Captives offer payment relief for customers impacted by Hurricane Laura

In an effort to help those impacted by Hurricane Laura, some captives are offering payment relief and assistance programs. Here is the list of captives offering support so far and their relief packages.

Volvo Car Financial Services

Volvo Car Financial Services has ceased collections temporarily and is offering payment extensions to customers in all ZIP codes impacted in Louisiana, Arkansas and Texas. Volvo Car Financial Services said it is also working on additional sales incentives available to those who have lost their vehicles as a result of Hurricane Laura.

Ford Motor Credit

Ford Motor Credit Co. is offering a disaster relief program to those impacted by Hurricane Laura, the Iowa derecho and California wildfires. The program allows qualified customers to delay one or two monthly payments. Postcards with instructions to request help will be sent to eligible Lincoln Automotive Financial Services and Ford Credit custom…

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JM&A virtual pilot expands with MileOne Autogroup

F&I product and training company JM&A Group is expanding its virtual F&I pilot program to its largest partner yet.

Hall Automotive Group, a division of 80-store MileOne Autogroup, will pilot the program in which JM&A employees sell F&I products via Skype to consumers in dealerships, starting with an initial 90-day phase.

Bill Baker, president for Hall Automotive Group, said the process supports dealership employees overburdened from staffing shortages resulting from the coronavirus pandemic. F&I office staffing fluctuates within the group depending on a store's volume, Baker said. Some dealerships have up to six managers, while others operate with just one.

"You could have absenteeism brought on by potential exposure to COVID. This is another way for us to be prepared for that and be able to backfill when absences occur," Baker said. "This is able to help us in busy stores that get backed up and small stores…

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Consumers concerned about COVID-19 impact on credit

Consumers impacted by the coronavirus have a lot to worry about — paying bills, possibly finding a new job and, of course, staying healthy. But chief among those concerns for many is the potential long-term impacts that pandemic conditions may be having on their credit — and whether the process of determining that score is fair.

A recent study by Finicity, a personal finance and software company headquartered in Salt Lake City, shows many consumers are questioning the credibility of the credit scoring process as a whole.

In a survey conducted in June of nearly 2,000 consumers, 82 percent of respondents said the current credit review process should make it easier for responsible borrowers to demonstrate creditworthiness.

Andy Sheehan, president and COO at Finicity, said most automotive lending decisions aren't incorporating alternative data, such as consumer banking data or utility payments. Perhaps it should, borrowers argue.

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NHTSA unveils tracking tool for voluntary AV testing pilot program

NHTSA has launched an online tracking tool that allows the public to view certain information submitted by states and companies that are testing vehicles equipped with automated driving systems on U.S. roadways.

U.S. safety regulators announced the online mapping tool during a virtual event Wednesday with supporters including Rep. Fred Upton of Michigan and Sen. John Thune of South Dakota, both Republicans.

The interactive tool shows information on automated vehicle testing locations, vehicle and AV technology manufacturers, vehicle type and activity, operational speed and how the vehicle is monitored for safe operation, among other data elements. Participating companies can choose what information they submit to NHTSA.

The tool currently has data for on-road testing activities in 17 cities, including Austin, Texas; Columbus, Ohio; Pittsburgh; Phoenix; San Francisco; and Washington.

"The department is addressing legitimate public concerns regardin…

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Tesla seeks EV advantage with European energy market push

FRANKFURT -- Elon Musk appears to be opening a new front in the European battle for electric-car supremacy: providing power for EVs.

Musk's Tesla has recently acquired a license that will enable the automaker to trade electricity across western Europe and the company has also been surveying customers in Germany about potentially using Tesla electricity in their cars.

Such moves, consultants and energy industry executives say, could set the stage for the company - possibly with one or more partners - to take on established utilities in Germany, Europe's biggest power market and autos heartland.

Generating and trading power could help Tesla lower the running costs of its cars at a time rival automakers, including Volkswagen Group, BMW, Audi, Porsche and Mercedes, are producing new electric models.

Tesla declined to comment about its energy market plans.

It could also step up competition to utilities such as Vattenfall and EnBW, which are inve…

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DAILY DRIVE PODCAST: September 2, 2020 | JM&A's Forrest Heathcott: Dan Chait will be a 'great change agent'

Join Automotive News Publisher Jason Stein for a daily podcast series about the coronavirus crisis. He’ll speak with industry experts, insiders and Automotive News reporters about how the virus is impacting and reshaping the automotive industry.

JM&A Group President Forrest Heathcott and his successor, Dan Chait, discuss what's next for the F&I services provider as Heathcott prepares to retire. The pair also weigh in on how dealers are adapting to virtual finance and insurance solutions amid the pandemic. 

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Consumer Financial Protection Bureau report examines early impact of pandemic on consumer credit

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) issued a report today examining the early effects of the COVID-19 pandemic on consumer credit. 

The report found that consumers have not experienced significant increases in delinquency or other negative credit outcomes as reported in credit record data following the onset of the COVID-19 pandemic in the United States. 

This is in spite of the sharp increases in unemployment resulting from the pandemic.  The report focused on mortgage, student and auto loans and credit card accounts from March 2020 to June 2020, and notes that outcomes may reflect payment assistance provided to American consumers through the CARES Act.

Using the Bureau’s Consumer Credit Panel (CCP), a nationally representative sample of approximately five million de-identified credit records maintained by one of the three nationwide consumer reporting agencies, the report shows that new delinquencies fell…

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Ford to cut 1,400 U.S. salaried jobs through buyouts by year end

DETROIT -- Ford Motor Co. said on Wednesday is targeting the elimination of 1,400 U.S. salaried jobs by year end as part of its ongoing, multiyear $11 billion restructuring.

The layoffs will be achieved through voluntary buyouts, the U.S. automaker said in an email sent to employees. The buyouts will be offered to employees who are eligible for retirement.

"We’re in a multiyear process of making Ford more fit and effective around the world," Ford's Americas President Kumar Galhotra said in the email. "We have reprioritized certain products and services and are adjusting our staffing to better align with our new work statement."

Ford has said it was targeting a 10 percent operating margin in North America. Last year, before the coronavirus pandemic hit operations, Ford's North American operating margin was 6.7 percent.

The company previously said it expects a full-year loss because of the pandemic's impact. It expects a pre-tax profit of between $5…

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JM&A President Forrest Heathcott to step down

After 13 years as president, Forrest Heathcott said Tuesday he will retire in early 2021 from JM&A Group, one of the largest providers of finance and insurance products in the U.S.

He will be succeeded by Dan Chait, 53, president of sibling company Southeast Toyota Finance. The company is the captive lender to Southeast Toyota Distributors, the independent distributor of the automaker's vehicles to 177 dealers in five states.

Heathcott, 63, joined JM Family Enterprises in 1993, holding positions at JM&A Group as well as Southeast Toyota Distributors and its finance arm.

He said he began discussing succession plans with JM Family executives more than a year ago.

"I have been in this business for 42 years, since I graduated from college, and it is time for me to enjoy my family and interests and allow someone else to bring new ideas and energy to the position," he said in an email to Automotive News.

Heathcott most recently navigate…

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Frontal airbags become mandatory U.S. safety gear in Sept. 1998

Beginning Sept. 1, 1998, all cars and light trucks sold in the U.S. were required to have airbags on both sides of the front seat to protect driver and passenger, as required by the Intermodal Surface Transportation Efficiency Act of 1991.

As a result, frontal airbags have been standard equipment in all passenger cars since model year 1998 and in all SUVs, crossovers, pickups and vans since model year 1999.

The concept of airbags has been studied since the 1950s.

Walter Linderer of Germany sought an application for a rudimentary airbag.

In the U.S., industrial engineering technician John Hetrick, inspired by inflatable protective covers on Navy torpedoes, patented a design for a "safety cushion assembly for automotive vehicles" in 1953. He later sent sketches of the device to Ford Motor Co., General Motors and Chrysler, which never responded. However, GM and Ford did undertake airbag research in the 1950s.

In…

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2021 Bentley Bentayga: A steady, grand, blissful ride

For the 2021 model year, Bentley has freshened the Bentayga, an SUV that has been critical to the British automaker since it first arrived in the U.S. in 2016. With the update, Bentley is launching the V-8 variant first, which has 542 hp and 568 pound-feet of torque. Inside, a new sleek digital instrument cluster is found along with a high-resolution 10.9-inch touch screen, with standard wireless Apple CarPlay. Here's a roundup of initial Bentayga reviews from the automotive media.

"How does the 2021 Bentley Bentayga drive? Why, exactly the way it's supposed to. The 542-hp twin-turbo V-8 toils in silence until you boot (or perhaps we should say Gucci-loafer or Louboutin-heel) the pedal, at which time it musters all the power you could ever want in such a vehicle. Bentley claims a 0-60-mph time of 4.4 seconds, but it's the always-ready, always-on nature of the boosted V-8 that really stands out: Power is perpetually ready. The V-8 is the only power choice for now, by …

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A digital playbook for beyond the pandemic

Since March, the coronavirus pandemic has forced dealerships to do more digitally, virtually, remotely.

We've chronicled a number of those efforts in our pages, converting our weekly Best Practices feature into stories of dealerships operating in a time of crisis. The fortuitous decision to launch a digital retailing platform before skyrocketing numbers of COVID-19 cases shut showroom doors to limit exposure. Converting a van into a mobile finance-and-insurance office to complete remote transactions. Using video to check in with employees and offer mental health support.

This week, I wrote about Walser Automotive Group in Minnesota, which spun up a suite of remote services — from vehicle pickup and dropoff for service work, to at-home test drives and deliveries — to generate business in the pandemic's early days this spring.

What started as a "fly by the seat of your pants" effort to create the service concierge program has been refined over the weeks in…

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