AIADA

FOR IMMEDIATE RELEASE
May 25, 2000

AUTO DEALERS HEARD ON THREE KEY ISSUES DURING
AIADA's AUTOMOTIVE CONGRESS

WASHINGTON -- Nearly 600 dealers and industry executives descended on Washington, DC, May 22-23 for AIADA's 23rd Annual Automotive Congress, the largest grassroots lobbying event in tho automotive industry.

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.

On May 25, 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. 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.

All AIADA members are urged to keep the pressure on by contacting 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. For talking points, call AIADA's government relations department at 1-800-GO-AIADA.

On the trade front, the House of Representatives passed a bill granting China permanent normal trade relations 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.

Finally, 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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About AIADA
AIADA is the trade association representing America's 10,000 international nameplate automobile dealerships and their more than 360,000 employees. These retailers sell and service automobiles manufactured both in the U.S. and abroad, and have a positive economic impact both nationally and in the local communities they serve. Visit AIADA on the Internet at www.aiada.org.

CONTACT: Lori Weaver-Barnes, APR, Director of Public Relations
(703) 519-7800 / PR@aiada.org

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