'A Train Wreck Coming' Says NADA President on Federal EV Goals'A Train Wreck Coming' Says NADA President on Federal EV Goals

DETROIT – National Automobile Dealers Assn. President and CEO Mike Stanton stands out from other co-panelists – avid electric-vehicle advocates at the auto show here.

During the Global Mobility Forum panel discussion, “Maintaining EV Momentum,” hosted by the Electric Vehicle Assn., Stanton says most car dealers are EV-friendly and are investing billions of dollars to sell and service battery-electric vehicles.

But he differs from EV advocates on the panel when the topic turns to federal government carbon emissions mandates that aim to eventually push vehicles with internal-combustion engines aside and create an EV world. He calls those mandates “draconian.”

“The goals are unattainable,” he says. “Ultimately consumers will pay for them with higher vehicle prices.”

The EPA says its mandates, beefed up in 2024, aim for EVs to comprise 56% of new-vehicle sales by 2032. Currently those sales are about 8% of the market.

The mandate doesn’t ban ICE vehicles but makes it hard, if not impossible, for them to comply with the emissions-reduction schedule. Stanton says it will drive up the cost of ICE vehicles at a time when vehicle affordability is a major industry issue.

As far as keeping the EV ball rolling, Stanton says: “Let’s grow with the customers. Dealers are excited about selling EVs. What they are not excited about are the mandates. They are going far too fast. We see a train wreck coming.”

Other panelists don’t see it that way.

“Those mandate goals are attainable, especially when plug-in electric hybrid vehicles are included,” says Katherine Garcia of the Sierra Club, a conservation group.   

None of the EV advocates on stage ganged up on Stanton, although he told WardsAuto afterward he had wondered how they’d react. Everyone was civil. But he clearly stood out from the others with his mandate criticism.

An audience member told him afterward, “You shook things up.”

NADA leaders will repeat the same message at the trade group’s annual NADA Show in New Orleans on Jan. 24-26. 

In an interview with WardsAuto following the panel discussion, Stanton talks about the NADA Show, including how dealer attendees can get the most out of it. Here’s an edited version of the Q&A:

WardsAuto: It seems like every NADA Show has an existential theme, like vehicle affordability affecting car sales. What’s the theme this year?

Stanton: From the dealers I’ve talked to, there’s an overwhelming sense of optimism with this change in presidential administrations. There’s a renewed sense that we’ll return to a more normal state. There’s a good feeling we’ll be able to push through common-sense policies.

WardsAuto: Will EVs be a part of the NADA Show?

Stanton: Oh yeah. Big time. They’ll be on the floor. They will be discussed with car companies at (closed-door) franchise meetings where automakers share their production plans.

We think EVs will be a big part of the future, but not a big part of the immediate future that the (Biden) administration and some states have mandated. We call it a de facto ban on ICE vehicles.    

WardsAuto: How has the NADA Show changed over the years?

Stanton: It’s always been the industry event of the year. It’s when we get vendors, dealers, car companies and reporters under one roof to talk about the issues of the day.

WardsAuto: I was talking to industry veteran Dale Pollak today. He’s been to more than 50 NADA conventions, starting as a dealer’s kid. He said the workshops were valuable to him when he became a dealer.  How are the workshop presenters picked?

Stanton: That’s always been controversial.  We accept about a third of the workshop submissions. We run them through our experts who teach at the NADA Academy as well as our 20 Group consultants. It’s a highly competitive process.

But a big reason dealers go to the convention is to learn, network, buy something on the floor, meet with car company executives and network with guys like Dale.    

WardsAuto: How can attendee dealers get the most out of the Show?

Stanton: Plan your work and work your plan. Take the time to download our app or go to the website to chart yourself out a schedule. If you plan it, you’ll get a lot of value from it.