Franchised new-car dealers in the United States spent a combined $3.2 billion in 2012 to meet federal regulations, a report released today said.
Dealers spent the money to comply with 61 major federal rules, the report said. As a result, consumers paid more and the U.S. economy paid in the form of 10,550 fewer dealership jobs, the research found.
“The additional costs for new-car dealerships to comply with federal regulations are passed along to our customers in the form of higher prices, which results in lower vehicle sales and reduced employment at dealerships,” said Forrest McConnell, chairman of the National Automobile Dealers Association and a Honda and Acura dealer in Montgomery, Ala.
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