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Inside this issue
NADA Attends White House Meeting on Tax Reform
CFPB Reformers Move Forward
Driver Assist Whets Appetite for Automated Vehicles, Auto Alliance Says
Subprime Falls, Scores Rise on Tighter Lending Criteria
Chinese Automaker Guangzhou Plans to Enter the U.S. in 2019
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NADA Attends White House Meeting on Tax Reform


NADA Chairman Mark Scarpelli (left) and NADA President/CEO Peter Welch attend a tax reform meeting at the White House on June 14, 2017.

NADA Chairman Mark Scarpelli and NADA President and CEO Peter Welch on Wednesday joined other auto industry leaders at a White House meeting convened by Gary Cohn, director of the President’s National Economic Council (NEC). The meeting, which was also attended by NEC staff and Treasury Department officials, covered a broad range of issues dealing with the comprehensive tax reform package that is jointly being crafted by the House, Senate and the Administration. A number of topics important to dealers were discussed, including lowering tax rates, streamlining deductions, elimination of the death tax, the House proposed border adjustment tax (BAT), and the 12-percent federal excise tax on heavy duty trucks. Scarpelli and Welch also met with Vice President Mike Pence.

"We really appreciated the opportunity to provide our input on tax reform directly to NEC Director Cohn, and we will continue to work with the Administration and Congress in support of tax reform that stimulates consumer demand and preserves working capital for dealers," Scarpelli said.
Source: NADA

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CFPB Reformers Move Forward

Within the past week, the U.S. House of Representatives and President Donald Trump's administration have taken steps to reform the Dodd-Frank Wall Street Reform and Consumer Protection Act and the consumer watchdog agency it created, the Consumer Financial Protection Bureau. The House last week passed a bill that would roll back Dodd-Frank. If the bill becomes law, it would not eliminate the CFPB, but would significantly limit the CFPB's influence on the auto industry.

The Financial Choice Act, H.R. 10, passed in the House by a 233-186 vote on Thursday, June 8. Its next stop is the Senate, where it faces long odds. The bill would ... nullify the CFPB's auto lending guidance; repeal its unfair, deceptive and abusive acts or practices authority; and give the president power to remove the CFPB director at will.

The National Automobile Dealers Association, along with [the American Financial Services Association], said they were happy with the vote last week. "America's franchised new-car dealers have always been on the side of our customers, which is why we have so strenuously opposed the CFPB's anti-consumer guidance that would have raised the cost of car and truck loans, and pushed otherwise-creditworthy customers out of the auto credit market altogether," NADA Chairman Mark Scarpelli said in a statement.

NADA will push Congress to keep the bill moving and will continue to promote the "Fair Credit Compliance Policy & Program," a compliance guide by NADA, the National Association of Minority Automobile Dealers and the American International Automobile Dealers Association.

"Access to affordable credit is essential to customers and their dealers," NADA President Peter Welch said. "Chairman Hensarling, members of the House Financial Services Committee, and the members of Congress who supported H.R. 10 and worked to include these vital consumer protections should be commended for their efforts to keep auto financing affordable and available to consumers everywhere. I look forward to the Senate taking timely actions to help cement these consumer protections into law."
Source: Automotive News

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Driver Assist Whets Appetite for Automated Vehicles, Auto Alliance Says

Senate testimony calls for legislation to help unleash driverless technology

Consumers are more likely to embrace the idea of self-driving vehicles if they own cars with driver-assist features and have experienced the technology's safety advantages firsthand, according to preliminary results from a survey by the Alliance of Automobile Manufacturers. People who drive cars with at least two semiautomated functions -- such as adaptive cruise control, active lane-keeping assistance or advanced emergency braking -- have much more favorable attitudes toward autonomous vehicles (62 percent favorable to 35 percent unfavorable) than those who have none (43 percent to 54 percent).
Source: Automotive News

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Subprime Falls, Scores Rise on Tighter Lending Criteria

The share of auto loans rated subprime hit a first-quarter 10-year low and the average credit score rose as lenders adjusted their financing criteria, according to Experian's first-quarter State of the Automotive Finance Market report. The total share of subprime and deep subprime loans fell to 24.1 percent in the first quarter, compared with 26.5 percent a year earlier. The 30-day delinquency rate on new vehicles fell to 1.96 percent from 2.1 percent a year earlier.
Source: Automotive News

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Chinese Automaker Guangzhou Plans to Enter the U.S. in 2019

Guangzhou Automobile Group Co. said it may try to collaborate with the existing dealer network of a carmaker such as Fiat Chrysler Automobiles NV as it seeks a path to sell its made-in-China vehicles in the U.S. The Chinese manufacturer plans to enter the U.S. in 2019 and is examining a range of options to do so, Yu Jun, general manager of GAC Motor, said Wednesday in an interview at a mobility conference in Montreal sponsored by tiremaker Michelin & Cie. GAC aims to increase the size of its display at the Detroit auto show in January and said it was invited to the National Automobile Dealers Association annual convention, where it can recruit retailers.
Source: Bloomberg

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Quotable
"We really appreciated the opportunity to provide our input on tax reform directly to NEC Director Cohn, and we will continue to work with the Administration and Congress in support of tax reform that stimulates consumer demand and preserves working capital for dealers."

    -- NADA Chairman Mark Scarpelli, who attended a meeting at the White House on Wednesday, along with other auto industry leaders, NADA Headlines, June 15

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