Making his National Association of Minority Automobile Dealers (NAMAD) conference debut, GM’s $GM ( ▼ 0.42% ) VP of Global Public Policy Omar Vargas had a clear message for dealers: policy decisions are profit decisions, and staying on the sidelines comes with real risk.
Driving the news: In a fireside chat with GM’s Jacqueline Vessel, Vargas said the auto industry is “probably the most regulated” in the economy, and that every major shift in Washington or state capitols flows directly into the showroom.
“You have to work with the government at all levels,” he said. “They actually drive the business, they lead the business, it grows the business.”
He pointed to recent emissions rollbacks as an example, because earlier this year, both the EPA and California eased back aggressive EV adoption rules after pushback from OEMs and dealer groups.
His point: That outcome only happened because the industry showed up.
And it’s not just emissions…
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Vargas pointed to three other areas where policy is already reshaping dealer profitability:
Fading EV credits: The $7,500 lease credit ends Sept. 30. Vargas said it fueled “about 30%+ of the EV sales.” And while he doesn’t believe demand will collapse, he does suggest it will “evolve slower and differently than anticipated two years ago.”
That means sales pace slows, affordability shifts, and the pitch changes on the floor.
On tariffs: “What we see today is…it. Like, it is a reality,” Vargas said, from his perspective, the current trade environment isn’t temporary.
For dealers, that means higher costs baked into vehicles and tighter room on margins.
And regarding right-to-repair legislation: Vargas called it “a money grab,” warning that while it’s sold as consumer-friendly, it would give large service chains and insurers full access to dealer data, cutting into service profits.
On that point, he even asked for a show of hands in the room familiar with the legislation and “what’s at stake,” and saw only a handful.
“That’s frightening,” he said. “That is actually frightening.”.
Bottom line: From EV credits to tariffs to right-to-repair, policy choices help decide how much money dealers make. And that’s why, in his mind, ignoring those shifts doesn’t insulate you from them; it just means you see the impact later, at the bottom line.
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