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September 7, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
U.S. EPA Hears from All Sides on GHG Midterm Rules
U.S. House Unanimously Approves Sweeping Self-Driving Car Measure
Florida Car Dealers Say Insurers Halting Policies Ahead of Irma
GM Sees EVs Going Mainstream, But Federal Credits Drying Up
Ex-NADA President Brady Joins Kerrigan Advisors
Top Stories
U.S. EPA Hears from All Sides on GHG Midterm Rules


Rhett Ricart, chairman of NADA’s Regulatory Affairs Committee and president, Ricart Automotive Group in Columbus, Ohio, testifies at a U.S. EPA hearing in the nation’s capital on Sept. 6, 2017 on the midterm evaluation of GHG emissions standards for model year 2022-2025 light-duty vehicles.
(Photo: NADA)

Rhett Ricart, Regulatory Affairs Committee chairman for the National Automobile Dealers Association and president and CEO of Ricart Automotive Group in Groveport, Ohio, [said] that fuel-efficient cars may sit on U.S. showrooms if the stringent rules for gas mileage are left in place without any mid-course corrections, The Detroit News reported.

According to The Detroit News, environmentalists and consumer advocates pleaded Wednesday with officials from President Donald Trump’s administration to not roll back stringent fuel economy rules for cars enacted by former President Barack Obama. Automakers, meanwhile, pressed for relief from the standards that are estimated by some to add at least $2,000 to the sticker price of a vehicle.

Ricart added: “Government policies mandating vehicles that fail to meet the needs, desires, or financial constraints of customers will force them to opt for driving what they have or buying used. And if that happens, we all lose.”

Editor’s Note:
Ricart’s testimony came during a hearing on whether the EPA should reopen its review of the MY 2022-2025 greenhouse gas rules that the agency adopted in 2012. He underscored that “the midterm evaluation must fully consider the realities of the showroom by recognizing the critical importance of customer acceptance, of enhancing – not retarding – fleet turnover, and of an industry that is critical to our economy.” If the midterm evaluation is reopened, a new final determination on the MY 2022-2025 standards will be made by April 1, 2018. NADA intends to file written comments by the Oct. 5, 2017 deadline on the reopening issue and on whether standards for MY 2021 light-duty vehicles need to be changed. Ricart also discussed the importance of having one national fuel economy program and of EPA coordinating closely with the National Highway Traffic Safety Administration. Click here for NADA’s testimony.

Related article:


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U.S. House Unanimously Approves Sweeping Self-Driving Car Measure

The U.S. House on Wednesday unanimously approved a sweeping proposal to speed the deployment of self-driving cars without human controls by putting federal regulators in the driver’s seat and barring states from blocking autonomous vehicles. The House measure, the first significant federal legislation aimed at speeding self-driving cars to market, would allow automakers to obtain exemptions to deploy up to 25,000 vehicles without meeting existing auto safety standards in the first year. The cap would rise over three years to 100,000 vehicles annually.
Source: Reuters

Editor's note: An earlier version of the House SELF DRIVE Act would have preempted state franchise laws as applied to HAVs. After an outpouring of opposition by NADA’s grassroots, bipartisan language to clarify that state vehicle franchise laws were not preempted was added to the bill in committee. NADA has been working with Sens. John Thune (R-S.D.), Gary Peters (D-Mich.) and Bill Nelson (D-Fla.) who will soon introduce a draft Senate version of this legislation. As the Senate considers HAV legislation, it is vital that dealers meet with their Senators to explain how important dealer franchise laws are to their businesses, their employees and their communities. Click here for a one-page issue summary. This bill is likely to be considered this fall by the Senate Commerce, Science and Transportation Committee (see attached list). Dealers should contact their Senators to stress the need to include strong, clear language to ensure state vehicle licensing/franchise laws are not preempted in the Senate self-driving vehicle bill.

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Florida Car Dealers Say Insurers Halting Policies Ahead of Irma

Insurers including Progressive Corp. and Allstate Corp. have stopped issuing policies on new cars in certain Florida counties, hindering vehicle sales days before Hurricane Irma is forecast to hit the state. The companies may be overreacting to losses incurred last month related to Hurricane Harvey and refusing to issue coverage, Ted Smith, the president of the Florida Automobile Dealers Association, said by phone. State Farm Mutual Automobile Insurance Co. is still issuing coverage and waiting until a national hurricane advisory before halting new policies, he said.
Source: Bloomberg

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GM Sees EVs Going Mainstream, But Federal Credits Drying Up

General Motors thinks the U.S. electric-vehicle market is on the cusp of going mainstream, but the Detroit automaker and other key players may soon reach sales volumes ending an important consumer tax rebate established years ago to kick start the segment. “We are near the tipping point for mainstream adoption,” says Darrin Gesse, product manager for the Chevrolet Bolt battery-electric vehicle.
Source: WardsAuto

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Ex-NADA President Brady Joins Kerrigan Advisors

Former National Automobile Dealers Association President Phil Brady has joined buy-sell advisory firm Kerrigan Advisors in California as a senior adviser. Brady, 66, was president of NADA from 2001 to 2012. Said Brady, "I very much look forward to re-engaging with my many friends and colleagues in the auto retail industry."
Source: Automotive News

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Quotable
"Government policies mandating vehicles that fail to meet the needs, desires, or financial constraints of customers will force them to opt for driving what they have or buying used. And if that happens, we all lose."

    -- Rhett Ricart, NADA regulatory affairs committee chairman, in testimony at a U.S. EPA hearing on the midterm evaluation of GHG emissions standards for model year 2022-2025 light-duty vehicles, The Detroit News, Sept. 6

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