Pub 11 2021 Issue 2

17 At issue are the benefits to consumers and the Illinois economy generated by more than 700 dealers operating 2,300 franchises across the state. Those benefits include: • Consumer protection: Dealers maintain service centers with trained staff to perform all recall and warranty re- pairs, where the dealers act as advocates for the consumers with the manufacturers. • Availability of parts and service: Dealers maintain an inventory of parts and provide timely service to consumers who depend on the daily use of their vehicles. • Price competition: Consumers have many choices, with the competition among dealers saving buyers money. Di- rect sales from manufacturers result in a monopoly that offers no price benefit. • Community benefits: The franchised dealers are long-estab- lished local businesses that generate millions of dollars of revenue and economic development, employ 42,000 people across the state and support many local causes and events. “We welcome new manufacturers to Illinois, especially those who are building innovative vehicles,” said David Sloan, President of the CATA. “Our franchised members already sell dozens of electric and hybrid vehicles. We ask that manufac- turers sell them in Illinois according to state law. We’re not demanding they cease operations in the state, just that they franchise a dealer.” Over the past several years the two dealers associations have sought enforcement from the Secretary of State’s office. The state agency initially granted Tesla a license to sell electric ve- hicles from a small number of locations in Illinois. The associa- tions agreed to a settlement on the Tesla issue only if the Secre- tary of State vowed to strictly enforce the law going forward. That promise from the state agency now appears to be in jeop- ardy. In the lawsuit, the groups charge that the office has made “excuses to avoid its enforcement duties” and has “walked a thin line” between enforcement while eroding the requirements regarding new companies seeking to sell in Illinois. In recent months, the Illinois Attorney General’s office has is- sued an informal opinion that directly conf licts with state laws, according to the IADA and the CATA. As a result, the auto dealers associations are now seeking a court order requiring the Secretary of State to enforce existing state laws regulating the sale of new vehicles. The lawsuit also seeks an injunction halting further issuance of dealer licenses to vehicle manufacturers. “Our patience has run out,” said IADA President Sander. “It is time for everyone to step back and let the court decide what is in the best interest of the people of Illinois. There are too many conf licting signals coming from those who are charged with regulating our industry as well as protecting consumers and Illinois employers.” The economic impact of automotive sales in Illinois is signifi- cant. Each year the industry generates $34.4 billion in sales resulting in $2.2 billion in state sales tax, which is 14 percent of all state sales tax generated annually. In addition to the 42,000 directly employed, the industry indirectly supports another 50,500 jobs. The IADA and CATA were joined in the lawsuit by the Peoria Metro New Car Dealers Association and the Illinois Motorcy- cle Dealers Association, as well as numerous franchised dealer- ships. The lawsuit was filed in Cook County Circuit Court.  Contact : Col leen Dudgeon, Seraf in Col leen@seraf in.com , 773-805-0353 About IADA: The Illinois Automobile Dealers Association is a trade organization that has been protecting and promoting all franchised car and truck dealers in Illinois for over 100 years. IADA's primary mission is to represent franchised dealers before the Illinois Legislature and various Regulatory Agencies. IADA is located in Springfield, IL. For more information about the organization, please visit: illinoisdealers.com. About CATA: Founded in 1904 and located in Oakbrook Terrace, the Chicago Automobile Trade Association is comprised of more than 400 franchised new-car dealers and an additional 150 allied members. The group’s dealer members employ about 19,000 people in the metropolitan area. The association has produced the world famous Chicago Auto Show since 1935. For more information, please visit CATA.info. Over the past several years the two dealers associations have sought enforcement from the Secretary of State’s office. The state agency initially granted Tesla a license to sell electric vehicles from a small number of locations in Illinois.