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April 28, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
VW Diesel Deadline: Dealers Must Register by this Monday, May 1
NADA Praises CHOICE Act Provisions to Preserve Consumer Discounts in Auto Financing
IRS Notice 2016-66: Potential Pitfall for Dealerships in Captive or Reinsurance Programs
Detroit 3 to Trump: 'Modernize NAFTA' -- But Don't Withdraw
Economy Slows Dramatically, Growing a Feeble 0.7% in Q1
U.S. Truck, Crossover Sales Spark Jump in GM First-Quarter Profit
Updated Driven Guide: ‘Credit and Collection Checklists’ Now Available at NADA University Online
3 Reasons to Attend America’s Premier Dealership Training Program
Top Stories
VW Diesel Deadline: Dealers Must Register by this Monday, May 1

The Federal Trade Commission has requested that NADA disseminate the following statement:

"The deadline for dealers to register for compensation under the Volkswagen diesel settlement is this Monday, May 1, 2017. This applies to dealers that owned certain 3.0-liter Volkswagen, Audi and Porsche diesel cars as of September 18, 2015, or November 2, 2015, and sold them on or before January 31, 2017.
 
"Third-party "claims processing services" have contacted dealers with misleading – or false – information about the settlement. They claim to be able to get dealers more money or more favorable terms if dealers allow them to handle their claim(s). This is not true. Settlement amounts are determined by a court; so no one else can get a dealer a better deal. It's likely dealers will not get their money's worth from anyone promising to handle the claims process for them – and it may cost several thousand dollars to go through outside services.

"The claims process is straightforward. Dealers can register on their own at vwcourtsettlement.com. Again, dealers must register by this Monday, May 1. If eligible dealers miss this deadline, they will not receive compensation."


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NADA Praises CHOICE Act Provisions to Preserve Consumer Discounts in Auto Financing

Legislative efforts to significantly reform the Consumer Financial Protection Bureau (CFPB) have resumed in Congress. On Wednesday, House Financial Services Committee Chairman Jeb Hensarling (R-Texas) introduced the Financial CHOICE Act, H.R. 10, a comprehensive financial reform bill.

H.R. 10 includes a provision that is virtually identical to H.R. 1737, a NADA-backed bill from the last Congress, which overwhelming passed the House by a vote of 332-96. This legislation would nullify the CFPB's guidance on indirect auto financing, which attempted to eliminate or severely constrain dealer reserve. H.R. 10 also requires the Bureau to provide for public notice and comment before issuing final guidance, to make publicly available on its website all studies, data, methodologies or other information relied upon to produce the guidance, and to conduct a study on the costs and impacts of the guidance. The legislation also brings the CFPB under the regular congressional appropriations process for the first time, which is another reform NADA has long supported.  

NADA applauds Chairman Hensarling for including these measures in H.R. 10.

“Access to affordable credit is essential to customers and their dealers,” said NADA President and CEO Peter Welch. “We look forward to Congress passing these provisions and reining in CFPB attempts to eliminate consumer discounts in the showroom.”

This legislation is expected to be debated next week by the House Financial Services Committee.
Source: NADA Legislative Affairs

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IRS Notice 2016-66: Potential Pitfall for Dealerships in Captive or Reinsurance Programs
By Andy Weill

Important Non-Extendable May 1st Deadline Looms!

The Internal Revenue Service has been quite active with regard to perceived abuses in the area of microcaptive insurance. In particular, the IRS promulgated Notice 2016-66 in November 2016, designating certain microcaptive transactions to be “transactions of interest,” mandating certain reporting requirements. 

One of these reporting requirements has a non-extendable deadline of May 1, 2017. Counsel who know that their clients participate in captive or reinsurance programs should be mindful of this new development and advise clients accordingly. Click here for the full article.

Andy Weill is a principal with Weill & Mazer, a leading complex litigation firm in San Francisco. Weill’s practice includes complex business, tax and estate disputes across the nation.
Source: National Association of Dealer Counsel (NADC) Defender

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Detroit 3 to Trump: 'Modernize NAFTA' -- But Don't Withdraw

U.S. automakers are open to the idea of "modernizing" the North American Free Trade Agreement, but are stepping up their defense of a trade agreement that they say helps the auto industry's North American region compete on a global basis.
Source: Detroit Free Press

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Economy Slows Dramatically, Growing a Feeble 0.7% in Q1

For more than a decade, the U.S. economy has tended to ring in the new year meekly. This year was no different. Economic growth slowed in the first quarter to its slowest pace in three years as sluggish consumer spending and business stockpiling offset solid business investment. Yet many economists are writing off the weak performance as a byproduct of temporary blips and still expect healthy growth in 2017.
Source: USA Today

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U.S. Truck, Crossover Sales Spark Jump in GM First-Quarter Profit

General Motors Co. on Friday reported a much better-than-expected first-quarter net income driven by strong sales of its profitable large pickup trucks and crossovers in the United States, sending its shares up nearly 2 percent in premarket trading. Fiat Chrysler Automobiles NV reported higher operating profit this week due to a bump in SUV sales. No. 2 U.S. automaker Ford on Thursday reported lower quarterly net profit due to higher commodity, engineering and recall costs, and a drop in vehicle sales.
Source: Reuters

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Updated Driven Guide: ‘Credit and Collection Checklists’ Now Available at NADA University Online

Driven guides are some of the most valuable complimentary benefits of NADA membership. To keep this information current, the Member Resources team at NADA Dealership Operations continually creates new guides and updates existing ones.

To access the latest updated Driven guide, “Credit and Collection Checklists,” log in and search for BM7 at NADA University Online.

The checklists are designed to help dealers protect their dealerships’ financial health. They list sound practices for dealers and variable ops employees to follow to get a grip on cash, checks, credit, billing and collection.
Source: NADA Dealership Operations

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3 Reasons to Attend America’s Premier Dealership Training Program

If you work in automotive retail, chances are that you or someone you know has benefited from the NADA Academy. Founded in 1979, the industry standard for dealership operations training has prepared generations of automotive leaders for successful dealership careers.

 

The Academy offers six unique programs featuring the latest in industry trends and developments, while also being deeply rooted in the fundamentals needed to operate a successful and profitable automotive business. If you are highly motivated and enjoy learning, this program is for you.
Source: NADA Public Affairs

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Quotable
"Access to affordable credit is essential to customers and their dealers. We look forward to Congress passing these provisions and reining in CFPB attempts to eliminate consumer discounts in the showroom."

    -- NADA President and CEO Peter Welch, commenting on the introduction of the Financial CHOICE Act, H.R. 10, a comprehensive financial reform bill, NADA Headlines, April 28

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