International Auto Industry Girds for Battle at the Grassroots

Washington, D.C. – the seat of American government – is known for many things political and otherwise, but very seldom is this mecca for freedom lovers and seekers seen as a hotbed for consensus-building.

As a newly empowered Democratic Congress prepares to open a contentious debate on free trade and take up a sweeping roster of energy and environmental proposals (which could include CAFE reform and other new regulations), AIADA and the Association of International Automobile Manufacturers (AIAM) are renewing efforts to bolster a strong and effective grassroots network capable of carrying a united message to Congress.

On May 7-8, a meeting of high-profile international auto industry executives and top dealers from across the country gathered on Capitol Hill to get the ball rolling as part of a legislative forum that both informed attendees of the future implications of pending legislation, and set into motion an eager network of industry ambassadors to influence the debate at the grassroots level. Click here to view photos from the event!

The two-day International Auto Industry Summit was called to order by Toyota Motor North America President, Jim Press, who spoke off-the-cuff to attendees prior to an opening reception and dinner. In his energetic address, Press urged dealers and execs alike to “come together, form a unified team and work as a single unified force for everyone’s sake and the benefit of the industry.”

Pounding his fist on the lectern three times, AIADA Chairman John Hawkins echoed Press’ comments: “We are here to learn about the critical political and environmental issues that are impacting our business today, tomorrow and in the near future. We must stick together!”

“What we also hope to accomplish through this summit is a re-energizing of our grassroots network before the decision-makers in your home district,” continued Hawkins. “While touching base with Congressional staff members in D.C. is an important part of the process, we all know that a face-to-face meeting with the Congressman in his home office – or, better yet – your dealership, holds no price tag.”

Since taking over the Congress, the new leadership has targeted several pro-growth policies that directly impact America’s businesses – both small and large. Trade has been among the key talking pieces as figure heads from Michigan’s Congressional delegation continue to rail against open markets and Detroit’s inability to compete against the nation’s new manufacturers. As a result, international automakers have ended up in the hot seat, forced again to prove their deservedness of a position at the decision-making table.

A scenario described by both the Deputy U.S. Trade Representative Karan Bhatia and Majority Chief International Trade Counsel Demetrios Marantis, as they explained the struggle to usher through Congress a U.S.-South Korea free trade – our nation’s largest and most important free trade agreement since NAFTA, and a win for every automaker.

In a town where the actions of a few tend to dictate the future path of many, international automakers along with dealers used the rare meeting to test the industry’s age-old moniker as the “no” industry as said a resounding “yes” to open and collective discussions on the way forward on several critical issues threatening consumer choice.

“Real Americans Buy What They Want!” proclaimed BMW North America General Manager of Retail and Industry Relations, Tom McGurn – a phrase he took from a T-shirt once handed him by a journalist. McGurn joined Richard Colliver, Executive Vice President of Auto Sales for Honda; Irv Miller, Group Vice President for Toyota Motor Sales, U.S.A.; and, Dominique Thormann, Senior Vice President of Administration and Finance for Nissan North America for an in depth manufacturing panel, which dealt with the industry’s inroads in America, manufacturer-dealer relations, cooperating with one other in engineering labs to better compete in dealer showrooms, and the need to get involved as an industry around the political roundtable.

“We’ve come a long way,” said Irv Miller, referring to the influence of international automakers on Capitol Hill. “I’m not saying we’re there yet, or even close for that matter, but we definitely need to continue the momentum and now is the time.”

“We have legislation on the table that will have serious implications for our businesses,” Miller said. “Our product line and business plans are written up through 2012. It is not like we can just turn these things on and off and face no repercussions.”

This tone of the two-day affair remained quite evident – the international industry needs to work together and with a united voice in pursuit of its legislative goals.

In breakfast remarks, Republican Leader Boehner pressed attendees to get involved in the political process: “Talk to your representatives in both Houses. Let them know how important the automobile business is to them. The next election is critical for your industry.”

One of the most enthusiastic remarks came from California Rep. John Campbell, a former multi-point international automobile dealer. “Not many members of the House are fully aware or are cognizant of how the automobile industry works or the importance it has to the economic health of the nation,” he said. “It’s a story that must be told and you are the best ones to tell it!”

For more information on ways of becoming involved in AIADA’s Grassroots efforts, please contact Rachel Robinson at robinsonr@aiada.org.

5/16/2007 8:29:51 AM