Pub. 20 2021-22 Issue 2

To some degree, the nationwide Motor Vehicle Right to Repair discussions had been quieted years ago by the historic January 15, 2014, Memorandum of Understanding (MOU) between representatives of automotive manufacturers and representatives of independent repair shops – the first agreement of its kind. The MOU provided a uniform remedy for the sale of automotive manufacturers’ diagnostic and repair information to independent repair shops. And it finalized an agreement that applied nationwide.

Dealerships typically pay 2-4% of payroll for Workers’ Compensation insurance. It is not uncommon that Workers’ Compensation is the dealership’s largest insurance expense and has a significant impact on profitability. Dealerships can minimize this cost by instilling a safety culture in their workforce.

To our members, being in business is not just about sales. Our members employ nearly 36,000 men and women in good-paying, local jobs that can’t be outsourced and support another 33,600 jobs in New Jersey. Last year, the $34.6 billion in industry sales generated $1.73 billion in state and local tax revenue. Even during a worldwide pandemic, the automotive retail industry continued to be a primary driver of the state’s economy. This is great news, but dealers do a lot more than just sell new cars and trucks.

The franchise system that nearly 36,000 men and women rely upon for their livelihoods faces threats from a variety of directions. Whether it’s industry disruptors looking to eliminate the franchise system, or regulations/legislation that would negatively impact the day-to-day operations of New Jersey’s 500+ neighborhood new car and truck dealerships,
NJ CAR works to protect the interests of the industry and
those 36,000 men and women who are its backbone.

On Feb. 22, 2021, New Jersey joined over a dozen other states in legalizing the adult use of cannabis. This change came 10 years after New Jersey legalized marijuana use for medicinal purposes. The new law, entitled New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act, permits the use and possession of regulated cannabis for adults 21 years and older and establishes parameters for cannabis-related businesses. Now that the initial excitement over this change has settled, motor vehicle dealerships wonder how the law will impact their workplaces, policies, and employees.

The Charge Up New Jersey program was relaunched on July 6, 2021 as a point-of-sale incentive to help New Jersey residents make the switch to a plug-in electric vehicle (EV). Consumers can receive up to $5,000 as a cash-on-the-hood incentive toward the purchase or lease of an eligible new EV at dealerships across the State. Incentives are available on a first-come, first-served basis until funding is expended for Fiscal Year 2021.

NJ CAR represents the 500+ neighborhood, franchised new car and truck dealerships in New Jersey and the 36,500 men and women they directly employ. We want to help the industry get to know its elected officials better. What follows are responses from Senator Bob Smith (District 17) and Assembly Majority Leader Lou Greenwald (District 6). We will share other replies via emails and in future issues of New Jersey Auto Retailer.

NJ CAR has long made the case that New Jersey’s neighborhood new car and truck dealerships are much better equipped to lead the electric vehicle (EV) revolution currently underway. Sure, Tesla made EVs sexy, but they offer four models in a handful of colors. Franchised dealers currently offer more than 40 battery and plug-in hybrid models in every shape and size and at virtually every price point. At the rate new announcements are making the headlines, that number could increase to 140 models in just a few years.

NJ CAR has been vocal for years about the need for an expanded electric vehicle (EV) charging network to help consumers overcome “range anxiety.” An expanded network is necessary to make consumers comfortable in their decision to purchase a battery-electric or plug-in hybrid vehicle. The State is finally putting money into expanding New Jersey’s EV charging network and even looking to streamline the approval process for installing EV chargers.

New Jersey’s neighborhood new car and truck dealerships have partnered with The Valerie Fund to raise $500,000 to benefit thousands of children with cancer, sickle cell anemia and blood disorders in 2021. This incredible organization provides children with access to individualized care at one of their seven (7) centers located at pediatric hospitals throughout the New Jersey, New York and Philadelphia areas.