Friday, February 17, 2017

February 2017 SDADA Column

What does a 50 mpg pickup look like? Is it something that your customers would drive? Would it
serve the utility that your customers need from their truck?

Those questions embody what is at stake in the current and ongoing battle over clean air standards. In 2011, the Obama administration and the EPA called for an industry-wide standard of more than 50 miles per gallon by 2025. The deal called for the EPA to conduct a “mid-term review” of rules for 2022-25 by April 2018.

The EPA, acting before Trump's inauguration, ruled on Jan. 13 that no change in the regulations was warranted for 2022-25. The auto industry was caught a bit off-guard by this development and they are not be happy about the quick and rather incomplete "review".

Auto executives want Trump to roll back clean-air standards. They feel that the standards are too rigorous and could cost America jobs.

One of the problems in attaining such high MPG standards is consumers' appetite, or lack thereof, for electric vehicles. Certainly, South Dakota dealers do not see a rush of consumers knocking down the doors to get electric vehicles. I have yet to have one of my ag producer customers ask me when an electric 3/4 ton pickup would be available to pull his stock trailer.

Hopefully, the Trump administration can bring a common sense approach to the idea of clean air standards and fuel economy. As dealers, we just want affordable options that serve our customers needs. If those are electric, fuel cell or other alternative energy options, that is fine.

Just let us sell what our customers want at a price they can afford!

NADA Launches Nationwide Initiative

NADA has launched a new initiative designed to promote the benefits of local new car and truck dealerships for consumers, local communities and manufacturers alike. is a digital media initiative by America’s local new car and truck dealerships, designed to show the benefits of local dealerships to consumers, local communities, and car manufacturers.

  • Consumers benefit when local dealerships compete for their business, saving their customers hundreds of dollars on each purchase. Local dealerships also compete on financing and service, leading to extremely competitive loans and high quality service by certified technicians any time, virtually anywhere in America.
  • Local communities benefit from the 1.1 million plus jobs created by local dealerships – averaging more than $69,000 in average compensation across occupations, more than are created by automobile manufacturers! And communities benefit when local businesses like dealerships develop roots and give back.
  • Manufacturers benefit from the free distribution and massive competition dealerships create for their products.

Bottom line, local dealerships want to create customers for life. And when local dealerships compete, everyone doesn't come from the perspective of dealers - it comes from the perspective of real consumers, dealership staff and community leaders who have seen the benefits of local dealerships first hand.

NADA will be promoting the initiative throughout 2017 across its digital media channels, including Facebook, Twitter, Instagram and LinkedIn. The initiative was launched as part of NADA's 100th Anniversary. I encourage you to go to the above link and check it out!
As always, I'm interested in your thoughts. Please contact me at or 605-680-9999.

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