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CAR DEALERS SPEND $5 BILLION ANNUALLY ON EMPLOYEE BENEFITS, NADA REPORTS

 WASHINGTON, Oct. 12 /PRNewswire/ -- Virtually all new-car dealerships provide health insurance plans for their employees, and the cost of all employee benefits totaled $5 billion in 1992, the National Automobile Dealers Association (NADA) reported. Other employee benefits commonly provided include dental plans, paid vacations, paid sick leave and retirement plans.
 "Health care costs are already a major expense for most dealers in this country," said NADA President James K. Lust. "As the debate begins over a national health care program, our message is that it will be difficult, if not impossible, for many dealers to absorb another federally mandated expense and continue to operate at a profit."
 Health care costs accounted for most of the $1.5 billion in dealership employee benefits expenses that were non-federally mandated. Seventy-two percent of dealership health plans include dependents, and 39 percent of dealerships paid the full cost of this benefit.
 Dental plans were provided by 43 percent of the stores, with 28 percent footing the entire bill. More than half (51 percent) of all dealerships gave their employees paid sick leave in 1992.
 "The health care debate has just begun, and I believe the resulting legislation, if it happens, will be a compromise plan. While recognizing the need for health care reform, I hope the measure will reflect the interests of the business and health care communities, the Congress and the Clinton administration," Lust said.
 The National Automobile Dealers Association represents more than 19,000 franchised new-car and -truck dealers holding 35,000 separate franchises, domestic and import.
 -0- 10/12/93
 /CONTACT: Donna Reichle of the National Automobile Dealers Association, 703-827-7403, or fax, 703-821-7075/


CO: National Automobile Dealers Association ST: District of Columbia IN: AUT HEA SU: LEG

DT-DC -- DC023 -- 1265 10/12/93 16:12 EDT
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Publication:PR Newswire
Date:Oct 12, 1993
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