NADA Headlines - 07/25/2013 (Plain Text Version)

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NADA Takes CFPB Tips to Task

Jim Henry, special correspondent for Automotive News

The National Automobile Dealers Association minced no words this week when I asked for a comment on the Consumer Financial Protection Bureau’s new “Ask CFPB” consumer education Web site. “The CFPB’s website unfortunately contains statements that are both distortive and contradict other statements that it has made,” Paul Metrey, NADA’s chief regulatory counsel for financial services, privacy and tax. The CFPB site ... includes a tip to consumers to ask dealerships what the buy rate is on their auto loan. The CFPB site says consumers “qualify” for their loan at the buy rate. The Web site also suggests that consumers should offer to pay dealers the buy rate plus a flat fee rather than the buy rate plus any additional interest.  Metrey says ... the Federal Reserve Board ruled years ago that a customer’s final annual percentage rate -- which is always disclosed -- was more relevant for consumers to compare rates. In earlier statements, the CFPB has said dealerships provide a valuable service when they arrange loans. Which is why, Metrey points out, “dealers should be compensated for this service and the Bureau should not use terminology that suggests that dealers are charging consumers more for financing than is otherwise available to them.”
Source: Automotive News

GM Earns $1.2 Billion in Second Quarter

General Motors Co. on Thursday said it earned $1.2 billion during the second quarter, down from $1.5 billion in the same period a year ago, but better than analyst estimates when factoring in special items that cost $200 million. “We continue to perform well in the world’s two most important markets, the U.S. and China,” said GM CEO and Chairman Dan Akerson in a statement.
Source: The Detroit News

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Auto Sales Are In Overdrive As Detroit Goes Bankrupt

Robert Lenzner, Forbes Staff

My jaw dropped and I got wide-eyed looking at a chart showing automobile production this year. I simply didn’t realize that automobile plants in North America are operating at full capacity (I mean near 100% in some cases) and are on schedule to sell the 16 million cars they will produce this year. The automobile industry is booming almost more vibrantly than residential housing, and rewarding investors with solid gains this year, while still selling at low forward multiples of earnings.
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Electric Car Sales Have Doubled, Thanks to High Gas Prices

EVs selling at faster pace than hybrids after their introduction to market

This is a good time to be in the business of selling electric vehicles. Once moribund, sales of electric cars have more than doubled in the U.S. during the first six months of 2013 compared to the same time period in 2012. Americans have purchased 41,447 of plug-in electric vehicles since January. Thirty-six percent of all the electric cars on the road today have been bought in the previous six months. The sales figures mark a bold turnaround.
Source: AOL Autos

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A Life Remembered: Gary Reynolds, the ‘King’ of Lyme, Adventurer and Mechanic

A couple of months before he died on July 11, Gary Reynolds, talking to a reporter, was remembering his boyhood days, when he would “row across Hamburg Cove — with no life preserver — and pitch a pup tent and think it was a hell of an adventure.” Things have changed “drastically” since those days, he said. The character of the town has changed “because [he said this with a smile] the characters are dying off.” Gary, 69 when he died, a son of Lyme, and especially of the Hamburg section of Lyme, was one of the characters who defined the town’s character, and after he died people remembered the many different roles he played....
Source: Shoreline Times (New Haven, Conn.)

Editor's note:
Gary Reynolds, president of Reynolds’ Garage and Marine in Lyme, Conn., represented Connecticut’s franchised new-car dealers on NADA’s board of directors since 2003, and was serving this year as the chairman of NADA’s Public Affairs Committee. He also chaired the Regulatory Affairs Committee (2011 and 2012) and the Dealer Election Action Committee (2010). He also served on several committees, including the Automotive Trade Association Executives, Dealer Operations and Industry Relations. Reynolds was a strong supporter of the National Automobile Dealers Charitable Foundation, naming a record 10 family members to the Ambassadors program. He started in the auto business in 1965 at Ford Motor Co. in Michigan, and later went on to work at the family dealership.
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