Annual Contributions of Florida

1
Annual Contributions of Floridas New-Vehicle
Dealers

• Floridas 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

2
Annual Contributions of Floridas 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

3
DEP Workshop December 5, 2007

• As a major economic engine in Floridas 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.

4
DEP Workshop December 5, 2007

• 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.

5
What the Florida Marketplace Looks Like

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

6
FLORIDA REGISTERED PASSENGER CARSON THE
ROADJuly 2007
Cars 7,988,884
Source AutoCount by Experian Automotive
7
FLORIDA REGISTERED TRUCKS , VANS AND SUVSON
THE ROADJuly 2007
Trucks/SUVS 6,958,157
Source AutoCount by Experian Automotive
8
FLORIDA REGISTERED VEHICLES ON THE ROADJuly
2007
Total vehicles 14,947,041
Cars 53 Trucks 47
Source AutoCount by Experian Automotive
9
FLORIDA NEW VEHICLE SALES 2006
Total Vehicles 1,045,906
Cars 50 Trucks/SUV 50
Source AutoCount by Experian Automotive
10
FLORIDA NEW VEHICLE SALES JAN DEC 2006
11
FLORIDA NEW VEHICLES SALES 2006
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.
Source AutoCount by Experian Automotive and
www.fueleconomy.gov
12
DEP Workshop December 5, 2007

• 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)

13
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

14
DEP Workshop December 5, 2007

• 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

15
DEP Workshop December 5, 2007

• The Dealers 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 customers 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)

16
DEP Workshop December 5, 2007

• 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

17
DEP Workshop December 5, 2007

• 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.

18
DEP Workshop December 5, 2007

• 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 SUVs, the potential negative impact
  could easily reach 50 million in lost revenues.

19
DEP Workshop December 5, 2007

• 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

20
DEP Workshop December 5, 2007

• 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

21
DEP Workshop December 5, 2007

• 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.