AIADA: 29th Annual Congress - Final Day

They came from the Senate chambers. They came from the floor of the House of Representatives. Some were Democrats. Some were Republicans. Some were up for re-election. There were leaders and movers. And there was more than one possible presidential candidate. You’ve seen them all on Sunday mornings and will see them more often as the countdown to the November elections begins.

No matter who spoke, be they from the right or the left, there was an overriding air of message consistency in two areas: repeal of the death tax and free trade. And there were a few differences in other legislative program perceptions and policies. But all came to advise the audience of the need to bring political pressure with personal visits to Capitol Hill to achieve the stated goals and objectives of the AIADA.

Senate Majority Leader Bill Frist (R-TN)

Senate Majority Leader Bill Frist stressed the importance of asking the Legislators how they voted on specific issues and how they intend to vote on new initiatives that still have not been brought before Congress. “Make yourselves heard, let your members of Congress know the critical importance of specific legislation. You are a vital component in the process,” he said.

Another comment concerned the future, “The midterm elections this year are not a referendum, it’s about choice and what is important to

America

and Americans.” Frist supports repeal of the Death Tax, but is not overly optimistic that the matter will come before the Senate in early June due to a lack of bi-partisan support that is needed for the minimum 60 votes needed to bring up debate.

Frist also discussed elimination of the Chicken Tax, expansion of alternate fuels – E85, ethanol and hydrogen, hybrid vehicles, litigation reform and as a heart transplant surgeon, healthcare.

Representative Ellen Tauscher of California, the newly elected chair of the New Democrats Coalition, urged AIADA to help push for the renewal of the Free Trade Promotion Authority, which expires in June 2007. “This organization is vital,” she said, to “Assure a consistency and continuity in all our Free Trade Agreements everywhere in the world. Without its renewal the United States Trade Representatives will have difficulty in negotiating with various nations, especially those in Asia.”

Senator George Allen of Virginia

Senator George Allen of Virginia, son of the NFL Hall of Fame Coach, vigorously said the Death Tax should be repealed. “Automobile dealers, as primarily family owned businesses suffer from this as do others including farmers, beer distributors and other personally founded, entrepreneurial ventures. You should not be taxed twice.”

As did Senator Frist, Senator Allen did not express optimism for the bill making it to the floor in early June, “We need 60 votes to bring it forth, but there is not, at the present time, enough support from the other side of the aisle. As you visit with your Senators today, especially those who have not declared or are opposed to its discussion, urge them to reconsider.”

A member of the powerful Commerce, Science and Transportation Committee and the Small Business and Entrepreneurship Committee of the Senate, Mr. Allen, who is up for reelection this year, is a self-described “common-sense Jeffersonian Conservative” who trusts free people and free trade.

He feels our nation’s energy policies are in need for review and change. Describing the internal combustion engine as “over a century old” the former UVA football player, says we should look for new solutions, technologies and materials that use hereto undeveloped fuel as propellants.

If there is anyone in Congress whose constituency demands them to be an advocate of Free Trade, it is Representative Norman D. Dicks of Washington. In his district are major components our America’s gross national export product – companies including Boeing, Microsoft and Starbucks -- all global companies with commanding presence and famous brand names that have been built on the foundation of free trade internationally. His district also includes two of the nation’s largest deep water ports and has one which receives over 150,000 new vehicles a year.

Congressman Dicks believes there must be bi-partisan support for a level playing field with our international trade partners. “But the mood in Congress,” he mentioned, “Is not good for international trade agreements.” CAFTA and NAFTA were cited as examples.

AIADA Immediate Past Chairman Buzz Rodland presents Senator Jim DeMint (R-SC) with the Legislator of the Year Award.

South Carolina’s Senator Jim DeMint, the recipient of the AIADA’s prestigious Legislator of the Year Award, is a strong proponent of making healthcare more affordable and accessible to all. “You must make it a free market competition where patients will ask a physician or hospital ‘how much will this cost?’

He revealed how his son shopped for the best deal in hospital and physician’s care for his wife, who is expecting a baby. “By asking ‘what or how much will that cost?’ and by paying cash, my son saved 40% from the asking price. And the price was lower than that paid by insurance and Medicare,” he said.

Senator DeMint also discussed the urgent need for Health Care Savings accounts and a legal provision that allows a person to buy healthcare insurance in any state, no matter where they reside.

The Senator submitted a bi-partisan letter to the U.S. Trade Representative, Rob Portman calling for the end of the 25% tariff on light trucks within the U.S.-Thai Free Trade Agreement. The unique letter was signed by 13 other Senators. It is the first time in the 36 year history of AIADA that a Senator has publicly championed one of AIADA’s most important issues.

Former Speaker of the House, Newt Gingrich, had pretty tough group of – in show biz terms, acts – to follow, but with the aplomb of the professional he is, even the audience eating lunch did not deter his fervency or detract from his remarks.

He urged a change of our thinking and attitudes if we are to be competitive with other nations. “Training engineers and scientists for other nation prove we are innovative, but the U.S. educational levels of achievement and attainment are more than regrettable.”

Gingrich also believes India and China, half of the new acronym buzz word BRIC, which represents the growing international business in Brazil, India and China (but skipping the K for Korea) are going to become fierce competition for America’s goods and services. He favors a level playing field where laws, agreements and treaties are strictly enforced.

While healthcare is on the top of the agenda, “It’s going to become critical,” the former Speaker stated. “As baby boomers begin aging, they won’t sit and decline, they will have their bodies repaired and made whole again to continue their physical regimes.” Better, improved healthcare that stresses prevention and not repair will benefit everyone. To this end, Gingrich has published a healthcare agenda for the future.

As always the comments expressed detailed his opinion on many issues in the U.S., many of which are found in a One on One interview also in this issue.

Opening the session to questions from the audience for spontaneous response, Mr. Gingrich was caught a little off-guard when the first query was, “Are you going to run for president?” His brief pause was palpable, but answered with spontaneity, “If enough people sign-on at my website for email advisories, it could be a consideration. I will be in Iowa and New Hampshire, but have not yet made a decision.” Stay tuned, there’s more to come.

AIADA Chairman-Elect Don Beyer presents Florida auto dealer Mario Murgado with the Impact Award.

Also Tuesday, Mario Murgado, President of Brickell Motors in Miami, Fla., was presented AIADA’s annual Impact Award in recognition of his outstanding grassroots political commitment to the international automotive retail industry.

“Mario has been a staunch advocate for the elimination of the Death Tax. Last summer, he recorded a radio public service announcement calling for its full, permanent repeal, which was distributed to local radio stations across his home state of Florida,” commented AIADA Chairman-Elect Don Beyer, who presented the award. “He is also actively involved in AIADA’s Driving Change program and continually reaches out to lawmakers from Florida on behalf of America’s 11,000 international nameplate auto dealers.”

In an acceptance speech, Murgado stressed the need for dealers to be politically involved in every level of politics. "As business leaders, we need to be involved in who is elected as Commissioner, Mayor, Governor, Representative, Senator, and President," Murgado said. "I urge all dealers to do what they can to add their voice to the mix. You have a great voice, a voice that should never be silent!"

Concluding the morning, pre Capital visits, AIADA chairman, Don Hicks expressed his gratitude to all the speakers, to the members, visitors and guests for their attendance and interest. Then on a personal note he announced his desire to spend more time with two new babies … his first grandchild and his new Porsche store, and that he was retiring as chairman but not as an active member of the board.

Left to right: Nancy Smail, Lindsay Smail, Dani Nortman, Jim Smail, Senator Rick Santorum (R-PA), Ellen Smail, Bud Smail

Rounding out the day, dealers visited their Members of Congress, some en masse, in order to advocate on behalf of international nameplate dealers who rely on free trade and pro-growth tax policies to remain solvent.

Bud and Jim Smail of Smail Automotive in Greensburg, P.A., brought a family of dealership employees for a meeting with Senator Rick Santorum of Pennsylvania. Bud and Jim are extremely active throughout the year in local, state and national politics. The pair received AIADA’s Impact Award in 2005; Jim was recognized this year as a finalist for the 2006 Dealer of the Year Award.

AIADA members visited almost 70 Capitol Hill Congressional offices. Visiting Senators and Congressmen is a vital part of AIADA’s annual Automotive Congress, and this year the issues were well articulated by international nameplate dealers.

The most important issue discussed in the offices was the Death Tax, given there is a potential vote for full repeal coming up in the coming weeks. Free trade in an increasingly globalized economy and small business healthcare plans were also main topics of discussion. Auto dealers were able to thank members of Congress who have been helpful to the industry and open a line of debate with members whose views do not coincide.

The afternoon was an extremely important part of letting the views of international nameplate dealers be heard in the halls of Congress.

The 29th Annual Automotive Congress drew to a close with a quaint cocktail reception held at the historic Sewall-Belmont House, providing dealers a chance to unwind after the week’s festivities.