Nissan's Lending Arm to Pay $4M Fine Over Allegations of Improper Repossessions

First Up 10/14/20

Nissan's Lending Arm to Pay $4M Fine Over Allegations of Improper Repossessions

Nissan Motor Co.'s U.S. lending arm agreed Tuesday to pay a $4 million fine to settle a government agency's allegation that it improperly repossessed hundreds of consumers’ vehicles, reports Automotive News. The Consumer Financial Protection Bureau (CFPB) said that between 2013 and 2019, Nissan Motor Acceptance Corp., a subsidiary of the automaker's North American unit, "wrongfully repossessed hundreds of consumers' vehicles despite the consumer having made payments" or taken other actions. Nissan must pay up to $1 million to consumers subject to a wrongful repossession. NMAC said it denied wrongdoing but agreed to settle and takes the agency's "assertions seriously and share their commitment to fair practices for all our customers." Read more here (Source: Automotive News). 

Used Vehicle Prices Up as Supply Sinks, But Relief is Coming

It cost a whole lot more to buy a used SUV, car, truck, or van last month than it did before the coronavirus hit, and that almost singlehandedly caused September’s modest consumer price increase, reports The Detroit News. Blame it on the pandemic, which knocked supply and demand way out of whack, causing prices to spike. The average asking price of a used vehicle that was 10 years old or less rose more than 9% from $19,800 in May to $21,600 in September. The good news is that inventories are being replenished, and prices are beginning to drop. “The law of supply and demand worked,” said Earl Stewart, owner of a Toyota dealership in North Palm Beach, Florida. “I think things are coming back to normal.” Read more here (Source: The Detroit News). 

Euison Chung Succeeds Father as Chairman of Hyundai Motor Group

Euisun Chung, scion of the Hyundai Motor Group’s founding family, has been appointed chairman of the South Korean auto giant, taking the reins from his father as the carmaker drives into an era of electrification, automated driving and new mobility, reports Automotive News. The younger Chung, 49, previously the auto group’s executive vice chairman, was promoted to chairman at an extraordinary board meeting, the company said Tuesday. His father, Mong-Koo Chung, 81, was made honorary chairman in the shuffle. Euisun Chung has exerted more influence over the entire auto group in recent years. His father gave up his board seat in Hyundai Motor this year after stepping back from daily operations. Chung joined the carmaker as a director of procurement in 1999 and became president of Kia Motors Corp. in 2005 and vice chairman of Hyundai Motor Co. in 2009. Read more here (Source: Automotive News).

While Down From Previous Years, Lease-Transfer Approvals Stay Consistent in September

While Equifax gave a snapshot of the new leases booked during one week in September, reported how many lease-transfer approval came during the entire month, reports Auto Remarketing. Turns out, Swapalease found that September posted one of the highest approval rates of the years as site officials pegged it at 67.6%, a slight increase from the August rate of 67.1%. Compared to previous Septembers, the reading is down. Swapalease indicated last September’s rate was 72.9%. And in 2018, the September approval rate came in at 69.8%. “This comes as no surprise considering market fluctuations related to the COVID-19 pandemic,” site officials said. While down from previous years, Swapalease did point out the approval rate has been relatively consistent since March when the pandemic intensified and triggered an initial swing. Approval ratings registered in at 69.3% in March and then dropped to 63.8% in April. Read more here (Source: Auto Remarketing). 

Audi to Build Electric Cars Geared to Chinese Buyers From 2024

Volkswagen AG’s Audi is expanding its partnership with Chinese manufacturer FAW as the German premium brand seeks to build more battery-powered cars geared to customers in its largest market, reports Bloomberg. Audi and FAW on Tuesday signed a memorandum of understanding to start a company that will produce electric cars for the Chinese market from 2024, Audi said in a statement. The new cars will be designed to meet the requirements of local premium buyers and use the PPE electric platform developed with Porsche, Audi said. “This decision emphasizes the strategic importance of the Chinese market,” Chief Executive Officer Markus Duesmann said. The companies signed the agreement during a German-Chinese car conference in Changchun. Read more here (Source: Bloomberg). 

Federated Insurance's Claim of the Month – Could It Happen to You?

An employee of a dealership claimed he fell and injured his knee and back while walking to work across a set of railroad tracks from an employee parking lot. An investigation, which included interviews with other employees and a review of surveillance video of the area, revealed that the employee did not fall in that area. 

LOSS AVOIDED: $250,000

Protecting yourself from fraudulent claims of injury is an unfortunate reality of owning a business. Visit or contact your local marketing representative for resources you can use to create or enhance your own risk management program.

Around the Web

The Forgotten British Race Car with Ferrari Flair [WSJ]

Porsche's Great-Grandson on His New Car Company and Its All-Electric Mark Zero [Robb Report]

These Are the 18 Best New Cars for Teens [Fox News]

2021 Honda Passport Review [Autoblog]