As we reflect on the year 2023, we recognize that dealers have been met with a myriad of challenges and successes along the way. Today, our spotlight is on international nameplate dealers adhering to diverse regulatory standards. Joining us on the latest episode of Inside Automotive is Cody Lusk, President and CEO of the American International Automobile Dealers Association (AIADA).
In 2004, California electric vehicle (EV) maker Tesla began the development of the Tesla Roadster, which was first delivered to customers in 2008. However, with the push towards electrification in the industry, in 2021, President Biden unveiled an ambiguous proposal calling for all cars sold in the U.S. to be electric by 2030.
Key Takeaways:
1. The EV mandate, among other challenges, caught Lusk’s attention as a significant initiative that substantially impacted the industry. For instance, EV sales haven’t taken off due to uncertainty, range anxiety, and a lack of infrastructure. Instead, the industry has seen dealers, congressional representatives, and consumers push back. Lusk asserts, “The mandate won’t work if the consumers don’t buy the vehicles.”
2. Looking ahead, the greatest challenge facing the industry is affordability, according to Lusk.
3. A group of roughly 4,000 sent President Biden a letter pleading with him to reduce future EV sales requirements. Upon reading the letter, Lusk acknowledges its authenticity and well-thought-out nature. According to Lusk, the letter details how dealers wish to contribute to the solution but are unable to do so if they are not selling EVs.
4. Lusk observes that the automotive industry has produced impressive products with advanced technology, sleek designs, and high-quality standards, even among lower-end vehicles.
5. Ultimately, Lusk advises dealers to continue adapting to the challenges posed by electrification, technology, and other changes heading toward the industry.
“Dealers aren't against EVs but for providing customers with whatever they want to drive off the lots. ” – Cody Lusk
