GNYADA November 2019 Newsletter

4 GNYADA in DC to Discuss the Reality of our Industry with Legislators

GNYADA participated in NADA’s annual Washington Conference along with counterparts from around the country in an effort to shape the federal laws and regula- tions that will impact the industry for years to come. Some of the discussions with legislatures included the following topics. Trade Policies Should Not Threaten U.S. Jobs or Harm U.S. Consumers (Tariffs | USMCA) Steep new tariffs of up to 25% on imported autos and auto parts, would hurt the auto industry and consumers. According to a recent study by the Center for Automotive Research auto and auto parts tariffs would increase vehi- cle prices by $2,750 on average per vehicle, cause a decline of up to 1.3 million vehicle sales, and result in a loss of 367,000 American jobs. Dealers advocated their support of modernizing America’s trade agreements, such as the U.S.-Mexico-Canada Agreement (USMCA). This agreement would continue the tariff-free exchange of vehicles within North America. Approval of USMCA would preserve the competitiveness of the U.S. automotive industry and reduce the threat of tariffs on autos and auto parts produced in North America. The administration and Congress currently are negotiating implementing legislation for the agreement. These negoti- ations should be expedited, and Congress should vote on the USMCA implementing legislation this year. Sen. Richard Blumenthal (D-Conn.) recently introduced S. 1971, legislation that would cripple the used-vehicle market by halting a dealer’s sale, lease, wholesale or loan of used vehicles under any open recall. The bill is over- broad because most recalls do not require the drastic step of grounding. Additionally, the bill would create a “trade- Overbroad Recall Bill Will Create A Consumer Trade- In Tax (S. 1971)

in tax” that would instantly devalue a car buyer’s trade-in by grounding recalled vehicles for minor matters such as a peeling sticker. Dealers lobbied that Congress should oppose overbroad recall legislation and focus on initiatives to improve con- sumer response to vehicle recall notices and increase recall completion rates. Throughout the day, the GNYADA coalition met with Senate Minority Leader Charles Schumer, Congressman Peter King, Congressman Jose Serrano, Congresswoman Nydia Velazquez, and Congressman Max Rose. In all the meetings, the GNYADA delegation was able to make the issues relatable to activity in our region. Every representative understood the impact of franchised dealer- ships in their districts and appreciates the good-paying careers afforded to constituents.

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Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • November 2019

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