23rd AUTOMOTIVE CONGRESS A SUCCESS!
Strong Message Sent to Capitol Hill on Key Issues

Nearly 600 dealers and industry executives descended on Washington, DC, May 22-23 for AIADA's 23rd Annual Automotive Congress. For two action-packed days, the meeting combined the largest lobbying event in the industry with issues briefings, super sessions and workshops designed to provide dealers with the latest information on the hottest industry topics.

Dealers hit Capitol Hill at an important time in the legislative process for three of AIADA's top issues: an end to the death/estate tax, support for free trade by voting for China PNTR, and a freeze on Corporate Average Fuel Economy (CAFE) standards. For more on each issue, see page two.

2000 Chairman Barbara Vidmar opened the Automotive Congress during Monday's Super Session, which featured entertaining economist Lowell Catlett, syndicated columnist George Will and Sen. Fred Thompson (R-TN). Five mini-sessions focused on top dealership operations and management issues including F&I, personnel, branding, e-commerce, and investing.

Legislative Issues Briefings held throughout the Auto Congress provided dealers with information on the three key issues dealers took to Congress. At the Grassroots Leadership Forum, dealers heard from former Rep. Bill Paxon, and watched live as he was joined by industry and media panelists asked to react to an unfolding simulated crisis scenario: an announcement of an SUV tax by President Gore!

Tuesday's Super Session featured Rep. Jennifer Dunn (R-WA), who is championing death tax relief efforts in the House of Representatives, and a panel of journalists from Newsweek and The Washington Post. Sen. Wayne Allard (R-CO), was the keynote speaker at Tuesday's luncheon, just before dealers headed to Capitol Hill to meet with their members of Congress.

Overall, the Automotive Congress was rated one of the best in recent memory. Top speakers left AIADA members with new insights on today's political environment, as well as how to compete in today's retail environment. Most importantly, in congressional meetings, dealers were heard on key issues impacting their businesses.

MAY 2000

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MAY LEGISLATIVE ISSUES BRIEFS

DEATH TAX RELIEF PASSES HOUSE WAYS AND MEANS

By a vote of 24-11, the AIADA-backed Death Tax Elimination Act (H.R. 8), was passed by the House Ways and Means Committee on May 25. A vote by the full House is expected the week of June 5. AIADA supports this bill because estate/death taxes can devastate family-owned businesses like automobile dealerships. AIADA members played a key role is securing support for the bill by urging members of Congress to "kill the death tax now" when they canvassed Capitol Hill on May 23 during the Automotive Congress. AIADA Chairman Barbara Vidmar also spoke out in support of H.R. 8 at a Death Tax Summit press conference covered by the national media on May 23 on Capitol Hill. She was one of three businesspeople joined by a bipartisan group of members of Congress supporting H.R. 8. Flanked by her children Shawn and Derek, Vidmar spoke of the threat the death tax poses to her ability to pass her business on to the third generation of Vidmars, and called for an end to the estate tax. We now must keep the pressure on! Contact your representative in the next two weeks and ask them to support death tax elimination by voting for H.R. 8 when the bill reaches the House floor. Call the Capitol switchboard at 202-224-3121 and ask for your representative. For talking points, call AIADA's government relations department at 1-800-GO-AIADA.

CHINA PNTR PASSES THE HOUSE

Called the most important trade vote in decades, a bill to grant China permanent normal trade relations passed the House on May 24 by a vote of 237-197. This represents a significant victory for trade and is good news for AIADA members, who helped lobby for the measure in its final days during the Automotive Congress. Viewed as a battle between political forces calling for isolationism and those who believe trade has been key to U.S. economic prosperity, this issue came to represent much more than just trade between the U.S. and China. As an organization dedicated to trade and the benefits it provides, AIADA is hopeful this vote bodes well for future trade issues.

CAFE BATTLE MOVES TO THE SENATE

On May 19, the auto industry was victorious as the House passed the 2001 Department of Transportation appropriations bill with a provision to freeze Corporate Average Fuel Economy (CAFE) standards at their current level. The action now shifts to the Senate. Some Senators have suggested they may push to increase CAFE standards. An increase in CAFE could deprive consumers of vehicles that have historically low gas mileage -- pickups, minivans and sport-utility vehicles, potentially eliminating from the market some of the most popular vehicles on the road. AIADA members lobbied during the Automotive Congress to ensure that the Senate does not move to increase CAFE standards. Mark-up of the bill is expected in the Senate the week of June 5, with a vote on the Senate floor scheduled for the week of June 12.

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