(The Center Square) – The Colorado Automobile Dealers Association recently released its preview of the 2025 legislative session, laying out its goals and plans for advocating for and against certain legislation.
Legislation priorities could include everything from increases to the minimum wage to expanding healthcare coverage to illegal immigrants. All of these issues could “significantly impact the Colorado Automobile Dealers Association,” it reported.
The association advocates on behalf of the automotive retail industry throughout the state, including its 260 member dealerships.
In the 2025 legislative session, which begins on Wednesday, Jan. 8, the association will be closely monitoring efforts by the Colorado General Assembly to reform the unionization process.
While the state currently has a two-step election process to form a union, proposed legislation will remove the second step. This will make it easier for workers to unionize.
“Simplifying the unionization process might lead to more unionized dealerships, which could result in higher wages and better working conditions, but also increased operational costs and more complex labor negotiations,” the association said.
Additionally, legislation to raise the minimum wage could also increase costs for dealerships.
“CADA has traditionally fought to limit this to hourly employees,” it said. “Higher wages may lead to increased prices for services and vehicles, affecting profit margins.”
Other highlighted legislative initiatives deal with expanding public healthcare options, which the association says could “play a critical role” on the “broader economic conditions” in the state.
All of these issues together could negatively affect the automotive industry by increasing operational costs for businesses, leading to higher costs for consumers.
“While auto dealerships are more insulated than some other industries, both the proposed increase in minimum wage and potential for more unionized workplaces could lead to higher operational costs for auto dealerships,” CADA said. “These costs may need to be passed on to consumers, which could affect competitiveness and sales.”
Currently, new auto registrations are up in Colorado over national registrations, though a Colorado Auto Outlook from CADA says the new vehicle market in the state is “stuck in neutral” with growth slowing going into 2025.
