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November 22, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Automotive News: NADA Fights to Save Floor Plan Interest Deduction in Senate Tax Bill
NAFTA Talks Hit Wall as Mexico, Canada Push Back on U.S. Demands
Uber Paid Hackers to Delete Stolen Data on 57 Million People
Ford Could Exit Parts of South America to Cut Losses
Honda to Use Facebook to Find Owners With Defective Takata Airbags
Trump Nominates Michigan Dealer David Fischer for Ambassador to Morocco
Los Angeles Auto Show Events Include NADA / J.D. Power Conference LA on Nov. 28
Top Stories
Automotive News: NADA Fights to Save Floor Plan Interest Deduction in Senate Tax Bill

The National Automobile Dealers Association is vigorously trying to whip up grassroots support to block a provision in the Senate's tax bill that would limit the ability of dealers to write off interest expense on vehicle inventories.

NADA is urging members to contact their senators and explain how limiting deductibility for floorplan financing would hurt most businesses with higher taxes -- even when they do not show a profit. NADA officials are also working to convince the Senate Finance Committee to change the bill, as the House did in the tax plan it passed last week.

The proposal is aimed at large corporations that are incentivized by the tax code to use debt -- such as lines of credit -- instead of raising equity to capitalize their operations. But it would sweep up dealerships in the process.

NADA President Peter Welch on Monday sent a letter to Senate Majority Leader Mitch McConnell, R-Ky., urging the tax bill to preserve the full deductibility of business interest expense, including floorplan interest.
Source: Automotive News

NADA is asking members to contact their Senators to educate them on the importance of resolving this issue:

You can view a list of target lawmakers here and a one-pager on this topic here.

For more information or to provide Senate feedback, contact Patrick Calpin, NADA Legislative Affairs, at 202.547.5500.

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NAFTA Talks Hit Wall as Mexico, Canada Push Back on U.S. Demands

The United States, Mexico and Canada failed to resolve any major differences in a fifth round of talks to rework the NAFTA trade deal, drawing a swift complaint from the Trump administration on Tuesday that the lack of progress could doom the process.

The three nations have vowed to continue talks on the North American Free Trade Agreement (NAFTA) through March, but the yawning disagreements on core U.S. demands are piling pressure on negotiators to come up with fixes before Mexico’s 2018 presidential campaign begins in the spring.

Much friction centered on Mexican and Canadian rejection of a U.S. proposal to raise the minimum threshold for autos to 85 percent North American content from 62.5 percent as well as to require half of vehicle content to be from the United States.

The negotiating teams are due to meet again in Washington in December before a sixth formal round of negotiations is scheduled for Montreal, Canada from Jan. 23-28.
Source: Reuters

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Uber Paid Hackers to Delete Stolen Data on 57 Million People

Hackers stole the personal data of 57 million customers and drivers from Uber Technologies Inc., a massive breach that the company concealed for more than a year. This week, the ride-hailing firm ousted its chief security officer and one of his deputies for their roles in keeping the hack under wraps, which included a $100,000 payment to the attackers.

Compromised data from the October 2016 attack included names, email addresses and phone numbers of 50 million Uber riders around the world, the company told Bloomberg on Tuesday. The personal information of about 7 million drivers was accessed as well, including some 600,000 U.S. driver’s license numbers. No Social Security numbers, credit card information, trip location details or other data were taken, Uber said.
Source: Bloomberg

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Ford Could Exit Parts of South America to Cut Losses

Ford Motor Co. could soon present a fix for the millions of dollars it loses in South America, which might mean exiting parts of the region.

J.P. Morgan analyst Ryan Brinkman wrote in a note issued Tuesday that the automaker’s leadership is considering “an out-of-the-box transformational plan to stanch what it deems as unacceptable losses in South America which we expect could be announced over the short-term. Ford is evaluating strategies in relation to doing business in emerging markets overall. ... It could also entail selective exits from certain markets.”

While the company reported a $1.7-billion profit in the third quarter, it lost $158 million in South America. That was the third consecutive loss there this year. Since 2011, the company has lost $2.6 billion in that region, including $1.1 billion last year.
Source: The Detroit News

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Honda to Use Facebook to Find Owners With Defective Takata Airbags

Honda will use Facebook's custom-audiences tool to find car owners with defective Takata airbags. The tool, which allows advertisers to reach a specified list of users, will match encrypted email addresses associated with recalled vehicle identification numbers to Facebook users.

Takata Corp.'s airbag inflators have been linked to at least 18 deaths and 180 injuries around the world because they can rupture and shoot metal fragments into vehicles.

A report issued on Friday by an independent monitor of the Takata recalls said more than 10 million U.S. vehicles and 18.5 million faulty Takata airbag inflators remain unrepaired in the largest ever auto recall.
Source: Automotive News

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Trump Nominates Michigan Dealer David Fischer for Ambassador to Morocco

President Donald Trump nominated The Suburban Collection CEO David Fischer to be the U.S. ambassador in Morocco.

Fischer, 71, joined his family's dealership business as a service adviser in 1967 before taking over the business in 1990. He has since grown the dealership group to the 15th largest in the U.S., with 35,578 in new vehicle sales in 2016, according to the Automotive News list of the top 150 U.S. dealership groups. The Troy, Mich.-based group operated 49 dealerships and reported almost $2.4 billion in revenue in 2016, according to the list.
Source: Automotive News

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AutoConference LA -- Nov. 28
Los Angeles Auto Show Events Include NADA / J.D. Power Conference LA on Nov. 28

Tom Doll, president and chief operating officer for Subaru of America, Anders Gustafsson, Volvo Cars USA’s new president and CEO and senior vice president for the Americas, and Jeremy Tucker, vice president of marketing communications and media for Nissan North America, are among the industry speakers at AutoConference LA on Tuesday, Nov. 28, 2017.

AutoConference LA, hosted by NADA and J.D. Power, will be held at the InterContinental Los Angeles Downtown, the tallest U.S. building west of Chicago. The half-day conference precedes media days at the Los Angeles Auto Show.

Other speakers include Mark Scarpelli, NADA chairman, Finbarr O’Neill, CEO and president of J.D. Power, as well as a panel discussion the future of autonomous vehicles and an analysis on auto retailing in the California market.

The conference starts with a noon luncheon and ends with a networking reception on the 73rd floor of the hotel, which offers unparalleled views of the cityscape and skyline of downtown Los Angeles. For the complete agenda or to register, visit www.autoconferencela.com.
Source: NADA

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Quotable
"While NADA supports the goals of tax reform, we will not support a bill that does not distinguish between floor plan interest and general business interest."

    -- NADA President Peter Welch, Nov. 21

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