Dealers' perspective important for policymakers in Washington

We are both pleased to provide our perspective about the 100th anniversary of the National Automobile Dealers Association and offer our hearty congratulations on this impressive achievement.

Very few trade associations enjoy the respect accorded to NADA. This respect has been earned through decades of constructive, effective engagement in the public policy arena. In the many years of working on matters of mutual concern with the franchised dealers in Michigan, the Michigan Automobile Dealers Association, the Detroit Automobile Dealers Association and NADA in Washington, we have seen the nation's auto retailers respond to many tough challenges.

But through good times and tough times alike, NADA's members and staff have provided a perspective critically important to analyzing national issues.

Contrary to popular belief, neither of us was serving in Congress when NADA was formed 100 years ago, so we had to consult the history books to discern the original mission of NADA's founders and their enduring legacy. In the face of a federal threat to impose a luxury tax on all automobiles, a group of dealers banded together in 1917 to tell a counternarrative. They prevailed then, and now -- through the lens of history -- we can see that they were prescient. Henry Ford's unwavering vision of providing affordable transportation for working men and women across the country has been realized.

We know today that cars and trucks are not luxury items for most Americans, but in fact are economic necessities. An affordable vehicle is indisputably an essential building block of economic sustainability for individuals and families. Vehicle ownership increases the chances that folks can find and keep a job and locate more cost-effective housing options. Moreover, if an unexpected job loss occurs, having a car can be the critical factor in making a successful transition to a new opportunity in another part of the country. The affordable automobile has provided freedom of mobility for several generations of Americans during the last century. 

America's franchised dealers are the bridge between consumers and the auto manufacturers. The dealers match supply and demand in their respective markets continuously, and the benefits of that collective market force are impressive. The franchised dealer network provides a competitive market for consumers, more than 1 million jobs on Main Streets across America, tax revenue for local and state governments, and greater shareholder and brand value for the vehicle manufacturers. In Michigan, we have hundreds of successful, trusted dealers who are part of the very fabric of our communities. 

Successful dealers must stay connected with their communities, responsive to the specific concerns of their customers, and compliant with a myriad of local, state and federal laws. These inherent imperatives of the franchise business model provide dealers with the practical experience that Congress needs to factor into the public policy debate. 

Moreover, the dealers operate in virtually every district in America, so any member of Congress can get the local view on the most important issues of the day. 

We want to finish by congratulating NADA on achieving the century mark. This milestone is a testament to the staying power of the franchise business model, the tenacity of entrepreneurs, and the dedication of generations of men and women who have given their time and energy to build and sustain the association. Good luck during the next 100 years!