View Web Version

SPONSORED BY
NADA.org
April 7, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
AFSA Gives Congress an Earful about the CFPB
NADA Sticks to 17.1 Million-Unit Forecast
Despite 'Challenging' Environment, GM CFO Expects Strong 2017
Subprime Auto Loans Are Too Small to Be a Big Problem, Says Dimon
Hyundai, Kia to Recall Nearly 1.5 Million Vehicles Over Engine Issue
Top Stories
AFSA Gives Congress an Earful about the CFPB

The American Financial Services Association, a lender trade group, stuck to familiar complaints about the Consumer Financial Protection Bureau -- especially from the point of view of auto lenders -- in a hearing [April 6] before a congressional subcommittee examining “opportunities for reform” in federal regulations. But Bill Himpler, AFSA executive vice president, found himself before a more sympathetic audience, due to a Republican administration which is on the record as seeking to rein in the CFPB, too. “The CFPB is tasked with helping consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives,” Himpler said. “Unfortunately, that’s not what the CFPB does.”
Source: Automotive News

Related article:


[back to top]

NADA Sticks to 17.1 Million-Unit Forecast

In a Wednesday-morning conference call with members of the automotive press, the National Automobile Dealers Association (NADA)’s chairman, Chicago-area dealer Mark Scarpelli, and its chief economist, Steven Szakaly, predicted new-vehicle sales would remain above the 17 million-unit mark in 2017. Throughout the quarterly briefing, Scarpelli and Szakaly cited a number of factors working in the industry’s favor, including continued strong demand for new vehicles — particularly in the SUV and pickup segments — and new technology.
Source: Auto Dealer Today

[back to top]

Despite 'Challenging' Environment, GM CFO Expects Strong 2017

General Motors Co.'s chief financial officer said on Thursday the automaker expects another "very strong year" in 2017 and reiterated the company's earnings forecast for the year. "Overall, we expect a more challenging environment across a number of dimensions" in 2017, due to rising interest rates and falling used-car prices, CFO Chuck Stevens told investors and analysts on a conference call. But thanks to an improving economy and lower fuel prices, Stevens said GM believes "we're going to be in a reasonably constructive industry environment."
Source: Reuters

[back to top]

Subprime Auto Loans Are Too Small to Be a Big Problem, Says Dimon

Subprime loan delinquencies in the auto loan industry have triggered flashbacks of the financial crisis and Great Recession, and murmurs of concern have been growing louder. Unlike mortgages, auto loans make up a small portion of the debt market. JPMorgan Chase’s CEO Jamie Dimon gave a calming perspective when asked by an MBA student about potential bubbles forming in the markets. “There’s a problem with subprime auto, which we see,” said Dimon, whose bank offers auto lending through its consumer banking division. “But subprime auto is so small relative to the US debt market it won’t make a difference to the system.”

According to Q4 2016 data from Experian, the subprime and deep subprime loans make up just a hair under 20% of the automotive finance market, up slightly from the 19% at the end of 2014. Current data shows delinquencies at 2.85% on auto loans, up from 2.62% a year earlier for 30-day delinquencies. For 60-day delinquencies, the rates had risen from 0.50% to 0.69% from Q4 2015 to Q4 2016. However, the trends haven’t even always been downward throughout this period.
Source: Yahoo Finance

[back to top]

Hyundai, Kia to Recall Nearly 1.5 Million Vehicles Over Engine Issue

Hyundai Motor Co. and Kia Motors Corp. said on Friday they plan to recall nearly 1.5 million vehicles in the United States and South Korea due to engine issues, the latest blow for two firms already struggling in key markets. The two automakers have submitted a plan to recall 1.3 million vehicles due to an engine defect that could cause them to stall, the companies said in a statement. The plan, which must be approved by U.S. authorities, involves Hyundai's Sonata and Santa Fe and Kia's Optima, Sorento and Sportage.
Source: Reuters

[back to top]

Past Articles:
 
Quotable
"One area that does not get enough attention is demand for technology and safety."

    -- NADA Chairman Mark Scarpelli, noting that his customers are seeking vehicles equipped with the “latest and greatest safety features,” which could boost new-vehicle sales this year, Auto Dealer Today, April 6

 
Sponsored by

Automotive Forum -- April 11

 
MyDealership.org Videos








NADA Videos

Introducing NADA Academy Plus

NADA Webinars
NADA members can view past webinars on-demand at no charge at NADA University Online. Members must create an NADA account before viewing.
 
Search Back Issues | Unsubscribe | Subscribe | Manage your subscription | email us
NADA For more info, visit nada.org. Any opinions or statements contained herein do not necessarily reflect the views of NADA. Factual errors are the responsibility of the listed publication. This email may contain an advertisement of NADA products and services. Questions or comments concerning NADA Headlines content may be directed to publicaffairs@nada.org. To unsubscribe from future editions of NADA Headlines, click here or contact NADA, 8400 Westpark Drive, Tysons, VA 22102.