Automotive News - February 4, 2008 - (Page 68) 68 • FEBRUARY 4, 2008 INSIGHT AIADA chief: CAFE bill is a highlight of term John Hawkins: New standards are a ‘win-win for everybody’ Harry Stoffer hstoffer@crain.com John Hawkins Age: 66 Title: President, Great Metro Autogroup, Montclair, Calif. Franchises: Honda and Acura in Montclair; Infiniti in Monrovia, Calif.; Honda, Nissan, Volkswagen, Mazda and Hyundai in Riverside, Calif. Monthly sales: 1,100 new, 400 used Quote: “We’re going to see some big changes. I think change is good for our country, and I look forward to change. (Higher) CAFE is going to mandate changes in our industry, and I think that just portends a lot of changes in our society in the future.” ohn Hawkins is declaring his year as chairman of the American International Automobile Dealers Association a success. One reason: The federal government approved a 40 percent increase in fuel economy standards by 2020. And Hawkins is claiming success because standards were raised, not despite that action by Congress and President Bush. “We’re excited about it,” Hawkins told Automotive News. “And our manufacturers are positively elated that this issue is behind us.” Hawkins, like other industry leaders, now embraces tougher standards. Most automakers, many dealers and other allies had lobbied for years to keep Congress from “picking a number.” The industry argued that regulators already had authority under the corporate average fuel economy program, or CAFE, to set standards at the maximum feasible level. But once it became clear last year that Congress was going to require a fleet average of 35 mpg by 2020, the industry accepted the change and declared victory. “I think it was a win-win for everybody,” Hawkins said last month. Still, the outgoing AIADA chairman says import-brand automakers and dealers need to stay engaged on the issue. They must help ensure that when regulators write rules to implement the new standards, Hawkins says, those rules are fair. Import-brand dealers also need to remain vigilant against proposals J LINDA FORD And our manufacturers are positively elated that this issue is behind us.” JOHN HAWKINS AIADA “ We’re excited about it. ” special tax on U.S. subsidiaries of overseas-based companies. The More from John Hawkins, outgoing chairman of the American International Automobile Dealers Association: Has the new Democrat-controlled Congress been as anti-trade as AIADA feared? We have seen challenges to protrade. They are still there. We certainly saw protectionist sentiment gaining traction. And in election years, like we’re in this year, there’s a great possibility that trade could come to the forefront. We don’t like the populist sentiment out there that includes free trade. And they have not renewed the president’s fast-track authority (for trade negotiations). That’s been a cornerstone of administrations going way back. It’s something that’s got to be renewed at this time. We’re very concerned. What disappointed you as chairman in 2007? I don’t think we had any disappointments last year. We expected a volatile year, a challenging year. That came about. What’s your outlook for the industry? that might impede Hawkins says. free trade, He cites an attempt in the House of Representatives last year to impose a House attached the proposal to a farm bill. AIADA strongly opposed it. It died in the Senate. “We saw some good efforts, some good tries, with what we call sneaky legislation,” Hawkins says. Hawkins said things are going well with his company, Great Metro Autogroup of Montclair, Calif. The company operates eight franchises in three locations. Hawkins, 66, says he plans to go on an overseas mission for his church, most likely to Brazil. He says he probably will wait until his youngest daughter is out of high school in about two years. Hawkins belongs to the Church of Jesus Christ of Latter-day Saints, commonly called the Mormon church. He is a longtime friend of Republican presidential candidate Mitt Romney, whose Mormon faith has been a topic of extensive campaign coverage. Hawkins says he is backing Romney because “when you know people, you tend to have high hopes for them. I think you have to go with your friend.” c ‘We expected a volatile year’ I’m talking foreign nameplates, and I would say our mood is ebullient. questionanswer protectionist sentiment gaining traction. “ We certainly saw JOHN HAWKINS AIADA ” We’ve got these new technologies. We’ve got the new regulation in place, although the fine points are not written. We have this attitude that with our technologies, we can build cars, our manufacturers can build cars, and we will be selling cars that will be very satisfactory for the consumer. What concerns you about implementation of the fuel economy standard? I hope they don’t come to Honda and Toyota and say, “You’ve done a great job. Therefore, we want you to increase at the same percentage rate that we want Detroit to increase.” That is a penalty against the guys who have the clean technology already in the marketplace. c http://www.gsfsgroup.com http://www.gsfsgroup.com http://www.compassteamonline.com
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