New ATD Chair Steve Bassett speaks Sunday at the 2020 ATD Show in Las Vegas.The American Truck Dealers (ATD) are making headway in Washington.
That was the main takeaway in Las Vegas this weekend during the organization’s 2020 ATD Show, held in conjunction with the National Automobile Dealers Association (NADA) Show at the Las Vegas Convention Center and Westgate Resort & Casino.
Beginning with presentations by NADA/ATD’s legislative, regulatory and policy experts during Friday’s industry roundtable and concluding Sunday with new ATD Chairman Steve Bassett of General Truck Sales’ introductory address, ATD’s message this weekend was clear: Washington’s current political climate is advantageous for ATD and the organization is working tirelessly to seize the opportunity.
As it has been for the last several years, ATD’s top priority remains the repeal of the 12 percent Federal Excise Tax on new commercial trucks and trailers.
Bassett said ATD cares deeply about maintaining the highway trust fund but FET is not the answer, adding there is something “very wrong” with relying on a tax enacted 102 years ago for something as important as roadway improvements and restoration.
Bassett said ATD also will remain focused on sustaining the long-term viability of the dealer channel in an industry changing at lightning speed.
“The threats to our business model [today] are greater than we’ve ever seen,” he said. “We must look down the road, spotting trouble before it starts … our future depends on how strong we respond to customer demands and stand up for ourselves in Washington.”
In her outgoing address Saturday, exiting chairwoman Jodie Teuton of Kenworth of Louisiana expressed optimism for the future of ATD and its members, citing the association’s success fighting FET and developing the Modernize the Truck Fleet (MTF) Coalition as examples of what truck dealers are capable of doing when working together.
“We are living embodiment of grit, resilience and tenacity,” she said. “We are not going to stop until this regressive tax is no more.”
But ATD’s focus in this next decade extends far beyond FET, Bassett added.
The association also has thrown its support behind NADA’s workforce initiative, and Bassett urged all truck dealers at Sunday’s general session to join the initiative and help the market the professional opportunities found in the dealership industry. Working for a dealer isn’t just a job, “it’s a lifetime career,” he said, adding, “When it comes to the future of the industry, we are only as strong as our workforce.”
Bassett also will spend his time atop ATD striving to increase member engagement. He said ATD is committed to fighting for the future of its member companies, but said the organization is only as strong as its members. Defending the dealer channel against government regulations and rapidly shifting business conditions will require members to be vocal about where resources should be allocated.
“ATD is a necessity, not an option,” Bassett said. “We can fight together for the good of the industry.”
Industry panel discussion updates dealers on all things D.C.
Douglas Greenhaus, NADA’s chief regulatory council, Environment, Health and Safety, notified the audience about the recently updated Federal Motor Carrier Safety Administration’s (FMCSA) Truck Dealer Guide and a few forthcoming regulations (salary exemption for overtime pay, Cleaner Trucks Initiative) that will impact the dealer channel. Regarding the latter, Greenhaus said NADA/ATD is working closely with engine manufacturers and the American Trucking Associations (ATA) to ensure the trucking industry’s voice is heard in all future emission and greenhouse gas regulatory debates. He said recently proposed rules announced by the California Air Resources Board (CARB) will prove onerous for the trucking industry if adopted due to their impact on interstate commerce.
In offering a takeaway for dealers at Friday’s panel, Greenhaus was direct. “Please, somebody start raising your hands at make meetings. Get an OEM perspective on this [issue]. It’s important to start raising concern toward this process,” he said.
Brad Miller followed Greenhaus and touched on NADA/ATD’s efforts to provide education and guidance for dealers regarding cybersecurity, data security and privacy. Miller, NADA’s director, legal and regulatory affairs and senior counsel, digital affairs, said digital security is rapidly becoming one of the most important initiatives for the dealer associations. He said the trucking industry is a little ahead of the curve in regard to vehicle cybersecurity, with the OEM and supplier community dedicating substantial resources to protect their products against on-road hacking, but said the industry must improve in other areas.
Miller said California’s new consumer privacy act (CCPA), modeled after the European Union’s GDPR regulation, will enable consumers to sue any business that experiences a data breach without requiring the plaintiff to prove damages. Miller said the law “sets quite a precedent” and could be increasingly influential if other state or the federal government follow suit with similar rules in the coming years.
Paul Metrey followed Miller and offered a brief tax law update. As NADA vice president, regulatory affairs, Metrey said ATD is nearing a substantial tax victory through its lobbying of the U.S. Treasury and IRS regarding bonus depreciation. The ATD suggested and the Treasury has accepted into a proposed tax rule an exception for truck dealers regarding the 30 percent floor plan financing cap that impacts a business’s access to 100 percent bonus depreciation. Metrey said if the proposed rule becomes law, dealers will have full access to bonus depreciation in years where their floor plan financing falls below the 30 percent line and may have the ability to purposely pause that financing when approaching the 30 percent threshold to access to bonus depreciation.
“We are delighted with that and have to make sure that [proposed rule] ends up on the Federal register,” he said. Metrey also said ATD is fighting with the OEM community to maintain the three-year blanketed retail certificate for FET application, which currently exists under a 16-year-old “temporary” rule but could be lost through ratification.
This year’s ATD Show also touched briefly on the 2020 Presidential and Congressional elections with NADA Vice President of Legislative Affairs Michael Harrington.
Though it’s still more than eight months away, Harrington said President Trump enters election season from a position of strength. After surviving impeachment and unveiling the new USMCA trade agreement last week, Harrington said the last few weeks have been some of Trump’s best “since he was inaugurated.” Harrington said the more than 120,000 votes Trump received while running unopposed in last week’s New Hampshire primary shows his popularity within the Republican party.
Conversely, Harrington said the Democratic party appears in disarray as primary season kicks into high gear.
Vermont Senator Bernie Sanders remains the party’s front runner, but Harrington said Sanders alarms many beltway Democrats who believe the senator cannot defeat the president and may attempt to dismember Wall Street and Silicon Valley — two major party donor groups. Harrington also noted the crowded, sniping field behind Sanders is creating nervousness and anxiety throughout the party.
“[Democrats] want to get rid of Trump so badly and they feel like they’re blowing it,” he said.
