NADA Headlines - 07/25/2013 (Plain Text Version)
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.”
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.
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.
EVs selling at faster pace than hybrids after their introduction to market
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....