Dear Senators Mikulski and Bond:

Each day brings fresh news about the extraordinary and challenging economicconditions facing all automakers in the United States. As many haveobserved, the automobile industry and its 20,000 retail dealers compriseone of the most important sectors of the American economy. It is for thisreason we write in support of your bill S. 3684, a creative and importantpart of the effort to reinvigorate our economy and our industry.

Allowing consumers to deduct interest payments and excise taxes on new carsales and loans, as S. 3684 provides, will help invigorate sales andrestore vitality to our industry. Such legislation, particularly ifamended to apply also to new vehicle leases and adopted prior to the wintersales season, would provide a useful incentive for consumers to return todealer showrooms at a critical time.

It is difficult to underestimate the importance of the auto industry to theAmerican economy. Car and truck sales have historically representedapproximately 20% of all retail sales annually in the United States.Located in communities across the country, car dealerships employ over 1million men and women. Spending by these employees creates a positiveripple effect that is vital to the revival of America's economic health.

With this year's dramatic declines in auto sales and production, it iscritical that we develop solutions that move our economy forward. S. 3684would provide a much needed "shot in the arm" for automakers, componentsuppliers -- the "backbone" of our national economy -- and dealers.

AIAM supports S. 3684 and urges its prompt adoption.

Sincerely,

Michael J. StantonPresident and CEO

About AIAM - The Association of International Automobile Manufacturers,Inc. (AIAM) is a trade association representing 14 international motorvehicle manufacturers who account for 40 percent of all passenger cars andlight trucks sold annually in the United States. AIAM provides memberswith information, analysis and advocacy on a wide variety of legislativeand regulatory issues impacting the auto sector. AIAM is dedicated to thepromotion of free trade and to policies that enhance motor vehicle safetyand the protection of the environment. Member companies include AstonMartin, Ferrari/Maserati, Honda, Hyundai, Isuzu, Kia, Mitsubishi, Nissan,Peugeot, Renault, Subaru, Suzuki and Toyota. For more information, visitour web site at www.aiam.org.

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