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December 14, 2016 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
NADA Concerned about Potential 'Border Adjustability Tax' in 2017 Tax Reform Bill
GM Asks Supreme Court to Reverse Ignition Switch Claims Ruling
Cars Would Be Required to Talk to Each Other Under U.S. Plan
GM Delivers First Batch of Bolt EVs in Tesla's Backyard
NADA Convention Launches Mobile App
Top Stories
NADA Concerned about Potential 'Border Adjustability Tax' in 2017 Tax Reform Bill

WASHINGTON -- House Ways and Means Chairman Kevin Brady (R-Texas) released a "Tax Reform Blueprint" in July 2016 that outlined the general provisions of a comprehensive tax reform package. However, a tax reform bill was not introduced, and the 114th Congress adjourned last week for the year.

When the new Congress convenes in January, the House Ways and Means Committee, the Senate Finance Committee and the Trump administration will begin developing the actual text for a tax reform bill. In anticipation of tax reform being a priority next year, the Republican members of the House Ways and Means Committee are having an informal meeting this week to discuss the basic structure of their version of the expected tax bill.
 
One of the provisions included in the Tax Reform Blueprint has generated significant concern among several industries, including the automotive sector. The "border adjustability tax" proposal would provide corporate income tax preferences for exporters of products made in the U.S. and impose tax burdens on importers of products made overseas. While the blueprint contains few specifics, the implementation of such a provision could adversely affect industries that rely on global supply chains, such as the automotive sector. This provision is not likely to have a direct effect on dealers' tax liabilities, but it could have a significant impact on a dealer's business model.

If imposed, the tax change would trigger a significant increase in the cost of the imported vehicles and vehicle components (whether from Korea, Japan, Mexico or Germany). This could have a wide-ranging impact because currently the highest domestic content of any vehicle sold in the U.S. is 75 percent.  There is uncertainty about how this proposal would be implemented and what the impact would be to consumers.
 
In advance of the meeting of the Republican members of the Ways and Means Committee, several trade associations, including NADA, AIADA, the Alliance of Automobile Manufacturers and the Association of Global Automakers, joined with other associations to express concerns about the border adjustability tax provision in a letter to Chairman Brady and Ranking Member Richard Neal (D-Mass.) That letter was sent on Dec. 13.
 
As the tax reform process unfolds in the coming months, NADA will continue to work with members of Congress, the Trump transition team, and the new Trump administration to advocate for tax policies that enable dealers to continue to drive the economy.
Source: NADA Legislative Affairs

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GM Asks Supreme Court to Reverse Ignition Switch Claims Ruling

General Motors Co. on Tuesday asked the U.S. Supreme Court to overturn an appellate court's ruling that the automaker's 2009 bankruptcy does not shield it from lawsuits over a faulty ignition switch linked to 124 deaths and 275 injuries. The petition marked a last-ditch effort by GM to block hundreds of customer lawsuits over faulty ignition switches, and other vehicles components, on grounds that they were barred by the automaker's 2009 bankruptcy sale to a new corporate entity. In its petition, GM said the federal bankruptcy code permits a purchaser, in this case a newly formed company, to obtain a debtor's rapidly deteriorating assets and be "free and clear" of its liabilities.
Source: Reuters

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Cars Would Be Required to Talk to Each Other Under U.S. Plan

U.S. automobile regulators want passenger cars and light trucks to wirelessly stream data about their movements and monitor other vehicles so they don’t crash into each other. All new light-duty vehicles would be required within four years to be equipped with so-called vehicle-to-vehicle communication systems. The technology will work hand-in-hand with new automated safety devices, such as auto-braking, in another step toward making driverless vehicles a reality, the Department of Transportation said Tuesday. The proposal, which would also require cyber protections on the data stream and include privacy protections so drivers couldn’t be tracked, is one of the most ambitious attempts in history at using technology to cut crashes and deaths on the nation’s roadways.
Source: Bloomberg

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GM Delivers First Batch of Bolt EVs in Tesla's Backyard

The symbolism was obvious. General Motors, which is racing against Tesla to win the burgeoning market for lower-priced all-electric cars, delivered its first three Chevy Bolt EVs to a dealership in Fremont, Calif., on Tuesday. That's the city that is home to an assembly plant that will soon start building Tesla's all-electric car, the Model 3. Chevy's delivery of the Bolt put the automaker ahead of its self-imposed deadline to begin sales of the vehicle before year's end.
Source: CNBC

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NADA Convention Launches Mobile App


 

The new NADA100 mobile app for the 2017 NADA Convention and Expo in New Orleans is now available in the App Store and Google Play. Search for NADA100.

Key features include:

  • Real-time alerts;
  • Workshop and event schedules; 
  • The option to download and email workshop handouts;
  • Locate and schedule meetings with exhibitors; and
  • Rating the workshop sessions.

The NADA convention runs from Thursday, Jan. 26, to Sunday, Jan. 29. The advance online registration discount of $75 for NADA member dealers and their managers ends Jan. 20. For more information or to register, visit www.nadaconvention.org.  
Source: NADA Convention & Expo

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Past Articles
       
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          -- U.S. Transportation Secretary Anthony Foxx, commenting on its proposed new rules requiring automakers to adopt crash-avoidance technology that allows all new vehicles to communicate with each other, USA Today, Dec. 13
       
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