NADA DIRECTOR’S MESSAGE NADA Working on a Wide Variety of Critical Legislative Priorities RICK DeSILVA, JR. Below is a recap of some of the most critical legislative priorities that NADA is addressing on half of franchised new car and truck dealerships across the country. NADA AIMS FOR “DO OVER” ON THE FTC’S $38 BILLION “VEHICLE SHOPPING RULE” The Federal Trade Commission (FTC) recently proposed a “Vehicle Shopping Rule” that would overwhelm car buyers and small businesses with additional paperwork and needlessly lengthen the sales process. The rule was proposed without credible analysis or the necessary time for public comment to avoid unintended consequences for consumers and small businesses. A comprehensive study by the Center for Automotive Research found that the rule would cost businesses more than $38 billion over the next decade. Overall, the FTC’s proposed rule would make the auto buying experience worse, not better, for consumers. The “FTC REDO Act” directs the FTC to “redo” its flawed “Vehicle Shopping Rule,” but this time with basic regulatory safeguards the agency should have properly undertaken in the first place. The bill requires the FTC to 1) issue an Advance Notice of Proposed Rulemaking; 2) conduct a quantitative study on auto retailing; 3) conduct consumer testing; and 4) publish a cost benefit analysis based on actual data. The FTC failed to perform any of these essential steps before proposing its rule. Additionally, earlier this Summer, the House Appropriations Committee reported out an appropriations bill (H.R. 4664) which included language that stops the FTC from finalizing, implementing, or enforcing the “Vehicle Shopping Rule.” NADA is urging members of Congress to cosponsor the “FTC REDO Act” to prevent the agency from needlessly imposing significant burdens and costs on consumers and small business dealers. EV MANDATES GO TOO FAR TOO FAST The Environmental Protection Agency (EPA) recently proposed new emissions standards that would effectively require 67.5% of U.S. car sales to be electric by 2032. New car and truck dealers are essential to sell and service EVs and have already invested $5 billion of their own capital in the tools, equipment, training, and recharging infrastructure, which are critical to laying the foundation to move from early adopters to mass marketing EVs to the average consumer. Despite federal incentives, customers are not purchasing electric vehicles in the quantities required for automakers to meet these different government mandates. The current EPA proposal ignores real-world consumer demand and, as a result, goes too far, too fast. Consumers are not moving as fast as the proposed regulations, largely because of other changes needed to make EVs broadly attractive to consumers: affordability, a sufficient and reliable charging infrastructure, and acceptable charging speeds. 12 new jersey auto retailer
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