November 17, 2015
H.R. 1737 Will Create Transparency and Maintain Affordable Auto Credit
Consumers benefit when they finance through dealerships, writes NADA’s Peter Welch in an opinion piece for The Hill. The CFPB has sought, through “guidance,” to make it impossible for dealers to discount interest rates for their customers, even for customers facing serious budget constraints. The main problem with the CFPB’s policy is that, while well intentioned, it will reduce competition and raise credit costs, thereby hurting the very consumers it is trying to help. This week the House will consider a bill (H.R. 1737), that would rescind the CFPB’s flawed auto finance “guidance,” and require transparency and public participation before issuing new guidance. The bill also directs the CFPB to study the consumer impact of eliminating a car buyer’s ability to get a discount in the showroom. The CFPB has admitted to Congress that it failed to undertake this fundamental analysis before issuing the flawed guidance. H.R. 1737 and the automobile compliance program would ensure fair access to credit for everyone, while preserving a consumer’s ability to get discounted interest rates and competitive credit. For more on why H.R. 1737 is a good idea for everyone in the car buying process, click here.
VW Readies Beetle Dune, Denim for U.S. Showrooms
Volkswagen officials hope that a high–performance Golf hybrid concept with more horsepower than a Ford Focus RS and two special-edition Beetles coming next year will quiet some of the chatter over its emissions scandal this week at the Los Angeles Auto Show, reports Automotive News. VW is showcasing an updated version of the Beetle Dune, which takes styling cues from the off-road Baja Bugs popular in the 1960s and 1970s in California. VW has dangled Beetle Dune concepts before but promises the latest version will be built starting next year in coupe and convertible models. The second special Beetle, the Denim, is a limited-run model that pays tribute to the Beetles of the 1970s that had special interiors and other trim. The Denim’s redo is all cosmetic, but very thorough. The convertible version features a dark blue top with textured fabric that looks like denim. Inside, the dash pad is light blue and silver. The seats sport light blue, denim-colored cloth with white piping and blue accents. They have small pockets with red tabs. Read about VW’s plans for its new Beetle models by clicking here.
VW Sales Dip in Europe, But No More Than Competitors
European car buyers appear reluctant to punish Volkswagen for its emissions scandal, penalizing the German automaker’s sales last month no more than some of its mass-market competitors, reports The Detroit News. The European car market expanded 2.9 percent in October, topping 1.1 million units as growth slowed in all major markets, according to new figures released Tuesday by the European carmakers’ association ACEA. The expansion marked the 26th straight month of growth, albeit sluggishly with two of the biggest markets, France and Germany, growing by just 1 percent, and Britain contracting by as much. Volkswagen remained the top seller, commanding a quarter of the market, in the first full month of figures since it acknowledged cheating on U.S. diesel emissions tests. Volkswagen brand sales slipped 0.2 percent, while all of Volkswagen group sales — including the brands SEAT, Skoda, Porsche, Audi, and Lamborghini — dropped 0.5 percent. By comparison, mass-market competitor PSA Peugeot Citroen saw sales fall 0.9 percent, while Renault sank 0.7 percent. German luxury carmakers BMW and Daimler posted double-digit increases, up 13 percent and 21 percent respectively. For more on VW’s European sales, click here.
16 Cars Owners Love the Most
Love makes the world go ‘round, and while friends and acquaintances may come and go like so many buses, true love never dies. Apparently that’s as much the case with our cars as it is with our relationships, according to Yahoo! Autos. To make sense of our vehicular affections, the consumer research mavens at Strategic Vision in San Diego have created the first “Consumer Love Index.” Based on a survey of more than 44,000 car owners, the company’s press release says it “reveals which vehicles are doing the best at creating love, and shows why they can be more successful than their competition.” Perhaps not surprisingly, Generation Y millennials, with their youthful hormones still raging, were found to be far more passionate about their trusty rides than motorists in other demographic segments. Hybrid car owners are perhaps the most protective motorists in the clinches. As one might guess, the researchers found that Asian automakers tend to score highest among owners in the most economically sensitive segments, with the Europeans establishing the deepest emotional connections among luxury buyers and the domestic brands making the most whoopee among truck, SUV, and convertible drivers. Click here to find out more about which vehicles car owners love the most.
Honda Finds Its Marketing Rhythm
It's a hot October afternoon at the annual Austin City Limits Music Festival, and revelers have found shade anywhere they can: the few trees dotting the park where the event is held; a camp chair from home with a built-in awning; and the Honda HR-V parked on a small stand next to the festival's artist-signing shack. According to Automotive News, Honda, as it turns out, also wants to be cool – cool enough to make an impression on the hundreds of thousands of millennials who pack the park for two weekends every fall. Hence the HR-V on-site and the massive Honda Stage it faces, where popular acts such as The Weeknd, Alabama Shakes, and alt-J perform. Honda's presence in Austin is part of a massive marketing effort that uses music to attract the fleeting attention of millennial car-buyers. The push, which started in June 2014, includes sponsorship of three high-profile music festivals – Austin City Limits, Governors Ball in New York, and Music Midtown in Atlanta. Honda also partners with Live Nation, Sean Combs' REVOLT TV cable network, iHeartRadio, Vevo, and YouTube to aggregate videos of its live shows on the Honda Stage YouTube channel. Read more about Honda’s targeted millennial marketing efforts here.
Last Chance to Register! Increase Sales, Gross, and CSI Through an Interactive Buying Experience
Coming right off Digital Dealer in Las Vegas, don’t miss this opportunity to listen to an abbreviated, 20-minute version of one the most popular presentations presented to the top management of OEMs and Dealer Groups. Ali Mendiola, Senior Manager of Business Development, Dealertrack technologies, will share projected automotive shopping habits of today’s online consumer and how dealers can leverage technology advancements and staff to address new car shopper’s expectations. Plus, learn how to review best practices on how dealers are increasing CSI, sales, and gross profit by integrating website tools and tablet selling techniques into the sales process. Join us Tuesday, November 17th for this no cost webinar. To register for the 10:00 a.m. EST session, click here. To register for the 4:00 p.m. EST session, click here.
Around the Web
2017 Mini John Cooper Works Countryman Spy Shots [MotorAuthority]
Kia Wants 11 Green Cars by 2020 [Autoblog]
This is What Too Much Power Looks Like in a Corvette [Jalopnik]
Hot New Cars Revealed at LA Auto Show [USA Today]