Wednesday, 28 April 2010 14:23
There was a time, not too long ago when car dealers were content to remain on the sidelines of national politics. Like a lot of Americans, dealers saw inside-the-beltway affairs as inconsequential to their daily lives. They were content to focus on their businesses, and occasionally the state and local issues that impacted their bottom line. When it came to the federal government, a very small percentage of dealers were engaged in the process.
Most dealers were happy to limit their involvement to sending annual dues to associations while others did nothing at all.
Boy, how times have changed.
The events of the past couple years have proved beyond a doubt that a dealer's sphere of influence MUST expand beyond state lines to include the U.S. Senate, House of Representatives, and federal agencies. These are the institutions and people, some elected and some appointed, who can shut us down, open us back up, unionize our employees, decide if we can offer financing to our customers, and if our cars are safe to drive. The government has never, at any point in history, been so involved in our business.
It is high time we repay the favor.
After all, the automobile business is not a spectator sport. I know that not everyone has the appetite to call their federal representatives directly, but sitting on our hands is no longer an option. The reality is that the small percentage of dealers who once could be relied on to represent you in Washington may no longer be in a position to do so. A new generation of dealer advocates needs to come forward. That means supporting your state association, NADA, NAMAD, and, if you're an International dealer, AIADA. Support means not only paying your dues, but also being active in the grassroots programs and utilizing the services divisions of those associations. You can join AIADA's Legislative Action Network by clicking here. Finally, it means contributing to organizations like DEAC and AFIT-PAC.
Our voices don't fall on deaf ears in Washington. It was dealers who helped shape the Cash for Clunkers program last year, dealers who demanded justice for shuttered GM and Chrysler stores, and dealers who are leading the fight for one national fuel efficiency standard. The evidence is clear: lawmakers are listening. Are you talking to them?
Here's a recent example. There is a bill currently winding its way through Congress that would establish a new consumer financial protection agency (or bureau) if passed. This proposed agency would subject dealers, who are already regulated by the FTC, the Fed, and other state entities, to the same oversight and red tape as big Wall Street banks. Without a Senate amendment exempting dealers, the financing options we can offer customers will be severely limited, if not curtailed all together.
Three times this week, the Democrat-controlled Senate failed to get the necessary votes to move forward with the financial reform bill that includes dealers. Last night, Republicans agreed to allow the bill to move forward with floor debate. A rough fight lies ahead. As a dealer, where do you want to be on this issue? On the sidelines, or in the game?
As chairman of AIADA, I have no patience for dealer passivity. This is a business that requires constant vigilance and focus. You want to stick your head in the sand while the world changes around you? Get out of the auto retail industry. It's not fair to your employees or your customers. As one automotive executive puts it, "If you don't want to do the heavy lifting, then at least support the guys who do the lifting for you."
AIADA and our fellow associations offer countless opportunities for dealers to become engaged with Washington's legislative process. Visit our website today and take advantage of them. Standing on the sidelines is a luxury. And these days, it's one dealers can no longer afford.
Rick DeSilva
AIADA Chairman
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