Pub. 2 2023-2024 Issue 2

NADA NOTES MESSAGE FROM NADA DIRECTOR STEVE MIDDLEBROOKS NADA DIRECTOR Dear GADA members, GADA Board of Directors and staff, Before sharing the latest NADA news, I want to take a moment to thank you for the tremendous opportunity to serve on the GADA Board of Directors in various roles for the past 20+ years, as well as serving as your director on the NADA Board of Directors for the past several years. It has been an honor and a privilege to represent you, as I conclude serving as your NADA director effective June 30, 2024. Please know that both GADA and NADA work tirelessly to represent you, navigating many legislative, regulatory and franchise issues, the media, and the public. The following is an update on major NADA initiatives. EPA EMISSIONS RULE The Big Picture: The EPA’s final vehicle emissions rule, which solidifies GHG standards for model years 2027 through 2032, remains far too aggressive and far ahead of consumer demand. What’s Next: America’s franchised new car and truck dealers will continue to: • Promote electrification with billions of dollars in investments in facilities, training and inventory; • Urge the administration to track actual EV sales versus projections and make necessary adjustments to its de facto EV mandates to reflect actual consumer demand; and • Support Congressional Review Act resolutions or appropriations riders that would disapprove or prevent funding for the administration’s final rule. On May 1, CRA resolutions to undo the final rule were introduced by Sen. Pete Rickets (R-Neb.) and Rep. John James (R-Mich.). Why It Matters: Our experience working with consumers every day makes us highly skeptical that consumers will adopt EVs anywhere near the levels required. The charging infrastructure is not ready, the current incentives are not sufficient and high EV prices will price out millions of consumers, particularly low-income Americans, from the newcar market. FTC VEHICLE SHOPPING RULE The Big Picture: NADA’s aggressive legal and legislative strategy to stop the FTC’s Vehicle Shopping Rule from taking effect is progressing as planned. The Latest: In March, NADA and the Texas Automobile Dealers Association (TADA) filed the opening brief in support of our Petition for Review of the Vehicle Shopping Rule in the U.S. Court of Appeals for the 5th Circuit. The brief outlines the numerous reasons why the Vehicle Shopping Rule violates federal law and should be set aside. An additional six outside groups — including ATAE, NIADA, AFSA and the U.S. Chamber of Commerce — each filed amicus (friend of the court) briefs in support of the NADA/ TADA petition. The FTC’s delay of its own rule pending this judicial review remains in place. What’s Next: The FTC’s reply brief was due to the court on May 14. NADA and TADA’s brief in response to the FTC was due to the court on June 13. After that, the case will be assigned to a three-judge panel. NADA will then request oral arguments, which could take place as early as Summer 2024. In Congress … NADA continues to rally support for legislation — “FTC REDO Act” — that would nullify the rule and require the FTC to follow basic regulatory safeguards (the essential ones it failed to perform in the first place) before it could redo the rule. Additionally, NADA is seeking an amendment (called a “rider”) to a fiscal year 2025 appropriations bill THE GENERATOR 8

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