INDUSTRY INSIGHTS, HILL VISITS HIGHLIGHT 22nd ANNUAL AUTO CONGRESS Nearly 700 dealers and industry executives descended on Washington, DC, May 17-18 for AIADA's 22nd Annual American International Automotive Congress. For two action-packed days, the Auto Congress 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. 1999 Chairman Joseph D. O'Brien, Jr. opened the meeting during Monday's Super Session, which featured keynoter Elizabeth Dole, political pundits Bill Kristol and Norman Ornstein, and free-trader Rep. Jim Kolbe (R-AZ). Five mini-sessions focused on helping dealers remain competitive in today's fast-moving retail environment, including utilizing the Internet to capture new customers and insights from Wall Streeters on top stock picks and market segments. Legislative Issues Briefings held throughout the Auto Congress provided dealers with issues updates and training on how to best present their case before Congress. At the Grassroots Leadership Forum, dealers heard from election analyst Charlie Cook and Rep. Tom Davis (R-VA), head of the National Republican Congressional Committee (NRCC). A media trainer also offered insights on working with the media, and the results of a recent Gallup poll on the new car buying process were presented. House Majority Leader Richard Armey (R-TX) spoke to a packed room at the Grassroots Luncheon. Tuesday's Super Session featured Mike Jackson from Mercedes, Gerd Klauss from Volkswagen, Mazda's Richard Beattie and Bob Reilly from Isuzu discussing the challenges of competing in today's global auto market. Each addressed their different philosophies on branding and niche marketing, while agreeing that having good product is the foundation to success in the marketplace. Sen. Peter Fitzgerald (R-IL), a strong supporter of dealer issues, was Tuesday's luncheon speaker. 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 a rapidly changing retail environment. Most importantly, in meetings with Members of Congress, dealers were heard on key issues impacting their businesses.

MAY 1999 All the latest news and information for and about the international automobile industry in America. "It's not about competing for shelf space anymore, it's about getting your products at eye level." -- Robert Reilly, Senior Vice President, General Manager, Light Vehicles, American Isuzu Motors, Inc. AIADA 99 Canal Center Plaza Suite 500 Alexandria, VA 22314 703-519-7800 703-519-7810 FAX GOAIADA@aiada.org

Estate (Death) Tax. Estate or death taxes can be a death sentence for family-owned automobile dealerships. AIADA is working to eliminate this burden on automobile dealers and their families. To date, 184 Members of Congress have cosponsored legislation to phase out the death tax.

Luxury Tax. Scheduled to be phased out by 2003, as long as this tax is on the books, that could change. Dealers must continually remind Congress of the harmful impact of the tax and the need for its elimination on schedule if not sooner.

Chicken Tax. Since 1964, the Chicken Tax is a 25% duty levied against imported pickup trucks as a results of a dispute between the U.S. and Germany over the importation of frozen chickens. Pickup trucks represent a lucrative and significant portion of the United States vehicle market, and the 25% tariff limits the ability of importers to compete. This must change. AIADA has launched a long-term campaign to eliminate the chicken tax.

Richard DeSilva of Liberty Subaru, Oradell, N.J. (NATIONAL WINNER) A 23-year veteran of the automobile business and single point Subaru dealer, DeSilva believes in the importance of education in the lives of children. A member of the Mahwah School Board since 1995, he is also a member of the Mahwah Education Foundation, working to encourage corporate donations to the school system.

Mike Barker of Barker Mitsubishi, Houma, La. Named "Retailer of the Year" by his local Chamber of Commerce, Barker was instrumental in the Hurricane Mitch relief effort in 1998, volunteering his dealership as a drop site for collecting donated items to help needy families.

Ronald Esserman of Largo Honda-Kia-Mitsubishi, Key Largo, Fla. President and director of the South Dade Chamber of Commerce, Esserman serves on the board of the Zoological Society of Florida and the Miami City Ballet. In 1989, he was awarded "Man of the Year" for his leadership efforts in southern Dade county.

Gary Reynolds of Reynolds' Garage & Marine, Lyme, Conn. A Subaru dealer, Reynolds is former chief of the Lyme Fire Company and past president of the local Chamber of Commerce. For his community efforts, he received the Nozko Family Business Leadership award.

Ron Theis of University Honda, Corvallis, Ore. Dedicated to providing young adults with a strong spiritual direction, Theis sponsors a campus bible study at Oregon State University. He also is a sponsor for the Corvallis Pregnancy Care Center.