NADA continues to advocate aggressively on issues critical to the automotive retail industry. The following represents the latest updates on these issues. Please contact me with any questions at rdesilva@libertycarsnj.com.
NADA Show 2027 Main Stage Lineup
The NADA Show 2027 Main Stage lineup is complete! Hear from Ryan Estis, Patrick Lencioni, and Magic Johnson as they share powerful stories and practical insights, along with fresh perspectives on customer experience, teamwork, leadership, and success. Join NADA in Orlando on February 17-20, and get ready to leave inspired, energized, and ready to move your dealership forward. Register today!
FTC Issues FAQs on Dealer Advertising Practices
On September 15, the Federal Trade Commission (FTC) issued a Frequently Asked Questions (FAQs) document on dealer advertising. NADA worked with the FTC on the FAQs to supplement guidance the FTC provided during NADA webinars earlier this year.
The FTC has made price transparency a priority across all industries — including auto sales. In March, the FTC sent letters to 97 dealerships warning them of potentially illegal advertising practices. The FTC has also announced two settlements with auto dealers alleging deceptive advertising practices and requiring the dealerships to advertise the total price of a vehicle clearly and conspicuously as the most prominent price.
NHTSA Resets CAFE Rules to Align with Market Realities and Consumer Choice
The National Highway Traffic Safety Administration (NHTSA) recently issued a final rule, resetting its corporate average fuel economy (CAFE) standards at achievable levels, given the current market for battery-electric vehicles (BEVs) in the U.S. These new CAFE standards apply to passenger cars and light trucks manufactured for MYs 2022-2031.
The prior CAFE standards sought to push fuel economy at a pace requiring dramatic increases in BEV sales far exceeding consumer demand. The revisions bring the standards in line with statutory requirements and Americans’ interest in BEVs. Under the new rule, dealers and manufacturers can offer the full range of vehicle technologies and powertrains consumers want to buy. NADA filed a comment supporting NHTSA’s revised CAFE standards.
Latest on the Impact of Tariffs
Trade talks between the U.S. and Canada broke down in late August, leading to a new round of tariffs imposed by both countries. On August 22, the U.S. imposed 50% tariffs on about $20 billion of Canadian goods. The new tariffs did not include autos, which remain subject to separate tariff measures. However, on August 24, President Trump announced plans to raise tariffs on Canadian-built vehicles, auto parts, and steel to 50% starting January 1, 2027. Canada responded by announcing matching tariffs on U.S. products on September 8.
If the January tariffs are implemented, they could raise vehicle and parts costs, affect supply, and make vehicles less affordable for consumers. NADA will continue to stress affordability concerns to the administration.
Chinese OEMs’ Entry into the U.S. Auto Market
In late July, the Senate Commerce Committee unanimously advanced S.4429: the “Connected Vehicle Security Act of 2026” (CVSA). NADA continues to review the potential impact of the CVSA’s ownership provisions for dealers representing automakers with significant Chinese investments, such as Mercedes-Benz and Volvo.
Under the CVSA, affected automakers have until 2030 to comply and could seek a waiver from the U.S. government to continue operating if their ownership structure exceeds the threshold.
NADA strongly supports the goals of CVSA to protect consumer privacy; national security; and the U.S. economy against unfair competition, and (as the bill continues to be refined) will seek to minimize any unintended consequences for dealers and American jobs.
“Right to Repair” Legislation
Proponents of the REPAIR Act continue to push for the broader, original bill, including controversial insurer-backed provisions. The original provisions did nothing to improve vehicle repair options but instead benefited insurance companies and aftermarket parts manufacturers.
In May, the House Energy and Commerce Committee passed the Motor Vehicle Modernization Act, which included a significantly scaled-back version of the REPAIR Act. Due to NADA’s grassroots advocacy, the committee-passed REPAIR Act was narrowed to three provisions:
- Codifying the 2014 light-duty Memorandum of Understanding;
- Codifying the 2015 heavy-duty truck Memorandum of Understanding; and
- An FTC study on the issue, due in 2030.
The bill sponsors still want to expand the House committee-passed REPAIR Act language beyond its current scope and attach the legislation to the surface transportation bill or other must-pass legislation, like the National Defense Authorization Act. Defeating the original REPAIR Act or expansion of the House committee-passed language will be a top NADA legislative priority.
Catalytic Converter Anti-Theft Legislation
Based on a 2023 Texas law preferred by some automakers, catalytic converter anti-theft legislation (H.R.9904) was recently introduced. The bill creates a new federal crime targeting possession and trafficking of removed catalytic converters, but lacks the teeth of the NADA-backed PART Act, supported by law enforcement organizations. NADA continues to seek co-sponsors for passage of the PART Act, either as a stand-alone bill or as a floor amendment to the upcoming Surface Transportation Reauthorization bill.
Help NADA Make Your Voice Heard
These are just a handful of the areas where NADA tirelessly advocates for franchised new car and truck dealers in Washington. Whether it’s through CAR PAC at the state level or NADA PAC at the federal level: Your contributions help to amplify the voice of the dealer.
To those who have already contributed to NADA PAC this year — thank you. For those who have not done so yet, I encourage you to do so. If you want to know what you contributed last year or have questions about how to make a contribution, please reach out to me for more information.
