In Case You Missed it, A Message from AIADA President & CEO Cody Lusk:
In April, the EPA proposed its strictest ever tailpipe emission standards which would require that two-thirds of all light vehicles sold in the U.S. be electric by 2032. Currently, that number hovers around seven percent. The EPA’s goal is beyond ambitious and verging on fantastical. Which is not to say that dealers aren’t committed to a green transition, only that dealers are realists who want that transition to be achievable and sustainable. After all, the consequences if we get this wrong are serious, and the biggest beneficiary could be China.
What the EPA is doing is industrial policy at its worst. Government bureaucrats are throwing out a goal that sounds good, and disregarding the necessary building blocks needed to support it. Building blocks like expanded domestic production capabilities, an improved electric grid, and a functional national charging infrastructure.
Who’s going to pay for this shortsightedness? Well, manufacturers can ultimately build the required electric vehicles. And they can push EVs to their dealer bodies. But will dealers be able to convince skeptical Americans that these vehicles actually work for their commutes and their budgets? It’s worth noting that in 2022 the average vehicle transaction price for an EV was 20 percent higher than that of an internal combustion engine vehicle.
On this issue, the rubber will meet the road on your sales floor. On many dealer lots, EVs are already piling up. And the manufacturers and dealers who express support for a more gradual transition are facing serious blowback in the media and from Washington, D.C.
Luckily, AIADA is ready to fight this battle on Capitol Hill and beyond. All we need is your support and a commitment to remain politically attentive and engaged. More than ever, you need to make your voices heard on the issues that are shaping our industry. By thinking ahead, and working with organizations like AIADA, you can impact future policy and protect your business.
ACTION ALERT:
Ask Congress to Sign Letter on EPA Tailpipe Rule
Members of Congress are preparing a letter to leadership that urges them to fight to preserve language in the the Interior-Environment Appropriations bill which would prevent the EPA from spending funds to finalize or implement the EPA’s proposed Tailpipe Emissions Rule. If they have not already done so, AIADA Members are urged to ask their Members of Congress to cosign Rep. Lisa McClain’s (R-Mich.) EPA Tailpipe letter TODAY.
Quote of the Week
“More regulation won’t make vehicles more affordable, and it won’t speed innovation. In fact, as with the EPA’s most recent efforts to force Americans to buy electric vehicles, it could have the opposite effect.”
-Cody Lusk, President & CEO, AIADA (Nov. 2023 President’s Message)
ICYMI
The U.S. Treasury Department and IRS have opened registration for car dealers to receive direct payments for transferred electric vehicle tax credits when the option becomes available to consumers next year. Dealers must be registered via the new website — called IRS Energy Credits Online — for their customers to claim or transfer federal tax credits and use those funds as a down payment for eligible new- and used-EV purchases.
Friday Feel Good
Here is just one recent example of how dealers are doing good:
Longo Toyota in El Monte, CA auctioned a limited edition 2023 Toyota GR Corolla MORIZO for charity, holding the special distinction of badge no. 001 of 200, as designated by Toyota. The week-long online auction began on Oct. 18 and concluded on Oct. 25 with a winning bid of $98,500. Additional contributions from Longo Toyota and Toyota brought the total charitable donation amount to $150,000 which will benefit El Monte City School District, El Monte Union High School District and Vision To Learn, a nonprofit organization that provides vision screenings, eye exams and glasses at no charge to students from low-income communities throughout the U.S.
We want to hear more about how you are supporting your local community – tweet us at @AIADA_News and use the hashtag #DealersDoGood.
