Dealers Hit the Hill

Monday, 01 March 2010 16:05

For the better part of 2010, Americans haven't been able to read a paper or turn on a television without being inundated with reports of Toyota's unintended acceleration problems. The media loves a scandal, and they've clung to this story like a dog with a bone.

Even as Toyota races to repair the mistakes it has made, and the damage done to its reputation, new headlines are appearing every day.

Toyota's troubles are the concern of all international nameplate dealers. Even those who, like me, are not associated with a Toyota dealership. Whether you consider what is happening to Toyota a witch hunt or not, most would agree that Washington D.C. is showing real enthusiasm in beating up on one of Detroit's main competitors.

Going into the House hearings last week last week, Toyota didn't need a magic 8 ball to know that its outlook was not so good. Preemptively, the world's largest automaker teamed up with AIADA to arrange meetings between dealers from across the country and their legislators. AIADA's efforts to get dealers into their Representative's offices before, during, and after the Toyota hearings were remarkable. In just a couple of days, AIADA scheduled 68 meetings with Congressmen representing 24 states. Thanks to the combined efforts of AIADA and Toyota, many of the members of the House Energy and Commerce Committee and the House Oversight and Government Reform Committee attended the Toyota hearing fully armed with the facts. Senators on the Senate Committee on Commerce, Science, and Transportation, will attend the hearing today with the same facts, courtesy of Toyota's dealers.

Facts like:

• Toyota has over 35,000 direct employees within the U.S. and almost 166,000 indirect employees
• Toyota produces over 1 million vehicles in the U.S., more than half of all Toyota vehicles sold here.
• Toyota has purchases of over $30 billion in the U.S. with over $17 billion in direct investment.
• Toyota has 10 U.S. vehicle and parts manufacturing facilities in the U.S. An 11^th plant is planned for Mississippi.
• In 2008, Toyota's direct U.S. payroll was $2.9 billion
• In 2008, Toyota's annual U.S. philanthropy was $66.6 million

The hearing, while no pleasure for dealers to watch, was made immeasurably better by the fact that we were able to share the above points with the committee members.

This entire situation, including today's Senate Commerce Committee hearing on Toyota, is a reminder to dealers of how important is it to not just belong to AIADA, but to be engaged in its advocacy efforts. AIADA is a small but powerful association dedicated EXCLUSIVELY to the issues that matter to international nameplate dealers. Today, Toyota is being confronted with problems. Tomorrow, something similar could happen to another international manufacturer.

No matter what, AIADA will be on Capitol Hill, making sure the truth has a fighting chance. Will you?

Now is the time to get involved. Sign up today with AIADA's Legislative Action Network to receive legislative alerts. And register for AIADA's 4th Annual International Auto Industry Summit. The summit, attended by dealers, manufactures, and legislators provides a unique opportunity to learn about the pressing issues affecting the international auto industry in America. It is also an opportunity for dealers to familiarize themselves with D.C.'s inner workings. As the events of the past month have shown us, that just might come in handy some day.

In the meantime, rest assured: As ugly as it might get in the hearing room today, with AIADA, dealers always have a friend on Capitol Hill.

Rick DeSilva
AIADA Chairman