than $80,000 a year, said Steven Szakaly, chief economist at the National Auto Dealers Assn.
Source: Los Angeles Times

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12 p.m. ET Webinar Today: FTC Update on Court-Ordered Buyback of Certain VW and Audi Vehicles

The Federal Trade Commission (FTC) will provide NADA members with an update regarding the Volkswagen and Audi diesel buyback provisions, including new developments since the September 2016 NADA and FTC webinar.

Date:  Today, April 6, 2017
Time:
  12 p.m. ET
Presented by:
  Jonathan Cohen and Sangioon "Simon" Han, FTC
Duration:
  60 minutes

The webinar will cover ongoing issues affecting dealers and consumers, and what to expect over the coming months. Details of the final 2.0-liter diesel settlement and the proposed 3.0-liter diesel settlement are available at VWCourtSettlement.com. The webinar is open to dealers and their representatives. Click here to register.
Source: NADA and FTC

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U.S. Sen. Pat Toomey Asks GAO to Review CFPB Guidance on Indirect Auto Lending

Last Friday, Sen. Pat Toomey, R-Pa., sent a letter asking the Government Accountability Office to evaluate whether a bulletin on indirect auto lending issued by the Consumer Financial Protection Bureau in March 2013 constitutes a “rule” under the Congressional Review Act.  A determination of a “rule” could mean the regulators have to resubmit the policies to Congress for review, resetting the 60-day clock, American Banker reports.
Source: NADA

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FTC Finalizes Three More Consent Orders with Dealers Over Certain Used-Vehicle Ads

The Federal Trade Commission has approved three proposed consent orders with auto dealer groups to resolve allegations that they advertised "how rigorously they inspect their used cars" without disclosing that some of the vehicles were subject to open safety recalls. Among other provisions, the consent orders prohibit the dealers from representing – either expressly or by implication – when marketing, advertising, offering for sale, or selling used motor vehicles to consumers that the vehicles are safe, have been repaired for safety issues, or have been subject to a rigorous inspection, unless:

1. The vehicles are not subject to any open safety recalls, or

2. The dealer discloses, in close proximity to such representation, any material qualifying information related to open recalls, including but not limited to:

  • the fact that its used motor vehicles may be subject to recalls for safety issues that have not been repaired, and
  • how consumers can determine whether an individual used motor vehicle is subject to an open recall for safety issues that has not been repaired.

In addition, if the dealer receives a written notice from a manufacturer that a motor vehicle is subject to an open safety recall, the dealer must provide to a consumer – prior to the consummation of the sale of the vehicle – the manufacturer notice or a document that conveys the same information using a substantially similar format. (As an alternative to providing the manufacturer notice, two of the three consent orders permit the dealers to provide to consumers – prior to the consummation of the sale of a used motor vehicle – a written notice that conveys that the vehicle is subject to an open recall that is unrepaired and the safety risks associated with the recall that is made available by the National Highway Traffic Safety Administration (see safercar.gov) or a commercial provider of recall information.)

All of these disclosures and notices must be clear and conspicuous and not otherwise misleading.

These three finalized consent orders follow separate FTC consent orders with similar terms involving General Motors and two dealer groups that were finalized in December 2016. Dealers are advised to review with legal counsel the full terms of these consent orders along with any applicable state law requirements to help assess the legal sufficiency of their used vehicle advertisements.
Source: NADA

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What to Expect at the 2017 New York Auto Show: Video

Media preview days for the 2017 New York Auto Show starts April 12 while public show dates will run from April 14 to April 23 this year at the Javits Center. Several automakers have already teased what they will be debuting in New York this year, while others are staying relatively quiet in hopes of surprising the industry.
Source: AutoGuide.com

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Past Articles:
 
Quotable
"Consumer demand for new vehicles continues to be very strong."

    -- NADA Chairman Mark Scarpelli, a Chevrolet, Kia and Chrysler-Jeep-Dodge-Ram dealer in the Chicago area, said on a conference call with the news media, Automotive News, April 5


 
"Automotive sales don't die on their own; they die because someone has bludgeoned them with high interest rates."


    -- NADA Chief Economist Steven Szakaly, WardsAuto, April 5

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Automotive Forum -- April 11

 
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