NADA DIRECTOR’S MESSAGE RICK DeSILVA, JR., DIRECTOR, NADA The following is the latest on some of the major issues being addressed by NADA. Please don’t hesitate to contact me at rdesilva@libertycarsnj.com if you have any questions. U.S. COURT RULES IN FAVOR OF NADA IN FTC VEHICLE SHOPPING RULE CHALLENGE The U.S. Court of Appeals for the Fifth Circuit, in a 2-1 vote, recently granted a petition filed by NADA and the Texas Automobile Dealers Association (TADA) to vacate the FTC Vehicle Shopping Rule (CARS Rule). The decision is a victory for the rule of law and a great outcome for consumers. NADA has long emphasized that the rushed, poorly researched, and unnecessary rule would have added massive amounts of time, complexity, paperwork, and cost to the car-buying experience for virtually every customer. NADA ENGAGES WITH TRUMP ADMINISTRATION AND REPUBLICAN-LED CONGRESS NADA has been deeply engaged with the new Administration and the new Congress to work on several top dealer priorities. NADA has wasted no time in arranging meetings at key agencies (EPA, DOT, DOL, FTC, CFPB, Treasury, etc.) as they work to implement President Trump’s agenda. NADA has also met with the new Congressional leadership, key committee chairs, and a number of new members of Congress to convey the industry’s legislative priorities. VOLKSWAGEN/SCOUT DIRECT SALES PLAN IS BEING CHALLENGED Volkswagen AG’s attempt to sell Scout vehicles directly to consumers and compete with its U.S. dealer partners is outrageous and misguided. NADA has made it very clear that this decision will be challenged in statehouses and courthouses across the country. NADA has been working with ATAEs and associations across the country to determine the best paths forward to protect the franchise system while also standing behind Volkswagen and Audi dealers. In December, NADA completed a state-by-state legislative analysis of state franchise laws and provided ATAEs with a robust set of talking points to use in their engagement with local officials. NADA has communicated very clearly on numerous occasions to Volkswagen and Scout leadership that the franchise system is the best and most efficient way to deliver the customer experience that today’s marketplace demands. CALIFORNIA AIR RESOURCES BOARD (CARB) WAIVER IN LIMBO The start of the 119th Congress and the beginning of President Trump’s term present several opportunities to advance the elimination of the Biden Administration EPA’s recent grant of a waiver allowing California to implement its Advanced Clean Cars II (ACC2) program. ACC2 requires new vehicle sales by vehicle manufacturers to be 35% zero emissions vehicles (ZEVs) by 2026 and increases to 100% ZEVs in 2035. Eleven states (including New Jersey) have adopted California’s strict mandate. NADA has engaged with the Trump Administration to express strong support for its intention to direct EPA to initiate a rulemaking to revoke the CARB waiver and has also urged congressional leaders to move quickly on legislation to disapprove the waiver. EPA’S DE FACTO EV MANDATE DOES NOT MATCH CONSUMER DEMAND The EPA’s de facto EV mandate is far too aggressive and far ahead of consumer demand, which is why NADA continues to urge the government to track actual EV sales versus projections and make the necessary adjustments to its requirements to reflect actual consumer demand. President Trump has already worked to freeze or initiate a process to reverse many Biden EV regulations. A top priority for ATD/NADA is also reversing the zero-emission vehicle (ZEV) mandate for heavy-duty trucks. RECENT FTC ENFORCEMENT ACTIONS AGAINST DEALERS SERVE AS A REMINDER In December, the Federal Trade Commission (FTC) announced two enforcement actions against dealerships. The allegations included violations of various federal and state laws regarding advertising; the selling and financing of vehicles; and voluntary protection products. One of the proposed settlements requires (among other provisions) that the dealership pay $20 million. Additionally, the FTC continues holding dealer leadership, as well as the dealership entities themselves, responsible for alleged unlawful behavior. These enforcement actions reaffirm the need for robust training, oversight, and compliance in all aspects of dealership advertising, sales, and finance operations. NADA is presenting a webinar, FTC Enforcement and Your Dealership, on February 20 to educate dealers about these enforcement actions and how to protect themselves. Major Issues Addressed by NADA 10 NEW JERSEY auto retailer
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