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General news round-upBack


NADA, NAMAD and AIADA Issue Statement on CFPB Proposal to Oversee Nonbank Auto Finance Companies

In response to the Consumer Financial Protection Bureau’s proposal to oversee larger nonbank auto finance companies, the National Automobile Dealers Association (NADA), the National Association of Minority Automobile Dealers (NAMAD) and the American International Automobile Dealers Association (AIADA) issued the following statement:

“As stated on numerous occasions, NADA, NAMAD and AIADA strongly oppose discrimination in any form and fully support the efforts of the CFPB, the Department of Justice, the Federal Trade Commission and other federal agencies to eliminate it from the marketplace.

“However, the CFPB has again failed to fully disclose its methodology for measuring for the presence of disparate impact. There are legitimate, market-based reasons for disparities in interest rates – from monthly budget constraints, to the presence of more competitive offers, to inventory reduction considerations – all of which are nondiscriminatory and all of which can be documented in the transaction. A better solution would be for lenders to adopt a robust retail compliance program that documents the basis of the pricing decision to effectively reduce the risk of discrimination in the purchasing process. The Department of Justice has created such a risk mitigation model, and we encourage the bureau not to overlook this common sense approach to addressing fair credit risks in the auto financing market.

“With respect to the proxy methodology report released by the CFPB, many of the questions that Congress and others have asked remain unanswered. We look forward to rigorous peer review to ensure that the tools the bureau is using to address fair credit concerns may actually accomplish its goals.”


MGlogoMG opens pop-up dealerships in shopping centres

MG Motor is to install two pop-up dealerships in shopping centres in the Midlands this month. The decision to go with the new outlets follows the success of a pop up in Westfield Merry Hill, which has been running for a year.

The pop-ups, which will open for short periods in September, are in Touchwood Shopping Centre in Solihull and Kingfisher Shopping Centre, Redditch. MG Motor has been growing its network and now has 50 dealerships and 13 aftersales centres in the UK. Recent additions include County MG in Bicester, Maidstone MG, Purbeck MG in Wareham.

Since November 2013, new MG dealerships have opened in south Sheffield, Dudley, Gloucester, north Sheffield, Woking, Spalding and Barnes in West London. It has also gained representation in Newcastle, Leicester, Harrogate, Doncaster, Northampton, Swindon, Norwich, Falmouth, Brecon, Maidstone, Wareham on the Purbeck peninsula, Oxfordshire and Exeter.

Source: Motor Trader

CitroenDSCitroen DS to become stand alone brand in the UK

Citroen has announced that its DS sub-brand will be split off and marketed separately in the UK. The move has been likely for some time, not least because Citroen currently markets DS as a stand-alone brand in Asia.

There, DS models are even sold from separate dealerships.

And, following its unveiling of a new concept model, the Divine DS, Citroen has made its plans public. Unlike DS models now on sale in the UK, the Divine carries no Citroen badging.

Citroen says that the separation will have little if any short-term effect on the way it retails DS models in the UK, keeping the existing ‘showroom-within-a-showroom’ set-up for now. The company didn’t, however, rule out the sale of DS models from dedicated sites at some point in the future.

Citroen has also said that if the split goes to plan the company will consider internal reorganisation, better to support the two brands.

The car-maker says Citroens will now be defined by affordability and practicality, while DSes will be more about distinctive styling, sophistication and luxurious interiors. The Divine DS is to appear at the Paris Motor Show next month.

For the year to August, Citroen has sold 52,272 cars in the UK, giving it a 3.41% market share. But while UK sales of all cars are up by 10.1% so far in 2014, Citroen’s have increased by only 2.31%. DS models account for a third of that total, with the DS3 supermini taking by far the biggest share.

Source: Auto Retail Network

Posted by Sue Robinson on 19/09/2014