New Jersey began the new year with Democrats controlling the State Assembly, the State Senate, and the Governor’s Office. On Election Day this past November, Democrats increased their majority in the Assembly by five seats, giving them a 57-23 advantage, while Mikie Sherrill won an overwhelming victory as New Jersey’s next Governor. Democrats also hold a 25-15 majority in the Senate. This will provide New Jersey’s franchised new car and truck dealers with an opportunity to continue strengthening their relationship with the legislature and work with Gov. Sherrill to grow the industry while tackling challenges posed by federal policies from previous administrations. On January 20, 2026, Governor Mikie Sherrill inherited a political landscape plagued by affordability concerns, federal policy uncertainties, and tariffs that not only impact auto consumers and dealerships but also the entire State economy. Franchised new car and truck dealers in New Jersey must stand ready to work with the Sherrill Administration to meet the challenge of balancing affordability issues with common-sense policies while navigating an uncertain federal landscape. Affordability is a leading concern for New Jersey residents and businesses alike. New Jerseyans are wrestling with one of the highest costs of living in the nation, and dealerships are no exception. The tariffs imposed under the Trump Administration in 2025 add to this burden across the board. During her campaign, Gov. Sherrill acknowledged voters’ concerns about the high cost of living by centering her platform on energy and economic policy through the lens of cost relief to both residents and businesses that call New Jersey home. For new vehicle dealers, there is a need for balance that recognizes the consumer market has accepted electric vehicles but clearly shows the desire for options to remain for gas and hybrid models. This balanced approach for new electric vehicles must include the continued investment in charging infrastructure without fiscally straining New Jersey consumers and dealers. The Trump administration’s rollback of fuel economy emissions standards will force the Sherrill Administration and New Jersey Legislature to re-evaluate the State’s current policy on issues like the EV sales tax exemption phaseout while attempting to prioritize clean emissions and electric vehicle initiatives. In 2021, the New Jersey Department of Environmental Protection (NJDEP) adopted the Advanced Clean Truck (ACT) framework, requiring manufacturers of medium- and heavy-duty vehicles for model years 2025 and 2026 to sell an increasing percentage of zero-emission models annually, supporting the State’s zero-emission goals. This leads us to ask: Is it still possible to enforce the November 2023 NJDEP adoption of Advanced Clean Cars II (ACCII) in New Jersey? ACCII requires that vehicle manufacturers meet zero-emission vehicle (ZEV) sales targets, beginning with model year 2027 and ramping up to 100% ZEV sales by 2035. The Sherrill Administration must balance affordability and clean-energy goals. However, ACCII could limit consumer choice at a time when choice is essential to keeping cars affordable as electrification infrastructure is still being developed in New Jersey to address potential increases in demand. Shifting to clean vehicles should occur on a more flexible timeline that allows infrastructure to be built for the expected capacity. Rolling out the ACT framework also underscores the challenge of implementation before adequate charging stations are available for trucks, which would create a mandate that is both costly and impractical for dealers and the businesses they serve. Without recalibrating these policies to reflect current federal priorities and on-the-ground realities, New Jersey risks advancing goals that outpace the State’s capacity to achieve them. NJ CAR will continue to inform, educate, and collaborate with policy leaders on the significant role New Jersey’s franchised new car and truck dealers play by reinforcing the economic benefits they provide throughout the State. Just this past year, NJ CAR fought on behalf of dealership customers and employees to pass the “Motor Vehicle Open Recall Notice & Fair Compensation Act.” Signed by Gov. Murphy in September 2025, this law prevents manufacturers from shifting the financial burden of safety recalls onto local dealerships. Policies like this demonstrate that New Jersey leaders — such as Senate President Nicholas Scutari and Assembly Speaker Craig Coughlin — will support innovation in the industry, safeguard the economic stability of its dealer network, and continue to fight for New Jersey consumers. As the State considers future laws on energy policies, electric vehicles, and emerging technologies, it must continue to balance mandates without undermining the businesses that employ New Jersey residents and keep the State’s economy growing. 21 NEW JERSEY auto retailer
RkJQdWJsaXNoZXIy MTg3NDExNQ==