NADA DIRECTOR’S MESSAGE NADA Addresses Major Issues RICK DeSILVA, JR. The following is the latest information on some of the major issues being addressed by NADA and was discussed at the most recent NADA Board Meeting. FTC “VEHICLE SHOPPING RULE” The FTC’s proposed “Vehicle Shopping Rule” would inject massive amounts of time, cost, and complexity into the vehicle sales process, undermining industry efforts to streamline and improve the customer experience. NADA has urged the FTC to scrap the proposed rule and go back and propose a rule through a responsible regulatory process involving all stakeholders. On October 4, Senators Moran (R-KS) and Manchin (D-WV) introduced S. 3014, the “FTC REDO Act.” The bill would stop the proposed rule and offer the process the FTC must follow to “redo” the proposal. The bill also amplifies the concerns expressed by both Republican and Democratic members of Congress that believe the FTC’s rushed and irresponsible approach will add frustration and confusion to the car buying process, therefore making it more costly for consumers. NADA expects the legislation to also be introduced in the House and will be seeking co-sponsors to demonstrate bipartisan support to stop this rule. FEDERAL EMISSIONS RULEMAKINGS America’s franchised new-car and -truck dealers are doing their part to be ready for the increasing electrification of the fleet. Over the next decade, franchised dealers will invest more than $5 billion in training and equipment necessary to facilitate an unbeatable consumer experience when it comes to EV education, sales, and service across the entire market. Yet, any significant level of EV penetration into the mass market will require a broad, unified strategy that recognizes the importance of factors such as affordability, charging infrastructure, utility capacity, resources for battery manufacturing, model availability, and consumer incentives. The Biden Administration’s policy actions, including the most recent proposed emissions rulemaking from EPA and DOT, disregard critical demand-side marketplace factors. Its approach (shared by ZEV states like New Jersey) is based on overly aggressive assumptions regarding future EV market penetration and has the effect of promoting electric exclusively at the expense of ICE, hybrid, and other alternative-fuel vehicles. The EPA’s proposed rule is expected to be finalized by the first half of 2024, with the DOT’s rule following shortly thereafter. NADA will continue to advocate for technology-neutral emissions standards that maximize fleet turnover as opposed to inhibiting it. LIFO RELIEF Congressional leaders continue to express support for retroactive LIFO relief legislation for dealers. Under the “Supply Chain Disruptions Relief Act,” Congress would determine that the conditions necessary to grant additional time to replace vehicle inventories under existing law due to pandemic-related foreign trade interruptions have been met. While vehicle inventory is recovering, the LIFO recapture penalty has imposed massive tax bills on small business dealerships that will take years to recover. Dealers should remind members of Congress that this technical and noncontroversial legislation would merely provide relief to dealers whose inventories disappeared due to an unprecedented interruption of global supply chains. 12 new jersey auto retailer
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