Annual Contributions of Florida’s New-Vehicle Dealers* Florida’s dealers maintain a multi-BILLION dollar retail industry. 954 new-vehicle dealerships Total

Annual Contributions of Florida’s New-Vehicle Dealers*

Florida’s dealers maintain a multi-BILLION dollar retail industry.

954 new-vehicle dealerships

Total sales - new-vehicle dealerships in Florida $50.1 billion

Dealership sales are 21.8% of total retail sales Dealers contribute 15 cents of every sales tax dollar in Florida

Annual Contributions of Florida’s New-Vehicle Dealers*

Dealers provide thousands of well-paying jobs in Florida.

•77,314 new-vehicle dealership employees in Florida•$3.8 billion in total annual payroll of new-vehicle dealerships•13% of total state retail payroll•Dealerships are many times one of largest employers in a locality

DEP Workshop – December 5, 2007

• As a major economic engine in Florida’s economy we want a clean environment for the citizens of Florida today and for future generations

• We recognize that Florida should be a leader and should be a pace-setter among the states because of our size and geo-political importance.


• We heartily endorse action to enable Florida to become more energy efficient and the US more energy independent and less reliant on foreign sources of oil.

• We also support rigorous but achievable fuel efficiency standards and actions which will stimulate more technological advancements by our manufacturer partners as long as expectations due not disrupt Florida consumers’ vehicle choices (availability) or affordability

• Many of the new cars we sell today meet federal standards for cleaner operation.

What the Florida Marketplace Looks Like

To understand the impact of CAL-LEV on Florida lets take a look at what Floridians drive today -

FLORIDA REGISTERED PASSENGER CARS

“ON THE ROAD”July 2007

Car – Types # Small Car - Budget 205,624

Kia Rio

Small Car - Economy 1,503,022Scion xA

Mid Range Car - Lower 1,114,195Honda Civic

Mid Range Car - Standard 2,067,611Ford Taurus

Mid Range Car - Premium 519,070Infiniti I35

Traditional Car 386,522Mercury Grand Marquis

Upscale - Near Luxury 638,257Buick Park Avenue

Upscale - Luxury 645,267Audi A6

Upscale - Premium 44,900BMW 7 Series

Upscale - Ultra 5,511Rolls-Royce Phantom

Sport Car - Touring 558,270Mini Cooper

Sport Car - Premium 230,431Porsche Boxter

Sport Car - Upper Premium 65,143Jaguar XJ

Sport Car - Ultra Luxury 5,061Lamborghini Murcielago

Cars: 7,988,884

Source: AutoCount by Experian Automotive

FLORIDA REGISTERED TRUCKS , VANS AND SUVS

“ON THE ROAD”July 2007

Trucks and SUV’s – Types

#

Pickup - Small 865,344GMC Sonoma

Pickup - Full Sized 1,683,508Nissan Titan

SUV - Pickup 72,987Chevrolet Avalanche

SUV - Entry Level 423,944Jeep Wrangler

SUV - Lower Mid Range 936,521Isuzu Axiom

SUV - Large 485,018Toyota Sequoia

SUV - Upper Mid Range 103,123Land Rover Discovery

SUV - Premium Large 129,499Hummer H2

Van - Mini 1,007,681Chrysler Town & Country

Van - Full Sized 439,373Dodge Sprinter

CUV - Entry Level 418,324Hyundai Santa Fe

CUV - Mid Range 204,099Mitsubishi Endeavor

CUV - Premium 188,736Volvo XC90

Trucks/SUVS: 6,958,157


FLORIDA REGISTERED VEHICLES “ON THE ROAD”

July 2007

Total vehicles:

14,947,041


Cars: 53%

Trucks: 47 %

FLORIDA NEW VEHICLE SALES 2006


CARS TRUCKS

Budget 13,232 Small Pick-up 40,433

Small 112,494 Large Pick-up 128,013Lower Mid-Range 72,794 Small SUV 95,861

Mid-Range 107,306 Mid-Range SUV 130,243Upper Mid-Range 55,875 Large SUV 62,178

Near Luxury 64,050 Mini Van 52,688

Luxury 37,327 Van 12,482

Specialty 22,191

Sport 34,361

Unknown 2,378

Total Vehicles: 1,045,906

Cars: 50%

Trucks/SUV: 50%

FLORIDA NEW VEHICLE SALES JAN – DEC 2006

FLORIDA NEW VEHICLES SALES 2006

Source: AutoCount by Experian Automotive and www.fueleconomy.gov

Of Total Sales: # 1,045,906

Non-Hybrid Top Ten Sales: # 183,103 / 18% *Carbon Footprint/avg. tonnage per year: 8.7

Hybrid Top Ten Sales: # 12,916 / 1% *Carbon Footprint/avg. tonnage per year: 7.1

*The carbon footprint measures greenhouse gas emissions expressed in CO2 equivalents. The estimates presented here are "full fuel-cycle estimates" and include the three major greenhouse gases emitted by motor vehicles: carbon dioxide, nitrous oxide, and methane. Full fuel-cycle estimates consider all steps in the use of a fuel, from production and refining to distribution and final use.


• We support action to curtail GHG emissions and we believe that Florida should consider a host of initiatives that would include :– reducing miles driven by Florida motorists– new incentives for mass transit solutions, ride sharing, etc.– vehicle inspections - reductions in emissions from used vehicles

on Florida roads and highways since 90% of our vehicular traffic is “used” and less efficient automobiles

– market driven incentives for consumers who purchase fuel-saving vehicles (tax credits for new car purchases from funded program)

DEP Workshop – December 5, 2007− Market driven incentives to remove 14 million older

vehicles on Florida highways− A fuel efficiency standard that is achievable− Incentives for other techno advances such as clean

diesel, alternative fuels and other new technologies − A phased in approach that recognizes the huge impact

on Florida driving patterns and seeks to affect Vehicle Miles Driven rather than vehicle choice

− As we await action from the EPA on the waiver, we would emphasize the need to consider all options rather than placing the entire emphasis on fuel efficiency


− There is no harm in going slowly and assessing all costs and benefits – California took 2-3 years to implement their regulations

− Lastly, we believe a major component of this regulatory framework should be a massive public education effort with town hall meetings conducted around the state to get feedback from our customers on vehicle choices and lifestyle needs

DEP Workshop – December 5, 2007The Dealer’s focus is on vehicle availability and affordability

While we do not speak for the manufacturers we are troubled about their testimony regarding their options under the CAL-LEV guidelines as the result may be:

− Fewer vehicles allocated to dealers− Inability to meet our customer’s lifestyle choices or safety

needs− Impacts such as pre-implementation sales bonanza

followed by sales delays due to higher pricing− Sales shift to sellers outside Florida and our sales tax

revenue is impacted (sales across borders or Internet)


Dealer concerns include:− Affect on sales as Florida cars add $1,500 to $3,000 to

costs of vehicles –slowing purchase of new cars− Buyers respond to sellers in neighboring states, Internet

sellers, buyers from other states register vehicles there and Florida law creates opportunity for auto brokers

− If Florida regulations create registration denials and a 7500 miles driven requirement, Florida dealers will lose the benefit of dealer trading network

• Of the approximately 13.4 million vehicles registered in Florida in 2006, only 10% or fewer were new vehicles. Forcing citizens to remain in older vehicles does not take advantage of newer technologies.

• Florida consumers with other state domiciles will react to higher taxes by purchasing in their home state rather than Florida and will not register their vehicles here.


• Vehicle purchases across state lines will directly impact Florida sales tax revenues. Purchases in Alabama reduce Florida taxes received upon vehicle registration by 2%. With 50% of Florida vehicle sales consisting of light trucks and SUV’s, the potential negative impact could easily reach $50 million in lost revenues.


• FADA is also concerned about abdication of all rulemaking, leaving Florida consumers exposed now and in the future to California regulatory standards

• We would urge that regulatory timeframes take into consideration the likelihood of an EPA waiver denial, especially given the passage of a new Congressional CAFE bill


• FADA is deeply concerned about the economic health and stability of automakers so we urge caution as options are explored

• With so much pressure on DEP and due to the complexity of this concept we feel that the Florida legislature should ultimately be the focal point for these discussions, as this represents a broad policy change


This association stands ready to work with you to develop proposals that are consistent with the overall goal of emission reductions but that also respond to the needs and economic realities of our great State.


Documents

Annual Contributions of Florida’s New-Vehicle Dealers* Florida’s dealers maintain a multi-BILLION dollar retail industry. 954 new-vehicle dealerships Total