Ken Ortiz - President, New Mexico Automotive Dealers Association

The recent opening of a Tesla facility on Nambe Pueblo land, which is considered sovereign, as well as a recent editorial in the Albuquerque Journal (page A-13 9/29/21) has prompted the New Mexico Auto Dealers Association to clearly state our position on electric vehicles and, in no uncertain terms, proudly communicate that this state's franchised automotive dealers are leading the way in retail sales and service of EVs.

EVs and Hybrids have been available through the NM franchised dealer network for more than 20 years. Today, auto dealers from Farmington to Carlsbad, Roswell to Gallup and Santa Fe to Las Cruces, are bringing EVs to market in every corner of the state. Our manufactures have embraced the global challenge to reduce greenhouse gas-emissions and to continue to bring more EV and Hybrid vehicles to market in the coming months and years.

Our business model has evolved, reinvented itself and has proven effective over the years by incentivizing competition that drives down prices for customers. To meet the government and automakers goals for EVs, we are leveraging the existing network of 120 NM dealerships and their 13,000+ professional staff. Dealerships know better than anyone how to fit consumers into vehicles that work for them, at prices they can afford – while providing financing, trade-ins and service for the lifetime of the vehicle. New Mexico franchised dealers will be essential in bridging the gap between the niches within the EV market currently and truly making an impact to our climate over the long-term by appealing to the vast majority of car and truck buyers across New Mexico.

New Mexico franchised dealers are "all in" on EVs and are incredibly excited about the new electrified products being announced. Our dealers have a proven track record and have a path for mass adoption of EVs as the EV market moves further into the mainstream where the EV customers come to resemble the average car buyer. It's the EV customer of the future we need to cater to if we are to have meaningful and broad EV adoption. We are essentially at the doorstep of selling a wide variety of EVs: real, functional, non- niche EVs to mass-market car buyers where education is critical regarding the challenges specific to EVs: such as the complexities of charging, understanding that electric rates vary based on the time of day and the level of charge needed.

Consumers need dealers now more than ever. Whenever there is an unforeseen mechanical, software or electrical problem with new vehicles, manufacturers need a well- distributed and educated service-network. The existing dealer community is adequately disbursed and established throughout the state to handle those needs.

Opponents of the franchise system have long said dealers are an impediment to EV sales. This has never been true and moving forward this type of thinking will be counterproductive as our collective goal is to put a greater number of EVs on the road.

Past direct-sales legislation proposals concentrated on getting just Tesla in the door. Not only would such legislation let every electric vehicle newcomer and wannabe sell directly-regardless of their financial stability, track record and performance history-but it would also allow existing manufacturers to sell fully electric models directly to the public and bypass their dealers.

Buying straight from manufacturers enables them to monopolize sales and set prices. Where is the price competition consumers deserve? It might sound appealing to buy straight from the source, but an out-of- state manufacturer doesn't know what a mom in Santa Fe, a student in Las Cruces, or a lawyer in Albuquerque should be driving. Factory stores consistently lag dealerships on recalls, maintenance and service – often requiring 3 weeks or more for a service appointment.

This is a critical juncture in our march toward a cleaner future and it's a good time for policymakers and stakeholders at all levels to think critically about what it's going to take to sell EVs in greater volumes to customers who haven't experienced EVs yet.

The reality is that it's going to take a lot. It's going to take a network of thousands of knowledgeable sales and service staff located in just about every corner of the state, not just a website or a 1-800 number.
Dealerships are; local, personal and accessible, and understand individual needs in a way a behemoth company cannot. Unlike direct-to-consumer manufacturers, dealerships are strong advocates of our communities for the long term. Dealerships are local businesses, and they and their staff are embedded in their respective communities.

New Mexico has a deeply rooted network of auto dealerships that make purchasing and owning every type of vehicle including EVs convenient and affordable. We are your neighbors, sons and daughters. We live in New Mexico and contribute to New Mexico's economy. There are 120 new-car dealerships across the state, employing 13,725 New Mexicans accounting for $205 million in sales taxes paid each year.

The existing NM franchise law lowers prices for consumers while increasing customer satisfaction with the car-buying process and experience, generates independent businesses, promotes local investment and tax revenues in our communities, and creates good paying jobs. The New Mexico auto dealers welcome any additional manufacturer who is willing to comply with this law. However, we do not support changing the existing law as suggested by the recent Editorial in the Albuquerque Journal, especially to accommodate manufacturers who simply do not wish to comply with the already proven, effective and equitable law.