No Secret Safe in Vegas

By Marty Bernstein
AIADA Contributing Editor

Several hundred automotive dealers, movers, shakers, experts, suppliers, pundits, mavens and others are gathering today at the Las Vegas Hilton for, as one auto exec said, “The most important meeting in the history of the American International Automobile Dealers Association!”

Even before the AIADA meeting takes off this noon, the tone leading up to this year’s event, was positive – indeed optimistic, if the dealer queried sold an international brand. If, however, one’s sole business was exclusively with one of the Detroit 3 brands, the tenor was far from optimistic. It was negative for well known reasons. One speaker said a reduction of 67% in dealers was all that “could save” those brands.

But dark clouds are also gathering for international dealers. The new political power and agendas in the halls of Congress can create serious problems for dealers selling international brands.

AIADA’s new president, Cody Lusk, a seasoned and savvy veteran of the Washington political scene, in his remarks today will tout the contributions of the international auto industry: “Detroit is no longer the sole voice on behalf of the U.S. auto industry, yet many in Congress believe this to be true. This despite the fact that 46% of all U.S. sales are from international brands and nearly 60% of those vehicles sold are produced in the United States.”

Since taking the helm of the dealer group this summer, Lusk has worked tirelessly to adjust, change and modify the association’s operations to re-establish AIADA as a credible voice before the industry, Congress, the federal government and the public.

But moving forward won’t be an easy street. According to Lusk, “Washington is not focused on local concerns. There is an urgent need for every international dealer to meet with their Congressional representatives. It’s a reality that a meeting in Washington does not carry the same weight as a meeting at home.”

I heard Lusk’s comments echoed in the halls, on the exhibit floor, in conversations at receptions and raised as an important agenda item at several Make Meetings. There were clarion calls from corporate executives for dealers to become energized, active, involved and above all vocal with their Congressional representatives and Senators at home.

The outgoing AIADA chairman, Don Beyer, in his comments will describe a changing U.S. automobile industry, which no longer resembles what it was a generation ago. Today it is global business, characterized by technology, innovation, and fierce competition for the American consumer’s attention. He will urge international dealers to remain a united front to make certain the concerns of international brand dealers are not just heard, but have a seat at the table when decisions are made.

Perhaps the biggest news of the day will come from Incoming Chairman, John Hawkins, a known stalwart for free trade, who will be a very vocal advocate on behalf of international dealers, if my conversations with him the past few days are any indication. He is a dedicated, passionate, reasonable proponent of the auto dealers’ entrepreneurial spirit and a staunch advocate on the importance of AIADA.

As the owner of eight stores and the former president of the Los Angeles New Car Dealers Association, he is well aware of the importance of automobile dealers with political leaders. An advanced copy of his remarks show Hawkins will describe a trade environment very much in flux. “AIADA and our members are gearing up for what appears to be among the biggest trade battles our industry has ever faced. Don’t let them shackle one of the greatest bastions of entrepreneurialism … get involved!”

A special tribute will honor former AIADA Chairman Dave Mungenast, who died this past fall. Accolades in his honor will present Dave as a man who literally “Took It To the Limit“ in every aspect of his life whether as a dealer, a Hollywood stuntman, a civil servant, a husband, father or active member of the community. He was a important member of the AIADA, a remarkable dealer who left an indelible imprint on all he encountered though business or community.

Paraphrasing the advertising line associated with Las Vegas, the message of the 37th Annual Meeting of AIADA should not stay in Vegas. Its central theme will be the goal of the association in the year ahead.