Car Wash - Summer 2018 - 108

TONKTITI/SHUTTERSTOCK.COM

STATE OFFICIALS NOW KNOW
THE COMPLETE HISTORY OF A
RESIDENT'S DRIVING, INCLUDING
EVERY TIME THEY EXCEED THE
SPEED LIMIT OR SLOW ROLL
THROUGH A STOP SIGN AND
EVERY PLACE THEY HAVE
BEEN DURING
THE TRACKING
PERIOD.

In their latest earnings conference calls,
financial analysts asked the leaders of GM,
Ford and Chrysler about their stance on
the tax and all three were generally pro tax
increase. GM's CEO Mary Bara noted that
a gas tax could generate substantial funding, but would need to combine with both
municipal and state funding. Jim Hackett,
CEO of Ford, considers the tax hike a positive concept that needs to be applied not
only to physical infrastructure but also
to a digital future that will enable the
Intelligent Transportation System. FCA's
Sergio Marchionne said "Chrysler would
absolutely support the increase of the tax
to gain better roads and bridges."
On the other side of the issue are organizations like Americans for Prosperity (AFP)
that suggest a gas tax increase is simply
taking money out of a taxpayer's left pocket
after the federal income tax decrease puts
money in their right pocket. The AFP also
notes that a gasoline tax can create price
inflation in all kinds of physical goods and
services that are delivered using vehicle
transportation, which can increase the cost
of living for people who can least afford it.
The split between Democrats and
Republicans in Washington DC isn't
what you think it might be, either. While
the majority of Democrats are pro-tax
increases, Senator Charles Schumer
(D-NY) has spoken out against the tax
because he believes it hits lower income
people harder than others. There are
Republicans on both sides of the issue,
too. Senator John Barrasso, who serves on
both the Energy and Natural Resources
Committee and the Environment and

108

Public Works Committee, is against the
tax increase, citing his concerns that not
all of the money from the taxes will actually go towards fixing roads and bridges.
Representative Bill Shuster, chairman of the House Transportation and
Infrastructure Committee, on the other
hand, is strongly in favor of the tax because
he sees it as one of the fairer approaches of
all funding alternatives.
As this debate goes on, the auto aftermarket is in a predicament. Service shops make
a lot of money fixing suspension systems,
broken wheels and split tires damaged by
poorly maintained road surfaces. In addition, the aftermarket can be harmed if
vehicle-miles-traveled (VMT) go down
due to higher prices at the pump, so the
aftermarket has many reasons to oppose
the tax increase - but it is kind of tough
to be "pro-damage" and against highway
improvements, so you rarely hear about the
auto aftermarket's stance on the gas tax.
And finally, one additional foible in
the gas tax idea - the move to electric
drive vehicles and the general increase
in vehicle fuel economy to meet federally mandated Corporate Average Fuel
Economy (CAFE) standards will result
in less gasoline and diesel fuel being consumed in the future, which will reduce
the amount of infrastructure funding.
That has states like Washington experimenting with a "pay as you drive" mileage tax. The state-implemented test in
2017 suggests that a mileage tax could
actually generate more than a gasoline
tax, but state residents are complaining
about the possible "ulterior motives" that

CAR WASH MAGAZINE | WWW.CARWASH.ORG |

SUMMER 2018

could develop with the tracking devices
being used in the program. State officials now know the complete history of
a resident's driving, including every time
they exceed the speed limit or slow roll
through a stop sign and every place they
have been during the tracking period.
That's not going over well with some
residents.
The debate on highway funding will go
on - it has since the first penny-a-gallon
tax was levied in 1931. That penny grew to
18.4 cents a gallon by 1993 but has stayed
there since. Unfortunately, that tax level
barely covers the cost of maintaining federally controlled roads let alone improving
them, and as bridges continue to collapse
the Highway Trust Fund is now disbursing
more funds than it takes in from the 18.4
cents levy. Also, the gas tax handles only the
federal roads. Your state road maintenance
is funded by state gas taxes, which in some
states are two or even three times the 18.4
cents federal level. According to the US
Energy Information Administration (EIA),
the average state gas tax is 28.3 cents per
gallon in 2018.
Your author lives in Michigan where the
state gas tax is 18.7 cents per gallon. Given
the truly horrible condition of many of the
state's roads, it is difficult to understand
where the money goes. A quick Internet
search sheds some light - Michigan is 33rd
out of 50 states in investment per lane mile,
47th in investment per vehicle-mile traveled and 50th out of 50 in highway investment per capita. That explains a lot!
ABOUT SCHWARTZ ADVISORS
Derek Kaufman is a managing partner
at Schwartz Advisors (SA), a team of highly
experienced auto aftermarket experts working with clients in corporate growth projects
and both buy-side and sell-side merger and
acquisition activities. As part of its growth
consulting work, SA keeps current with the
emerging technologies and business models
that will drive the future supply of automotive
parts and service.
The reference to any specific commercial
products, processes or services by trade name,
trademark, manufacturer or otherwise does
not necessarily constitute or imply its endorsement, recommendation, or favoring by ICA
or Schwartz Advisors. The views and opinions
of the author do not necessarily state or reflect
those of the ICA staff.


http://WWW.CARWASH.ORG

Table of Contents for the Digital Edition of Car Wash - Summer 2018

Letter from the ICA
Meet the Board
By the Numbers
Overheard Online
What Makes a Good Leader
Harnessing the Power of Diversity
Be the Best Servant Leader You Can Be
Coaching Them Up
Passing the Torch
Celebrating ICA’s Emerging Leaders
VNTYPL8
Marking a Milestone
The Car Wash Show 2018
Car Wash Show Australia Prepares for Fall Show
Kati Wright, Lone Star Car Wash Systems
Take a Tour: Snap Clean Car Wash
Automotive Technology
Regional Update: Western Carwash Association
"The How of Carwashing"
Blast from the Past
Download It!
Marketing Minute
Top Tweets
Ask Champ
Advertiser Index
5 Things
Car Wash - Summer 2018 - Intro
Car Wash - Summer 2018 - bellyband1
Car Wash - Summer 2018 - bellyband2
Car Wash - Summer 2018 - cover1
Car Wash - Summer 2018 - cover2
Car Wash - Summer 2018 - 3
Car Wash - Summer 2018 - 4
Car Wash - Summer 2018 - 5
Car Wash - Summer 2018 - 6
Car Wash - Summer 2018 - 7
Car Wash - Summer 2018 - 8
Car Wash - Summer 2018 - 9
Car Wash - Summer 2018 - 10
Car Wash - Summer 2018 - Letter from the ICA
Car Wash - Summer 2018 - 12
Car Wash - Summer 2018 - Meet the Board
Car Wash - Summer 2018 - By the Numbers
Car Wash - Summer 2018 - 15
Car Wash - Summer 2018 - 16
Car Wash - Summer 2018 - Overheard Online
Car Wash - Summer 2018 - 18
Car Wash - Summer 2018 - 19
Car Wash - Summer 2018 - 20
Car Wash - Summer 2018 - 21
Car Wash - Summer 2018 - What Makes a Good Leader
Car Wash - Summer 2018 - 23
Car Wash - Summer 2018 - 24
Car Wash - Summer 2018 - 25
Car Wash - Summer 2018 - 26
Car Wash - Summer 2018 - 27
Car Wash - Summer 2018 - 28
Car Wash - Summer 2018 - 29
Car Wash - Summer 2018 - 30
Car Wash - Summer 2018 - 31
Car Wash - Summer 2018 - Harnessing the Power of Diversity
Car Wash - Summer 2018 - 33
Car Wash - Summer 2018 - 34
Car Wash - Summer 2018 - 35
Car Wash - Summer 2018 - 36
Car Wash - Summer 2018 - 37
Car Wash - Summer 2018 - 38
Car Wash - Summer 2018 - 39
Car Wash - Summer 2018 - 40
Car Wash - Summer 2018 - 41
Car Wash - Summer 2018 - Be the Best Servant Leader You Can Be
Car Wash - Summer 2018 - 43
Car Wash - Summer 2018 - 44
Car Wash - Summer 2018 - 45
Car Wash - Summer 2018 - 46
Car Wash - Summer 2018 - 47
Car Wash - Summer 2018 - Coaching Them Up
Car Wash - Summer 2018 - 49
Car Wash - Summer 2018 - 50
Car Wash - Summer 2018 - 51
Car Wash - Summer 2018 - 52
Car Wash - Summer 2018 - 53
Car Wash - Summer 2018 - 54
Car Wash - Summer 2018 - 55
Car Wash - Summer 2018 - 56
Car Wash - Summer 2018 - 57
Car Wash - Summer 2018 - Passing the Torch
Car Wash - Summer 2018 - 59
Car Wash - Summer 2018 - 60
Car Wash - Summer 2018 - 61
Car Wash - Summer 2018 - 62
Car Wash - Summer 2018 - 63
Car Wash - Summer 2018 - 64
Car Wash - Summer 2018 - 65
Car Wash - Summer 2018 - Celebrating ICA’s Emerging Leaders
Car Wash - Summer 2018 - 67
Car Wash - Summer 2018 - 68
Car Wash - Summer 2018 - 69
Car Wash - Summer 2018 - 70
Car Wash - Summer 2018 - 71
Car Wash - Summer 2018 - 72
Car Wash - Summer 2018 - 73
Car Wash - Summer 2018 - 74
Car Wash - Summer 2018 - VNTYPL8
Car Wash - Summer 2018 - 76
Car Wash - Summer 2018 - 77
Car Wash - Summer 2018 - 78
Car Wash - Summer 2018 - 79
Car Wash - Summer 2018 - 80
Car Wash - Summer 2018 - 81
Car Wash - Summer 2018 - 82
Car Wash - Summer 2018 - Marking a Milestone
Car Wash - Summer 2018 - 84
Car Wash - Summer 2018 - 85
Car Wash - Summer 2018 - The Car Wash Show 2018
Car Wash - Summer 2018 - 87
Car Wash - Summer 2018 - 88
Car Wash - Summer 2018 - 89
Car Wash - Summer 2018 - 90
Car Wash - Summer 2018 - 91
Car Wash - Summer 2018 - 92
Car Wash - Summer 2018 - 93
Car Wash - Summer 2018 - 94
Car Wash - Summer 2018 - 95
Car Wash - Summer 2018 - Car Wash Show Australia Prepares for Fall Show
Car Wash - Summer 2018 - 97
Car Wash - Summer 2018 - 98
Car Wash - Summer 2018 - Kati Wright, Lone Star Car Wash Systems
Car Wash - Summer 2018 - 100
Car Wash - Summer 2018 - 101
Car Wash - Summer 2018 - Take a Tour: Snap Clean Car Wash
Car Wash - Summer 2018 - 103
Car Wash - Summer 2018 - 104
Car Wash - Summer 2018 - 105
Car Wash - Summer 2018 - Automotive Technology
Car Wash - Summer 2018 - 107
Car Wash - Summer 2018 - 108
Car Wash - Summer 2018 - 109
Car Wash - Summer 2018 - 110
Car Wash - Summer 2018 - Regional Update: Western Carwash Association
Car Wash - Summer 2018 - 112
Car Wash - Summer 2018 - "The How of Carwashing"
Car Wash - Summer 2018 - 114
Car Wash - Summer 2018 - 115
Car Wash - Summer 2018 - Blast from the Past
Car Wash - Summer 2018 - 117
Car Wash - Summer 2018 - Download It!
Car Wash - Summer 2018 - Marketing Minute
Car Wash - Summer 2018 - 120
Car Wash - Summer 2018 - Top Tweets
Car Wash - Summer 2018 - Ask Champ
Car Wash - Summer 2018 - 123
Car Wash - Summer 2018 - Advertiser Index
Car Wash - Summer 2018 - 125
Car Wash - Summer 2018 - 126
Car Wash - Summer 2018 - 127
Car Wash - Summer 2018 - 128
Car Wash - Summer 2018 - 129
Car Wash - Summer 2018 - 5 Things
Car Wash - Summer 2018 - cover3
Car Wash - Summer 2018 - cover4
Car Wash - Summer 2018 - outsert1
Car Wash - Summer 2018 - outsert2
Car Wash - Summer 2018 - outsert3
Car Wash - Summer 2018 - outsert4
Car Wash - Summer 2018 - outsert5
Car Wash - Summer 2018 - outsert6
Car Wash - Summer 2018 - outsert7
Car Wash - Summer 2018 - outsert8
Car Wash - Summer 2018 - outsert9
Car Wash - Summer 2018 - outsert10
Car Wash - Summer 2018 - outsert11
Car Wash - Summer 2018 - outsert12
Car Wash - Summer 2018 - outsert13
Car Wash - Summer 2018 - outsert14
Car Wash - Summer 2018 - outsert15
Car Wash - Summer 2018 - outsert16
Car Wash - Summer 2018 - outsert17
Car Wash - Summer 2018 - outsert18
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