NADA UPDATE One of NHADA’s strongest affiliations is with the National Automobile Dealers Association (NADA), who represents more than 16,000 new-car dealers. NADA advocates on your behalf before all branches of the federal government, manufacturers, the media and the public. Similar to the NHADA, keeping their Political Action Committees (PACs) well-funded is crucial to the success of their governmental advocacy (see page 8). As of this writing, some of the top legislative and regulatory priorities include: FTC RULES AND REGULATIONS Safeguards: NADA is working diligently to educate members on how to comply with the Federal Trade Commission’s updated data and information security requirements for dealers. Important: The deadline for complying with some of the updated requirements of the Safeguards Rule is now June 9, 2023. For more information on this topic, including a comprehensive Driven Guide for dealers that contains step-by-step instructions for compliance, as well as a series of links, template policies, exhibits, IT guidance and more, please visit https://www.nada.org/safeguardsrule. Voluntary Protection Products: NADA is working on combatting the FTC’s proposed rules that would more tightly control Voluntary Protection Products (VPP). Voluntary protection products can offer customers valuable protections against unexpected and potentially costly events such as floods, hail damage, theft, vandalism, vehicle accidents, mechanical breakdowns or the customer’s death, disability or unemployment. Dealers should strive to develop VPP policies to ensure these products are offered, sold and administered in a professional and consumerfriendly manner. Scan the QR code to download a template for a VPP policy, available through a Driven guide. https://www.nada.org/nada/education-consulting/driven-managementguide/voluntary-protection-products-model-dealership LIFO ACCOUNTING LIFO (last in, first out) is a longstanding inventory accounting method used by businesses to help mitigate rising inventory costs. Due to the pandemic, significant supply chain issues, and the worldwide shortage of semiconductors, many automobile dealerships suffered significant decreases in inventories compared to previous years and were left with no way to replenish vehicle inventories. This left many dealerships that use the LIFO method of accounting for inventory with significant LIFO recapture exposure. Currently, there is bipartisan and bicameral support in Congress for legislation to address supply chain and semiconductor shortages during the pandemic that severely impacted vehicle production. Both Senate and House versions of the “Supply Chain Disruptions Relief Act” have generated broad support from significant numbers of Democrats and Republicans, and NADA is hopeful Congress will pass this technical and noncontroversial legislation to allow businesses on LIFO extended time to replace vehicle inventories as pandemic-related global disruptions and reduced auto production made it nearly impossible to replenish new vehicle supply. NADA advocates on your behalf before all branches of the federal government, manufacturers, the media and the public. BY DAVID HAMMER NADA DIRECTOR MARCH 2023 7
RkJQdWJsaXNoZXIy MTg3NDExNQ==