rAteS inquire for multiple-insertion discounts or full Media Kit. e-mail jfabrizio@msada.org
tax and Policy Changes – What Lies Ahead for
Tax Strategies for Dealerships – Cost Segregation
Dtc Sales
Are You Making Sufficient Disclosures to Charge That Fee?
LegAL: not All Dei Programs Are Bad, not All Are good
oPs: The Protect Stage – Safeguarding Your Automotive Business and legacy
oPs: Preparing your Dealership for incident response
oPs: Strengthening operations through Vendor Due Diligence
oPs: Federal Court Vacates the CARS Rule – What Dealers need to Know
oPs: the importance of Process in Selling
AiAdA: Challenges to Affordability Are Adding Up in Washington, D.C.
trUCK Corner: tracking 2025 Priorities
nAdA UPdAte: D.c. table Quickly Set
Our Call to Action on ZEV Mandates
By Jeb Balise, MSADA President
One piece of the Trump administration’s agenda – reversing the Biden commitment to the electrification of the motor vehicle industry – will have significant negative impacts on dealerships in CARB states like Massachusetts that currently follow the California Air Resources Board’s zero-emission vehicle mandates for Model Year 2026 cars and trucks, if those mandates are not eliminated.
As we have covered in our prior communications, our franchisor manufacturers, under California’s Advanced Clean Cars II (ACC II) rule, need to hit 100% in ZEV sales by MY 2035, beginning with the first hurdle of 35% in MY 2026 and increasing by 8% in every subsequent year. The math shows the only way our manufacturers will hit those numbers is by selling us more ZEVs while reducing the amount of ICE vehicles on our lots, thereby hurting our Massachusetts customers’ ability to find the cars they want and can afford. The Advanced Clean Truck (ACT) rule, covering ZEV requirements for medium- and heavy-duty trucks, already has kicked in for MY 2025, with disastrous results for dealers and fleet owners alike and ultimately the taxpayers.
Existing tools supporting EV sales here and across the country include the federal tax credits up to $7,500 for qualifying vehicles and funds earmarked to the states for building out charging infrastructure. The elimination of those financial incentives will negatively impact EV sales and leases.
Although we have bills pending in this year’s Legislature to stop these mandates, one tool being pushed by the Trump Administration and the Republican Congress that could ultimately help Massachusetts and the other CARB states, such as Rhode Island, Vermont, and New York, would be a challenge, through the Congressional Review Act, to strike down the waivers on ACC II and ACT that the Biden EPA approved for California and followed by the CARB states. If Congress successfully overturns the waivers, California and the CARB states will not be on the hook for the upcoming ZEV mandates. Futher, the only way California could then try to re-institute the ZEV mandates would be through a future act of Congress. If the CRA effort fails, however, we and the other states will be back to lobbying our legislatures and governors for relief, a daunting prospect given the pro-EV political tilt of the affected states.
The Trump EPA commenced the CRA process by filing the necessary resolutions with Congress on February 24. It is expected Congress will hold a vote on the resolutions in the coming weeks. Once Congress sets the process in motion, dealers here and nationally will need to weigh in with their Members of Congress. Even if you think our own Members of Congress may not care for our opinion, if we do not let them know where we stand they will think there is no problem. Be prepared to answer our call to action when that is issued.
We can begin connecting with our federal and state legislators on these matters to share your concerns – our Congress folks for the CRA resolutions and our state legislators for our bills at the State House. Our Executive Vice President Bob O’Koniewski’s comprehensive letter he released this month can serve as a resource you can share or refer to.
Watch for our future communications on these federal and state bills to make future contact with your legislators.This is not a one-shot deal. Building lines of communication now is our best opportunity to garner support for any solutions to protect our customers and our employees.
MsAdA BoARd
Barnstable County
Brad tracy, tracy Volkswagen
Berkshire County
Brian Bedard, Bedard Brothers Auto Sales
Bristol County
richard Mastria, Mastria Auto group
Essex County
William Deluca iii, Bill Deluca family of Dealerships
Paul Bertoli, Priority chryslerJeep Dodge ram
Franklin County [open]
Hampden County
Jeb Balise, Balise Auto group
Hampshire County
Bryan Burke, Burke chevrolet
Middlesex County frank Hanenberger, MetroWest Subaru
Norfolk County
Jack Madden, Jr., Jack Madden ford charles tufankjian, toyota Scion of Braintree
Plymouth County
christine Alicandro, Marty’s Buick gMc isuzu
Suffolk County [open]
Worcester County
Steven Sewell, Westboro chrysler Dodge ram Jeep
Steve Salvadore, Salvadore Auto
Medium/Heavy-Duty Truck Dealer
Director-at-Large [open]
Immediate Past President
chris connolly, Jr., Herb connolly chevrolet
NADA Director
Scott Dube, Mcgovern Hyundai rt.93
OFFICERs
President, Jeb Balise
Vice President, Steve Sewell
Treasurer, Jack Madden, Jr. Clerk, c harles tufankjian
ACV Auctions
MSADA A SS oci Ate M e M ber S D irectory
Steve Sirko (856) 381-3914
ADESA
Elizabeth Morich (508) 270-5400
Albin, Randall & Bennett
Barton D. Haag (207) 772-1981
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Ally
Maryanne Recupero (617) 997-9574
American Fidelity Assurance Co.
Kathleen Weisenbach (402) 523-5945
America’s Auto Auction Boston
Chris Colocousis (774) 218-8930
ArentFox LLP
Paul Marshall Harris (617) 973-6179
Sarah Decatur Judge (617) 973-6184
Armatus Dealer Uplift
Joe Jankowski (410) 391-5701
Assurant Dealer Services
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Auto Auction of New England
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Bank of America Merrill Lynch
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Paul McGovern (781) 849-3100
DP Sales Distributors
Andrew Prussack {631) 842-7549
Driving Dealer Performance
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EasyCare New England
Greg Gomer (617) 967-0303
eDealer Services, LLC
Tom McKinnon (617) 631-3293
Electric Supply Center
Jennifer Williams (781) 265-4272
Ethos Group, Inc.
Drew Spring (617) 694-9761
F&I Direct
Sean Wiita (508) 414-0706
Michelle Salas (508) 599-0081
Federated Insurance
Kevin Sundberg (559) 547-9694
Fisher Phillips LLP
Jeff Fritz (617) 532-9325
Josh Nadreau (617) 532-9323
Freedom Solar Power
Ryan Ferrero (970) 214-4433
GW Marketing Services
Gordon Wisbach (857) 404-0226
Harris Beach Murtha Cullina
Thomas Vangel (617) 457-4072
Hilb Group
James Pietro (508) 791-5566
Huntington National Bank
Mark Flibotte (781) 724-3749
iHeart Media
Jane Cogliano (781) 844-8951
JM&A Group
Chris “KC” Hwang (954) 415-6961
JM Electrical Co.
Christopher Cedrone (781) 581-3328
John W. Furrh Associates Inc.
Pamela Barr (508) 824-4939
Key Bank
Tom Flynn (716) 998-6247
M & T Bank
John Federici (401) 642-5622
McWalter Volunteer Benefits Group
Shawn Allen (617) 483-0359
Merchant Advocate, LLC
Dan Giordano (973) 897-2778
Mintz Levin
Kurt Steinkrauss (617) 542-6000
Nancy Phillips Associates, Inc.
Nancy Phillips (603) 658-0004
National Business Brokers
Peter DiPersia (603) 881-3895
National Grid
Nicole Caruso-Carlin (347) 426-6331
NEAD Insurance Trust
Charles Muise (781) 706-6944
Northeast Dealer Services
Johna Cutlip (401) 243-7331
OCD Tech
Michael Hammond (844) 623-8324
Performance Brokerage Services
Jacob Stoehr (847) 323-0014
Performance Management Group, Inc.
Dale Ducasse (508) 393-1400
Piper Consulting
Jim Piper (207) 754-0789
Plug In America
Joel Levin (237) 925-1364
Portfolio
J. Gregory Hoffman (800) 761-4546
Priority Payments Local
Andrew Pollina (732) 372-4352
Pullman & Comley LLC
James F. Martin, Esq. (413) 314-6160
Reynolds & Reynolds
Austin Ziske (802) 505-0016
Rockland Trust Co.
Joseph Herzog (508)-830-3241
Santander Bank
Richard Anderson (401) 432-0749
Chris Peck (508) 314-1283
Schlossberg, LLC
Michael O’Neil, Esq. (781) 848-5028
Shepherd & Goldstein CPA
Ron Masiello (508) 757-3311
Southern Auto Auction
Joe Derohanian (860) 292-7500
Sprague Energy
Steve Borelli (508) 768-5252
The Towne Law Firm P.C.
James T. Towne, Jr. (518) 452-1800
TrueCar
Lauren Bailey (703) 909-1625
Truist
Andrew Carmer (401) 409-9467
Twelve Points Wealth Management
Taylor Duffy (978) 318-9500
US Bank
Vincent Gaglia (716) 649-0581
Wells Fargo Dealer Services
Rich DeFreitas (857) 205-2780
Withum
Kevin Carnes (617) 471-1120
Zurich American Insurance Company
Steven Megee (774) 210-0092
Legislature Off to Slow Start – ZEV Mandates Heat Up
By Robert O’Koniewski, Esq.
MSADA Executive
Vice President
rokoniewski@msada.org
Follow us on X (formerly Twitter) • @MassAutoDealers
The two-year session of the 194th General Court may have commenced officially on January 1, but it certainly is not distinguishing itself with any sense of alacrity. In fact, as we are warming up, many states will have completed, or are soon to complete, their session for the year.
In the early weeks of any new session, the Legislature needs to check several boxes: elect its leader in each chamber; have legislators file bills to be considered; pass rules under which the chambers would operate separately and together; and appoint chairmen for the committees along with filling those committee slots.
First, on Day One, as reported previously, each chamber, heavily controlled by the Democrats, re-elected its top leader – Rep. Ronald Mariano (D-Quincy) as House Speaker and Sen. Karen Spilka (D-Ashland) as Senate President. The Republican minorities also re-elected their leaders in each chamber – Sen. Bruce Tarr (R-Gloucester) and Rep. Brad Jones (R-North Reading).
Next, the bill filing deadline for the current session was January 17. There were almost 7,000 bills filed. Of that number, we usually see upwards of 400-500 bills that could affect dealership operations in some form. As we approach March, the House and Senate clerks have not numbered the bills, delaying their assignment to the appropriate committees. Ultimately, each bill will be scheduled for a public hearing, which is mandatory for every bill.
In February, the House and Senate passed rules for their respective chambers. That was the easy part. Each chamber also passed a version of joint rules, in differing forms, to cover their joint operations, including such matters as the public hearing process, bill reporting deadlines, and committee voting procedures. Achieving agreement on the joint rules has been a stumbling block over the last several sessions; hence, they basically have been operating under joint rules last agreed upon in 2019.
Since the solons took so much heat from the governor, the press, their constituents, and interest groups for leaving a dozen major bills on the table as they hit the July 31 deadline last year for when controversial matters must be put to bed, the two sides are trying to figure out how to address legislation past the July 31 deadline during what is the pre- and post-election timeframes. There is overall agreement that no one wants to see a repeat of last year when the legislators had to come in for formal sessions to clean up the mess they left behind in July.
Regardless of how the joint rules get resolved, everyone is now waiting on bill assignments for the committees. Until that happens, the public hearing schedules will sit in abeyance. Case in point, the House and Senate Ways and Means Committees have not been able to hold any hearings yet on Governor Maura Healey’s FY2026 budget proposal, which she filed in late January.
MSADA
MSADA Bill Filings
For this session, the issues being addressed by the Association’s legislative proposals are the following:
• ZEV Mandates. Bills are filed to delay or repeal the state’s commitment to meeting the California Air Resources Board’s mandates for zero-emission vehicle sales of cars, beginning at 35% for MY 2026, and trucks beginning with MY 2025. Legislators that have filed such bills are Sen. Mike Moore (D-Millbury), Rep. Angelo Puppolo (D-Springfield), Rep. David Muradian (R-Grafton), Rep. Brad Jones (R-North Reading), and Rep. Paul Frost (R-Auburn).
• 93B Amendments. Issues addressed in this year’s bill, which was filed by Sen. Brendan Crighton (D-Lynn) and Rep. Daniel Hunt (D-Dorchester), include the following:
• Strengthens the repair reimbursement provisions to ensure dealers receive full retail for labor and parts for warranty and recall work;
• Prohibits a manufacturer from requiring a dealer to purchase goods or services from a vendor selected, identified, or designated by a manufacturer or distributor by agreement, program, incentive provision, or otherwise without making available to the dealer the option to obtain the goods or services of substantially similar quality from a vendor chosen by the dealer;
• Limits how often the manufacturer can request a facility upgrade to once every ten years;
• Protects dealers from manufacturers’ using export chargebacks to penalize dealers for cars that get exported without the dealer’s knowledge;
• Prohibits a manufacturer from restricting its franchised dealer from selling service contracts not exclusive to the manufacturer; dealer must provide consumer notice that the non-factory service contract is not backed by the dealer’s franchisor [filed as separate legislation as well];
• Prohibits a manufacturer from competing with its franchised dealers by
directly or indirectly offering leases or subscription rentals of vehicles of the same line make as those sold by its franchised dealers in the Commonwealth;
• Protects dealers from a manufacturer unreasonably altering the dealer’s area of responsibility and then using that change to take adverse action against the dealer for failure to penetrate the new market within 18 months; and
• Requires the manufacturer, under the warranty/recall reimbursement section, to provide reasonable compensation to dealer who performs overthe-air repair for customers at the dealership on behalf of the manufacturer.
• Electronic Titles/Electronic Signatures. These bills, filed by Sen. Sal DiDomenico (D-Everett) and Rep. Danielle Gregoire (D-Marlborough), would authorize and direct the Registrar of Motor Vehicles to establish an electronic title process for all vehicles and an electronic signature process for completing all RMV-required paperwork. This is included also in the governor’s FY 2026 budget proposal.
• Motor Vehicle Service Contracts. This refiled legislation would prohibit OEMs from requiring dealers to exclusively sell OEM-only extended service contracts or extended maintenance plans; filed by Sen. Paul Feeney (D-Foxborough) and Rep. Angelo Puppolo (D- Springfield).
• Class 1 License Appeals. This bill would create a process for a party to appeal the alleged improper issuance of a class 1 franchised dealer license by a municipality to an entity. Filed by Rep. Tackey Chan (D-Quincy), Rep. Michael Finn (D-West Springfield), and Sen. Patrick O’Connor (R-Weymouth).
• Reform Off-Site Contracts. Re-filed by Sen. Crighton and Rep. Jack Lewis (D-Framingham), this legislation would reform the three-day cancellation law to clarify that dealership-customer contracts executed via the internet are not to be considered as “off-site” transactions.
• Inspection of New Motor Vehicles
Filed by Rep. Jim Arciero (D-Westford) and Sen. John Cronin (D-Lunenberg), the legislation would allow for the bypassing of the initial inspection of the new motor vehicle to avoid the redundancy with the dealer’s PDI of the vehicle.
• Insurance Labor Rates Paid to Auto Body Repairers. Refiled by Rep. Paul McMurtry (D-Dedham), Rep. Ed Phillips (D-Sharon), and Sen. Mike Moore (D-Millbury), this bill would establish a process for setting insurance-reimbursable labor rates paid to auto body repairers that is in line with the current economics of the industry in Massachusetts. The average rate presently paid by insurance companies to repairers is the lowest in the country.
Please note that these are bills we asked legislators to file for us so that we can address the issues affecting dealership operations. As we dig deeper into the 7,000 bill filings, expect to receive communications on important matters that will require our attention, such as the ZEV mandates, legislative efforts to repeal the sales tax trade-in allowance, bills to cap dealer documentary preparation fees, and efforts to attack the sale of F&I and voluntary protection products
We will keep dealers informed as to the date of the public hearings on these bills in order to mobilize our grassroots of dealers to contact legislators. Should you require any additional information on these items or wish to volunteer to get involved in the process, please do not hesitate to contact me.
More on the ZEV Mandates
For better or worse, Massachusetts, in the early 1990s, was one of the first state’s to fully commit itself to all things CARB – namely, the vehicle emissions policies and regulations promulgated by a group of unelected bureaucrats known as the California Air Resources Board. Under the Massachusetts Clean Air Act (MGL Chapter 111, Section 142K), the Commonwealth must adopt CARB’s motor vehicle emissions standards unless the state
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determines the California standards do not provide better pollution reductions than those imposed by federal laws and rules.
Under the U.S. Clean Air Act, states can either follow the emissions standards set by the Environmental Protection Agency or seek a waiver to establish emissions rules that are stricter than that which are set by the EPA. Many decades ago, California undertook the process and received a federal waiver. Over time, the EPA has granted CARB over 100 waiver requests for their various emissions rules. Thus far, 17 states have adopted all or part of CARB’s low-emission and zero-emission vehicle regulations, as allowed under Section 177 of the U.S. Clean Air Act, meaning over one-third of national new light-duty vehicle sales presently meet CARB’s auto emissions standards.
In November 2022, CARB approved its Advanced Clean Cars II (ACC II) rules that committed to California’s meeting 100% sales of new zero-emission vehicles by Model Year 2035. Beginning with a minimum requirement of 35% ZEVs and plug-in hybrid vehicles by MY 2026, the goal-line is increasingly adjusted each year by an additional eight percentage points (e.g., 51% by 2028; 68% by 2030; 82% by 2032, etc.) until a touchdown is scored of 100% in a decade from now.
In December 2022, Massachusetts regulators adopted the CARB ZEV ACC II rules, after the Legislature re-affirmed the state’s commitment to them in the 2022 Clean Energy Act that Gov. Charlie Baker signed into law in August that year. That law also had a substantial carrot: Massachusetts altered the vehicle and consumer eligibility standards for the state’s MOREV rebate program (Massachusetts, Offers Rebates for Electric Vehicles), enshrining it in law with a minimum rebate of $3,500. Present status. As we begin 2025 and look at how the vehicle manufacturers are going to commence changing inventory numbers for Model Year 2026 to push more ZEVs on dealers than ICE vehicles, dealers here and in other CARB states have begun to focus on requesting their states to push off the mandated timelines.
As California holds firm, so do, thus far, the MY26 states such as Vermont, New York, Oregon, Washington, and Massachusetts. Some states, like Rhode Island, New Jersey, and Colorado, have delayed matters until MY 2027, but that will only increase the pain point of having to start at meeting the 43% requirement for that model year. Real relief could start if CARB suspends the rules or recalibrates the mandated percentages for the model years moving forward – a prospect that is highly unlike presently.
As covered extensively in the October 2024 Massachusetts Auto Dealer, we, along with a coalition that includes the Trucking Association of Massachusetts, have been lobbying the Healey Administration for relief of the ZEV and emissions mandates on medium- and heavy-duty trucks, which began with MY 2025. As a result, the administration delayed for one year, the implementation of the Heavy-Duty Engine and Vehicle Omnibus Regulation requiring the reduction of NOx emissions from trucks. Shortly thereafter, perhaps seeing the writing on the wall as states rebelled against the truck mandates, CARB withdrew its request to the EPA for a waiver of its Advanced Clean Fleets rule. Unfortunately, the truck ZEV mandates under the Advanced Clean Truck (ACT) rule are still in effect since the EPA’s approval of the CARB waiver in March 2023, thereby thrusting at least ten states, including Massachusetts, into the ACT mess.
Massachusetts call to action. As written earlier, there are a number of legislative proposals filed for the 2025-2026 session to address the car and truck ZEV mandates. Unfortunately, the Massachusetts legislative process is never a quick one. We still do not have bill numbers for the legislation, and we do not even know yet which committee or committees will have the bills. Nevertheless, we will begin to ask dealers to reach out to their legislators as a precursor to the hearings. At the end of this Roundup column, please find a memorandum we have sent to the Governor and legislative leaders addressing the
on-going issues with the ZEV mandates. As you talk to legislators, you can use the memorandum as a reference for your talking points. There will be other support materials sent to you shortly.
Possible more immediate Congressional relief. Finally, one road to quicker, and more comprehensive, relief may come from Capitol Hill. On February 24, the EPA began the process of asking Congress to strike down the California waivers for ACC II and ACT through the Congressional Review Act (CRA). Under the CRA, if Congress strikes down a rule and the President signs it, or Congress overrides a presidential veto, the rule is dead and can never be repromulgated again unless through a future Congressional act.
Given the desire of President Trump and the Republican-led Congress to overturn the California waivers sooner rather than later, and given the 60-day timeline under which Congress must act, we can expect Congressional action on the waivers within the next several weeks. Once we have resolution numbers to reference and a sense of vote scheduling, we will be asking dealers to contact their Members of Congress to support the CRA actions against the CARB waivers. We may not expect any support from our Congress folks given their pro-EV stance, but they need to know how we feel about our customers’ vehicle price increases and potential lack of inventory choice. Without our input, the Members of Congress will think there are no problems.
The situation is rather fluid, so stay abreast of our communications as they are sent out to you. Should you have any questions, do not hesitate to contact us.
Committee Appointments
In late February, after the House and Senate rules were approved, with no agreement yet on joint rules, the Speaker and Senate President announced their nominations for leadership slots, committee chairs, and committee assignments. Without surprise, the nominations were approved.
Sen. Michael Rodrigues (D-Westport)
and Rep. Aaron Michlewitz (D-Boston’s North End) retained the chairmanship of each of his chamber’s Ways and Means Committee.
There are four standing joint committees (comprising House and Senate members) that have jurisdiction over most of our issues – Consumer Protection and Professional Licensure; Transportation; Financial Services; and Telecommunications, Utilities, and Energy.
The Joint Committee on Consumer Protection and Professional Licensure has jurisdiction over such issues as the new- and used-car Lemon Laws, our 93B franchise law, the 93A Consumer Protection Act, doc fees, proposals like the Car Buyers Bill of Rights, customer data protection, and the “right to repair” act. If there is an issue that touches a consumer, one can find it, most likely, in this committee. As the 2025-2026 session commences, nine of the 17 Committee members will be new to the committee, including the Senate Chair, Pavel Payano of Lawrence, who will be the sixth Senate chair of the committee in as many sessions. Here are the committee members with their party and hometown (* indicates returning committee member):
Rep. Tackey Chan, House Chair (D-Quincy)*
Rep. Mary Keefe, House Vice Chair (D-Worcester)*
Rep. Amy Sangiolo (D-Newton)
Rep. Estela Reyes (D-Lawrence)*
Rep. James O’Day (D-West Boylston)
Rep. Tommy Vitolo (D-Brookline)
Rep. David Henry Argosky LeBoeuf (D-Worcester)*
Rep. James Hawkins (D-Attleboro)
Rep. Joan Meschino (D-Hull)*
Rep. Joseph McKenna (R-Webster)* [ranking minority]
Rep. Donald Berthiaume (R-Spencer)
Sen. Pavel Payano (D-Lawrence)
Sen. William Driscoll, Senate Vice Chair (D-Milton)
Sen. John Cronin, (D-Lunenburg)*
Sen. Lydia Edwards (D-Boston)
Sen. Jacob Oliveira (D-Ludlow)*
Sen. Kelly Dooner (R-Taunton) [ranking minority]
Another committee that has oversight of our issues, such as activities by the Registry of Motor Vehicles, is the Joint Committee on Transportation, chaired once again by Sen. Brendan Crighton (D-Lynn) but with new House Chair Rep. James Arciero (D-Westford). Of the 20 committee members, 14 will be new to its membership. Here are the committee members with their party and hometown (* indicates returning committee member):
Rep. James Arciero, House Chair (D-Westford)
Rep. Edward Philips, House Vice Chair (D-Sharon)
Rep. Chris Hendricks (D-New Bedford)
Rep. James O’Day (D-West Boylston)
Rep. Jennifer Armini (D-Marblehead)
Rep. Orlando Ramos (D-Springfield)
Rep. Steven Owens (D-Watertown)
Rep. Lindsay Sabadosa (D-Northampton)*
Rep. James Hawkins (D-Attleboro)
Rep. David Linsky (D-Natick)
Rep. David DeCoste (R-Norwell)* [ranking minority]
Rep. Norman Orrall (R-Lakeville)*
Rep. John Marsi (R-Dudley)
Sen. Brendan Crighton, Senate Chair (D-Lynn)*
Sen. Paul Mark, Senate Vice Chair (D-Becket)*
Sen. William Brownsberger (D-Belmont)
Sen. Lydia Edwards (D-Boston)
Sen. Dylan Fernandes (D-Falmouth)
Sen. Jason Lewis (D-Winchester)
Sen. Patrick O’Connor (R-Weymouth)* [ranking minority]
The third committee that will have oversight of our issues, such as banks and banking, credit unions, lending, and insurance, is the Joint Committee on Financial Services, with returning Chairs Sen. Paul Feeney (D-Foxborough) and Rep. James Murphy (D-Weymouth). Eight of
the 17 committee members will be new to this assignment. Here are the committee members with their party and hometown (* indicates returning committee member):
Rep. James Murphy, House Chair (D-Weymouth)*
Rep. David Biele, House Vice Chair (D-Boston)
Rep. Chris Worrell (D-Boston)
Rep. William MacGregor (D-Boston)
Rep. Ryan Hamilton (D-Methuen)*
Rep. Tram Nguyen (D-Andover)
Rep. Kate Lipper-Garabedian (D-Melrose)*
Rep. Sally Kerans (D-Danvers)*
Rep. Simon Cataldo (D-Concord)*
Rep. Steven Howitt (R-Seekonk) [ranking minority]
Rep. Michael Chaisson (R-Foxborough)
Sen. Paul Feeney, Senate Chair (D-Foxborough)*
Sen. Michael Moore, Senate Vice Chair (D-Millbury)*
Sen. William Driscoll (D-Milton)
Sen. Adam Gomez (D-Springfield)
Sen. Jacob Oliveira (D-Ludlow)*
Sen. Bruce Tarr (R-Gloucester)* [ranking minority]
Finally, the Joint Committee on Telecommunications, Utilities and Energy has jurisdiction of such issues related to clean energy, electric vehicles, and charging infrastructure. Returning Senate Chair Mike Barrett (D-Lexington) will be joined by new House Chair Mark Cusack (D-Braintree). Here are the committee members with their party and hometown:
Rep. Mark Cusack, House Chair (D-Braintree)
Rep. Michael Kushmerek, House Vice Chair (D-Fitchburg)
Rep. William MacGregor (D-Boston)
Rep. Jeffrey Turco (D-Winthrop)
Rep. David Robertson (D-Wilmington)
Rep. Chynah Tyler (D-Boston)
Rep. Natalie Higgins (D-Leominster)
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Rep. Margaret Scarsdale (D-Pepperell)
Rep. Sean Reid (D-Lynn)
Rep. Brad Jones (R-North Reading) [ranking minority]
Rep. Kimberly Ferguson (R-Holden)
Sen. Michael Barrett, Senate Chair (D-Lexington)
Sen. Michael Brady, Senate Vice Chair (D-Brockton)
Sen. John Cronin (D-Lunenburg)
Sen. Julian Cyr (D-Truro)
Sen. Dylan Fernandes (D-Falmouth)
Sen. Bruce Tarr (R-Gloucester) [ranking minority]
Other committees in which we can expect to see dealership-related matters include the Joint Committee on Advanced IT, Internet, and Cybersecurity (House Chair, Rep. Tricia Farley-Bouvier, D-Pittsfield; Senate Chair, Sen. Michael Moore, D-Millbury); the Joint Committee on Labor and Workforce Development (House Chair, Rep. Paul McMurtry, D-Dedham; Senate Chair, Sen. Jacob Oliveira, D-Ludlow); and the Joint Committee on Revenue (House Chair, Rep. Adrian Madaro, D-Boston; Senate Chair, Sen. James Eldridge, D-Acton).
Once our legislative process gets into gear and the public hearings unfold as bills are sent to committees, the individuals on these committees will be reviewing some of the most important legislation for dealers. We will provide the necessary updates as all this unfolds.
Mass. Wage Transparency Law
Under Chapter 141 of the Acts of 2024, which Gov. Maura Healey signed into law on July 31, employers with 25 or more employees must post pay ranges alongside job openings. Additionally, the new law requires employers with more than 100 employees to file copies of federally required equal employment data with the Secretary of State’s office, which would then be forwarded to the Executive Office of Labor and Workforce Development.
The Attorney General has enforcement authority and can impose fines or civil ci-
tations for violations of the law. The AG also is charged with conducting a public awareness campaign around the new rules. Finally, the law provides protections for employees against retaliation for asking for salary ranges when applying for a job or promotion.
Check out MSADA Bulletin #28, issued on February 20, 2025, for additional details.
OSHA Injury, Illness
Electronic Reporting
Dealerships required to electronically file 2024 employee workplace injury and illness records with the Occupational Safety and Health Administration (OSHA) must do so by March 2, 2025.
OSHA injury and illness reporting requirements depend on the type of dealership and number of employees working at a single “establishment” or rooftop. OSHA defines establishment as “a single location where business is conducted or where services or industrial operations are performed.” The following categories of dealerships must record and report employee workplace injury and illness:
• Commercial truck dealerships with 20 or more employees working at a single establishment must electronically submit OSHA Form 300A- Annual Summary of Work-Related Injuries and Illnesses;
• Commercial truck dealerships with 100 or more employees working at a single establishment, in addition to submitting OSHA Form 300A- Annual Summary of Work-Related Injuries and Illnesses, must electronically submit case-specific information from OSHA Form 300 Log and OSHA Form 301 Incident Report;
• Light-duty dealerships with 250 or more employees at a single establishment must electronically submit OSHA Form 300A- Annual Summary of Work-Related Injuries and Illnesses;
• Light-duty dealerships with fewer than 250 employees at a single establishment must annually record workplace injuries and illnesses but are not required to file electronically with OSHA;
• All dealerships must report worker fatalities within eight hours and worker am-
putations, eye losses or hospitalizations within 24 hours.
Electronic filing must be done using OSHA’s Injury Tracking Application (ITA). See OSHA’s FAQs on the ITA submission process, available at https://www.osha.gov/ injuryreporting/faqs. A North American Industry Classification System (NAICS) number is required for filing: commercial-truck dealerships are NAICS 42311; light-duty dealerships are NAICS 44111. Check out MSADA Bulletin #29, issued on February 21, 2025, for additional details.
NADA/ATD Dealership Workforce Study Now Open
Dealers today face numerous challenges, including high employee turnover, difficulties in recruitment, and the constant pressure to remain competitive in a rapidly evolving market. Understanding workforce trends and leveraging data-driven insights are crucial steps in effectively addressing these issues.
The NADA/ATD Dealership Workforce Study is a resource to assist dealers in addressing these challenges and understanding dealership issues with real data from NADA/ATD members. It is the only authoritative and comprehensive examination of auto dealership workforce trends. This study provides the latest industry data on employee compensation, benefits, turnover, retention, demographics, hiring trends, hours of operation, and more. The reporting shows national and regional data as well as sales volume ranges from low and high-volume stores.
NADA/ATD members can enroll at https://www.nadaworkforcestudy.com/ Main.aspx. There is no cost to participate. Enrollment deadline is March 14, 2025. Once you enroll you will receive an email with instructions to complete an online benefits questionnaire and complete the payroll file. All responses and data are confidential. You will need the NADA Member ID number for your single store or Dealer Group to enroll. If you do not have this NADA Member ID number, please contact NADA Customer Service at (800) 557-6232.
I N C R
E
A S
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S W I T H E V C E R T I F I C A T I O N
PlugStar.com connects consumers and certified dealers to drive EV sales. Designed to enhance the EV shopping experience, the PlugStar program provides dealers with tools, knowledge, and ongoing support through education, certification and resources Plug In America, the organization behind PlugStar, represents America's deepest pool of EV drivers and is the national leader in EV consumer education
T R A I N E D sales staff sell
4 x as many EVs as U N T R A I N E D
P R O V E N T R A I N I N G
d e a l e r s c a n b e c o m e a P l u g S t a r
C e r t i f i e d D e a l e r s h i p
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Our convenient online training takes about two hours to complete and covers:
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E V c h a r g i n g b a s i c s
K e y E V s e l l i n
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Since the launch of the PlugStar program five years ago, Plug In America has trained thousands of dealer and manufacturer sales staff from almost every major automaker. Each PlugStar program has recorded improvements of up to 80% in EV salesperson confidence while discussing utility rates and programs, government incentives, the availability and costs of charging at home and on the go To learn more, visit PlugInAmerica.org/PlugStar
A year ago, Massachusetts Auto Dealer detailed the crossroads at which motor vehicle electrification found itself as states dedicated to the ZEV mandates instituted by the California Air Resources Board tried to move forward with their aspirations in the
face of various challenges to widespread consumer acceptance, including lack of available charging infrastructure, high EV prices, lack of EV inventory, and range anxiety, just to name a few factors.
Certainly, one could argue that the vehicle manufacturers displayed an over-exuberance as they committed all-in on EV sales well ahead of any true market development with any real demand and buy-in from a broad base of consumers. Surely, those who want an EV have been the first acolytes to commit. What about the next 90%?
Throwing gasoline on the fire was the election of President Donald Trump, who has not hid his disdain for the EV mandates pushed forth by California and the prior Biden Administration. In fact, President Trump, with the Republican-led Congress backing him up, has moved forward aggressively to unwind previous federal EV commitments thereby hindering the ability of the CARB states committed to Advanced Clean Cars II to hit their ZEV mandates, starting with 35% for Model Year 2026.
In an ironic twist, as CARB state dealers attempt to lobby their heavily Democrat dominated governors and legislatures for adjustments, rollbacks, or cancellation of the ZEV mandates, it could be the Republicans on Capitol Hill who end up bailing out the blue state governors presently facing the wrath of the franchised dealers. What Democrat governor would have thought two years ago that Trump would be the one who would ultimately provide them the lifeline out of this sticky political situation?
Massachusetts Committed to All-In on EVs
Since California originally received its first waiver under the U.S. Clean Air Act to establish its own emissions rules surpassing federal EPA standards, no state has been more aggressive to join California’s efforts than Massachusetts.
Thirty years ago, Massachusetts was one of the first states to fully commit itself to all things put forth by the California Air Resources Board. Under the Massachusetts Clean Air Act (MGL Chapter 111, Section 142K), the Commonwealth must adopt CARB’s motor vehicle emissions standards unless the state determines the California standards do not provide better pollution reductions than those standards imposed by federal laws and rules.
Thus far, 17 states have adopted all or part of CARB’s low-emission and zero-emission vehicle regulations, as allowed under Section 177 of the U.S. Clean Air Act, meaning over onethird of national new light-duty vehicle sales presently meet CARB’s auto emissions standards.
In November 2022, CARB approved its Advanced Clean Cars II (ACC II) rules that committed to California’s meeting 100%
Thirty years ago, Massachusetts was one of the first states to fully commit itself to all things put forth by the California Air Resources Board.
sales of new zero-emission vehicles by 2035. Beginning with a minimum requirement of 35% ZEVs and plug-in hybrid vehicles by 2026, the goal-line is increasingly adjusted each year by eight percentage points until reaching a set goal of 100% for Model Year 2035. CARB also mandated ZEV thresholds for heavy-duty trucks beginning January 1, 2025, through the Advanced Clean Trucks (ACT) rule.
In December 2022, Massachusetts regulators adopted the CARB ACC II ZEV mandates, after the Legislature re-affirmed the state’s commitment to them in the 2022 Clean Energy Act that Gov. Charlie Baker signed into law in August that year. The Commonwealth also adopted ACT. In the meantime, the EPA granted CARB the waiver it needed to enshrine ACC II into place.
With these ACC II mandates in place for MY 2026 in California, Massachusetts, Oregon, Washington, New York, and Vermont, dealer anxiety reached new heights as they contemplated what actions the manufacturers would take to game the inventory numbers in favor of EVs – the only way they would be able to hit 35% would be to shrink the number of ICE vehicles sold to dealers while grossly increasing the EV numbers, the consumers and dealers be damned.
The rest of the country, however, did not dodge the EV-mandates bullet as the Biden Administration did not disappoint. Last year, throwing its own two cents into the mix, the Biden EPA felt the need to ramp up emissions restrictions on the manufacturers in what some critics labelled a back-door EV mandate. Regardless of the motivation, as structured, it presented challenges for manufacturers, their dealers, and consumers who would not be able to find the vehicles they want and need.
On March 20, 2024, the EPA issued its final rule related to greenhouse gas emissions requirements for new vehicles during model years 2027-2032. These standards would have required the OEMs to substantially increase their production of electric vehicles as a percentage of total vehicles sold. The rule received considerable opposition from franchised auto dealers as well as the motor vehicle manufacturers individually and collectively through the Alliance of Automotive Innovation.
Actions from the Trump Administration could upend all this. On his first day in office, President Trump signed an executive order to initiate a process to reverse the Biden EV mandate. Then, on February 24, Trump’s EPA Administrator, Lee Zeldin, filed resolutions with Congress to overturn the CARB waivers for ACC II and the EPA’s EV mandates. With a sixty-day deadline within which to act, Congress has a chance to establish one set of emissions rules for cars and heavy-duty trucks for the entire country, replacing the bifurcated system in place presently.
Additionally, there are bills filed in the Massachusetts Legislature for the 2025-2026 session to strike at the ACC II and ACT mandates. With the Legislature’s usual slow start, these bills, along with the other 7,000 petitions that have been filed, have yet to be numbered or sent to a committee where a public hearing can be scheduled.
Charging Infrastructure Commitments Threatened
A vital component for a successful transition to ZEVs sales for all economic strata in every region of the Commonwealth and the country is a reliable and affordable charging infrastructure. Consumers simply will not confidently purchase vehicles they have no idea where and how those vehicles can be charged. The fuel for this piece of the transition is, of course, money.
None of this charging infrastructure will be available overnight. But, at a minimum, the politicians have begun to put money where their mouths are with the realization of the ultimate task at hand. However committed Massachusetts may be, the Trump Administration has other plans.
The National Electric Vehicle Infrastructure (NEVI) Formula Program, established under the federal Infrastructure Investment and Jobs Act during the Biden Administration, aims to allocate $5 billion over five years to enhance electric vehicle charging infrastructure across the United States. This initiative seeks to create a cohesive network of Direct-Current Fast Charging (DCFC) stations along major highway corridors, facilitating long-distance EV travel and supporting the broader adoption of electric vehicles.
Massachusetts has been proactive in its approach to EV infrastructure. The Massachusetts Electric Vehicle Infrastructure Coordinating Council (EVICC) provides funding and technical assistance to install EV charging infrastructure. As a start, with NEVI funds in hand, the Healey-Driscoll administration announced in February 2024 a $50 million package of initiatives to build out EV charging infrastructure across Massachusetts. The
administration will use funds from the NEVI monies to increase access to charging infrastructure for more residents, electrify the state fleet, improve operation of public charging stations, manage the impact of charging infrastructure on the electric grid, and
Over 250 dealers are registered in the MOR-EV program, and about 80% of EV sales involving the rebate are POS transactions.
provide charging solutions for difficult to electrify vehicle types.
According to the administration’s press release last year, the $50 million in ARPA funds will support innovative EV technology programs at the Massachusetts Clean Energy Center (MassCEC), charging infrastructure investments for the state fleet
through the Division of Capital Asset Management and Maintenance (DCAMM) and the Department of Energy Resources (DOER), testing equipment and staff at the Division of Standards (DOS) to conduct inspections of public charging stations, and future analysis of EV charging needs by the Electric Vehicle Infrastructure Coordinating Council (EVICC).
Massachusetts and the federal government also have committed funds to address the public charging needs of the heavy-duty trucking community; no public charging stations, however, have yet to be built in Massachusetts to accommodate heavy-duty trucking.
During the past year, 33 states released solicitations for NEVI-funded projects, with 16 states awarding contracts and initiating the installation of charging stations. The Massachusetts Department of Transportation (MassDOT) submitted an EV Infrastructure Deployment Plan detailing strategies for deploying DCFC stations along designated Alternative Fuel Corridors. In February 2025, the Healey-Driscoll Administration announced the selection of vendors to advance the NEVI program within the state, marking a significant step toward expanding EV charging infrastructure.
One way to support the transition to total ZEV sales is to provide consumers with subsidies to purchase or lease them. At least 15 states offer some form of rebate or tax credit on eligible EVs and PHEVs. Massachusetts has had its MOR-EV program (Massachusetts Offers Rebates for Electric Vehicles) in place since June 2014, although its financial backing had been inconsistent until 2020. As a result of legislative action, the MOR-EV program has been receiving $27 million per year and has enough funding in place to carry it until June 30, 2027.
Although the state’s rebate program may be financially stable for now, one cannot say the same for the federal tax credits.
Since its inception, MOR-EV has issued, through January 2025, 57,511 rebates to consumers totaling $162 million – 46,254 rebates for battery-electric vehicles, 11,225 rebates for plug-in hybrids, and 30 zero-emission motorcycles. Keep in mind, franchised dealers annually sell and lease on average just south of 300,000 new vehicles of all kinds, with EVs and PHEVs making up a fraction of that total. Massachusetts has just under 150,000 registered EVs on the books as of the end of 2024, approximately 2% of the state’s total registrations.
However, in February 2025, the Trump Administration suspended the NEVI program, instructing states to halt the expenditure of allocated funds pending a policy review. This decision has introduced uncertainty into the future of federally funded EV charging infrastructure.
Despite the federal suspension, Massachusetts continues to prioritize the development of its EV infrastructure, leveraging state resources and partnerships to maintain momentum in expanding charging networks. Without an adequate charging infrastructure around the state, consumer confidence in any EV purchase will go out the window.
Consumer Subsidies to Buy EVs in Doubt
The biggest challenges to getting more people to switch to electric vehicles remain cost and charging infrastructure. The state has a goal of 200,000 EVs by 2025 and 900,000 by 2030. Although the number of EVs in Massachusetts has been increasing since 2019, ZEV sales in 2024 was just over 8% with another 4% for PHEVs.
During the program’s existence, MOR-EV administrators have altered drivetrain and vehicle pricing requirements in an effort to stress vehicle affordability and prevent higher-priced vehicles from eating up all the rebate monies. Moreover, in the 2022 clean energy law, PHEVs were removed from the eligibility list, and DOER was authorized to create a point-of-sale program to supplement the consumer’s access to the post-sale rebate
The 2022 clean energy law also authorized the creation of a point-of sale rebate process which allows consumers to take advantage of the rebate on a new vehicle with a MSRP under $55,000.
process on the MOR-EV web portal. The Healey Administration has increased rebates for low-income consumers.
The point-of sale rebate process allows consumers to take advantage of the rebate on a new vehicle with a MSRP under $55,000 as a cash-on-the-hood discount that also reduces the sales tax liability on the vehicle.
The state’s point-of-sale process began in August 2023, requiring a dealer to register with the state in order to utilize the rebate in the sales process as an immediate reduction of vehicle price. At the same time, the IRS also implemented the federal tax credit program created under the Inflation Reduction Act. It, too, eventually included a point-of-sale process for consumers to convert the tax credits – up to $7,500 – on the sale or lease of an eligible vehicle under somewhat convoluted battery mineral sourcing and production rules. The IRS process also requires dealership registration with the IRS in order to process EV sales.
While the Massachusetts requirements are fairly straightforward based on vehicle propulsion type, cost, and customer-income level, the federal rules led to a situation of constantly mov-
ing pieces that can impact vehicle eligibility status continually and guarantee consumer – and dealership – confusion. Nevertheless, dealers, as well as buyers, have embraced the point-ofsale process. Over 250 dealers are registered in the MOR-EV program, and about 80% of EV sales involving the rebate are POS transactions.
Although the state’s rebate program may be financially stable for now, one cannot say the same for the federal tax credits.
Throughout last year’s presidential election, Trump expressed his desire to eliminate this federal subsidy. Since his inauguration, his desires have not abated. As much as he wants to wipe out the tax credits with a stroke of a pen, any changes to the program will require legislation to amend its creation in the Inflation Reduction Act. This is one “wait and see” issue as the Republican-controlled Congress develops its priorities for 2025 – yet another potential blow to EV adoption.
problems already.
At some point, policy makers need to face the reality of the facts at hand. As dealers lobby their legislators for relief – albeit temporary in nature –from the CARB ZEV mandates, they also will have the chance to lobby their Members of Congress for complete relief by wiping out the CARB waivers, certainly something that could face court challenge. The Trump Administration has started that ball rolling, and it may be the only way consumers and dealerships may hold on through 2025.
2026 and Beyond – What’s Next?
Beginning with MY 2026 and over the next decade, it all will come down to a numbers game, as the manufacturers strive to hit the CARB goals and avoid substantial financial penalties. However, actions by the Trump Administration and Congress could not only upend the ZEV mandates but also eliminate tools presently in place – charging infrastructure funds, EV tax credit subsidies – that will impact the ability of consumers to achieve a comfort level of buying ZEVs in increased numbers.
No manufacturer in any CARB state is close to hitting the 35% threshold for ZEVs this year. California and Colorado may be the closest in the aggregate at 25%, but Massachusetts and others are barely scratching the 10% mark in total. Although the manufacturers could buy credits, they do have two years to try to hit the initial marks. In the meantime, dealerships will have less of the vehicles consumers want and at a higher price for the limited inventory. A plan based on less vehicles at a higher price is not a recipe for success.
As dealers potentially sell less vehicles, the Commonwealth will face a tax revenue hit. Collecting $1.35 billion from vehicle sales in a good year, any downward deviation will threaten the already precarious state finances, especially as the state presently earmarks sales tax revenue for the MBTA and the school building construction fund – two areas that have their own budget
NEWS from Around the h orn
SOMERVILLE
Herb Chambers selling Car Chain to Georgia Group
By Jon Chesto and Dana Gerber, The Boston Globe
During his four decades in the auto industry, Herb Chambers gradually turned one dealership into a bona fide empire, the biggest in New England.
Now, at 83, Chambers is handing over the steering wheel to an even bigger organization: He has reached a billion-dollar deal to sell his eponymous, Somerville-based business to Asbury Automotive Group, a publicly-traded company based in Georgia.
Chambers has long been one of Greater Boston’s most prominent businessmen and by far the region’s best-known auto dealer. He remains the face of his company through his ubiquitous ads and billboards and has tried hard to build a reputation around service and ethics. For the city, the acquisition represents another takeover of a big local brand by outsiders, following in the footsteps of Gillette, Reebok, John Hancock, and Legal Sea Foods. But few Boston brands are as tied to one person.
In an interview, a bittersweet Chambers said he spent February 18 in the hours after the deal announcement visiting his dealerships and meeting with his staff.
“It’s a happy day and a sad day,” Chambers said. “That’s exactly what I feel… Some of these people have worked for me for 40 years.’’
Chambers said he didn’t expect his customers would see much of a change. He noted that Asbury offers employee benefits such as stock ownership that should keep his team largely in place. “These people are very happy in their work,’’ Chambers said of his staff.
The deal price of $1.34 billion includes $750 million for the value of the Chambers brand and $590 million for the group’s real estate, but not an additional amount to be determined by the time the deal closes this summer for other assets — such as the vehicle fleet, parts, and supplies.
Asbury is acquiring 52 franchises across 33 dealerships, as well as three collision centers (auto repair shops). Herb Chambers will hold onto his Mercedes-Benz dealership in Somerville, although Asbury will have right of first refusal to buy it if he chooses to sell at a later date, Chambers said. He also recently sold a Honda dealership in Westborough to his son, George Chambers.
The Herb Chambers Cos. employs more than 2,200 people, and it reported $2.9 billion in revenue last year — nearly one-sixth of what Asbury generated.
While the deal with Asbury is a seismic move in the region’s auto industry, rumors of a potential sale have circulated for years. Chambers has been approached by several big national groups, but he would say he was not quite ready to retire. Lately, he has conceded that it’s time to pursue a succession plan. He has also ramped up his philanthropy, including with a $100 million pledge to Mass. General Hospital announced in December that includes a new cancer-center tower named after him, and also last year’s
high-profile sponsorship of the annual July 4 fireworks show over the Charles River.
“He had an incredible run, and he certainly has been an inspiration to me and many other business leaders in the Boston area, showing that hard work and perseverance in a difficult business can pay off big,’’ said Craig Carlson, an automotive industry consultant in Boston. “He started with one dealership and through hard work and focus and pursuit of excellence, built it up over the years.’’
Chambers’ rags-to-riches story begins in Dorchester, where he grew up. He served in the Navy before launching a copier sales business in his early 20s that he then sold more than 10 years later for more than $80 million. He used money from that sale to buy a Cadillac-Oldsmobile dealership in New London in 1985, the start of a long career in auto sales. As Chambers tells it, he walked into the business to buy a car and could tell from his disappointing experience that the owner might be willing to sell. As it turned out, he was.
After the Asbury deal closes, Chambers will stay on as a special adviser. He said Asbury chief executive David Hult and his leadership team share his “customer-focused philosophy.’’
Asbury initially approached Chambers about a year ago about selling, he said.
“At the time, I said, ‘I don’t think I want to do this,’ ’’ Chambers recalled. “I don’t like the idea of retiring. . . . I can’t say
HOLYOKE
goodbye. That’s why I have to keep the Mercedes dealership.’’
With the transfer to Asbury, the next-biggest dealership groups in New England include the Balise Auto Group, based in Springfield, and DCD Automotive Holdings, owned by Dan and Chris Dagesse, based in Norwood. (The Dagesse family acquired several of Ernie Boch Jr.’s dealerships roughly a decade ago, and those are now branded under the Nucar flag.)
The Chambers sale is happening amid broader consolidation in the auto sales industry. Industry advisory firm Haig Partners said last month that it expects to see around 450 dealerships trade hands this year, down about 10 percent from last year.
In particular, the gradual switch to electric cars is affecting the industry’s profit model, because battery-powered vehicles generally require fewer return trips to the dealer for service. The EV transition is expected to slow under a Trump administration, but it’s not going to stop.
“There’s a concern [that] the business isn’t going to be quite the same going forward, in terms of the profit centers of the dealership for service and maybe for parts,’’ said Carlson, the automotive consultant. “A lot of dealers right now are [thinking] for us to survive, we need to be big, we need to have economies of scale.’’
Chambers, meanwhile, said he recognizes just how fortunate he has been to live his dream for all these years.
“I’ve loved cars since I was a kid,’’ Chambers said. “To have the opportunity to be in the industry was a thrill to me.’’
Hope on Wheels donates $10K to “Each Moment We’re Alive”
On January 22, Gary Rome of Gary Rome Hyundai, on behalf of Hyundai Hope on Wheels, presented a $10,000 Regional Grant to “Each Moment We’re Alive”, to help expand the cancer support group’s reach of offering tools and support for individuals during and after the diagnosis. Cindy Sheridan-Murphy, the founder of Each Moment We’re Alive, and board members were present to accept the check.
“At Gary Rome Hyundai, we believe in leading by example and pride ourselves on doing the next right thing,” said Rome at the check presentation ceremony. “As a Hyundai Hope on Wheels board member, I am dedicated to supporting local organizations battling childhood cancer.”
Hyundai Hope On Wheels®, a nonprofit organization backed by Hyundai Motor America and its network of over 820 U.S. dealers, has been a beacon of hope since 1998. With a mission centered around supporting families, researchers, and children affected by childhood cancer, their tireless efforts have resulted in over $250 million in grants. This organization not only raises awareness but also invites everyone to join the vital movement to #EndChildhoodCancer.
Cindy Sheridan Murphy’s journey as a survivor exemplifies the spirit of resilience and support. After battling cancer twice,
she founded Each Moment We’re Alive in 2015, highlighting the essential need for emotional and spiritual support for survivors. Cindy’s realization that reaching out is crucial for healing has led her to create a network of support groups and workshops. Her focus extends beyond her own experience to include families facing all types of cancer, including pediatric cancer.
from the left: emily iacolo, Joanne leary Beaudry, gary rome, cindy Sheridan-Murphy, and erin Bissonette
NEWS from Around the h orn
WATERTOWN
Edmunds Honors Lexus of Watertown
On February 4, Edmunds honored 107 dealerships with its annual Five Star Dealer Awards, including Massachusetts dealership Lexus of Watertown.
The online provider of automotive inventory and information, including vehicle reviews, Edmunds said that, with affordability issues weighing on consumers, many are seeking superior customer service.
“Edmunds’ Five Star Dealer Awards honor the extraordinary efforts of dealerships across the country that go above and beyond to make customers feel comfortable, valued, and supported throughout the car-buying and ownership journey,” said company President Seth Berkowitz in a press release announcing the award winners.
Dealers considered for the honors are all participants of Edmunds’ Dealer Partner program. They had received a minimum of 30 sales reviews through Edmunds in 2024 with an average review rating of at least 4 ½ stars. Those designated premier dealerships met the same average rating requirements from at least 150 sales reviews.
LYNN
dsR Motor Group Acquires
Atlantic Toyota
ACCESS Newswire
DSR Motor Group, led by automotive industry veteran David Rosenberg, recently announced the acquisition of its twelfth store, Atlantic Toyota, a dealership deeply rooted in the Lynn community at 671 Lynnway.
This purchase marks a new chapter for DSR Motor Group, as Rosenberg and Operating Partner Michael Brown carry forward the legacy of former owners, Les Rosenberg and John Biggio, who built Atlantic Toyota on family values, community connection, and exceptional customer service.
A North Shore native and son of the late automotive pioneer Ira Rosenberg, David Rosenberg said this is an especially meaningful transaction for the group. “Les was one of the first Toyota dealers my father met, and the two shared a bond that lasted throughout their respective careers,” David Rosenberg mentioned.
Under the DSR Motor Group’s leadership, Atlantic Toyota will set out to carry on the values of its former owners, Les and John, while evolving its practices to maintain and surpass customer’s expectations.
“The store has a great reputation with customers and employees alike,” David Rosenberg said, noting the tenure of the staff. “Atlantic Toyota will operate under the same name, with the same value Les and John emulated each day - providing ultimate transparency and exceptional customer service,” he concluded.
Hyannis Honda – 50 Years with Honda
In the February 10 edition of Automotive News, Hyannis Honda – Bob Goodwin, dealer principal, and Jay Goodwin, general manager – was recognized for its fiftieth anniversary with Honda Motor Co.
Atlantic Toyota’s evolved approach will also emphasize fairness and simplicity when it comes to pricing, just as the store has always done. Customers will continue to benefit from an efficient process that values their time, carried out by friendly and approachable staff.
Michael Brown, the new Operating Partner of Atlantic Toyota, echoed this sentiment. “Today’s customers expect speed, fairness, and clarity, and we’re here to deliver exactly that. From the moment someone walks through our doors or visits us online, they’ll notice a DSR Motor Group difference: a commitment to making the car-buying process both easy and enjoyable. This isn’t about changing what worked; it’s about building on it and delivering an even greater experience.”
“This is about more than selling cars,” added Brown. “It’s about changing how customers feel when they engage with a dealership. Convenience is key. Buying a car should fit into their lives, not the other way around. Consumers will discover a dealership that is committed to its customers and community.”
HYANNIS
APEX,
NORTH
CAROLINA
Eight Major Automakers Unite Around More, Better EV Charging
By Hannah Lutz, Automotive News
Leaders from eight rival automakers cut eight red ribbons at a Apex, North Carolina, site to formally unite around a shared mission: Make public charging ubiquitous and welcoming for their customers long after they buy an electric vehicle.
BMW, General Motors, Kia, Honda, Hyundai, Mercedes-Benz, Stellantis, and Toyota are the founding members of Ionna, a new charging network that plans to install 30,000 fast chargers across North America through 2030.
Six locations with 58 chargers are open. Ionna plans to open more than 100 sites with more than 1,000 charging bays this year.
“We’re fierce competitors, but we’re all coming together on one common interest and goal, and all are aligned with what kind of experience we want for our customers,” said Orth Hedrick, executive director of car product management at Kia and an Ionna board member.
Representatives from each automaker stood beside their EVs and used giant gold scissors to cut their ribbons in unison to mark the grand opening of Ionna at its Rechargery ― the name for their charging stations ― in Apex, less than 20 miles from its Durham headquarters.
Ionna, which is pronounced “Ion-ah” and means “Ion North America,” is similar to Ionity, a charging network across Europe backed by seven automakers. In the U.S., none of the automakers interviewed by Automotive News said they knew of another agreement as collaborative as Ionna.
“There is no real ego inside the room. Everything is checked at the door, and everybody has something different to offer,” said Chad Doyle, senior vice president of planning, partnerships, and program delivery at Stellantis and an Ionna board member.
General Motors has partnered with EVgo, Pilot Flying J, and Chargepoint to install more stations, and Mercedes-Benz is working on high-power hubs with Chargepoint. The initiatives complement the automakers’ work with Ionna and push toward the ultimate goal of more and better charging, the automakers said.
“We need more stations in North America — period,” said Nico Dettmer, COO of Mercedes-Benz Charging Solutions and an Ionna board member who helped develop Ionity in Europe. “We are taking care of our charging. This is our promise to the customer.”
Each automaker invested an equal, undisclosed amount in Ionna. Many said the investment was significant.
Before Ionna was formed, Honda knew it had to come up with a public charging solution. The automaker had explored partnerships with retail outlets and others, but “we weren’t making a lot
The automakers are banding together to protect and promote their EV sales. Without a reliable, widespread charging network, EV buyers won’t be able to take road trips or charge on the go. Together, the eight automakers have more than 30 electric models for sale in the U.S. They plan to add at least 60 by 2030, according to Automotive News’ Future Product Pipeline.
Public charging is often a shortcoming of EV ownership. About a fifth of charging attempts failed in the third quarter of 2024, mostly because the charger was offline or broken, according to J.D. Power. The network gives automakers significantly more influence in public charging.
Some automakers have already invested in public charging:
of progress, and things just weren’t moving fast enough,” said Jay Joseph, vice president of sustainability and business development for Honda and a board member for Ionna.
Honda, which has two electric models for sale, worried about the size and state of the charging network for the EVs in its pipeline. BMW, Mercedes-Benz, and Stellantis were already working on the Ionna concept. Honda joined them and the others followed, Joseph said.
“From the very beginning, we were aligned with the other automakers on vision and values. We were going into this with a very shared sense of vision,” Joseph said.
They formed subcommittees to lead the CEO search, parse through legalities, and onboard other partners.
Seven of the eight automakers had joined the yet-to-be-named
(Photo from Automotive news/Hannah lutz)
NEWS from Around the h orn
joint venture by July 2023, and by February, the company had a name and appointed a CEO: Seth Cutler, former president and COO of EV Connect, a charging services management company.
Ionna is an independent company, but it taps into its roster of automakers to enhance customer experience and test software. (The automakers have Ionna chargers at their offices.)
“That’s the superpower of Ionna — being able to collaborate with our eight partners to deliver something uniquely different,” Cutler said.
Ionna rehabbed the site of a 100-year-old gas station to build its Apex Rechargery, which has 10 plugs. It has six Combined Charging System plugs and four North American Charging Standard plugs ― the Tesla standard that most brands will soon be able to use with an adapter.
A stand of dog waste bags and a squeegee bucket sit beside the canopy-covered chargers. EV owners can scan a QR code for access to a building with restrooms (plus baby changing tables), vending machines, a café, Wi-Fi, and two small conference rooms. Ionna offers washer fluid and a tire inflator in front of the building.
Basic amenities that are standard at gas stations are absent at many public charging stations. EV owners and consumers interested in EVs said they wanted charging sites that have signs for charging speed and price that are easy to see and read, are well-lit and offer a covered charging location. They also want Wi-Fi access and basic vehicle care services, such as windshield cleaner, air pumps for filling tires, and vacuums, according to a 2024 AutoPacific survey.
Hospitality “really separates a brand. And I think what you’re seeing with Ionna is that they’re really trying to make sure that the guest experience is at that high level compared to other charging companies,” said Shawn Domeracki, vice president of Lexus sales and dealer development.
A positive customer experience is Ionna’s North Star. For every Ionna decision, leaders ask themselves, “Is this going to meet the customer experience we desire?” said Olabisi Boyle, senior vice president of product planning and mobility strategy at Hyundai and an Ionna board member. “When you bounce it against that criteria, the decision actually becomes a lot easier,” Boyle said. “It has led to excellent collaboration from such competitive OEMs.”
WASHINGTON, D.C.
Trump Admin suspends National EV Charging Program
By Jeremy Wolfe, FleetOwner
The Trump administration is pausing charging infrastructure funding under the National Electric Vehicle Infrastructure Formula Program indefinitely.
The Federal Highway Administration issued a memo on February 10 announcing the suspension of the NEVI Formula Program. This indefinitely pauses all new NEVI funding approvals, leaving between $885 million and $1.5 billion in funding in limbo while the U.S. Department of Transportation reviews its policies.
“Effective immediately, no new obligations may occur under the NEVI Formula Program until the updated final NEVI Formula Program Guidance is issued and new state plans are submitted and approved,” Emily Biondi, associate administrator for FHWA’s Office of Planning, Environment, and Realty, wrote in the memo. “Since FHWA is suspending the existing state plans, states will be held harmless for not implementing their existing plans. Until new guidance is issued, reimbursement of existing obligations will be allowed in order to not disrupt current financial commitments.”
FHWA rescinded its NEVI guidance documents, wiped the NEVI program webpage clean, and removed the webpage that describes its and states’ EV deployment plans.
The National Electric Vehicle Infrastructure Formula Program distributes grant funding to states to deploy EV charging infrastructure. The program is issued by the Infrastructure Investment and Jobs Act. Also known as the Bipartisan Infrastructure Law, IIJA mandates a five-year EV funding program across all U.S. states, distributing $4.5 billion by the end of fiscal year 2026.
NEVI supports projects for electric truck charging, including several Love’s charging stations. According to NPR, 56 fueling stations are running because of the program, and more than 900 sites have been awarded. However, most funding supports lighter vehicles like EVgo’s $1 billion loan for a fast-charging stall buildout. Under the program, each state submitted a plan for each fiscal year describing how it would use NEVI funds to deploy EV charging, leaving much of EV development up to states, includ-
ing operation-critical cybersecurity standards. Trucking industry associations, including the American Trucking Associations and NATSO, previously urged FHWA to implement thoroughly coordinated requirements for the funding.
The NEVI suspension is one of the first major acts under Transportation Secretary Sean Duffy’s DOT. Duffy’s first act after confirmation also targeted climate policies by rescinding fuel economy standards for passenger and light-duty vehicles.
Suspending NAVI funding is part of a flood of actions from the Trump administration against climate policies. The president is pursuing his campaign promise to weaken environmental regulations for industries. On his first day as president, Trump signed a slew of executive orders that included:
• Ordering federal agencies to eliminate harmful, coercive climate policies that increase the costs of food and fuel.
• Requiring agencies to review all actions that might burden energy development.
• Withdrawing from the Paris Climate Agreement.
• Declaring a “national energy emergency.”
Federal agencies have not yet rolled back policies directly affecting heavy-duty trucks. However, those policies face existential threats. Trump directed the U.S. Environmental Protection Agency to review the final rule that allows the agency to set greenhouse gas standards, threatening the EPA’s GHG authority. Lee Zeldin, EPA’s new administrator, recently vowed to rescind environmental policies targeting the automotive industry and energy production.
The suspension is not the first time Trump’s new administration interfered with Congressional funding. In late January, Trump’s budget office ordered a total freeze on all federal agencies’ payments. Two federal judges temporarily blocked the move. District Judge John McConnell said that the order was likely unconstitutional. “Congress has not given the Executive limitless power to broadly and indefinitely pause all funds that it has expressly directed to specific recipients and purposes,” McConnell said in his order blocking the broad freeze, “and therefore the Executive’s actions violate the separation of powers.”
Federally funded charging infrastructure development will slow down for an unknown period. Courts have not decided whether Trump can postpone the execution of Congressional law. Federal judges’ previous freezes against the budget office were temporary. Lawsuits against FHWA’s suspension will ultimately determine whether the agency can indefinitely postpone the Congressional EV funding. As it is similar to the budget office’s full federal freeze, a judge will likely find FHWA’s order unlawful.
In the meantime, the administration said it would work to replace NEVI’s guidance. In the memo, Biondi said that FHWA might publish a draft guidance document for public comment in the spring. An undisclosed time after the draft’s comment period closes, FHWA would publish its updated final guidance.
The American Trucking Associations and fuel stop organizations issued statements broadly supportive of the pause. “We appreciate the Trump Administration’s efforts to evaluate the NEVI
Program, and we look forward to working with them to advance a plan that addresses the trucking industry’s needs,” Mike Tunnell, ATA’s senior director of energy and environmental affairs, said. David Fialkov, EVP of government affairs for two trade associations representing truck stops and fuel marketers (NATSO and SIGMA), looked forward to how the Trump administration will revise the program. While the program helped develop charging stations in many states’ truck stops, Fialkov said, “in other states, NEVI has been implemented poorly, with chargers either still not built or, if they are, they’re in places nobody wants to stop. We are encouraged that the Trump administration is reevaluating rather than abandoning the NEVI program and intend to work closely with the administration to share our experience and keep what’s been working, while reconsidering clearly unproductive approaches.”
NATSO and SIGMA previously urged the Biden administration FHWA to introduce new funding requirements to coordinate states’ charging stations.
DETROIT
EV Maker Nikola Files for Chap. 11 Bankruptcy Protection
By Michael Wayland, CNBC
Nikola Corp, an auto startup that was once a favorite of Wall Street analysts and retail investors, filed for bankruptcy protection on February 19 after failing to secure a buyer or raise additional funds to maintain operations.
Nikola said that it plans to pursue an auction and sale process of its assets, pending court approval. The company said it has approximately $47 million in cash to fund its bankruptcy activities, implement the sale process, and exit Chapter 11.
“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate,” Nikola CEO Steve Girsky said in a release. “Unfortunately, our very best efforts have not been enough to overcome these significant challenges, and the Board has determined that Chapter 11 represents the best possible path forward under the circumstances for the Company and its stakeholders.”
The proposed bidding procedures, if approved by the court, would allow interested parties to submit binding offers to acquire Nikola’s assets, purchased free and clear of Nikola’s indebtedness and certain liabilities.
The filing marks the finale of the Phoenix-based company’s yearslong fall from grace. At its peak in 2020, Nikola was valued more than Ford Motor at $30 billion, signed a multibillion-dollar deal with General Motors, and was considered the pinnacle of auto startups to go public through reverse mergers and special purpose acquisition companies.
The company’s downfall has played out over years, ignited by scandals and lies involving its founder and former chairman and CEO, Trevor Milton. The fast-talking, energetic, disgraced executive was convicted of wire fraud and securities fraud in
NEWS from Around the h orn
2022 for misleading investors about Nikola’s operations and zero-emissions technology. The controversies were first made public by short seller Hindenburg Research after the deal with GM that included the Detroit automaker taking a $2 billion stake in the startup.
Nikola’s core products are all-electric and fuel cell electric semitrucks, which it began producing in 2022. As of the third quarter of last year, the company had only produced 600 of the vehicles since then. Many of those vehicles have been recalled due to defects, costing the automaker tens of millions of dollars.
Since moving from chairman to CEO in 2023, Girsky has kept Nikola moving forward, including its production of zero-emissions trucks, but the company’s capital has been dwindling.
Nikola warned investors on its third-quarter conference call that the company only had enough cash to support its business into the first quarter of 2025 but not beyond. Nikola reported $198 million in cash to end the third quarter. Girsky on the call in October said Nikola was “actively talking to lots of potential different partners who value what we do and value what we’ve built.”
Girsky, a former bank analyst and GM executive, took Nikola public through his SPAC in June 2020. It was a catalyst for more EV companies to go public through SPACs. Similarly to Nikola, most, if not all, have failed to live up to their initial expectations. Many were the center of federal investigations, scandals and executive upheavals.
Nikola’s stock has traded under $2 per share since early December. Factoring out a 1-for-30 reverse stock split last year, FactSet reports Nikola’s all-time closing price was nearly $80 in June 2020.
DETROIT
Automotive News 2024 Yearbook Recognition
In its 2024 Yearbook edition, Automotive News recognized four Massachusetts-based auto groups in its list of “Top 150 U.S.Based Dealership Groups”, ranked on 2023 new-vehicle retail unit sales:
• #28 – Herb Chambers Cos., Somerville (25,863 new units at 33 dealerships)
• #57 – McGovern Auto Group, Newton (17,675 new units at 28 dealerships)
• #79 – Balise Motor Sales, West Springfield (13,917 new units at 26 dealerships)
• #147 – Kelly Auto Group, Danvers (6,556 new units at 7 dealerships)
Automotive News recognized one Massachusetts-based dealership in its “Top 150 Best Dealerships to Work For”: at #140 overall (#21 in the Small Dealership Ranking), Patriot Subaru in North Attleboro, part of the Patriot Auto Group.
EV Registrations Up 25% as Buyers Take Action
By Laurence Iliff, Automotive News
New registrations of battery-electric vehicles surged 25 percent in December as U.S. buyers shopped year-end deals and raced to claim the $7,500 EV incentive amid concerns President Donald Trump would eliminate the generous tax break, data from S&P Global Mobility showed.
EV share of the total national light-vehicle market reached 9.9 percent in December, a significant increase from 8.5 percent in the same month of 2023, S&P Global Mobility said. New electric vehicle registrations, not including hybrids, rose to 144,070 from 115,217 in the previous year.
“There’s so much discussion about how EVs have slowed down — and they have — but they certainly have not stopped growing,” said Tom Libby, an analyst at S&P Global Mobility. “EVs are alive, and they’re kicking.”
The final month of the year is popular for sales as automakers and dealers strive to clear out inventory and reach volume goals, analysts said. For EV customers, December was even more urgent given fears Trump would get rid of the EV tax credit upon taking office in January.
“December was indeed an abnormal month,” said Ed Kim, president and chief analyst at AutoPacific. “There was your standard year-end deals. But there was also the fear and expectation of losing the tax credit.”
Kim said the incentive may survive for several more months before the Trump Administration and Republican-led Congress move against it, boosting EV sales well into 2025. The December surge stood in contrast to the full-year report for battery-electric models, which was mixed.
EV registrations rose 11 percent in 2024 compared with a year earlier to a record 1.28 million vehicles, the data showed. But EV share of the light-vehicle market ended at 8 percent, a modest 0.5 percentage point gain compared with 2023. EV growth was likely stymied by the popularity of gasoline-electric hybrid vehicles, led by Toyota and Honda. Popular non-Tesla EVs included the Ford Mustang Mach-E crossover, with 7,363 registrations in December and 52,864 for 2024, according to S&P Global Mobility.
“I think it’s understandable that hybrids are hurting EVs,” Libby said. Hybrids offer partial electrification at a lower price than full EVs, without range and fueling anxiety, he said.
Registration data serves as a proxy for official sales data since Tesla, the EV market leader, does not break out U.S. sales and some other automakers do not provide battery-electric vehicle data by model.
Total light-vehicle registrations in 2024, including all fuel types, rose 3.6 percent to 15.9 million, S&P Global Mobility said. The EV data showed a maturing market for the technology, with a burst of fresh products competing with Tesla’s venerable Model
Y crossover. The Model Y remained the most popular EV in the U.S., with 380,093 registrations last year, Libby said.
Popular non-Tesla models included the Ford Mustang Mach-E crossover, with 7,363 registrations in December and 52,864 in the full year, the data showed. Hyundai’s Ioniq 5 crossover had 4,837 registrations in December and 45,836 for the year.
Models with less than a year on the market also broke through the 4,000-per-month threshold in December. The Honda Prologue had 7,583 registrations, and the Chevrolet Equinox EV had 6,375, S&P Global Mobility said. The Prologue and Equinox share a General Motors platform.
“For a long time, outside of the Tesla Model 3 and Model Y, EV models never seemed to reach 4,000 per month,” Libby said.
In December, five non-Tesla nameplates broke the barrier, including the Ford F-150 Lightning. That shows strong consumer interest, Libby added. Tesla performed relatively well in December after struggling to maintain its numbers for most of 2024. Tesla registrations rose 2.4 percent in December to 65,455 vehicles while falling 4.8 percent for the year to 611,755 vehicles, S&P Global Mobility said.
“I know the Tesla brand is facing headwinds,” Kim said, citing the controversial role of CEO Elon Musk as a key adviser to Trump. “But there is a strong level of equity that is built into the brand and a strong reputation.” Tesla’s share of the EV market fell about 10 percentage points to 45.4 percent in December versus the year-earlier period, S&P Global Mobility said. For 2024, Tesla’s share fell to 47.9 percent, a decline of 8 percentage points from a year earlier.
One particularly sour note for Tesla last year was the relatively poor showing of its Cybertruck pickup, launched to much fanfare in November 2023. The angular pickup had 39,442 registrations in 2024, S&P Global Mobility said. In December, the Cybertruck had 4,197 registrations. Musk had forecast that the Cybertruck would be a runaway hit, with hundreds of thousands a year in sales.
“It is polarizing,” Kim said. “It’s a high-image product that will be bought primarily for styling, image, and those sort of emotional concerns. It’s not a true Ford F-150 competitor. It’s a very high-style vehicle, but it’s not a great truck.”
CALIFORNIA
Genesis Honors dan Quirk as 2024 Circle of Prestige Winner
Genesis Motors has announced Genesis of Braintree, dealer principal Dan Quirk, as one of 22 U.S. dealerships recognized for winning its 2024 Circle of Prestige Award. The award is conferred on retailers who excel in several key categories: Genesis Buyer and Service Experience rating; performance in terms of contact after the sale; ratings for excellence in service; and achieving the highest percentage in terms of sales.
Tax and Policy Changes – What Lies Ahead for Auto Dealers
By Matthew Marcoullier
CPA, Albin Randall & Bennett
President Donald Trump’s re-election campaign leaned heavily on being pro-business on tax and policy reform. However, predicting what actual changes will come from the new administration is challenging. One of the cornerstones of the campaign’s proposals was the extension of the 2017 Tax Cuts and Jobs Act (TCJA). The TCJA generally has been beneficial to dealers, but it is scheduled to sunset after 2025.
The Trump Administration also has floated a number of tax changes and policy proposals that could impact the auto dealer industry. Below, we review some of the expiring TCJA provisions and Trump Administration proposals that are likely to have a significant impact on dealers and their businesses.
Key Current TCJA Provisions
Estate Tax Limit: The estate tax limit was doubled as part of the TCJA. Upon its expiration, these limits will revert to the old threshold, albeit indexed for inflation. Even with dealership prices cooling off over the last year, many dealers are over the current threshold of $13.6 million, and almost all dealers would likely be over the limit if this is cut in half.
Qualified Business Income Deduction (QBI): This is the 20% deduction that is generally available to pass-through business owners. This effectively limits your pass-through income to 80% of whatever you earn, and it has been a key benefit for dealers, who are largely operating their
dealerships as S-corporations.
Bonus Depreciation: The TCJA allowed for 100% bonus depreciation initially but has been gradually phasing that out. In 2024 and 2025, bonus depreciation will drop to 60% and 40%, respectively. However, even with the phase-out, the rules around the property qualifying for bonus depreciation were broadened significantly, making it much more beneficial to undertake cost segregation studies on dealer facilities, even at the reduced rates.
SALT Deduction Cap: One of the more controversial provisions of the TCJA was the $10,000 cap on the state and local tax (SALT) deduction, which limits the amount taxpayers can deduct for state and local taxes. The cap on the SALT deduction has significantly impacted residents of high-tax states, and it has helped to spur the various pass-through entity (PTE) tax regimes that have been implemented in the Northeast.
Again, all of these provisions are scheduled to sunset after 2025 unless Congress takes action to extend them. “Tax extenders” have always been part of the political game. These are expected to be treated in a similar manner, although, hopefully, Congress acts quickly enough to allow for informed tax planning this time around.
Tax and Policy Proposals
Renewal of 100% Bonus Depreciation: Under the first Trump Administration, there was a push to extend the 100% bonus depreciation for businesses, and the intent would be for this to become permanent. This provision would offer flexibility to many businesses but would be most impactful for dealers that are upgrading their facilities, whether through renovation or new build, or looking to acquire new dealerships.
Removal of SALT Deduction Cap: The Trump Administration has proposed eliminating the $10,000 cap on the SALT
deduction, which would benefit taxpayers in high-tax states who have been disproportionately impacted by the cap. It is not clear how such a move would impact the state PTE taxes, which were at least partially enacted to help circumvent the SALT cap.
Tariffs: As of this writing, the North American tariffs have been delayed. They were estimated to add as much as $3,000 to the cost of a new vehicle, which would be a major headwind as the industry contends with historically high prices and affordability issues already. When or if these tariffs return remains to be seen.
Suspension of Clean Energy Credits: The future of the credits that helped fuel EV demand and offset some of the implementation costs is uncertain at best. These credits have been a target throughout the re-election campaign. If the Trump Administration gets its way, these are not likely to survive, which will significantly impact the affordability of EVs and related equipment.
While it is difficult to predict what will happen, or the timing thereof, the current TCJA provisions are still in effect for the 2024 and 2025 tax years, so there is a baseline for planning over the next year. What comes after is hard to say. Whether changes are from the TCJA’s expiration or new proposals being undertaken, it seems certain that the 2026 tax landscape will look vastly different from our current position.
In the meantime, dealers should be talking to their advisors to determine how to best prepare themselves for the potential changes ahead. While there will certainly be opportunities to capitalize on, there are also plenty of potential risks. Proactive planning and preparation will help you be positioned for success.
ARB’s Dylan Anderson, Sahaley DuPree, and Sam Goodine contributed to this article.
Tax Strategies for Dealerships – Cost Segregation
By Martin Harski Principal, Withum
Owning a car dealership can present a golden opportunity to reduce your tax liabilities. One such opportunity is cost segregation, allowing dealerships to speed up depreciation deductions, which can lead to significant tax savings early on. In this article, we will break down cost segregation, explain how it works, and show why it is crucial for improving your cash flow and overall financial bottom line.
What is Cost Segregation?
Cost segregation is a tax strategy involving an engineering-based analysis that identifies, segregates, and reclassifies various property components that can be written off faster than others instead of spreading out the depreciation over 39 years. Cost segregation allows you to classify certain portions of the property, such as parking lots, showrooms, service centers, and offices, into shorter depreciable periods, such as 5, 7, or 15 years. This means larger deductions early on, which can reduce your taxable income and free up cash for other investments.
How Does Cost Segregation Work?
A cost segregation study is typically conducted by cost segregation specialists, engineers, construction professionals, and/ or tax experts who specialize in this field and follow IRS guidelines. The studies typically are completed in several steps:
• Initial Property Assessment
• Property Inspection
• Obtain and Review Necessary Project Information and Documentation
Bonus depreciation is a tax incentive created by Congress that allows businesses to immediately deduct a significant portion of eligible assets purchased, constructed, and/or renovated rather than writing them off over the asset’s “useful life.” The rules and limitations have evolved over the years, and, in 2017, the law changed
again, which allowed for a 100% deduction for qualified assets through the end of 2022. As part of the change in law, bonus depreciation is scheduled to be phased down to zero in 20% increments from 2023 through the end of 2026. Starting in 2027, bonus depreciation will be suspended again unless Congress acts.
Examples of Assets that Qualify for Bonus Depreciation
Assets that qualify for bonus depreciation include, but are not limited to, furniture and fixtures, service equipment, land improvements, interior improvements, and specialized HVAC, pumbing, and electrical systems.
What is a Section 179 Deduction?
This deduction is another key tax incentive allowing dealerships to deduct the full cost of new and used qualifying equipment, software, and other assets in the year they were purchased rather than depreciating them over their “useful life.” In 2024, the maximum deduction is $1.12 million, with phase-out limits of $2.8 million.
Impact of Interest Limits on Bonus Depreciation
Bonus depreciation and business interest deductions are interrelated and can impact how dealerships optimize their tax strategy. Even with interest expenses, a dealership can still benefit from bonus depreciation, but they need to ensure their total interest expense stays below certain thresholds to maximize deductions. Regularly reviewing your interest expenses and adjusted taxable income is a smart tax planning strategy.
Case Study Examples
• A dealership recently constructed a property for $12 million. By identifying $3.5 million of assets to shorter depreciable tax lives, the dealership realized over $2.3 million in first-year depreciation deductions (with the help of bonus depreciation) and over $680,000 in tax savings during the first year, boosting their cash flow and profitability.
• A dealership never performed a cost segregation study on a property they purchased for $15 million back in 2021.
By performing a look-back study on the property, the dealership was able to reclaim the missed deductions from prior tax years. By identifying over $4.4 million of misclassified assets and the recovery of the understated depreciation deductions from prior and current tax year(s), the dealership realized over $4.4 million of depreciation deductions (with the help of bonus depreciation) and over $1.2 million in tax savings in 2024, thereby increasing their financial bottom-line.
• A dealership recently remodeled their facility for $5 million. By identifying $3.6 million of assets to shorter depreciable tax lives, the dealership realized over $2.2 million in first-year depreciation deductions (with the help of bonus depreciation) and over $650,000 in tax savings during the first year. An additional benefit of the remodel was the portion of assets that were demolished to make way for the remodeling of the building, the dealership was able to write off completely the remaining basis of those demolished assets in the year they are retired. The financial benefits to the dealership was beneficial in helping to increase their cash flow and profitability. Additional Financial Benefits
• Electric Vehicle Charging Stations: Tax credits are available for installing EV chargers, potentially providing a credit of up to 30%, based on certain requirements and capped at $1000,000 per station.
• Solar Panel Systems: Similar to EV chargers, solar panel systems can qualify for tax credits up to 50%, based on certain requirements.
• Both the EV chargers and solar panel systems are also eligible for bonus depreciation on top of the tax credits at reduced rates.
Conclusion
If you are a dealership, it is worth exploring whether cost segregation is right for you and your property. For more information, please reach out to Martin Harski at mharski@withum.com.
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Dealers Across the Country Challenge VW/Scout DTC Sales Model
By Attorneys Tom Vangel, Jamie Radke, and Lindsey McComber, Harris Beach Murtha Cullina PLLC
As many predicted, Scout Motors is facing legal challenges from dealers and dealer groups across the country. In October, Scout Motors announced its new EV SUVs that are set to launch in 2027. With its announcement, Scout revealed that it will implement a direct-to-consumer (DTC) sales model rather than utilizing the franchised Volkswagen (VW) dealer network. Following the announcement, NADA made a statement calling Scout Motors and VW’s decision to compete with its dealer partners across the country “disappointing” and vowed that it “will be challenged.”
Although VW attempted to establish Scout Motors as an independently managed company separate from VW, dealers across the country argue that VW is unlawfully trying to undercut the investments made by VW dealers in violation of state franchise laws. Specifically, dealers in California, South Carolina, and Florida have all challenged Scout’s plan to sell directly to consumers.
South Carolina is one of nineteen states that have a total ban on direct sales. In light of this total ban, in January, there was a bill that came before the South Carolina House of Representatives that would allow electric vehicle brands, including Tesla and Scout Motors, to sell directly to consumers. Although the bill was designed to apply to manufacturers that have not held a franchise agreement previously, it faces resistance from dealerships and dealer groups in South Carolina who have invested heavily into their dealership networks. A hearing was recently held in February on this bill, and the committee adjourned debate on it making it unlikely that it will move forward prior to the legislative session ending in May.
Like South Carolina, California dealership law prevents manufacturers from competing with their own franchisees by
using affiliates directly to sell or service vehicles. Therefore, in light of Scout’s actions, the California New Car Dealers Association sent a cease-and-desist letter to Scout and VW on December 20, 2024, claiming that they violated California law preventing direct-to-consumer sales because VW has been “directly and substantively involved in Scout’s development and revitalization of its vehicles…”
Audi and VW dealers in Florida also recently filed suit on February 3 seeking injunctive relief and a declaratory judgment that Scout has violated Florida’s Motor Vehicle Dealer Act. The sixty-one plaintiff dealers allege that Scout intends to sell its new motor vehicles directly to Florida consumers in violation of Florida’s Motor Vehicle Dealer Act.
More specifically, the Florida dealers allege that Scout is violating Section 320.64(24), which prohibits a licensee or its common entity from having sold or leased a motor vehicle to any retail consumer in Florida. Under Florida law, an entity is considered a “common entity” if it owns more than thirty percent of any brand or entity. Although Scout has yet to sell any vehicles as its electric trucks and SUVs are not set to go into production until 2027, they have accepted deposits from consumers which are to go towards the purchase price of these EVs. The Florida dealers argue that this violates Section 320.60(16) of the statute which defines a “sale” to include “[a]ccepting a deposit or receiving a payment for the retail purchase, lease, or other use of a motor vehicle” from a consumer in Florida.
Massachusetts law also prevents manufacturers from selling directly to consumers. Under Chapter 93B, Section 4(c) (10) of the Massachusetts General Laws, manufacturers are prevented from owning or operating “either directly or indirectly through any subsidiary, parent company
or firm, a motor vehicle dealership located in the commonwealth of the same line make as any of the vehicles manufactured, assembled or distributed by the manufacturer or distributor.” Chapter 93B, Section 15 gives dealers who suffer from an unfair method of competition or deceptive act or practice at the hands of a manufacturer standing to bring an action for damages and equitable relief.
As we mentioned in our November article, the Supreme Judicial Court has held that Section 15 does not confer standing on a motor vehicle dealer to maintain an action for violation of Section 4(c)(10) against a manufacturer with which the dealer is not affiliated. This ruling has prevented dealers in Massachusetts from bringing a claim against Tesla which has allowed Tesla to operate showrooms across the state in violation of Chapter 93B. Although Tesla has been able to operate because the Massachusetts Supreme Judicial Court has held that the only party who could challenge Tesla’s direct to consumer sales model would be a Tesla dealer, Massachusetts VW dealers may have a greater chance of success in bringing a claim against Scout Motors due to its affiliation with VW and Massachusetts law preventing manufacturers from using “unfair methods of competition.”
While the outcomes of these legal challenges brought against Scout across the country are still not clear, dealers should carefully monitor these situations as they could provide some insight into how other courts and legislatures may react to the direct-to-consumer sales model.
Tom Vangel and Jamie Radke are partners and Lindsey McComber is an associate with the law firm of Harris Beach Murtha Cullina in Boston who specialize in automotive law. They can be reached at 617-457-4072.
Are You Making Sufficient Disclosures to Charge That Fee?
By Gregory S. Paonessa, Esq. Partner, ArentFox Schiff LLP
Time and again, we get that call from a client—a customer came in and dropped off their vehicle looking to have some service done. At the time the customer drops the vehicle off, it is unknown what is wrong with the vehicle, or what it will cost to perform the work necessary to repair the vehicle. As a result, you tell the customer to leave the vehicle and that you will call them once you determine what is wrong to discuss how the customer wants to proceed. In such a scenario, you are likely setting yourself up to obtain oral authorization to perform the work. While written authorization is always preferred, oral authorization is permitted so long as the dealership maintains very specific information. Otherwise, it could be considered an unfair or deceptive act or practice to proceed.
As many of you are aware, the Massachusetts Attorney General has promulgated Motor Vehicle Regulations under 940 CMR 5.00. Those regulations include definitions in Section 5.01 that are highly relevant to, and should be known by, Massachusetts automobile dealers. The regulations also include sections concerning various aspects of dealer operations and what constitutes an unfair or deceptive act or practice, including, Advertising (Section 5.02); Sales Requirements (Section 5.04); and, of particular relevance for this article, Repairs and Service (Section 5.05).
As it relates to repair and services (Section 5.05), there are 12 subparagraphs, each outlining what constitutes an unfair or deceptive act or practice. Here, we address subparagraphs 4 and 5 concerning oral au-
thorization to perform repairs and charges for vehicle storage.
There is specific information that must be provided to a customer or maintained by a dealer in order to obtain oral authorization and to charge for vehicle storage. These are simple, straightforward requirements, that can be satisfied through the use of a standard dealership-issued form or by having signage up in the service area of the dealership. Pre-printed language on your repair orders may also satisfy these requirements. Given the ease of compliance with these disclosures and notices, it is time for all dealers to confirm that they are making sufficient disclosures prior to charging customers.
Oral authorization to perform repairs is not a new concept, and it certainly is not going away. In that regard, prior to obtaining oral (or written authorization) to perform repairs, a customer must be informed of: (a) the conditions under which the dealership/repair shop may charge storage costs and the daily or hourly amount of same; (b) that the customer can request replaced parts be returned to him or her at the completion of the work unless the parts must be returned under a warranty or other arrangement, in which case the customer must be given a right to inspect said parts; and (c) the amount of any charge to the customer for an estimate or diagnosis (not the full repair).
Failure to provide such disclosures is deemed an unfair or deceptive act or practice. Such a disclosure, however, does not need to be burdensome on the dealership. The dealership/repair shop can make the disclosure required under Section 5.05(4) by displaying such information in a clear and conspicuous manner on the repair shop premises (think a large clearly printed sign). Simply because you make the disclosure does not mean you have to charge the fees so disclosed, but without said disclosure, you may lose the right to seek such fees in an extreme situation (e.g., customer abandons vehicle at dealership for extended period of time).
Section 5.05(4) relates to whether you can charge certain fees, and Section 5.05(5) addresses what information must be provided and maintained in a customer’s file to obtain oral authorization without engaging in an unfair or deceptive act or practice. Subparagraph 5 is easy to comply with and is a circumstance where it would be beneficial for each dealer to create, or have their legal counsel create, a form that can be filled out by service department personnel and maintained in a customer’s file to ensure you always comply with the promulgated Regulation.
To obtain oral authorization (to perform repairs, to perform repairs at an increased cost, extend the time for performance of repairs, or any other authorization), the following information must be maintained: (a) the date and time of authorization; (b) the name of the employee obtaining oral authorization and from whom oral authorization was received; (c) the exact authorization received; and (d) if done over the phone, the number called by the repair shop. Failure to obtain and maintain the necessary information for oral authorization could be the difference between a profitable repair or ending up on the wrong side of a dispute.
There are simple solutions to ensuring compliance with these regulations (signage and completion of pre-printed forms). However, the important thing to know is what is required so that you stay in compliance with the many regulations included in the Motor Vehicle Regulations. If you need assistance determining whether you comply with these many regulations, you should contact counsel who can perform a thorough review of your processes and procedures. Otherwise, how do you know that you are making sufficient disclosures to charge that fee?
Gregory S. Paonessa is a partner with ArentFox Schiff LLP’s Automotive legal practice located in its Boston office. Greg can be reached at (617) 973-6186 or by email at gregory.paonessa@afslaw.com.
Not All DEI Programs Are Bad, Not All Are Good
By Attorneys Jeff Fritz and Joshua Nadreau, Fisher & Phillips LLP
You cannot turn on the news these days without hearing debate about Diversity, Equity, and Inclusion (DEI) and Diversity, Equity, Inclusion, and Accessibility (DEIA) programs. According to some on the political Right, all DEI/DEIA initiatives are bad, responsible for myriad problems in society, including deadly plane crashes. Conversely, according to some on the political Left, all DEI/DEIA programs, of whatever kind, are good.
Of course, the truth lies somewhere in the middle (and really depends on the details). Some DEI/DEIA programs are lawful and some are not. Painting with politically-broad brushes, unfortunately, tends to muddy the issue.
On January 21, 2025, President Trump issued an executive order targeting DEI/DEIA policies in both the federal government and private sector. The order directs federal agencies to “combat illegal private-sector DEI preferences, mandates, policies, programs, and activities” and, instead, encourage private employers to implement a policy of “individual initiative, excellence, and hard work.” The order also directs each agency to identify up to nine potential civil compliance investigations of publicly-traded and high-value corporations and institutions.
But what is an “illegal” DEI/DEIA program? The order does not say. Quotas, preferences, and workforce balancing initiatives have been unlawful for decades. Whether the current administration intends to broaden the scope of unlawful conduct remains to be seen.
In response to President Trump’s executive order, on February 13, 2025, Massachusetts Attorney General Andrea Joy Campbell and Illinois Attorney General Kwame Raoul issued a letter on behalf of their own and fourteen other “blue” states, offering guidance concerning DEI/DEIA policies. Their message is that well-structured DEI programs remain lawful and play a crucial role in fostering fair, compliant, and productive workplaces. They argue President Trump’s order conflates “unlawful preferences in hiring and promotion with sound and lawful best practices for promoting diversity, equity, inclusion, and accessibility in the workforce.” And they (correctly) note employers can reduce litigation risk with effective policies and practices designed to foster the development of inclusive and respectful workplaces. Consistent with these goals, they offer some best practices.
Best practices for recruitment and hiring include:
• prioritizing widescale recruitment efforts to attract a larger pool of applicants from a variety of backgrounds;
• using panel interviews, which ensures that multiple people are involved a hiring or promotion recommendation, to help eliminate bias and ensure fair and objective decisions;
• setting standardized criteria for evaluating candidates and employees, focused on skills and experience to ensure hiring is based on merit rather than subjective and biased judgments; and
• ensuring accessible recruitment and hiring practices, including reasonable accommodations for disabled applicants.
Moreover, best practices for professional development include:
• ensuring equal access to all aspects of professional development, training, and mentorship programs;
• setting up Employee Resource Groups to create an inclusive and supportive space where employees of particular backgrounds or common experiences feel valued and heard;
• conducting training on topics such as unconscious bias, inclusive leadership, and disability awareness to improve employee confidence and create a shared understanding around cultural norms; and
• ensuring equal access to all aspects of employment, including through reasonable workplace accommodations.
Finally, best practices for assessment and integration include:
• monitoring the success of policies and practices in attracting and retaining qualified talent, ensuring an inclusive, accessible, and collaborative environment;
• creating clear protocols for reporting discrimination or harassment and open lines of communication;
• establishing work groups to research, collaborate, pilot, and actively participate in crafting strategies that support more inclusive behaviors and practices; and
• integrating principles and practices promoting belonging and unity into an organization’s everyday way of doing business.
Reasonable people on either side of the issue, if pressed to come to some sort of agreement on definitions, likely would agree on what may be good or bad DEI policies. They likely would agree many of the best practices set forth in the Attorney General guidance are, on the whole, good, and hiring a less qualified applicant based simply on their immutable characteristics, such as race or gender, rather than on “individual initiative, excellence, and hard work” is bad. But politics prefers slogans to definitions, and the issue is not likely going away anytime soon.
What can you do now, in the face of the political uncertainty surrounding this issue?
• Review your recruiting initiatives, as efforts to expand the applicant pool to include diverse candidates should remain acceptable, even in the current environment.
• Avoid improper (and illegal) considerations, such as race, gender, and other protected characteristics, when hiring and promoting.
• Reconsider any race- or gender-based goals; as noted above, quotas and preferences have always been unlawful under state and federal anti-discrimination laws and can lead to “reverse discrimination” lawsuits.
• Provide appropriate DEI training, as it can help avoid issues and reduce risk.
• Review your DEI policies, programs, and initiatives with competent counsel to receive the benefit of the attorney-client privilege in your deliberations concerning DEI initiatives, policies, and procedures.
The Protect Stage – Safeguarding Your Automotive Business and Legacy
By Dave Clayman CEO, Twelve Points Wealth Management
Running an automotive business –whether a dealership, repair shop, or parts manufacturer – requires precision, strategy, and resilience. Just like a finely tuned engine, your business needs every component working in sync to ensure longevity. The Protect Stage of the Five Stages of Value Acceleration is about safeguarding your business, wealth, and family from unexpected disruptions, ensuring you are never caught off guard.
Many owners focus on daily operations but overlook key protection measures. What happens if a key executive suddenly steps away? Do you have the right life insurance policies in place to support your family? Is your estate plan up to date? Without a solid protection plan, even the strongest businesses can break down.
Protection Starts with Awareness, Intention, and Action
One needs to identify vulnerabilities, implement strategies, and take action to ensure long-term security. Your approach needs to focus on four critical areas:
1. Personal & Business Risk Management – Your Financial Safety Net
Just as a warranty protects a vehicle, the right financial tools protect your business and loved ones. These include:
• Life insurance policies that align with your financial goals, ensuring your family or business partners are not left struggling if something happens to you.
• Key person insurance to protect against leadership disruptions.
• Business interruption insurance to cover unexpected shutdowns due to supply chain delays or other disruptions.
• Workers’ compensation and employment liability coverage to safeguard your employees and mitigate legal risks.
2. Estate Planning and Operating Agreements – Keeping Your Business in the Right Hand
A business is only as strong as the agreements that govern it. One needs to ensure:
• Your estate plan reflects your business succession goals, preventing legal disputes.
• Buy-sell agreements are structured to ensure smooth ownership transitions.
essential documents, insurance policies, legal instructions, and financial details so your family and team have clear guidance in an emergency. This ensures that if something happens to you, your business does not come to a screeching halt; your team will have step-by-step guidance to keep operations running.
4. Fractional Executives – The Pit Crew for Business Stability
Every high-performance race team has a pit crew; your business needs expert support, too. Bringing in fractional executives (CFOs, COOs, or HR specialists) can:
• Maintain financial control during transitions.
Just like a finely tuned engine, your business needs every component working in sync to ensure longevity.
• Operating agreements are up to date, detailing roles, responsibilities, and contingency plans in case of leadership changes.
• Powers of attorney are in place, so the right people can make decisions if you become unable to.
3. The “What Happens When” Folder –Your Emergency Toolkit
In the automotive industry, a toolkit is essential for handling breakdowns. Your business needs the same preparation. Organize
• Strengthen operational structure and cash flow management.
• Ensure seamless succession planning and compliance.
Determine where and when you need these experts to keep your business running at peak efficiency.
The SafeList: Identifying and Closing Gaps
Like a routine vehicle inspection, the SafeList process pinpoints potential risks and areas needing attention before they become costly problems. Protection is not just about avoiding breakdowns. It is about ensuring your business, your family, and your legacy stay in the driver’s seat, ready for any road ahead.
For additional information about Twelve Points’ services, contact Dave Clayman by email at dave@twelvepoints.com or phone at (978) 318-9502.
Preparing Your Dealership for Incident Response
By Nick Reed
OCD Tech, IT Security Analyst
Businesses often underestimate the likelihood of cybersecurity incidents and choose to accept the risks associated with being unprepared. Common justifications include the belief that a business is not a target or that that business has nothing of value to an attacker. However, the reality starkly opposes this view. Nearly half of all businesses in the U.S. experience cyberattacks each year; 35% of polled dealerships reported a cyber-attack or incident in 2024, up from just 17% in 2023. Given these statistics, the question should not be “Why would this happen to my dealership?” but rather “Why not my dealership?”
Preparing for security incidents becomes critical when they are inevitable over the life of a business. Advances in technology and the profitability of cybercrime suggest the odds are increasingly stacked against businesses.
This article outlines key areas of preparation to help auto dealers establish an effective incident response process in line with FTC Safeguards requirements. An overarching incident response plan (IRP) provides a structured, customized framework for responding to incidents, restoring security, and maintaining business operations as efficiently as possible. Having a well-documented plan in place eliminates the need for last-minute decision-making
during a crisis, ultimately saving critical time and minimizing disruption.
Establishing an Incident Reporting Procedure
The first step in developing an incident response process is to begin at the moment an incident is initially detected or suspected. If an incident is not reported, it cannot be addressed. Employees across all departments must be vigilant in identifying and escalating potential security issues. The sooner an incident is recognized, the faster a business can contain and mitigate it.
To facilitate this, businesses must establish clear reporting mechanisms. Detection methods such as centralized antivirus consoles, system scans, logging systems, or personnel reports can serve as key indicators of a potential incident. Any anomalies should trigger a mandatory report by personnel who manage these systems. Employees should be trained to recognize suspicious activity, such as unusual computer system behavior or social engineering, and report it immediately.
Regular employee communication is essential to reinforce reporting expectations. An annual email with reporting guidelines and common indicators of compromise helps keep employees informed. Placing this information in a shared space will ensure easy access. Employees should know exactly how and where to report incidents. Whether through a designated person, a ticketing system, or a dedicated email address, the process should be straightforward. Reports must include key details such as the date, time, nature of the incident, affected systems, and impacted personnel. Ensure a backup contact to handle reporting is listed if the primary contact is unavailable.
Internal and External Communication Plans
After incident identification, internal communication should follow to keep stakeholders informed of relevant details that impact decision-making. Identify key stakeholders to be informed, such as managers, directors, owners, or C-level executives. A cyber event may disrupt corporate email and phone systems, so alternative communication methods must be identified, such as personal email or phone numbers, to ensure continuity.
External contacts should also be documented in response procedures. Businesses subject to the FTC Safeguards Rule and state breach reporting requirements must have contact information readily available to meet reporting deadlines. In certain situations, it may be necessary to notify law enforcement or regulators.
Defining Incident Response Procedures
After establishing reporting and communication protocols, the next step is to define your incident response procedures. It is recommended to outline general, repeatable steps in your incident response process to ensure consistency and efficiency. A useful resource to guide this is the National Institute of Standards and Technology (NIST) Computer Security Incident Handling Guide (Special Publication 800-61), which provides a comprehensive framework, including preparation, detection and analysis, containment, eradication and recovery, and post-incident activity.
In addition to these high-level steps, clearly define roles and responsibilities in your Incident Response Plan (IRP). Identify an incident response lead and support-
ing personnel to ensure a swift and coordinated response.
It is also essential to anticipate common security incidents and prepare procedures in advance. Collaborate with IT personnel and discuss the types of incidents your business is likely to face. Document specific steps for handling these scenarios. Common incidents to consider include ransomware attacks; unauthorized access attempts; social engineering attacks; and system outages.
For each scenario, outline resolution steps without delving into excessive detail. A flexible, high-level approach ensures the plan can be applied to a wide range of incidents, as they can vary greatly in nature.
Testing Your Incident Response Plan
An IRP is only effective if it can be successfully implemented during an actu-
al incident. Simply having a documented plan is not enough; it must be tested to ensure its effectiveness. Regular testing helps identify weaknesses before a real incident occurs, allowing for continuous improvement.
Conduct annual tabletop exercises where response personnel walk through mock scenarios, discussing response actions and communication strategies. These exercises should be realistic and relevant, simulating disruptions to critical processes or the compromise of sensitive information. Testing should also cover regulatory reporting requirements and customer notification obligations to ensure compliance.
Continuous Improvement and Compliance
Incident response planning is an ongoing process, not a one-time task. Regular updates and improvements, driven
by lessons learned from testing and real incidents, enhance preparedness. Being proactive with response efforts minimizes downtime and financial loss but also demonstrates a commitment to security. Regulatory compliance adds a crucial layer of importance to incident response planning. The FTC Safeguards Rule requires businesses to have a comprehensive IRP, while certain states, like Massachusetts, impose additional data protection requirements that relate to incident response. Non-compliance can lead to fines and legal consequences. By taking these preparatory steps, auto dealers can minimize disruption and respond effectively to security incidents. A well-structured incident response plan provides clarity and direction, allowing businesses to mitigate risks, maintain operational continuity, and demonstrate compliance with regulatory requirements.
Strengthening Operations Through Vendor Due Diligence
By Scott Spatz
President, Cooperative Systems
In the fast-paced world of automotive dealerships, managing risks associated with vendor relationships is not just about compliance; it is a strategic necessity. As dealerships increasingly rely on a complex network of suppliers and service providers, establishing a formal vendor due diligence program becomes crucial for safeguarding operations and maintaining quality service. The first step in this process is to verify that your dealership has a valid vendor contract with the company that is performing services for you.
Understanding Vendor Due Diligence
Vendor due diligence is the process by which dealerships investigate and evaluate their potential and existing vendors before forming or continuing a business relationship. This practice helps ensure that suppliers and contractors can meet the dealership’s requirements for compliance, financial stability, and operational performance. In short, it is about making informed decisions that will affect many aspects of the dealership, from customer satisfaction to operational reliability and regulatory compliance.
Why Vendor Due Diligence Is Critical
The primary aim of vendor due diligence is risk management. In today’s environment, dealerships face many risks, from supply chain disruptions to data breaches, all of which can significantly impact their operations and reputation. By conducting thorough evaluations, dealerships can mitigate these risks and preemptively identify potential issues that might affect the quality of service or lead to financial losses.
Quality assurance is another critical component. A dealership’s reputation is built on the quality and integrity of their experience with your vehicle Sales, F&I, Service, and Parts departments. Vendor due diligence ensures that those engagements will meet specific quality standards before they reach
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Federal Court Vacates the CARS Rule–What Dealers Need to Know
By Brad Miller ComplyAuto, Chief Compliance/ Regulatory Officer and Head of Legal
On January 27, the U.S. Court of Appeals for the Fifth Circuit vacated the Federal Trade Commission’s Vehicle Shopping Rule, also known as the “Combating Auto Retail Scams” Trade Regulation Rule (CARS Rule), finding that the agency failed to follow its own procedural requirements during the rulemaking process.
The decision stems from a challenge brought by the National Automobile Dealers Association and the Texas Automobile Dealers Association, who successfully argued that the FTC was required to issue an advance notice of proposed rulemaking (ANPRM) before proceeding with the rule.
It is important to note that, while the CARS Rule aimed to codify existing UDAP (Unfair or Deceptive Acts or Practices) law and regulations governing dealer advertising and F&I compliance, the court’s decision to vacate the rule was purely procedural. The underlying rules and requirements currently in place remain unchanged.
Because the FTC failed to follow the appropriate procedures in issuing the rule, the public’s ability to have the required input on the Rule was prejudiced; therefore, the FTC must go “back to the drawing board” if it wishes to go forward with the CARS Rule. What this also
means is that the court did not invalidate or even address the substance of the Rule or its requirements.
What’s Next?
There are three potential outcomes based on the court’s decision. First, the FTC could request a rehearing with this panel, or appeal the decision either to an “en banc” panel of the 5th Circuit, or to the Supreme Court. Second, the FTC could start over with the Rule (or another similar rule) following the required procedures in doing so. The first option is possible, but unlikely. The second option is also highly unlikely given the Trump Administration’s deregulatory efforts, and given that the FTC is about to have a Republican majority.
The third, and most likely outcome, is that the FTC will largely abandon this rulemaking effort and focus instead on enforcement against dealers – likely increased enforcement – of the current UDAP and related requirements related to dealer advertising and F&I compliance.
Does This Mean We Can Now Forget About Compliance?
No, absolutely not. Indeed, there is a strong argument that this will increase the need for dealers to double down on their compliance efforts for several important reasons.
First, it is important to remember that the court’s decision did not address or invalidate the current legal requirements for dealers. The Rule itself (in the words of the FTC) simply codified current dealer advertising and F&I compliance law into a Rule. The court’s decision means that the new recordkeeping requirements and other new disclosures that the Rule would have proposed will not become effective, but it does NOT change any current law.
Second, both the FTC and State AGs
are currently in the midst of an aggressive enforcement campaign targeting deceptive advertising and F&I practices at dealerships. The FTC’s enforcement actions have received unanimous support from FTC commissioners, suggesting a bipartisan commitment to price transparency enforcement that transcends individual rules or regulations. And at the state level, it is clear that many AGs (both Democrat and Republican) see the need to step up enforcement against dealers in the wake of the court’s decision.
So, What Should I Be Doing Now?
The bottom line is that dealer practices are under more scrutiny than ever before, and that is only likely to increase despite (or perhaps because of) the court’s decision. Dealers must continue to be vigilant to protect their stores. Given the increased scrutiny of dealer practices, businesses should:
• Maintain vigilant oversight of price advertising;
• Ensure all fees and product costs are clearly disclosed, not hidden in fine print;
• Train staff to avoid payment packing and properly explain product features, costs, and optional nature to customers; and
• Implement robust compliance tools and systems to monitor and enforce best practices.
We expect to see bumpy times ahead for dealers who are not prepared. ComplyAuto, MSADA’s endorsed compliance partner, stands ready to help dealers with those efforts, including with our Guardian tools, which utilize the power of AI to provide the industry’s most powerful advertising and F&I compliance toolkit. Contact ComplyAuto at www.complyauto.com.
The Importance of Process in Selling MSADA
By Tim Marbut
Ethos Group
Sales departments are often characterized by high energy, ambition, and a relentless focus on closing deals. Behind the hustle and charm, however, lies a crucial element that separates successful sales teams from mediocre ones: process. A well-defined sales process is not just a theoretical framework; it is a practical tool that drives efficiency, consistency, and scalability.
The Role of Process in Sales
At its core, a sales process is a series of repeatable steps that sales professionals follow to convert prospects into customers. It provides a roadmap for managing leads, addressing objections, and closing deals. While individual sales techniques may vary, a process ensures that everyone in the organization operates from the same playbook.
Processes create clarity by defining each stage of the sales cycle. From lead generation and qualification to nurturing and closing, a structured approach enables sales representatives to know exactly where they stand with each prospect. This eliminates guesswork and helps teams prioritize their efforts effectively.
Benefits of a Defined Sales Process
1. Consistency Across the Team. In a sales organization, individual styles and approaches can vary widely. While this diversity can be a strength, it can also lead to inconsistent results. A standardized sales process ensures that all team members follow best practices, regardless of their experience or personal
techniques. This consistency not only improves outcomes but also makes it easier to onboard new hires, as they can quickly adapt to the established process.
2. Increased Efficiency. Efficiency is the backbone of any successful sales team. Without a process, representatives may spend valuable time chasing unqualified leads or neglecting high-potential opportunities. A structured approach ensures that resources are allocated wisely, enabling teams to focus on activities that drive results. For instance, a clear lead qualification framework can help sales reps quickly identify whether a prospect is worth pursuing.
3. Enhanced Collaboration. In many dealerships, sales is not an isolated function. It works in tandem with marketing, BDC, F&I, and service teams. A standardized process fosters better collaboration across departments by creating alignment around shared goals.
that worked for a smaller team can be replicated and adapted as the organization expands. This scalability is crucial for maintaining quality and performance as the business evolves. This is especially true when acquiring new dealerships.
5. Data-Driven Decision Making.
A defined process generates a wealth of data that can be analyzed to improve performance. Sales teams can identify patterns, measure the effectiveness of different strategies, and refine their approach over time. This data-driven mindset fosters continuous improvement, helping organizations stay competitive in a rapidly changing market.
Challenges Without a Process
A standardized sales process ensures that all team members follow best practices, regardless of their experience or personal techniques.
4. Scalability. As a dealership grows, the absence of a process can lead to chaos. A structured sales process, however, serves as a foundation for scaling operations. It ensures that the same strategies
The absence of a sales process can have serious repercussions. Without a structured approach, teams often struggle with inconsistent performance, missed opportunities, and inefficiencies. Deals may fall through due to poor follow-up, and valuable prospects may be lost because of unqualified outreach. Moreover, it becomes nearly impossible to track progress or diagnose issues, leaving
managers and leaders in the dark.
A lack of process also undermines accountability. When roles and responsibilities are unclear, it is difficult to hold team members responsible for their performance. This can lead to a culture of confusion and frustration, ultimately impacting morale and productivity.
Building a Strong Sales Process
Creating an effective sales process requires careful planning and input from all stakeholders. Here are the key steps to develop and implement one:
1. Define the Selling Steps. Outline each step in the sales cycle, from lead generation to deal closure. Clearly define the criteria for moving from one step to the next, ensuring alignment across the team.
2. Involve the Team. Engage your sales team in the process design to ensure buy-in and practicality. Reps who are part of the creation process are more likely to adopt and adhere to it. Often, we use the technique of self-guided discovery as part of their involvement.
3. Leverage Technology. CRM systems and other sales tools can streamline your process and provide valuable insights. Use technology to automate repetitive tasks, track progress, and generate reports.
4. Train and Reinforce. Provide comprehensive training to ensure everyone understands the process and its importance. Regular coaching and one-to-ones can help reinforce adherence.
5. Monitor and Optimize. A sales process is not static; it should evolve based on feedback and results. Continuously analyze performance metrics and adjust to address weaknesses or capitalize on new opportunities.
The Human Element of Process
While processes are essential, it is important to strike a balance between structure and flexibility. Sales is inherently a people-driven activity, and rigid adherence to a process can sometimes stifle creativity and intuition. The best dealerships recognize that processes are tools to guide, not restrict, their teams.
They empower representatives to adapt the process to individual situations while staying within the overall framework.
Conclusion
A well-defined sales process is the cornerstone of a high-performing sales department. It brings consistency, efficiency, and scalability, while fostering collaboration and data-driven decision-making. More than just a series of steps, it is a strategic asset that aligns the entire organization toward a common goal. By investing in the development and refinement of sales processes, dealerships can unlock their full potential and achieve sustainable growth. In today’s competitive landscape, having a process is not just an advantage, it is a necessity.
For more information on how Ethos Group can help your dealership develop more leaders in your F&I office, sales management tower, and your sales floor in 2025, please contact Drew Spring at dspring@ethosgroup.com or (617) 6949761.
Patrick Manzi NADA Chief Economist
January Fifth Straight Month with YOY SAAR Increase
New light-vehicle sales in January 2025 totaled a SAAR of 15.6 million units, up 3.8% year over year and the fifth straight month with a year-over-year SAAR increase. January 2025’s sales pace was notably lower than December 2024’s 16.9-million-unit SAAR. However, January is typically the slowest month for sales of the year, and we believe there were significant sales pulled forward into December 2024 due to consumer uncertainty surrounding the availability of EV tax credits and potential impacts to vehicle pricing due to tariffs.
In the first month of the year, alternative fuel vehicles gained market share. Conventional hybrid vehicles saw the largest market share gain with their market share in January 2025 rising to 11.8%, an increase of 3.2 percentage points of market share compared to January 2024. Battery electric vehicles (BEV) gained share, while plug-in hybrid vehicles (PHEV) saw their share fall slightly. BEV market share at the end of January 2025 was 8.5%,
up 0.8 percentages points year over year, and PHEV market share was 1.9%, down 0.4 percentage points year over year.
OEM incentive spending typically falls in the first month of the year, and that was the case in January 2025 as well. According to J.D. Power, average incentive spending per unit should total $3,226, an increase of 29.3% year over year, but down by $130 compared to December 2024. OEM incentives helped to grow sales throughout 2024, and we expect that trend to continue in 2025.
New light-vehicle inventory on the ground and in transit totaled 2.79 million units at the start of 2025. We expect inventory levels to hover in the range of 2.8 million-3.0 million units through Q2 2025. For full-year 2025, we expect new light-vehicle sales will increase by roughly 2% compared to 2024 and will total 16.2 million units.
Challenges to Affordability are Adding Up in Washington, D.C.
By Cody Lusk President & CEO, American International Auto Dealers Association
In the auto industry, when we talk about taxes, or regulations, or tariffs, it is worth remembering that what we are really talking about is affordability. Federal policy has a direct impact on vehicle pricing, and for many Americans we have already surpassed what their wallets can absorb.
The average cost of a new car today is more than $49,000, an increase of 25 percent since 2019. Compounding that challenge are increased interest rates. The average rate on an auto loan is 6.6 percent, driving the average monthly payment up to a sky-high $756. You do not need to be a sales associate at a dealership to know that number is out of reach for most American families. And you do not have to work in the repairs department to know that parts prices are also on the rise. Repair costs are increasing at a rate of about 10 percent a year, while insurance has risen 31 percent since 2023.
All of those numbers add up to one big problem. The share of households that have missed a payment for more than 90 days, either on a car loan or a credit card, is at a 14-year high. Vehicles, used and new, are becoming unaffordable, and dealers, who are doing everything they realistically can to get consumers behind the wheel, are raising the alarm.
In Washington, D.C., organizations like AIADA are working to remind legislators and policymakers of the real-world impact of their choices. Electric vehicle mandates drive up the costs for manufacturers, which get passed on to consumers. Tax hikes,
The average cost of a new car today is more than $49,000, an increase of 25 percent since 2019.
even small ones, add up big when placed on a $50k+ purchase. And trade barriers, like new tariffs, could add thousands to the price of a new car or truck.
It is important that lawmakers strike a balance between achieving their political and national security objectives and protecting American consumers from devastating price hikes. Elected officials can lose sight of what matters to everyday Americans, and that is why it is so vital that dealers communicate directly with their lawmakers. You know, better than anyone, the budgeting challenges of the average American. You are also uniquely positioned, through your role as an economic engine in your community, to make your voice heard on Capitol Hill.
Since taking over as AIADA’s 2025 Chairman last month, California dealer Valerie Romero has made it her mission to address automotive affordability in Washington, D.C. The first and most important step is giving dealers the tools to connect with their elected representatives. Increasing dealer involvement among AIADA’s members is a priority for Valerie and all of us at AIADA.
We need to set up more dealership visits with legislators through our Dealer Visit program, and we need to clearly communicate the costs of trade barriers and other
legislation on the public. If you are able, I urge you to start today by visiting www. AIADA.org/Visit and www.SaveAutoJobs.com. These two sites can get you started on understanding and influencing the pressing issue of affordability at your stores.
Fortunately, AIADA is not operating alone on this mission. We are lucky to have active and engaged manufacturer partners who recognize the retail challenges we are facing. Just last month, Toyota held a D.C. Fly-In for dealers who wanted to weigh in on the impact of California’s Advanced Clean Cars program, which requires manufacturers to build a certain number of zero-emission vehicles through the 2035 model year and will place a 35 percent electric vehicle sales mandate in six states beginning this Fall. These kind of state mandates limit customer choice and contribute to higher prices on the vehicles that work for Americans in different regions and climates.
Ideas like California’s may sound good on paper or on CSPAN, but in the real world they have unintended consequences that hit Americans in the pocketbook. Dealers are well equipped to take that message to Capitol Hill. With your help, we will do just that.
By Scott Pearson Chairman, American Truck Dealers
ATD ChAirmAn SCoTT
PeArSon iS owner AnD
PreSiDenT of PeTerbilT of ATlAnTA
Tracking 2025 Priorities
At the ATD Show in New Orleans, I promised you my enthusiasm and dedication as your 2025 ATD Chairman. Our industry is facing historical challenges and threats, but the energy I witnessed in New Orleans proved to me that we are ready to take them on. Under the new Trump Administration and the Republican-led Congress, we are optimistic that we may be able to make progress in challenging some of the more onerous rules and laws on the books presently hurting our industry.
I have identified the key priorities for the year:
• Push back on federal electric truck mandates and educate key decision-makers at the EPA and on Capitol Hill.
• Educate truck dealers on how the CARB mandates are unfolding and their impact on the truck market and their customers.
• Increase truck dealer outreach to build relationships and solidify member value.
• Continue to grow membership and promote the ATD NextGen program.
EV Mandates and Emissions Rules
Rules put forth by the California Air Resources Board, which are followed in more than ten other states, along with emissions standards issued by the Environmental Protection Agency are having an historic impact on truck dealerships and engine manufacturers nationwide. Unfortunately, California dealers are already experiencing unprecedented barriers to their business. These regulations are here, and we have been addressing them head-on.
Truck dealers are making a significant investment to sell and service EVs to the tune of nearly $1 billion. Selling and servicing commercial vehicles is our job, and we will continue to do it. But dealers cannot force their customers to buy trucks that do not meet their needs, and ZEVs are not there yet for most commercial applications. Commercial buyers have shown us that they are not ready to purchase ZEVs for a multitude of reasons, including insufficient charging infrastructure, inefficiency of the vehicles caused by immense weight, prolonged time required to charge, lack of sufficient range, and affordability.
On February 14, the Trump Administration fired its first salvo at CARB to make clear it is seeking to revoke California’s EPA waivers approved under
the Biden Administration, with the aim of killing the state’s Advanced Clean Trucks and Omnibus NOx rules. EPA Administrator Lee Zeldin announced that the EPA is transmitting to Congress for action under the Congressional Review Act, the Biden Administration’s rules granting waivers that allowed California to preempt federal car and truck standards set by EPA and the National Highway Traffic Safety Administration.
The dealer associations in states wedded to CARB rules are also engaging their governors and legislators on the impact these rules are having on vehicle inventory and dealers’ inability to serve their truck customers.
As this battle plays out in D.C. and state capitals, it is imperative for dealers to stay educated and engaged on this critical issue.
Membership and ATD NextGen
Growing our membership is important to maintaining a healthy and active organization. That means focusing outreach on both big and small dealer groups. We cannot avoid the reality of consolidation, and we need to adapt by getting each rooftop and general manager involved.
The value of ATD membership requires input from both sides. The ATD board and leadership have committed to consistent contact and communication through dealership visits and calls, educational opportunities, and events. To advance these relationships, members should remain engaged in the association.
If you do not know where to get started, consider these two significant opportunities:
• 2025 ATD Legislative Fly-In (June 3-4 in Washington, D.C.): Come and visit your elected Members of Congress and share the message of your dealership, employees, and customers. It is a critical time to talk to your decision-makers about the environmental regulations facing our industry and the impact.
• ATD NextGen Program: Enroll your dealership leaders into the NextGen program to start engaging with industry peers and national issues. This includes anyone in the dealership on the leadership track, not just successors. ATD NextGen offers networking, webinars, and educational opportunities. Please try to find at least three people at each
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of your locations to enroll in NextGen (it is free). Sign up at: https://www.nada.org/atd/legislative-affairs/grassroots-advocacy/atd-nextgen.
In the remainder of my two-year term, I have my work cut out for me as your chairman. I look forward to your voices, passions, and input as we advocate for the nation’s commercial truck dealers.
EPA Action Would Allow Congress to Kill California’s Clean Truck Rules
By Deborah Lockridge, Heavy Duty Trucking
The Trump Administration is seeking to revoke California’s EPA waivers approved under the Biden Administration, with the aim of killing the state’s Advanced Clean Trucks and Omnibus NOx rules.
U.S. Environmental Protection Agency Administrator Lee Zeldin announced on February 14 that the EPA is transmitting to Congress the Biden Administration’s rules granting waivers that allowed California to preempt federal car and truck standards set by EPA and the National Highway Traffic Safety Administration.
This would allow Congress to kill the waivers under the Con-
“This
is not the United States of California,” ATA President & CEO Chris Spear said in a statement. “California should never be given the keys to set national policy and regulate America’s supply chain.”
gressional Review Act, although in the past, these EPA waivers for California were not considered to be “rules” subject to the CRA.
“The Biden Administration failed to send rules on California’s waivers to Congress, preventing members of Congress from deciding on extremely consequential actions that have massive impacts and costs across the entire United States,” Zeldin said in a statement.
The American Trucking Associations and The Owner-Operator Independent Drivers Association praised the move.
“This is not the United States of California,” ATA President & CEO Chris Spear said in a statement. “California should never be given the keys to set national policy and regulate America’s supply chain. Thanks to the leadership of the Trump Administration, Congress now has one more avenue available to reclaim the keys from Sacramento and restore common sense to our nation’s environmental policies.”
OOIDA President Todd Spencer said, “Setting national policy is the responsibility of Congress, not California....OOIDA and our 150,000 members appreciate the EPA’s efforts to protect small-business truckers nationwide from California’s regulatory encroachments.”
Earlier this month, California Gov. Gavin Newsom approved $25 million for anticipated legal challenges against the Trump administration. The state sued more than 120 times during his first term, winning about two-thirds of the cases.
California’s EPA Exemptions and the Congressional Review Act
Under the Clean Air Act, since 1967, California has been allowed to adopt emissions requirements independent of the EPA’s regulations to meet its significant air quality challenges. But the state must get a waiver from the agency in order to do so.
Other states have the option to adopt California’s more stringent emissions rules.
The Congressional Review Act is a tool Congress can use to overturn certain federal agency actions. It requires agencies to report the issuance of “rules” to Congress. Within 60 days of getting that report, Congress can issue a joint resolution of disapproval. If a CRA joint resolution of disapproval is approved by both houses of Congress and signed by the President, or if Congress successfully overrides a presidential veto, the rule at issue cannot go into effect or continue in effect.
In 2023, such a resolution on EPA’s truck emissions rules passed the Senate but not by enough to override a presidential veto.
Is a Waiver a Rule?
Exactly what constitutes a “rule” under the Congressional Review Act is subject to interpretation.
The CRA applies to final rules, including major rules, non-major rules, and interim final rules. The definition may include agency actions that are not subject to traditional notice-and-comment rulemaking, such as guidance documents and policy memoranda.
The CRA does not apply to presidential actions or to non-rule agency actions such as orders.
The issuance of a waiver has in the past been viewed as an order rather than a rule, and thus not subject to the requirement to submit it to Congress.
Advanced Clean Trucks Rule
The EPA granted a waiver for California’s Advanced Clean Trucks rule in 2023, which is pushing truck makers to sell zero-emission trucks in the state. Normally, that means we would be well past the 60-day period when the Congressional Review Act allows for Congress to act. However, that 60-day period starts from when the rule was submitted to Congress. Since the EPA did not submit its waiver approval as a “rule,” that 60-day clock is reset with the Trump EPA’s transmission of the waiver approvals to Congress.
California’s ACT rule has been the target of a number of lawsuits ever since it was adopted as well as much industry criticism and pushback for its unrealistic goals.
OOIDA’s Spencer noted that for its small-business trucker members, “vehicle reliability and affordability are critical. So far, there is no convincing evidence that electric commercial motor vehicles are a viable option for small-business truckers given the high costs and inadequate charging infrastructure.”
Even before the ACT waiver was granted, many states passed laws to adopt California’s stricter rules as well.
However, reading the writing on the wall with the incoming Trump Administration, California last month withdrew its application to the EPA for the waiver needed to go ahead with its Advanced Clean Fleets rule, which would have allowed the state to dictate what vehicles fleets were allowed to purchase.
CARB’s NOx Omnibus rules were not granted an EPA waiver until late last year. Those rules have also raised concerns in the trucking industry, especially because they are expected to increase engine prices significantly.
The Power of Congress
Also late last year, the U.S. Supreme Court declined to weigh in on the constitutionality of California’s ability to set more stringent emissions standards.
The Environmental Defense Fund said killing the waivers using the Congressional Review Act would “reverse decades of consistent practice, contradict the decisions of independent Congressional offices, and violate the law by asserting that the agency’s waiver of preemption that allows California to protect people from air pollution is a ‘rule’ that falls under the Congressional Review Act. In fact, previous EPA administrators of both parties, the office specially charged with determining which agency actions are subject to Congressional review, the independent Congressio-
Congress could pass a regular piece of legislation to kill off California’s latest emissions rules or even the state’s ability to write separate emissions rules altogether.
nal Research Service, and Republican members of Congress have all consistently recognized that the Congressional Review Act has never applied to EPA’s waiver decisions.”
Even without the Congressional Review Act, however, Congress could pass a regular piece of legislation to kill off California’s latest emissions rules or even the state’s ability to write separate emissions rules altogether. Bills have been introduced over the past several years to revoke California’s Clean Air Act authority, but none have passed. With a Republican-controlled House and Senate, however, it’s far more likely that this will actually happen.
All this poses a dilemma for truck and engine manufacturers, which have already poured significant investments into meeting federal and California emissions requirements. And they must consider the possibility that when Democrats retake control of the White House and/or Congress that the pendulum will swing the other direction
Weak global heavy-duty truck market demand plus a re-organization of the Accelera decarbonization technology unit hurt Cummins profit in the fourth quarter of 2024, the company said February 4.
Columbus, Indiana-based Cummins posted a $418 million profit in the three months that ended December 31 after taking a $312 million charge on the Accelera strategic review.
In the final quarter of 2023, Cummins posted a $1.431 billion loss after paying a $2 billion fine to settle U.S. Department of Justice charges under the Clean Air Act related to the installation of devices that bypassed emissions sensors on engines in hundreds of thousands of Class 2B and Class 3 Ram trucks.
Overall, the company’s most recent quarter revenue totaled $8.447 billion, a decrease of 1% from $8.543 billion in the same quarter in 2023.
Revenue from heavy-duty engine sales totaled $980 million in the most recent quarter, down 6.8% compared with $1.052 billion in the year-ago period. Cummins shipped 29,400 heavy-duty engines in Q4, down 6.8% compared with 34,500 in the year-ago period. Revenue for the entire engine division totaled $2.72 billion in Q4, down 2% compared with $2.779 billion a year earlier as sales decreased 2% in North America and 3% in international markets. Light-duty engine sales, the company said, slumped 27.4% to 36,000 from 49,600 a year earlier.
Sales by the Accelera unit, meanwhile, actually increased 23% year on year in the most recent quarter to $100 million from $81 million. However, the division endured a strategic review after a slower-than-expected adoption of some zero-emission technologies. Cummins is refocusing investments on what it deems the most promising technology paths as a result.
“This business has all along been about being agile,” CEO Jennifer Rumsey said during a February 4 call with analysts, adding that Cummins “looked at where we see the market moving.”
Cummins continues to focus on battery-electric vehicles but saw a slowing of demand for electrolyzers plus other hydrogen technologies and decided to act, the company’s top executive said. An electrolyzer is a device that uses electricity to divide water into hydrogen and oxygen molecules. The hydrogen is then used to fuel vehicles or power generation.
The company took the charge in Q4 because it does not yet have a line of sight on when the Accelera business will break even, Chief Financial Officer Mark Smith added later in the call.
The company spun off its Atmus filters unit later in 2023. Atmus’ Fleetguard products include fuel, air, hydraulic, and other filters for commercial vehicles as well as agricultural, construction, mining, and power-generation equipment. As a result of the spinoff and weak heavy-duty truck demand, Q4 saw revenue at Cummins’ components division fall 17% to $2.641 billion from $3.191 billion.
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The unit’s drivetrain and braking systems revenue fell 0.9% to $1.114 billion in Q4 from $1.124 billion in the year-ago period. Sales of emissions solutions totaled $825 million in the most recent three-month period, down 10.5% compared with $922 million a year earlier.
Cummins’ two other units, however, saw a jump in sales, largely on the back of accelerating demand for power generators, switchgear, and transfer switches as a result of the inexorable growth of data centers needed for cloud computing and artificial intelligence applications.
The company’s distribution segment saw revenue rise 13% to $3.068 billion in Q4 from $2.713 billion. Sales by the power systems segment ramped up 22% to $1.743 billion from $1.429 billion, with a 42% jump in North America.
“In 2025, we anticipate that demand will be slightly weaker in the North America on-highway truck markets, particularly in the first half of the year, but offset by strength in other key markets,” said Cummins CEO Jennifer Rumsy
Looking forward to 2025 though, Cummins is much more optimistic about demand for engines, although not so much from North American heavy-duty truck buyers.
“In 2025, we anticipate that demand will be slightly weaker in the North America on-highway truck markets, particularly in the first half of the year, but offset by strength in other key markets. Despite a relatively flat revenue forecast and relative weakness in the key North America truck markets, we expect to improve profitability and cash flow,” said Rumsey.
One bright spot will be the U.S. truckload sector, she told analysts, where Cummins expects an uptick in tractor and therefore heavy-duty engine demand.
Cummins also expects there to be something of a boost from the pre-buy in 2025, but not a huge one, Rumsey said, adding that the company was looking forward to national emissions standards being in place.
U.S. Environmental Protection Agency rules currently on the books will require model year 2027 heavy-duty trucks to emit no more than 0.035 gram of nitrogen oxides per horsepower-hour, which is expected to encourage a surge of truck purchases from the second half of 2025 onward to pre-empt the introduction of the new regulations.
Rumsey said that she still does expect the regulations to remain in place even as the Trump Administration turns the federal government upside down in its first few weeks in power.
Tariff Plans Could Disrupt Truck Production and Pre-Buying Activity
By Pamella De Leon, Commercial Carrier Journal
Despite President Donald Trump’s 30-day postponement of proposed tariffs on Canada and Mexico, industry analysts voiced concerns on the potential impact they could have on truck production and pre-buy activity.
American Trucking Associations President and CEO Chris Spear noted new tariffs could dampen a trucking recovery that has been plagued by decreasing freight volumes and increasing costs for motor carriers.
“A 25% tariff levied on Mexico could see the price of a new tractor increase by as much as $35,000,” Spear said. “That is cost-prohibitive for many small carriers, and for larger fleets it would add tens of millions of dollars in annual operating costs.”
Higher costs on imported goods can also trickle down to customers.
“Given the current uncertainties, what we can say for the moment is that any tariffs will increase our costs, and we expect the industry as a whole to pass the increased costs on to customers,” said John Mies, corporate communications at Mack Trucks and Volvo Trucks North America. “Quantifying that isn’t possible right now.”
Dan Moyer, senior analyst, commercial vehicles, at FTR Transportation Intelligence, said that OEMs may face supply chain challenges due to tariffs and counter-tariffs, leading to longer lead times and potential shortages of critical components. Moyer said rising costs for raw materials and components will increase vehicle prices, putting pressure on profit margins. Relocating production to mitigate tariff impacts is a complex and costly process, requiring significant time, capital investment, and workforce adjustments.
Additionally, Moyer said trade policy uncertainty could create demand fluctuations, making it harder for OEMs to accurately forecast sales and for dealers to manage inventory effectively.
In contrast, Ken Vieth, president and senior analyst at ACT Research, pointed out that, unlike in previous years, there aren’t currently pandemic-related disruptions exacerbating trade challenges or parts procurement.
“Four years removed from Trump’s first term, and six years from his first tariffs, a lot of investment has taken place to harden supply chains, so from that standpoint, there should be little change in parts availability, we believe,” Vieth said.
However, if Trump’s 25% tariff on key trading partners indeed take effect next month, Vieth said the resulting inflationary pressure – leading to higher prices, increased interest rates, and reduced economic activity – could lower freight volumes. This would, in turn, reduce truck demand, making parts easier to source. At the same time, Vieth added that higher new vehicle costs would likely suppress truck purchases, at least in the short term.
Pre-Buy Implications
As fleet operators anticipate cost increases, tariffs can influence pre-buy behavior in the market, from accelerated purchases to potential dampening of demand for new trucks.
Pre-buy activity is largely driven by expectations of rising vehicle prices in early 2027 due to emissions compliance, Vieth pointed out.
“Currently, still weak freight rates and beaten-up carrier balance sheets are limiting pre-buying in the U.S. tractor market, though we have seen a pick-up in vocational truck demand suggesting pre-buying in the heavy work truck market segment is happening,” Vieth said.
Moyer added some fleets may decide to accelerate retail pur-
“While the balance between truck supply and freight demand is improving, helping to boost industry profitability this year, higher consumer goods prices brought about by tariffs would have a corrosive impact on freight volumes,” said Ken Vieth.
chases from currently high dealer inventories to avoid price hikes, causing a temporary spike in retail truck sales.
Vieth said if a 25% tariff is applied to Mexican imports, Class 8 truck prices would rise sharply, immediately dampening demand for tractors.
“While the balance between truck supply and freight demand is improving, helping to boost industry profitability this year, higher consumer goods prices brought about by tariffs would have a corrosive impact on freight volumes,” Vieth said.
However, once tariffs take effect and inventories shrink, Moyer pointed out that rising vehicle costs could slow demand as some fleets delay purchases. Moyer added the combination of potential tariffs and the U.S. EPA’s 2027 NOx emissions regulations could lead to a dual pre-buy effect, with fleets purchasing early to sidestep both regulatory costs and tariff-driven price hikes. Meanwhile, ongoing trade uncertainty may cause some
fleets to take a cautious wait-and-see approach, delaying major investment decisions and long-term fleet planning.
As fleets make long-term decisions, Moyer pointed out that fleets should weigh total cost of ownership, balancing potentially higher upfront truck prices against long-term savings in fuel, maintenance and regulatory compliance. Supply chain stability is another key factor, Moyer said, as parts shortages could result in unexpected downtime and increased maintenance expenses.
“Monitoring OEM and supplier strategies, including potential production shifts, may help fleets anticipate pricing and availability trends,” Moyer said.
ATD Dealership Workforce Study Now Open
ATD knows that dealers today face numerous challenges, including high employee turnover, difficulties in recruitment, and the constant pressure to remain competitive in a rapidly evolving market. These demands deplete valuable resources and significantly impact overall dealership performance and profitability.
Understanding workforce trends and leveraging data-driven insights are crucial steps in effectively addressing these issues.
The ATD Dealership Workforce Study is a resource to assist dealers in addressing these challenges and understanding truck with real data from ATD members. It is the only authoritative and comprehensive examination of auto dealership workforce trends. This study provides the latest industry data on employee compensation, benefits, turnover, retention, demographics, hiring trends, hours of operation, and more. The data is published in annual reports for members only. The reporting shows national and regional data as well as sales volume ranges from low and high-volume stores.
Participation is key to the success of the study and the value of the data. ATD member dealers can enroll at https://www.atdworkforcestudy.com/.
There is no cost to participate.
What do you get for participating in the study?
• National & Regional Trends Report: Overview of compensation, benefits, turnover, retention, hiring, and demographics trends.
• New! Refreshed NADA Online Database Search Tool: Your data at your fingertips. View your submitted data and conduct comparison analysis using custom filters online and on demand. Exclusive one-year access for study participants only.
Once you enroll you will receive an email with instructions to complete an online benefits questionnaire and complete the payroll file. All responses and data are confidential.
IMPORTANT!! You will need the NADA Member ID number for your single store or Dealer Group to enroll. If you do not have this NADA Member ID number, please contact NADA Customer Service at (800) 557-6232.
The enrollment for the 2025 Study closes promptly on March 14, 2025.
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December 2024 Truck Beat: New Commercial Truck Sales Down 4.8% to End 2024
Patrick Manzi, NADA Chief Economist
New commercial truck sales totaled 482,274 units in 2024, a decline of 4.8% compared to the full year 2023. Heavy-duty truck sales were the driver of the overall market decline, and only two months in 2024 saw year-over-year sales increases of Class 8 trucks. In 2024, Class 8 truck sales totaled 240,249, a decline of 9.9% year over year. Medium-duty truck sales increased slightly year over year, reach-
decline of 40% year over year, ACT Research notes.
The Class 8 used truck market was on a path towards normalization throughout 2024 following years of high demand for used equipment during the semiconductor microchip shortage of 2021-2023.
According to ACT Research, the average transaction price for a used Class 8 truck in November 2024 was $59,292, down 4.4% year over year and down 27.4% compared to November 2022. November 2024 was the first month with an average transaction price for a used Class 8 truck below $60,000 since April of 2021.
ing 242,025, an increase of 0.8% compared to 2023. Class 8 new truck orders finished the year strong.
According to ACT Research, preliminary Class 8 orders reached 36,500 in December 2024, an increase of 39% year over year, but down by 2.1% compared to November 2024. The jump in new Class 8 orders is a positive sign for Class 8 truck sales in 2025. Meanwhile, preliminary medium-duty truck orders for Class 5-Class 7 trucks totaled 16,800 units, a
Looking ahead to 2025, there will be many challenges for America’s commercial truck dealers, including proposed tariffs on imports from Mexico, Canada, and China. According to FTR Transportation Intelligence, 40% of Class 8 trucks sold in the U.S. are built in Mexico, and components for those trucks may cross the border multiple times during the production process. Duties would be due upon each border crossing for components and the finished truck. Additionally, the Fed has signaled that they plan to slow their cadence of cuts to the Fed Funds rate in 2025, which will keep the cost of financing new equipment higher for longer.
Still, despite these challenges, our outlook for commercial truck sales is positive. For all of 2025 we expect year-overyear growth in commercial truck sales. We expect that medium-duty truck sales will reach 257,000 units, and heavy-duty truck sales will grow to 252,000 units in 2025.
D.C. Table Quickly Set
Scott Dube, Partner at McGovern HyunDai rt. 93, rePreSentS
naDa’S MaSSacHuSettS MeMberS on tHe naDa boarD of DirectorS
He can be reacHeD at SDube@ McGovernauto coM
Team Trump wasted no tme getting the ball rolling.
Within hours of the inauguration for his second term, President Donald Trump kicked off a rapid fire signing of executive orders designed to begin his efforts to stand behind the promises he made during last year’s election campaign. While we were in New Orleans for the NADA Show, President Trump, with his Vice President, J.D. Vance, also began forming his Cabinet and crafting legislative proposals with the GOP-led House and Senate to take full advantage of the week’s political momentum to move forward his administration’s agenda in its first 100 days.
No one should be surprised by the composition of that agenda – the president only talked about it every day in the run up to the November election. Extending the 2017 tax cuts; creating income tax exemptions for tips, OT pay, and Social Security payments; encouraging the exploration and drilling for new oil and gas projects; getting rid of EV subsidies and overly aggressive vehicle emissions rules; promoting tariffs against trade partners regardless of being friend or foe – these are just a handful of the matters Trump wants to address by May 1.
In the automotive footprint, NADA will have its work cut out for itself in order to engage in a manner that will yield positive results for our member dealers. Be on the lookout for our communications as we keep dealers up to speed on developments and, where needed, ask for outreach to the Members of Congress.
NADA Chairman Tom Castriota – February 2025 Letter to Directors and ATAEs
NADA Directors, Staff, and ATAEs,
I can’t believe January and the NADA Show are behind us. I was amazed by the resilience of our dealers, staff, and vendors in overcoming the many obstacles and challenges posed by the historic snowstorms in the New Orleans area.
As I mentioned in my opening remarks at the NADA Show, I was genuinely thankful to all the dealers who made it to the event, and for the trials and challenges they overcame. Thank you all again for your support of NADA and our dealers. For those who attended the Sunday night reception at the WWII Museum, it was an honor to share military history with you. A special “thank you” goes to the NADA Show Committee and staff for their Herculean efforts, especially adjusting to the storm-caused disruptions.
As I have spoken about, my role as this year’s chairman involves serving as an ambassador for the dealers. In this capacity, I – along with all the rest of the NADA board – represent the franchised dealers across the entire nation, as well as everyone who works daily for our customers, employees, and communities.
My experience in the Marines has shown me that effective leaders rely on strong teams, and NADA boasts an exceptional board of directors and a skilled staff of industry professionals. Throughout my 35 years of military service, I’ve learned the importance of leadership and achieving results. Additionally, I have another significant supporter in my life: my wife, Anita.
As we move throughout 2025, there will be and are challenges to how we operate our businesses and care for our customers. I ask for your leadership and engagement, which are critical for overcoming any obstacles. My commitment to you is to communicate as best that I can, along with the board and staff. Keeping the franchise dealer body informed about regulations, legislation, and industry decisions that impact our business is critical to our long-term success.
As many of you know, on January 27, 2025, the U.S. Circuit Court of Appeals for the Fifth Circuit granted a petition filed by NADA and the Texas Automobile Dealers Association to vacate the FTC Vehicle Shopping Rule (“CARS Rule”). As a result, the FTC “CARS Rule” has no force or effect.
We see promising movement from the new administration regarding emissions standards and the belief that consumers should be the one making choices about what to drive, rather than government regulators. NADA will continue to pursue a unified national tailpipe emissions standard and advocate for removing the Biden Administration EPA’s waiver that permits California to enforce its ZEV mandates. NADA will also persist in pushing for reduced federal emissions standards for all vehicles to establish fair and balanced market-driven standards.
NADA is fully engaged in planning and meeting with government officials and private industry concerning tariffs and
the balance of national and international considerations that could impact our dealers and customers in any actions taken.
And of course, NADA has made it clear to both Volkswagen and Honda that any attempt to sell vehicles directly and compete with their U.S. dealer partners is outrageous and misguided, and NADA is fully committed to supporting efforts to challenge this decision in statehouses and courthouses across the country. In the coming weeks and months, NADA will continue working with the ATAEs and the state and metro dealer associations to determine the best paths forward to protect the franchise system and stand behind Volkswagen, Audi, Porsche, Honda, and Acura dealers.
Please know that as NADA Chairman, and with the support of the board and staff, we will pivot and respond to the ever-changing landscape and developments that affect our dealers and our industry.
In closing, I want to thank the NADA board of directors and the NADA staff for their support and the hard work of every ATAE for backing their dealers and our franchised system. It is a team effort. Do not forget that the NADA Directors work for your associations and your dealerships. Please reach out to each one of them with your concerns and questions. That is why we are here.
Semper Fi!
Tom Castriota Castriota Chevrolet 2025 NADA Chairman
Main Issues Updates
Mike Stanton, NADA President and CEO
This is a monthly recap of the key legislative, regulatory, and dealer/OEM-related issues on which NADA is working. These matters are always fluid and subject to change. Feel free to reach out to me or Scott Dube, your NADA director, with any questions or comments.
Tariffs
The threat or imposition of tariffs on countries critical to U.S. auto manufacturing and supply warrants NADA’s full attention, engagement, and due diligence to ensure we are representing franchised dealers fully and strategically.
In early February, the Trump Administration announced the imposition of a 10% tariff on all imports from China, and a 25% tariff on all imports from both Canada and Mexico. (Tariffs on Canada and Mexico were soon delayed until March 2025.) China has responded with retaliatory measures, and Canada and Mexico announced plans for retaliatory measures of their own should threatened tariffs be implemented. The administration has also announced new tariffs on steel and aluminum and reciprocal tariffs on all countries. Why it matters: Tariffs on U.S. trading partners, who are vital to our automotive supply chains, would increase costs on auto manufacturing and parts production, driving up prices and making it harder for many Americans to afford the
new vehicles of their choice. New-car affordability is a persistent challenge for consumers and dealers alike. Record average transaction prices, stubbornly high interest rates, allocation constraints, and the ongoing limitation of affordable new models from manufacturers have made it more difficult in recent years for franchised dealers to match buyers with vehicles that meet their needs and budgets.
Volkswagen/Scout
VW AG’s attempt to sell Scout vehicles directly to consumers and compete with its U.S. dealer partners is outrageous and misguided. NADA has made it very clear that it will support efforts to challenge this decision in statehouses and courthouses across the country. NADA has been working with ATAE and the state and metro dealer associations to determine the best paths forward to protect the franchise system and stand behind Volkswagen and Audi dealers.
In December, the California New Car Dealers Association issued a cease-and-desist letter to VW and its affiliate Scout due to their ongoing violations of California’s Vehicle Code, which prohibits manufacturers from competing with their own franchisees by using affiliates to directly sell or service vehicles. And in January, a group of Florida VW and Audi dealers filed a lawsuit in Miami-Dade County Circuit Court to block Scout’s direct-sales attempt.
Why it matters: Since VW AG signaled the re-emergence of the Scout brand in the U.S., NADA has communicated very clearly on numerous occasions to VW and Scout leadership that the franchise system is the best and most-efficient way to deliver the customer experience that today’s marketplace demands. This reality was recently reinforced by an independent study of the cost and value of new-car distribution by the consulting firm Oliver Wyman, which concluded that utilizing franchise dealers is more cost-effective than a direct sales channel and provides tremendous value to automakers and consumers alike.
Sony Honda Mobility
On January 6, 2025, Sony Honda Mobility announced the starting prices for its Afeela vehicles, its intentions to sell those vehicles directly to consumers, and the start of order reservations in California. Deliveries are expected to commence in mid-2026.
Why it matters: Similar to the consequences with the Scout brand, any direct-sales model would, to say the very least, undermine any automaker’s relationship with its franchised dealers, all of whom have made significant investments in their current and any future brands. NADA has made it clear to Honda that any misguided attempt to bypass or undercut its U.S. dealers will be challenged in statehouses and courthouses across the country – with NADA’s full support.
What’s next: NADA will pursue this issue with the same seriousness with which it is approaching the VW/Scout brand issue. This work is ongoing, and NADA will keep Directors and dealers informed as events warrant.
Tax Legislation
NADA is working to ensure that dealer tax priorities are protected as part of the tax negotiations in Congress. With major provisions of the 2017 Tax Cuts and Jobs Act (TCJA) expiring in 2025, Congressional Republicans are expected to use the reconciliation process to extend provisions of the TCJA. Under this fast-track budget tool, legislation can be passed by a simple majority vote and cannot be filibustered in the Senate.
What’s next: While the GOP wants to pass a tax bill in the first 100 days, it will likely take longer to determine the parameters of the bill and how to pay for it. NADA has already outlined dealer priorities to the tax-writing committees, including parity for pass-through entities, maintaining federal estate tax treatment, preserving the last-in first out (LIFO) method of accounting, extending 100% bonus depreciation and modifying the limits on business interest deductibility.
Catalytic Converter Anti-Theft Legislation
NADA has made passage of federal catalytic converter anti-theft legislation – the “Preventing Auto Recycling Theft Act” (the PART Act) – a priority and will continue to advocate for Congress to address this serious issue. Legislation like the PART Act – introduced in the last Congress by Sens. Amy Klobuchar (D-Minnesota) and Mike Braun (R-Indiana), and Reps. Jim Baird (R-Indiana) and Betty McCollum (D-Minnesota) – is a common-sense solution that gives law enforcement the necessary tools to help fight catalytic converter theft, which has risen by nearly 900% between 2019 and 2023.
At the end of Congress’s last session, the House legislation had more than 80 cosponsors, and Senate champions of the PART Act attempted to add the Act to the mustpass annual defense bill. While no unrelated amendments were added to the defense bill, 120 organizations, including prominent law enforcement groups, consumer groups, and state associations representing all states, signed an NADA-led letter urging passage of the PART Act. Despite the widespread support for the PART Act, the Alliance for Automotive Innovation is the only organization that is publicly opposing the legislation.
What’s next: NADA is working with congressional supporters and expects this legislation to be reintroduced in the near future.
NADA Announces Women Driving Auto Retail Award Winners
Catherine York
Former NADA Communications Manager
[Ed. note: We wish Catherine all the best of luck and good fortune, as she returns to High Point, North Carolina, to work at her family’s dealership.]
Due to a historic New Orleans snowstorm and continued
travel delays surrounding NADA Show 2025, the Women Driving Auto Retail event unfortunately was cancelled this year. In addition to exciting programming and education, this event was supposed to include the announcement of the 2025 Women Driving Auto Retail Award winners, sponsored by RouteOne.
We cannot let these incredible women and their stories go unrecognized!
After a public call for nominations, NADA received over 750 recommendations from people across the industry –ATAEs, supervisors, peers, customers, and even self-nominations. All the stories were inspiring, and a voting committee of NADA leadership and board directors had the difficult task of selecting the winners.
Last year, the Women Driving Auto Retail initiative announced three inaugural awards. NADA’s Women Driving Auto Retail initiative aims to empower women working in the auto and truck retail industries and encourage more women to join the industry by highlighting the many unique career paths of women before them. Further, RouteOne has been a consistent supporter of the initiative and sponsored the 2024 and 2025 awards.
Rising Star Award
This award recognizes a woman early in her dealership career who is driving her path in auto retail and serving as a role model and champion for her female peers in the industry.
Meet Alicea Chiong, a technician at Toyota of Portland in Portland, Oregon. Ever since she was a little girl, Alicea’s passion was to work in the automotive industry, and now she is well on her way to becoming a Master Technician. Alicea graduated college with high honors in automotive and applied technology, but her work ethic shows that the learning never stops. She continues to attend seminars and other learning opportunities – both to advance her own skills and to bring ideas to her dealership to recruit and retain more female technicians.
In addition to her ongoing training, Alicea has stepped up to teach the younger technicians. She has a female apprentice who she mentors with warmth. She strives to show other women they belong in the dealership, especially in the service bays.
Accelerator Award
This mid-career level woman has demonstrated success not just in advancing her own career but in accelerating the careers of women around her.
Fabiola Maese Mathis has made it her mission to not only excel personally but to advocate for other women’s success. Her goal is to give other women the same opportunities she has benefitted from, showing them they can achieve financial independence, stability, and passion in an industry that often seems inaccessible.
Fabiola has been in the automotive business for over a
decade, working in six dealerships, a media company as the automotive specialist, and an automotive after-market company. Now general manager of Mercedes-Benz of Midland in Midland, Texas, part of the Cavender Auto Family, she has found a dealership home where her skills, knowledge, and passion are recognized and nurtured.
Fabiola has promoted and hired 17 women into leadership roles in the past year alone. She understands the value of diversity and inclusion, not just for her dealership’s staff, but for their customers, too. Learning from her family of Mexican immigrants the importance of determination and hard work, Fabiola has pushed through personal and professional obstacles, including a cancer diagnosis, two pregnancies, and financially supporting her family.
Ally Award
This pinnacle award recognizes an individual with a career track record in hiring, training, mentoring, and championing women in auto retail.
Ann Perry, CEO of Weelborg Auto Group in New Ulm, Minnesota, has doubled female leadership in the group’s three dealerships in her four-year tenure. Ann joined the Weelborg Group as its first Human Resources Director, then transitioned to Operations Director and finally CEO. In her HR role, Ann partnered with hiring managers to assess roles, identify gaps, conduct compliance training, and fill roles strategically.
Beyond the dealership, Ann works within community schools to help students identify career paths and regularly serves on leadership panels to activate local youth. She was selected for the River Valley Women’s LET’S GO! Issue, which spotlights women in the automotive/travel industry. In another community event, Ann created a task force centered on highlighting females in the automotive industry. The team created an informational movie, which highlighted careers for women. It was unveiled at the “Stand Tall Heels & All” women’s networking event, and the video received accolades and resounding response from the community.
NADA Dealership Workforce Study Now Open
NADA knows that dealers today face numerous challenges, including high employee turnover, difficulties in recruitment, and the constant pressure to remain competitive in a rapidly evolving market. These demands deplete valuable resources and significantly impact overall dealership performance and profitability. Understanding workforce trends and leveraging data-driven insights are crucial steps in effectively addressing these issues.
The NADA Dealership Workforce Study is a resource to assist dealers in addressing these challenges and understanding dealership issues with real data from NADA members. It is the only authoritative and comprehensive examination
of auto dealership workforce trends. This study provides the latest industry data on employee compensation, benefits, turnover, retention, demographics, hiring trends, hours of operation, and more. The data is published in annual reports for members only. The reporting shows national and regional data as well as sales volume ranges from low and high-volume stores.
[The NADA Dealership Workforce Study] provides the latest industry data on employee compensation, benefits, turnover, retention, demographics, hiring trends, hours of operation, and more.
Participation is key to the success of the study and the value of the data. NADA member dealers can enroll at https:// www.nadaworkforcestudy.com/Main.aspx.
There is no cost to participate.
What do you get for participating in the study?
• National & Regional Trends Report: Overview of compensation, benefits, turnover, retention, hiring, and demographics trends.
• New! Refreshed NADA Online Database Search Tool: Your data at your fingertips. View your submitted data and conduct comparison analysis using custom filters online and on demand. Exclusive one-year access for study participants only.
Once you enroll you will receive an email with instructions to complete an online benefits questionnaire and complete the payroll file. All responses and data are confidential.
IMPORTANT!! You will need the NADA Member ID number for your single store or Dealer Group to enroll. If you do not have this NADA Member ID number, please contact NADA Customer Service at (800) 557-6232.
The enrollment for the 2025 Study closes promptly on March 14, 2025.
US Taps Apple Exec to Serve as Top Auto Safety Regulator
Reuters
President Donald Trump has nominated an Apple employee to serve as the nation’s top auto safety regulator overseeing a number of ongoing safety probes into Tesla.
Jonathan Morrison, who served as chief counsel of the National Highway Traffic Safety Administration during the first Trump administration and had previously worked for the California New Car Dealers Association, has been nominated to serve as the agency’s administrator, according to Senate records.
