A key message to franchised dealers that got here out of the NADA Show this week was to be unafraid of tackling OEMs through the courts for unjust, illegal and anti-competitive behaviour.
Mike Stanton, chief executive of the USA’s National Automobile Dealers Association (NADA), told gathered delegates on the convention in Las Vegas: “Our primary mission at NADA is to make sure that the franchise system stays strong.”
Within the USA, many states have laws which aim to guard franchised dealers’ investments from actions by the OEM which could impair their ability to compete. The protection is much stronger than that which the UK laws provide for our franchised dealers.
He said activity by OEMs to compete against their very own franchise investors, by starting direct sales, “is not going to go unchallenged”. He cited the examples of Scout Motors, a start-up brand backed by Volkswagen Group, and Sony-Honda, a three way partnership between the 2 Japanese corporations which goals to sell EVs direct.
NADA’s letters to Volkswagen in Germany “have gone unanswered”, he said, adding that “when diplomacy fails, litigation is a must”.
Stanton identified that franchised dealers within the USA sold 96.2% of all of the vehicles there in 2025. “Price, competition, safety, convenience, access to competitive financing, local jobs, tax revenue, community involvement and charitable contributions are all a part of the worth that dealers provide, values linked to the franchise system. The system works for our country, our communities, our automakers, and, most significantly, our customers.
“Now, the underside line is, when dealers compete, our customers win, nevertheless misguided attacks on our system proceed, most recently, from what have been two traditional partners now with the intention of becoming two potential competitors.”
Well funded and representing an industry of greater than 18,000 dealerships within the USA, NADA has a 182-strong team focused on educating, promoting and protecting America’s franchised dealer networks.
Stanton finished by urging all dealers to construct relationships with their elected representatives because it is important to make sure these people understand the industry and its challenges.
This Article First Appeared At www.am-online.com
