Supercharged Political Atmosphere at NADA Washington Conference

Supercharged Political Atmosphere at NADA

Washington Conference

A hotly contested presidential race, a financial crisis that could result in a stock market meltdown, hurricanes in the Gulf, energy/environmental issues and a host of ill conceived proposals in Congress, all atop an already stressed auto industry served to create a supercharged political atmosphere in Washington, is how NADA President Phil Brady put it, as he opened the associations 33rd Annual Washington Conference this week.

The event drew over 500 new automobile dealer association leaders from across the country to hear from elected officials and political experts before heading for Capitol Hill and meetings with members of Congress regarding NADAs legislative priorities. (See page 3 for details.)

WANADA was well represented by its chairman Tamara Darvish, its DEAC chairman Jack Fitzgerald and its NADA Director Geoff Pohanka, who in turn teamed up with senior staffers Gerard Murphy and John ODonnell. Highlights from the general session were as follows:

Sen. John Ensign (R-NV), chairman of the National Republican Committee and sponsor of the NADA-backed wrecked-vehicle disclosure bill, was the breakfast keynoter (consumers have a right to know, he said). Ensign also is cosponsor of the Senate Alternative Energy and Renewable Fuels Act, legislation he says provides a comprehensive approach that includes everything from off-shore drilling and nuclear to wind and solar. Green technologies are not enough, Ensign said, pointing out that there are three times more oil reserves in shale from the Rocky Mountains than there is in all of Saudi Arabia. It doesnt make sense not to develop that resource, he added.

Ensign also warned about Card Check legislation, a priority of organized labor, which would make it much easier to unionize businesses by conducting secret ballots as opposed to the current system of negotiation. The House of Representatives has already passed this legislation, he said, and warned that if Democrats gain seats in the Senate, the bill could become law.

Of the upcoming election, Ensign said it is critical to maintain a firewall against bad Democrat legislation. He reminded dealers that you need 60 votes in the Senate to pass anything, pointing out the 23 Republicans and 12 Democrats up for reelection. Ten of these races are competitive and nine are held by Republicans. That is why it is so important for business people to get involved, both financially and on the grassroots level, he said.

Offering the Democratic Party perspective was House Majority Whip Rep. James E. Clyburn, (D-SC) who made it clear that many of the big issues facing the country are the result of lax regulation and improper oversight by Congress when Republicans were in charge. Using a football analogy, he said we cannot play this game by taking all the referees off the field and still have the kind of country we all want.

Clyburn said Congress must take care that businesses, like auto dealerships, flourish and that regulations are not punitive. We must begin to work together to build a better and more productive society for our children and grandchildren.

When asked about the estate tax reform, Clyburn responded that it is one of the things we have to take a look at. But he drew a sharp distinction between handing down businesses to heirs through passively inherited wealth, or unearned income versus earned income. He said that any future legislative changes in the estate tax would take this factor into consideration.

NADA Chairman Annette Sykora, a multi franchise dealer from Texas, focused her remarks on NADAs national Green Checkup campaign, which now includes over 500 dealers in 46 states. She praised the enthusiasm with which dealers have embraced this public awareness campaign. She also noted the strong trend toward green dealerships wherein dealers have invested nearly a billion dollars to make their businesses more energy and environmentally efficient – an important message to take to Capitol Hill.

NADA Government Relations Chairman Raymond Ciccolo outlined NADAs priority legislative issues and charged all those at the conference to get fellow dealers more involved in government relations at all levels during this crucial time in the industry.

A Look Forward and Back

What a difference a year makes! Last year political analyst and commentator Charlie Cook gave Hillary Rodham Clinton an 80% chance of getting the Democratic nomination. He gave only a 10% chance to Barack Obama (too young, too green) and at that time, too, described Sen. John McCain as in political purgatory,

Making his fifth appearance at the conference this year, Cook described the turn of events as the most fascinating election I have ever seen. With all the fundamentals working against him, John McCain was noted as enjoying a slight edge in the polls due to his strong personality and the selection of his running mate, Gov. Sarah Palin (R-AK), who has given him the intensity that he needed.

Cook quipped that car dealers have done decidedly better credit checks on car buyers than McCain did on Palin, but so far so good, he added. The ultimate outcome of this very close race will probably depend on the upcoming debates and how the battleground states go. Cook predicted the congressional race might not be the Democratic blowout that he once foresaw, with Dems picking up five or less Senate seats and 12-17 House seats.

Author and NBC Presidential Historian Michael Beschloss regaled the audience with humorous anecdotes of President Lyndon Johnson, John Kennedy, Harry Truman, Abraham Lincoln and several founding fathers. On a more serious note, he talked about the leadership qualities of former presidents, particularly the courage to make tough, unpopular decisions that history ultimately determined to be correct. He recommended dealers look for these statesman-like qualities in who they vote for.