On Tuesday, in a party-line vote of 25-14, the House Ways & Means Committee advanced a Congressional Review Act resolution of disapproval introduced by Reps. Carol Miller (R-W.Va.) and Jared Golden (D-Maine) to scrap the Treasury Department’s EV tax credit guidance over concerns it violates Congress’ intent when it passed the Inflation Reduction Act and enriches Chinese companies. The Treasury guidance, published in May, allowed for a grace period for manufacturers for certain difficult-to-trace battery materials. It also affirmed that a critical minerals pact inked last year with Japan would qualify as a free trade agreement, treating minerals sourced from Japan as domestic content. The resolution must face a full House vote, after which it must be passed by the Senate and would face a likely veto by President Biden.
Economic Impact Report
This week, in coordination with Autos Drive America, AIADA released the 2024 Economic Impact Report, detailing the financial commitment and contributions made by international automakers and nameplate dealers across the U.S. This year’s report shows that in 2023, for the first time, international automakers in the United States out-produced the Detroit-3 automakers. AIADA Chairman Anthony Brownlee commented on the report in his most recent Chairman’s Blog.
Read the AIADA press release and check out the full report:
Automakers Urge Tariff Changes, Proactive Trade Policy
Both the American Automotive Policy Council (AAPC), representing the Detroit brands, filed comments and Autos Drive America, which represents international automakers, filed comments with the Office of the U.S. Trade Representative (USTR) urging that planned tariffs on critical minerals used in EV batteries be delayed. While AAPC’s comments focused on graphite and magnets, Autos Drive America also raised concerns on tariffs on batteries, cells, and critical minerals in general. A vehicle supplier group, MEMA, also weighed in against tariffs on semiconductors, steel, and aluminum.
In related news, both AAPC and Autos Drive America joined on a U.S. Chamber of Commerce letter to urge the White House to pursue more agreements that will open new markets to U.S. exports. The signatories, which represented a broad range of U.S. business interests, also requested a meeting with the administration to discuss a more “proactive U.S. trade policy.”
Quotes of the Week
“As both political parties seek to rally populist support by attacking the very concepts of a level playing field on which businesses can compete, voters need to be reminded that so-called “foreign” brands are deeply woven into the fabric of our economy and our communities.”
-Anthony Brownlee, AIADA Chairman (www.aiada.org)
“Every day, I see firsthand the many ways in which international nameplate dealers serve their customers, create jobs, and establish themselves as economic engines for their communities. The continued growth and success of these dealerships, as detailed within this report, is a reminder that with a level playing field, superior products, pricing, and service will always rise to the top.”
-Cody Lusk, President & CEO, AIADA (www.aiada.org)
ICYMI
In case you missed it, AIADA President & CEO Cody Lusk addressed political uncertainty affecting dealer outlooks in his most recent President’s Message.
Friday Feel Good
Here is just one recent example of how dealers are doing good in their communities:
Burke Motor Group in New Jersey supported their local community with a donation to Lower Cape May Little League. (h/t NJCAR)
We want to hear more about how you are supporting your local community – tweet us at @AIADA_News and use the hashtag #DealersDoGood.
You Auto Know will be on hiatus next week as Congress breaks for the Republican National Convention. We’ll be back the week of July 22nd with all of the news from Washington that You Auto Know about.