Senator Russell Long, Chairman of the Senate Finance Committee, alarmed a group of 80 Volkswagen dealers who came to Washington when he said he would support the Burke‑Hartke bill. He told them Congress would take the necessary steps to keep the U.S. auto industry from going down the drain and that would mean slowing the tide of imported cars coming into the country.

This year also saw labor unions shift from free trade positions, instead seeking restrictions on imported automobiles to curb overseas investment by U.S. companies and to curb the export of U.S. technology.

1972
On January 30, VADA’s Board of Directors opened membership to the association to any franchised dealer of imported automobiles and changed the name of the association to American Imported Automobile Dealers Association (AIADA). Ken Sowles became the association's second president.

The leadership of AIADA met with Treasury Secretary John Connelly, Ways and Means Chairman Wilbur Mills, Harold Malmgren, Deputy to the President on Trade (equivalent to today's USTR), and Senator John Tunney of California. AIADA worked to build a reputation for meeting with the nation's policy makers on behalf of imported auto dealers.

1973 ‑ 75
AIADA supported passage of the Trade Reform Act of 1975, a measure to expand world trade and reduce tariffs. AIADA testified against protectionist amendments, including auto quotas.

1979
AIADA opposed the United Auto Workers' (UAW) demand for import auto quotas: the bill was defeated in committee.

1980-1990

1980
On May 8, AIADA became the American International Automobile Dealers Association (AIADA) following a vote by the Board of Directors. The name change reflected the increasing globalization of the industry, evidenced by the creation of a Volkswagen automobile production factory in the U.S.

Ford and UAW filed "escape clause" action before the International Trade Commission (ITC) which would have led to higher tariffs or quotas on auto imports. AIADA's testimony resulted in the ITC's rejection of the claim.

1981
Senators Danforth and Bentsen introduced a bill imposing quotas on Japanese auto imports. The bill was withdrawn following a trip by AIADA to Japan for meetings with the Ministry of International Trade and Industry (MITI) and the Japanese Automobile Manufacturers Association (JAMA). Japan announced voluntary export restraints.

1981 ‑ 88
The struggle over imports of gray market cars ensued. Congress legislated controls over the gray market after a seven-year fight by AIADA.

1981 ‑ 86
AIADA led the legislative fight to defeat the domestic content requirement sought by UAW. The bill died in committee.

1986 ‑ 88
AIADA participated in the debate over the Trade Act of 1988 and joined with other free trade groups to prevent adoption of these protectionist measures.

1984
Porsche planned to terminate all dealer franchises and to appoint dealers as "agents" of the manufacturer, AIADA rallied Porsche dealer opposition and Porsche scuttled its plan.

1982 ‑ 89
Press and television reports of "unintended acceleration" in several cars, most notably the Audi 5000, severely damaged the reputation and sales of this car; AIADA joined with dealers and manufacturers to focus attention on the fact that the acceleration phenomenon as described was illogical. In 1989, NHTSA ended a three‑year study with the admission, “unintended acceleration is due to driver error.”

1987 ‑ 88
The U.S. Trade Representative announced a 100 percent duty on Brazilian‑made Volkswagen Foxes in retaliation for Brazilian trade barriers. AIADA intervened on behalf of dealers. The Fox was dropped from the list of products subject to retaliation.

1989
U.S. Customs announced that all imported passenger vans and sport utility vehicles would be classified as trucks and subject to the 25 percent "chicken war" duty. The duty would raise prices on these imports by an average of $2,500 and cost the industry $2 million each day. AIADA launched an all‑out media blitz condemning the decision. The U.S. Treasury Department intervened on the Customs ruling, exempting four‑door minivans and sport utility vehicles from the 25 percent tariff.

1990-2000

1990
Congress passed the Clean Air Act of 1990: environmental legislation designed to reduce automobile tailpipe emissions among other air pollutants. AIADA joined the successful industry effort to defeat the nationwide production and sales mandate for alternative‑fuel vehicles. AIADA and the industry joined in a massive lobbying effort to defeat the Bryan Corporate Average Fuel Economy (CAFE) bill in the U.S. Senate. The Bryan CAFE bill was designed to penalize the most fuel‑efficient manufacturers by requiring greater fuel economy gains than the Big Three.

A politically‑motivated effort to "tax the rich" inspired the passage of a Luxury Excise Tax. Congress imposed the ten percent tax on five consumer items, including automobiles priced greater than $30,000. The tax devastated sales of high‑line import automobiles.

1991
The Johnston energy bill, which included a CAFE formula that would discriminate against high‑mileage importers, failed to reach the Senate floor after stiff opposition from the auto industry. AIADA worked to build support for repeal of the Luxury Excise Tax, introducing a bill to repeal the tax on automobiles. It also supported President George H.W. Bush's successful effort to gain an extension of congressional fast‑track authority. The President needed this authority to negotiate the Uruguay Round of GATT and the North American Free Trade Agreement.

1992
On September 26, AIADA scored a stunning victory when the Senate rejected a proposal to impose a 25 percent tariff on minivans and sport utility vehicles. A resolution offered by Senator Riegle (D‑MI) would have recorded that it was the "sense of the Senate" that the tariff on these Multipurpose Passenger Vehicles (MPVs) be raised from 2.5 percent to 25 percent. The victory came at a time when both the Big Three automakers and the UAW had mounted one of their fiercest lobbying campaigns in recent memory. Earlier, the House had voted 273 to 112 to pass a tariff measure that included a provision to increase the tariff on MPVs.

The House passed, 280 to 145, a trade bill that included provisions for Japanese nameplate automobile quotas and domestic content requirements. AIADA prevented the Big Three and the UAW from securing a "veto‑proof" two‑thirds majority by working closely with House floor managers opposing the legislation. AIADA sounded the only voice of the international automobile industry in hearings before the Senate Finance Committee, which chose not to act on trade legislation.

Congress failed to enact tax legislation, dashing hopes for a repeal of the Luxury Excise Tax in 1992. Proposals in tax bills sent to President Bush, but ultimately vetoed, included a repeal of the luxury tax on all items, except for the tax on autos. Total repeal of the tax was hindered by the requirement that all revenue losses be offset by revenue increases and the fact that the Big Three automakers advocated indexing the $30,000 threshold.

At the end of the session, the Big Three and UAW successfully lobbied to enact an automobile content labeling bill that would discriminate against transplant manufacturers. The bill's calculation of domestic content excluded U.S. assembly labor and in‑house parts and combined U.S. and Canadian parts content as “domestic”. The law artificially inflating Big Three content and lowering transplant content levels.

1993
Early in 1993 industry‑watchers feared the Clinton Administration would make a move to reclassify import minivans and sport‑utility vehicles as cargo vehicles ‑‑ subject to a 25 percent tariff. To prevent such action, AIADA successfully launched a broad-based public relations effort to educate the American consumer and the Administration about the harmful impact of reclassification. Numerous stories appeared in major newspapers across the country blasting the Clinton Administration for even considering reclassifying import MPVs. In February, AIADA met with representatives of the Clinton Administration to discuss the issue.

The reclassification issue took a dramatic turn against the government on May 14 when the U.S. Court of International Trade (CIT) ruled that the U.S. Treasury Department acted illegally in 1989 when it reclassified the two‑door Nissan Pathfinder as a cargo vehicle ‑‑ subject to a 25 percent tariff. On October 18, the government officially appealed the CIT decision. Responding to the government's appeal, AIADA and the Association of International Automobile Manufacturers (AIAM) filed an amicus brief on November 24 supporting the classification of the Pathfinder as a passenger vehicle.

In the Omnibus Budget Reconciliation Act (OBRA) of 1993, Congress repealed all but the luxury tax on autos and indexed the $30,000 threshold on autos at the rate of inflation. By repealing the tax on all items but cars, Congress effectively enacted an Auto Excise Tax on cars priced greater than $30,000.

In September, Sen. Exon (D‑Neb.) and Rep. Hoagland (D‑Neb.) introduced legislation to repeal the remaining luxury tax on autos. AIADA activated its grassroots network to generate support for the repeal measures, resulting in 67 co‑sponsors signing on to the bill through 1994.

In mid‑November, Congress passed the historic North American Free Trade Agreement (NAFTA). The agreement links the economies of the U.S., Mexico and Canada, creating the world's largest free trade zone. AIADA actively pushed for passage of the agreement, utilizing its grassroots network to enlist support for the trade pact and to educate the public about its benefits.

1994
AIADA spent much of 1994 supporting passage of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT). After much politicking on GATT, Congress passed legislation to implement the trade agreement by a comfortable margin during a lame duck session.

AIADA also became active in the national health care debate when it became clear that various health care plans, including the plan advocated by the Clinton Administration, would include an employer mandate, which could devastate the small business automobile dealer. Cooperation among national small business organizations, including AIADA, helped turn public opinion against the employer mandate.  Health care legislation did not make it out of committee.

In May, AIADA released its "Analysis of the MOSS Motor Vehicle Study: Market Effort and Market Access," a white paper which countered criticism of the Japanese auto market. Pointing out the Big Three automakers' meager efforts to gain market share in Japan and the significant challenges auto manufacturers face when entering the U.S. market, the analysis demonstrated that low sales in a given market could be overcome by a serious commitment to that market.

September saw victory for AIADA in the courts when a U.S. Court of Federal Appeals affirmed a lower court ruling that the two‑door Nissan Pathfinder is a passenger vehicle, and therefore not subject to the 25 percent tariff on cargo vehicles. AIADA joined the Association of International Automobile Manufacturers (AIAM) in an amicus brief supporting the lower court ruling.

On October 1, the American Automobile Labeling Act took effect, requiring dealers to maintain a label on all new vehicles that provides inaccurate and misleading information about U.S. vehicle content to consumers. AIADA opposed the AALA and filed a petition for reconsideration with the National Highway Traffic Safety Administration. In an effort to educate dealers on the labeling law, AIADA sent “AALA Survival Kits” to all AIADA members. AIADA lobbied the 104th Congress to remedy the law.

Also on October 1, the U.S. and Japan announced agreement in all key sectors of their ongoing framework trade talks except in autos and auto parts. AIADA sent letters to the Administration warning against trade sanctions on Japanese vehicles or auto parts because of the harmful effect they would have on the small businesses international auto dealers maintain. Last minute negotiations resulted in the Administration opting to keep talking on autos and monitoring Japanese aftermarket parts trade.

In November, following congressional elections which resulted in Republican control of both the House and the Senate, AIADA formed three government relations task forces ‑‑ taxation, trade, and regulatory reform. These task forces met in Dallas to outline strategy and repeal of the luxury tax was given top priority. Officials from key state dealer associations attended, agreeing to come to Washington to meet with their Members of Congress to lobby against the luxury tax.

December saw the creation of an industry‑wide working group to battle the luxury tax. This working group represented the first time the auto industry united to lobby against the luxury tax.

1995
AIADA spent much of the first quarter of 1995 bringing dealers to Washington to garner support for repeal of the luxury tax. In January, AIADA key contact Bill Guinn met with Rep. Jennifer Dunn (R‑Wash.) regarding the tax. He asked her to champion our efforts to redress the tax, and she agreed to do so.

A month later, AIADA, together with NADA, brought several Texas auto dealers and officials from the Texas Automobile Dealers Association to Washington to meet with House Ways and Means Chairman Bill Archer (R‑Tex.) and House Majority Leader Dick Armey (R‑Tex.). In March, another delegation of AIADA and NADA dealers met with Sen. Don Nickles (R‑Okla.) on the issue.

In April, AIADA targeted Key Contacts for members of the House Ways and Means Committee to ask their respective Members of Congress to put the luxury tax on a list of miscellaneous tax reform items.

Early May saw U.S. Trade Representative (USTR) Mickey Kantor announce that the U.S. would impose unilateral sanctions on thirteen Japanese import vehicles because of a lack of progress in the U.S.‑Japan auto trade talks. This announcement galvanized AIADA members as never before. The May 1995 American International Auto Congress brought nearly 1,000 international auto dealers to Capitol Hill to meet with their Members of Congress. Media from around the world descended on the Auto Congress to report on AIADA dealer efforts on Capitol Hill to lobby against the trade sanctions, which threatened to devastate thousands of American automobile dealerships.

AIADA simultaneously launched an all-out public relations campaign. The largest single effort ever by the association, in total more than $1 million was spent to raise awareness of the impact of sanctions on American dealers through an advertising campaign, grassroots media outreach, a trip to Tokyo and a full-scale media blitz.

As the U.S.‑Japan auto trade dispute reached a fevered pitch in June, AIADA President Walter Huizenga and several AIADA dealers testified before the USTR's Section 301 Committee on the impact the U.S. auto sanctions would have on American dealerships. AIADA submitted written comments to the USTR as well as hundreds of letters from threatened dealers. Dealers and dealership employees from around the country also sent letters to the USTR.

Later that month, AIADA dealer leaders led by Chairman of the Board Kjell Bergh traveled to Japan for high‑level meetings with U.S. embassy officials, Japanese government officials, auto manufacturers and Japanese auto dealers. The delegation went to Japan to help ensure that all parties were aware of the disastrous impact trade sanctions would have on American small business auto dealers and their employees. After tense, round‑the‑clock trade negotiations in Geneva, the U.S. and Japan reached an eleventh‑hour accord, which ended the sanctions crisis. AIADA dealers breathed a collective sigh of relief and the association turned its efforts to further educating Members of Congress on the benefits of free trade and repeal of the luxury tax. AIADA continues to monitor the Big Three's efforts in Japan.

In July, AIADA Director and Houston dealer Charles Smith testified before the tax‑writing House Ways and Means Committee to urge redress of the luxury tax on autos. Summer saw much lobbying in support of Smith's testimony and in support of a letter written by Reps. Dunn and Levin to committee Chairman Archer regarding the tax. Thirty out of a possible thirty‑five members of the Ways and Means Committee signed the letter with signatories attributing their support to strong grassroots support from dealers.

In August, the American Automobile Manufacturers Association (AAMA) petitioned the USTR to include Korea on its list of countries accused of maintaining barriers to U.S. goods and services. The two governments met in September to discuss their differences on auto trade, and on September 28, they reached a settlement. Throughout the trade talks, AIADA maintained contact with the Korean automakers and kept Hyundai and Kia dealers apprised of developments.

With the arrival of autumn came legislation on the federal budget. AIADA heavily lobbied the Senate Finance Committee to include a phase down proposal of the luxury tax in the legislation. Dealers and ATAEs urged committee support for the proposal and asked committee Chairman William Roth (R‑Del.) to express support for the phase down. Finance Committee member and Senate Majority Leader Bob Dole (R‑Kan.) filed an amendment to phase down the luxury tax on autos. Larger party politics ultimately kept any tax legislation from passing during 1995, resulting in a shutdown of the federal government.

1996
AIADA was very active in the beginning of 1996 trying to identify legislation onto which Republicans and Democrats could agree to attach Senator Dole’s amendment to phase-out the luxury tax. Partisan bickering prevented any substantive legislation from passing through both Congress and the White House for the entire first quarter.

In April, President Clinton praised the 1995 U.S.‑Japan auto agreement. In a White House ceremony, Clinton unveiled the Administration's six‑month report on the status of the agreement. The report highlighted the jump in sales of U.S. vehicles in Japan as well as the increase in domestic content of Japanese transplant vehicles. According to the National Highway Traffic Safety Administration, the average domestic content of vehicles built in Japanese transplants in the U.S. jumped in model year 1995 to more than 50% U.S./Canadian content. AIADA published its analysis of the U.S.‑Japan auto trade deal on April 15. The report addressed compliance of the agreement on both sides and the impact this could have on our nation's international nameplate auto dealers.

Also in April, AIADA President Walter Huizenga testified before a U.S. International Trade Commission (ITC) panel regarding the American Automobile Labeling Act and AIADA’s position that the labels provide inaccurate and misleading information about U.S. vehicle parts content to American consumers. Huizenga noted that the law's formula for calculating domestic content excludes valuable final assembly labor, counts Canadian parts as domestic, and values auto parts based on ownership of the parts maker, not on the country of origin of the parts. He also explained the regulatory burden that the law imposes on American small business auto dealers.

Finally, after over six years of effort through two Administrations, Congress and the President answered the call of the industry and authorized the phase-out of the luxury tax with the Minimum Wage/Small Business Tax Relief bill. The President signed the bill in a White House ceremony attended by AIADA Chairman Wayne Williams and AIADA President Walter Huizenga on August 20, 1996. The bill called for an immediate reduction in the tax from 10 percent to 9 percent, with annual reductions of 1% through 2002, after which the tax would be eliminated.

1997
AIADA released the 1997 edition of its poster series entitled “Just What Exactly is an American Car?” in Atlanta. Taking a new approach, the 1997 poster resembles a vanity licence plate that spelled out “JOBS 4 USA,” promoting the more than 625,000 jobs supported by the international automobile industry in America.

Also in February, AIADA submitted comments to the National Highway Traffic Safety Administration concerning NHTSA’s proposal to allow air bag deactivation. AIADA expressed concern about situations where innocent consumers may unknowingly be at risk because of air bag deactivations, and recommended this action be noted on the vehicle’s permanent history, and be made available to perspective purchasers and dealers upon resale.

Japan led the list of nations cited by the U.S. for alleged trade barriers in a report released March 31 by the office of the United States Trade Representative (USTR). In its 46-page section on Japan, the report noted that the U.S. is disappointed “in the slow pace of progress in three key areas: the reluctance of existing Japanese dealers to sign franchise agreements with U.S. automakers, the lack of additional progress in eliminating high market value components from the ‘critical parts’ list, and a slowing in the rate of increase in the purchases of U.S.-made auto parts by the Japanese automakers. AIADA warned against any effort by the U.S. government to sanction Japan because of the impact sanctions would have on American automobile dealers.

In July, congressional Republicans and the White House announced a bipartisan Budget Conference Agreement to balance the budget, cut spending, and provide $92 billion in tax cuts. Auto dealers and other Capital Gains Tax cut advocates scored a victory as Congress and the White House agreed to a substantial Capital Gains Tax cut. Also, family-owned businesses, including auto dealerships, won significant relief from the punitive and costly Estate Tax. AIADA lobbied tirelessly in favor of estate and capital gains tax cuts throughout the summer months.

On Friday, August 29, AIADA and a broad-based group including auto manufacturers, air bag suppliers, insurers and consumer advocates met with Dr. Ricardo Martinez, Administrator of the National Highway Traffic Safety Administration (NHTSA), to discuss the government’s proposal to allow dealers and independent repair facilities to disconnect air bags at the request of any customer. The diverse group had been vigorously lobbying against broad air bag deactivation.

On October 1, the U.S. Trade Representative announced that the U.S. has identified Korea’s auto trade practices as a priority under the U.S. Super 301 trade law. The U.S. initiated a 12-month investigation of Korea’s auto trade market and to work with the Korean government to resolve issues of concern. Japan was not included on the list.

After nearly a year of deliberation, U.S. Secretary of Transportation Rodney Slater and National Highway Traffic Safety Administrator Ricardo Martinez unveiled the Administration’s Final Rule on air bag deactivation during a press conference. The ruling will only allow those customers that meet specific government requirements to request the installation of an air bag on-off switch. After months of lobbying against broad-based deactivation, AIADA hailed the NHTSA decision as the best possible alternative. AIADA also urged ongoing public education on the need to properly secure all children under the age of 12 in the back seat and wear safety belts. AIADA sent an “Air Bag Information Kit” to all dealer members that included a compliance guide to educate dealers on the new rule.

1998
On Jan. 19, dealerships were given the option of installing air bag on-off switches for customers with written authorization from the National Highway Traffic Safety Administration (NHTSA).The final rule on air bag deactivation issued by NHTSA allows dealers to require that customers sign a liability waiver prior to the installation of the on-off switch. The rule requires the consumer to acknowledge on the application to NHTSA that the dealer has this right.

The U.S. Trade Representative (USTR) named Korea and Japan in its annual report in April of countries and trade practices that maintain trade barriers to U.S. products. The USTR continues to pound Japan on access to Japanese dealers and deregulation of the Japanese auto market. The report also stated that the “U.S. government is extremely concerned about the lack of ongoing and significant deregulation in the automotive sector.”

In May, Daimler-Benz AG and Chrysler Corp. announced that the two automakers will merge. AIADA President Walter Huizenga said that the announcement “underscores the fact that the automobile industry is truly a global enterprise.”

Denise Wood of Princeton BMW in Princeton, NJ, testified on June 2 at a New Jersey field hearing of the House Small Business Tax subcommittee. Wood outlined the harmful impact estate taxes have on small business automobile dealers.

On June 11, Senate Finance Committee Chairman Bill Roth (R-Del.) held the first in a series of hearings to “assess the impact of trade agreements on the economic future of the American people.” Roth indicated that he would like to lay the foundation for comprehensive trade legislation in the 1999 Congress.

In its semi-annual report on the progress of the 1995 U.S.-Japan auto trade pact, the U.S. Trade Representative on August 12 called on Japan to do more to improve market access, despite the economic slowdown in that country. “Japan’s recession is compounding the trade and regulatory barriers that have long impeded U.S. auto and auto parts sales to Japan,” said the USTR.

On October 19, government officials from the U.S. and South Korea reached a last-minute trade agreement on motor vehicles, averting the imposition of trade sanctions and paving the way for improved auto trade relations between the two countries. The U.S. government initiated a Section 301 trade investigation into Korea's auto market in 1997 after General Motors, Ford and Chrysler complained about access to the Asian country's markets. Since the beginning of the investigation, AIADA has vigorously urged both the U.S. and South Korean governments to successfully resolve the issue before the deadline. AIADA warned President Clinton and U.S. trade negotiators that if an agreement could not be reached and the Administration imposed trade sanctions on Korean autos, there would be a significant impact on American auto dealers, their customers and the American economy.

Concerned about the rapidly increasing trade surplus between the United States and Japan, President Clinton in November told Japanese officials that the U.S. might feel compelled to restrict some markets if the American trade deficit keeps rising and Japan continues to limit American imports.

1999
On February 25, Representatives Jennifer Dunn (R-Wash.) and John Tanner (D-Tenn.) Introduced H.R.8 - The Estate and Gift Tax Rate Reduction Act of 1999. The Dunn-Tanner bill proposes phasing out the death tax over a ten year period, similar to the phaseout of the auto luxury tax. AIADA supports the Dunn-Tanner bill and has vigorously lobbied for the elimination of the punitive tariff.

On March 17, one of the most protectionist measures in recent memory was passed by the House of Representatives in a 289-141 vote to impose quotas on steel imports. This bill symbolizes a vote against free trade and is representative of the anti-import sentiment espoused by 2000 presidential hopeful Pat Buchanan.