FTC Stays Car Shopping Rule Pending Appeal
Late yesterday the Federal Trade Commission (FTC) announced it would postpone enactment of a new rule regulating auto dealerships pending the outcome of a court ruling. NADA and the Texas Automobile Dealers Association petitioned the 5th U.S. Circuit Court of Appeals to review the rule, which was first proposed by the FTC in the summer of 2022 and finalized late last year, and would regulate a wide variety of dealership operations. The rule would have been effective July 30, 2024 but the FTC said it would establish a new effective date once the appeal is resolved. Legislative vehicles to block the rule have also been introduced in Congress, including the FTC Review of Expensive and Detrimental Overregulation (FTC REDO) Act.
Government Shutdown
Following a meeting of congressional leaders and President Biden at the White House earlier this week, yesterday both the House and the Senate passed a Continuing Resolution (CR), or short term funding bill, to keep government programs running for at least six more weeks as they work to come to accord on a long term spending bill. This marks the third time Congress has extended the 2023 fiscal year budget, which ended September 30, 2023, as it failed to come to an agreement on new appropriations bills for fiscal year 2024.
EPA Tailpipe Emissions Proposal
The EPA’s proposed rule, which would effectively require two thirds of new vehicles sold in the U.S. be all-electric by 2032, is expected to be finalized early this year. Late last year, the House of Representatives passed the Choice in Automobile Retail Sales (CARS) Act, which would permanently prohibit the EPA from finalizing the rule. Dealers are urged to contact their Senators and ask that the Senate follow suit and pass the CARS Act TODAY.
Quote of the Week
“[During the pandemic] EVs seemed to be selling well because frankly, anything with four tires was selling well at that time. It gave everybody a false sense of how hot the market was going to be for electric cars. Now that inventory is catching up for regular gas-powered cars, those electric products are starting to back-up a little bit. As dealers we’re not anti-EV — whatever our customers want to buy that’s what we want to provide them, [but when it comes to EV sales] the market is telling us otherwise.”
-Mike DeSilva, Chairman, AIADA (Auto Remarketing)
ICYMI
Join AIADA's incoming Chairman, Anthony Brownlee, for refreshments and hors d'oeuvres during the NADA Show!
Friday, February 2, 2024
5:30 p.m. - 7:30 p.m. PST
Encore at The Wynn, Chopin 3 & 4 (3131 Las Vegas Blvd)
RSVP using the online registration form by January 19th so we can best accomodate everyone.
We look forward to seeing you!
Friday Feel Good
Here is just one recent example of how dealers are doing good in their communities:
Lia Toyota of Wilbraham, Mass., celebrated its grand reopening after months of renovations with a $15,000 donation to Baystate Children’s Hospital for the 7th year in a row. (wwlp.com)
We want to hear more about how you are supporting your local community – tweet us at @AIADA_News and use the hashtag #DealersDoGood.
