I recently returned from an NADA Finance Committee meeting in New York. While there, I was able to attend the NADA/JD Power Automotive Forum. This was the fifth annual one-day event, originally organized by NADA, bringing together leaders from OEMs, suppliers, retailers, and the media to discuss how industry and economic conditions will shape the future. Dealers have participated in forum panels in years past, but never has the NADA Chairman addressed the group.
This year, NADA Chairman Forrest McConnell kicked off the NADA/JD Power Automotive Forum with a great speech about the consumer benefits of the current franchise dealer network for sales, service and handling vehicle recalls. But he used his southern wit and charm (and colloquialisms) to bring his message to a level all could appreciate.
Just a sample of McConnell's magic: "If you tip a waiter 10% you're cheap. If you tip 3% they're on you like a rat on a Cheeto. The franchise system is a model that drives competition up and prices down. It is singlehandedly the best model for selling vehicles anywhere. The auto industry needs the franchise system."
Forrest is a great ambassador for the nation's dealers. But I'm thinking that the Yankees in the room had a visual on the big fat rat (with sunglasses) eating a Cheeto that mighta caused them to miss the rest of his point!! Gotta love those southern colloquialisms.
These links will give you more information on McConnell's speech. You can see his CNBC interview here.
Consumer Finance Protection Bureau Seeks to Shape the Message
I don't know if you saw this article in American Banker but it really lays out how the Consumer Finance Protection Bureau works (dubiously) to shape the media's message to the public by bringing in hired guns and imposing midnight media embargoes to prevent opponents from commenting in the same news cycle. This would seem to be all fair in a competitive business world but not in the context of a government shaping its message to the public.
I agree with the comment at the end of the article: " Objectivity and transparency continue to be challenges for the CFPB. But rather than cure these deficiencies, the Bureau appears to be increasing its biases and opacity."
Economic expansion and a supportive credit environment will keep used prices stable
Average wholesale prices of used cars and light trucks up to eight-years-old will decrease by a range of 0.5% to 1% in 2014, according to the NADA Used Car Guide in its latest report, 2014 Used Vehicle Price Forecast (which you can download here). This modest drop will keep levels on par with 2012 and 14% higher than 2010. “Economic growth is expected to accelerate to its fastest pace since 2005, keeping demand for new and used autos high,” said Jonathan Banks, executive automotive analyst for NADA Used Car Guide. “A strong economy, combined with other positive factors, leads to a more positive outlook for used vehicle prices in 2014.”
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