I recently returned from NADA’s Washington Conference. Like our ATD Legislative Fly-In, this annual event brings auto dealers from every state to Capitol Hill, where they advocate for dealer legislative priorities.

In addition to the auto dealers, our state and metro ATAEs and some fellow commercial truck dealers joined me in these critical advocacy efforts. We were able to connect with legislators and discuss our top issues, and continue the conversation regarding the unrealistic emission regulations facing dealers at the state and federal levels.

As dealers, we are the voices of our business and our employees. We also represent our customers and the truck market – the industry. That is why it is so important that we tell our elected officials about what we are experiencing on the ground in the commercial truck industry – what is working and what is not. 

For example, the federal and state emissions regulations coming out of the California Air Resources Board (CARB) and the U.S. Environmental Protection Agency are causing upheaval in the truck market and with their current trajectory, that upheaval will only worsen. California is our canary in the coal mine for the truck industry, as it has finalized stringent regulations this year. The state’s total Class 8 truck sales are down 50% year-over-year as of this June 2024, compared to the rest of the US, which is only down 31.9%. 

While on Capitol Hill, we also covered: 

• The Federal Trade Commission’s (FTC) recently finalized Vehicle Shopping Rule “VSR” (also known as the FTC “CARS Rule”): FTC Chair Lina Khan finally responded on September 24 to Congressional requests asking if commercial truck dealers are covered under this rule by stating that heavy-duty trucks dealers are regulated by the VSR. The letter further stated that, “In fact, the Rule does not impose substantial costs, if any, on dealers…” ignoring that (1) this statement is not a fact; (2) the FTC failed to ascertain any regulatory costs on heavy-duty truck dealers, be they substantial or not; and (3) by the FTC’s own admission, the rule imposes over $1 billion in regulatory costs on light-duty dealers alone. This rule will add massive amounts of time, complexity, and unnecessary paperwork and costs to the commercial purchase of a heavy-duty truck. ATD strongly opposes this rule and is working to repeal it. 

• So-called “right to repair” legislation (H.R. 906): ATD opposes this legislation, which has little to do with repairing a vehicle. Instead, the bill compels truck and auto manufacturers to provide any “aftermarket parts manufacturer” the information necessary “to produce or offer compatible aftermarket parts”. This legislation sweeps in heavy-duty trucks and would give any third-party access to sensitive truck buyer data from vehicles, which raises privacy, vehicle security and safety concerns. 

• Supporting Catalytic Converter Anti-Theft Legislation (H.R. 621/S. 154): Catalytic converter theft continues to rise across the nation. We urged members of Congress to cosponsor the PART Act, which would provide local law enforcement with the resources necessary to combat this crime. ATD is working to add diesel particulate filters (DPF) and diesel oxidation catalysts (DOC) to the bill, so the theft of these devices would also be a federal crime.

• Repealing the 12% Federal Excise Tax on Heavy-Duty Trucks (H.R. 1440/S. 694): We urged members of Congress to cosponsor the bipartisan “Modern, Clean and Safe Trucks Act of 2023.” The legislation would repeal the 12% FET on heavy-duty trucks and help promote the transition to a cleaner, greener and safer truck fleet.

As we walked the halls of Congress, our assignment was to tell our elected officials what is happening on the ground in the truck market. Now, our assignment for all truck dealers is to show legislators – federal, state and local – what is happening to our small businesses. 

How do we do that? 

• Invite your elected officials and industry regulators to your dealerships. Most people do not understand our business, including the people regulating it. The best way to educate them is by bringing them to your dealership where they can see the business in action and meet your employees and customers. 

• Schedule meetings in your state capitols. If you can’t bring your legislators to you, go to them. Explain to them the needs of your customers and how their business and yours is impacted by state and federal regulation. 

• Engage with your Automotive Trade Association Executives (ATAEs). If you aren’t involved in your state or metro dealer association reach out to ATD and ask how you can build that relationship and for contact information. You can email ATD President Laura Perrotta at lperrotta@nada.org to get the contact info. If you are already a member of your local dealer association, contact them and tell them you want to support advocacy on these important issues and ask how you can help.  

Everyone needs to be aware of the policies that are coming out of Washington and your respective states. Educate yourselves, your team, and then educate your policymakers. During this critical time and the many issues we are facing we all must take action.