Pub. 15 2016-2017 Issue 4

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E N O . 1 , 2 0 1 7 8 new jersey auto retailer NADA Director’s MESSAGE | BY RICK DESILVA, SR. Out of the Frying Pan, Into the Fire Let me start by thanking Marcy Maguire for representing our State so well as New Jersey’s NADA Director for somany years. I will work hard to continue building the reputation of New Jersey’s 517 dealers on the national stage and faithfully representing our perspective on issues important to the auto retailing industry. Thankfully, this isn’t my first rodeo. I’ve been in the car business since 1974 and obtained my first franchise in 1977. I’ve served as Chairman of both NJ CAR and the American International Automobile Dealers Association (AIADA) and have made appearances on various television networks (ABC, CNN, FOX and MSN- BC) as an auto industry professional over the years. I’ve flown under the radar for a few years, but I am anxious to get back in the saddle, especially with the unpredict- ability of the new Trump Administration and the many “unknowns” that could impact our businesses in the years ahead. And, wouldn’t you know it, right out of the gate, the industry is faced with a challenge that could have incredibly bad implications for auto retailers and consumers. The proposed Border Adjustment Tax, or BAT, would add thousands of dollars to the average price of EVERY new vehicle (some in excess of $10,000 or $15,000), if it is passed as currently proposed. But the industry is fighting back on the national level. The National Automobile Dealers Association (NADA) , along with dozens of other business groups, were signatories to a letter sent to Kevin Brady (R-Texas) , the Chairman and Ranking Member of the House Ways and Means Committee, back in December. The letter voiced the industry’s concerns about the BAT provision and warned that increased taxes and increased cost of goods would likely result in job loss, reduced capital investments and higher prices for consumers. As NADA Chairman Mark Scarpelli stated in a recent column, the BAT could lead to: 1) higher costs for imported vehicles; and 2) higher costs for vehicle components (whether from Korea, Japan, Germany, Mexico or Canada). If imported auto parts included in do- mestically-assembled vehicles are also subject to border taxes or tariffs, it could mean higher prices even for vehicles built in America since there are virtually no vehicles completely “Made in the USA.” The proposed BAT is an issue for EVERY dealer, because it could affect vehicle affordability and price more and more consumers out of a new vehicle purchase. The Chairman’s Column in this issue (by some guy named Rick DeSilva, Jr.) discusses the BAT in a bit more detail, so let me wrap up by saying NADA (and AIADA) will continue educating our leaders in Washington about the negative impact the proposed BAT would have on the car- buying public. I look forward to representing New Jersey dealers on the NADA Board and ensure your views are heard when the organi- zation communicates with members of Congress and the Trump Administration.