NADA charts a new course in automotive retail

NADA staff shared the principles with automakers at meetings to review the results of the association’s biannual dealer attitude survey. Brands that have had meetings with NADA include Ford, Hyundai, Lincoln, Mercedes-Benz, Porsche and Nissan.

The feedback so far has been “incredible,” Stanton said. “Manufacturers have been very responsive to what we’re saying.”

Stanton, who attended the meeting with Ford, said sharing the guiding principles changed the tenor of the discussion.

“‘Us versus them’ turned into an ‘us’ meeting very, very quickly,” he said. “And that’s the reaction we want.”

Shaun Bugbee, executive vice president of operations for BMW North America, said NADA’s guide rails align with those of the German luxury automaker.

“We’ve been very direct with our dealer group when considering future initiatives – whether it’s data sharing, [or] digital retail – that we would make this transformation with our network under the current wholesale franchise model. »

Bugbee said NADA’s position is to support and protect the existing franchise model.

“They are asking for cooperation between OEMs and dealer partners,” he said. “That’s what we’ve done from the start. There’s nothing about this model that’s contrary to… where we’re going strategically.”

A number of other car manufacturers contacted by Automotive News last week declined to comment pending their review of the Principles.

NADA also shared the document with the Alliance for Automotive Innovation, which represents Ford and other major automakers in the United States.

CEO John Bozzella said the industry trade group “enjoys the conversation and collaboration”. He did not, however, say whether the group fully supports the guiding principles.

“NADA’s desire to recognize and embrace change is welcome, and I think the principles give us the opportunity to talk about how we can do this effectively together,” Bozzella said, noting that the franchise model is a “competitive advantage” for automakers.

“We also believe there is a continued opportunity to improve and ensure the competitiveness of this franchise model,” he added, “and those are conversations we continue to have with NADA. “

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