Alliance for Automotive Innovation
The Alliance for Automotive Innovation is a Washington, D.C.–based trade association and lobby group whose members include international car and light duty truck manufacturers that build and sell products in the United States.
History
A predecessor organization, the Automobile Importers of America, was formed in 1965 to provide member companies information on changes to U.S. state and federal automotive industry regulations. The AIA evolved into the primary advocacy resource for many major vehicle importers in the 1970s, opposing trade restrictions and other protectionist laws and regulations that adversely impacted its members.The 1973 oil crisis led to increased market share for imported vehicles, which were often more fuel-efficient. In response, Ford Motor Company and the United Auto Workers union accused importers of dumping and unfair trading, and took their claims to trade authorities. The AIA, representing importers, had the case dismissed in 1975, arguing that other factors led to the market share changes.
In the 1980s, international automobile companies that were traditionally importers began opening new manufacturing plants in the US, leading to an expansion in the organization's focus. In 1990, the AIA changed its name to the Association of International Automobile Manufacturers. In 2011, the AIAM changed its name to the Association of Global Automakers.
In 2012, there were 12 member companies, including Honda, Toyota, Nissan, Hyundai and Kia. In 2011, member companies employed 81,000 in the US in production facility investments totaling $45 billion. The association stated that its members accounted for 42% of all vehicles sold in the US and 34% of vehicles manufactured in the U.S. from January to September 2011.
John Bozzella became the association's president and CEO on April 1, 2014. He was preceded by Michael J. Stanton, who had held the role since 2006. Previously, the association was led by Ralph Millet, George Nield, Philip A. Hutchinson Jr., and Tim MacCarthy.
In January 2020, the Association of Global Automakers merged with the Alliance of Automobile Manufacturers to become the Alliance for Automotive Innovation. Members of both groups became members of the Alliance, representing nearly every automotive manufacturer selling cars and light duty trucks in the US, including the American "Big Three". The AAI also expanded its membership to include suppliers and startups. Bozzella became the CEO and President of the new organization, with the AAM’s David Schwietert serving as chief policy officer.
The AAI provides information to policymakers on key issues affecting the automotive sector and supports related state and national legislation. The AAI reported that in 2018, the automotive industry invested US$125 billion in R&D and earned more than 5,000 global patents.
Members
The new organization has expanded its membership to include suppliers, startups and other automotive-related associations.As of August 2023, members included:
- Aisin
- Aptiv
- Autoliv
- BASF
- BMW
- Bosch
- Cruise
- Denso
- Envision AESC
- Ferrari
- Ford
- General Motors
- Harman
- Honda
- Hyundai
- Infineon
- Isuzu
- Jaguar Land Rover
- Kia
- LG
- Luminar
- Magna Steyr
- Mazda
- McLaren
- Mercedes-Benz
- Mitsubishi
- Nissan
- Nuro
- Panasonic
- Porsche
- Qualcomm
- Samsung SDI
- Sirius XM
- Stellantis
- Subaru
- Texas Instruments
- Toyota
- Volkswagen
- Volvo
Activities
Market and trade
The association helps its members formulate and defend positions against legislation and regulations that make participation in the US market more costly or difficult for automakers. In 1994, the association filed an amicus brief in support of a successful appeals decision against the classification of the Nissan Pathfinder as a cargo vehicle. The resulting ruling opened the doors to Japanese expansion in the US light truck market, in particular the growing SUV segment. During the 1990s, the association opposed a move by the Clinton administration to impose a 100% tariff on 13 luxury vehicles imported from Japan. In December 2020, the Alliance issued a report with eight policy strategies designed to secure US competitiveness in automotive technologies, including incentives for industry R&D and investments in EV charging infrastructure.Fuel economy and emissions standards
On behalf of its members, the association develops and advances positions on fuel efficiency, greenhouse gas emissions and other regulations and standards. The association opposes allowing individual states to adopt standards more stringent than the federal standards for vehicle emissions and fuel economy. It supports the Obama administration's proposed changes to CAFE standards, which would require automakers to improve car mileage by 5 percent annually until 2025, aiming to reduce greenhouse gas pollution.In 2007, the association brought a lawsuit against the state of California, attempting to establish that the state had no authority to regulate greenhouse gas emissions. The association's argument was that the only method to significantly reduce such emissions, primarily carbon dioxide, is by improving fuel economy, and under federal energy legislation from 1975, only the Department of Transportation has authority to establish a fuel economy standard. As such, California's standards are preempted by federal law. California is able to set its own standards for tailpipe emissions via a waiver by the Environmental Protection Agency from preemption under the Clean Air Act, as it had begun regulation of air pollution before the EPA was established. The AAI also argued that California and other states being granted authority to regulate greenhouse gas emissions would force manufacturers to adhere to too many different standards, effectively raising the cost of cars and eliminating model choices. In December 2007, a district court judge ruled against the association's suit. The association appealed this decision. In February 2008, the association issued a statement supporting the EPA's decision not to issue the waiver that would be required for California to regulate greenhouse gas emissions from motor vehicles. The association's president, Michael Stanton, stated that its interest was not in resisting such regulation, but ensuring that uniform standards are set by the federal government.
In 2009, the association stated its support for an agreement reached by the Obama administration to adopt a single national standard for fuel economy, which led to outstanding lawsuits being dropped.
Electric vehicles
In the third quarter of 2021, the AAI reported that electric vehicles comprised 6% of all light duty car sales, with the highest volume of EV sales ever recorded at 187,000 vehicles. This was an 11% increase in sales, as opposed to a 1.3% increase in gasoline and diesel cars. The report indicated that California was the US leader in EV with nearly 40% of US purchases, followed by Florida – 6%, Texas – 5% and New York 4.4%.In August 2021, the Biden administration issued an executive order that called for half of new vehicles sold in 2030 in the US—including battery electric vehicles, gasoline-electric hybrid vehicles, and hydrogen fuel cell vehicles—to be zero-emission. The organization indicated its support for the order, but suggested the US government had to invest in expanding charging stations around the country. When the order was issued, the US had 40,000+ active charging stations, a number estimated to be insufficient to power the growing number of EVs. Later that year, the Biden administration put forth a strategy for building the network. In response, the AAI developed a list of "recommended attributes for charging stations" that provided data on charging rates, power grid requirements, charging costs, and station layouts.
Fuel formulation
In late 2010, the AAI was part of a coalition of engine manufacturers that filed a suit in the United States Court of Appeals to block the Environmental Protection Agency’s approval of an increase of the ethanol content of gasoline from 10 percent to 15 percent. The association expressed concerns that alcohol-blended fuel could cause damage or problems to engines that were not originally built to run on such a fuel. The association noted that the Clean Air Act required producers of any new fuel or fuel additive to show that those fuels would not contribute to the failure of vehicles or engines to meet emissions standards. The association and other plaintiffs requested time to conduct studies assessing the impact of an increase in the ethanol content of gasoline on newer model automobiles and small engines.The association and 30 other organizations—including Friends of the Earth, the National Black Chamber of Commerce, and representatives of the small-engine and snack-food industries—signed a letter in 2008 asking the House Committee on Science, Space, and Technology to support a bill requiring more study and scientific evaluation before so-called E15 fuels are approved for consumer use.
Safety and consumer protection
Alongside the now-defunct Automobile Manufacturers Association, in the late 1990s, the Association of Global Automakers advocated for U.S. regulators to begin recognizing some of the ECE regulations, which are used instead of U.S. regulations throughout most of the world.The association advocates a ban on the use of handheld devices to text or talk while driving as "an important part of vehicle crash prevention".