January 5, 2015
ON THE WEB: Ratings Agency Calls Auto Sector ‘Stable’
Fitch Ratings expects the credit profiles of U.S. auto manufacturers and suppliers to strengthen in 2015 despite slower growth in auto sales. Fitch’s ratings outlook is positive while the overall sector outlook is stable.
Pent-up Demand, Falling Rates Drive Subprime
Falling subprime rates and pent up demand through the recession have driven strong growth in subprime auto loans and leases, although buy-here, pay-here growth has remained relatively even, reports the Center for Financial Services Innovation and Core Innovation Capital.
Small Business Owners Grow More Confident
The NFIB Small Business Optimism Index jumped up 2 points to 98.1, just a tick lower than its historical average before the Great Recession. Expectations for business conditions six months out rose a huge 16 percentage points.
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Manheim Announces President,Partnership Cox Automotive announced that Janet Barnard is taking on the role of president of Manheim North America, effective immediately. Barnard previously served as executive vice president and chief operating officer. In her new role, Barnard will continue to lead the company’s core vehicle auction business that includes 78 operating locations and a team of more than 18,000 employees. “Janet has done a tremendous job of reinforcing Manheim’s position as an industry leader and setting a vision for the company’s long-term success,” said Cox Automotive President Sandy Schwartz. Prior to joining Manheim, Barnard served as senior vice president and general manager for Cox Communications’ Central Region. Prior to that, Barnard served as senior vice president and general manager for other Cox Communications regional business areas, including Northern Virginia, Middle America and Omaha. Barnard joined Cox in
File photo IN THE DRIVER’S SEAT: Janet Barnard accepts a women in technology award during a recent ceremony. In addition to her new role as Manheim’s president, Barnard is active in various technology campaigns.
1988 as the accounting manager for Middle Georgia operations. Cox also announced that DriveTime has selected Manheim and Go Auto Exchange as exclusive remarketing partners. This partnership makes Manheim and Go Auto Ex-
change DriveTime’s primary source for remarketing wholesale inventory through its physical locations, mobile auctions and online. DriveTime operates 122 stores in 47 markets. Manheim and DriveTime have been working together for several years. This
includes the creation of Go Auto Exchange, a new wholesale auction company focused on independent dealers and the low-end vehicle segment, and Manheim’s equity stake in Go Financial. which provides dealers with financing options via NextGear Capital.
Regulators Continue to Turn up Heat on Auto Finance Credit Acceptance Corp. is the latest finance company to face regulatory scrutiny. Credit Acceptance executives announced that they have received a civil investigative subpoena from the U.S. Department of Justice directing the company to produce certain documents relating to subprime automotive finance and related securitization activities. Earlier in December, the company received a civil investigative demand from the Massachusetts attorney general relating to the origination and collection of non-prime auto loans in Massachusetts. More state regulators are following the federal govern-
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ment’s lead. Recent press accounts said the New York Department of Financial Services is probing several high profile auto creditors, including Santander, TD Bank and several captives. The New York regulator is said to be looking at their exposure to autos financing, especially subprime financing. American Honda Financial Corp. also recently announced it was facing charges from the Consumer Financial Protection Bureau and the Justice Department for discriminatory credit practices. Honda Financial said the regulators are seeking monetary relief and changes to pricing practices and policies.
12/19/14 9:55 AM