A MESSAGE FROM THE PRESIDENT Fighting for the Future of Our Industry BY COULTER McMAHEN, PRESIDENT/CEO, LADA In today’s rapidly evolving automotive industry, where regulatory shifts and policy changes can swiftly reshape the business landscape, standing still is simply not an option. Every day, LADA fights for the future of our industry, and this year, we took decisive steps to ensure that Louisiana dealers’ concerns were not just heard, but made a priority on the national stage. Nowhere was this more evident than at the NADA Legislative Fly-In in Washington, D.C., where LADA’s influence made a significant impact. LADA’s delegation, which included Chair Kristie Hebert (Arceneaux Ford), Vice Chair Patton Fritzie (Red River Chevrolet), NADA State Director Mark Hebert (Hebert’s Town & Country Chrysler Dodge Jeep Ram), NextGen Representative Blake Hollingsworth (Hollingsworth Richards Ford), Jodie Teuton (Kenworth of Louisiana) and Keith Rutherford (Eagle Truck Center), engaged in high-level, strategic meetings with key members of the Louisiana congressional delegation. These meetings, including conversations with Speaker of the House Mike Johnson, Senator Bill Cassidy, Congressman Garrett Graves and Congresswoman Julia Letlow, ensured that the voices of Louisiana dealerships were heard on the critical issues that will shape the future of our industry. These discussions underscored Louisiana’s significant influence in Washington, and we made it clear that relentless advocacy on behalf of our dealers is essential. One of the primary concerns we addressed was the Federal Trade Commission’s (FTC) Vehicle Shopping Rule, derisively named the Combating Auto Retail Scams Trade Regulation Rule (CARS Rule). Despite clear process flaws and a lack of credible, data-driven analysis, the FTC finalized this rule, imposing unnecessary regulatory burdens on dealerships. A study conducted by the Center for Automotive Research (CAR) found that the CARS Rule would cost the industry over $24 billion in the next decade, add an additional 60 to 80 minutes to the car-buying process, and cost consumers at least $1.3 billion per year in lost time. During our meetings, we urged the Louisiana congressional delegation to support legislation (H.R. 7101/S. 3014) that would halt this rule and require the FTC to follow a more informed process should they choose to reconsider it. It’s important to note that our colleagues in Texas, along with NADA, have challenged the CARS Rule in the U.S. Fifth Circuit Court of Appeals. Oral arguments were set for Oct. 9, and we eagerly await the court’s decision, hoping for an outcome that invalidates this flawed regulation. We also expressed strong opposition to the Environmental Protection Agency’s (EPA) overly aggressive electric vehicle (EV) mandates and emissions standards, which could impose significant economic and operational challenges on dealerships. The Biden administration’s policy actions related to vehicle emissions and fuel economy — including the EPA’s final greenhouse gas (GHG) emissions rule for model years 2027-32 — fail to account for consumer demand. These mandates outpace consumer interest in EVs and risk disrupting the market. Our stance is clear: While we do not oppose electric vehicles, we oppose government mandates that force manufacturers to produce EVs, ultimately requiring dealers to sell them in a market with limited demand. Dealers are making significant investments — billions of dollars, in fact — to support the electrification of the fleet and ensure an unparalleled consumer experience when it comes to EV education, sales and service. However, it is the market — not government mandates — that should dictate production levels and sales strategies. Additionally, we championed support for catalytic converter anti-theft legislation, a growing concern for dealers nationwide, and stood against right-to-repair legislation, which poses risks to proprietary technology and consumer safety. We are at a pivotal moment for the automotive industry. It’s reasonable to expect that a Harris/Waltz administration would continue the policies of the Biden administration, particularly concerning the CARS Rule and the EPA’s emissions mandates. In contrast, a Trump/Vance administration has clearly indicated its intention to repeal burdensome regulations on day one. Both Trump and Vance have publicly stated their commitment to eliminating the EPA’s emissions mandates immediately. Regardless of the political landscape, LADA remains steadfast in advocating for dealers now and in the future, ensuring that their interests are protected. As new challenges emerge, LADA will continue to lead the charge, making certain that Louisiana dealerships are front and center in the national policy decisions that directly impact our businesses. Together, we will navigate these critical times and secure a prosperous future for our industry. 6
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