Nada Re. National Automobile Dealers Association Founded in 1917 the National Automobile Dealers Association represents the interest of new car and truck dealers to the public the media Congress and vehicle manufacturers Visit Association Site ©.
Coordinated EffortsStuff You Should KnowThe Existential Threat of Direct SalesElectrek’S TakeWhat you’re seeing is a coordinated effort between NADA and its member dealers to convince Congress not to do away with franchise protection laws that prevent manufacturers (read Tesla and Rivian) from selling cars directly to customers Part of that effort is convincing the lawmakers who get to decide those things that 1 the dealers are the people best equipped to meet the needs of consumers and 2 the dealers are genuinely engaged (“allin”) in the transition to EVs That “allin” message really started to gain traction within NADA last year when Mike Stanton became NADA President Mike gets it and he understands that dealers need to embrace EVs – but he’s not convinced that means adopting Tesla’s sales model “One of the great mistakes we make in assessing our progress on converting America’s fleet to electric is assuming that today’s EV buyers will look like the EV buyers of tomorrow” explains Stanton “This simply isn’t true” There’s some sense to that Not too long ago Full disclosure I come from the dealership world I got my first dealership job at a Dodge store in 1997 and in that time have worked almost every job you can at a dealership from lot porter to GSM I have sold lots of cars and more recently motorcycles PreCOVID I probably would have told you that I loved sales and that I’d never give it up (How things change!) I have also met NADA’s new President Mike Stanton several times and in several contexts In the last eighteen months or so I’ve interviewed him as both a journalist and podcaster and I’ve helped pitch him on the need for NADA to push dealers to adopt EV sales tools like Chargeway a company founded by my podcasting buddy Matt Teske Matt and I were invited to speak to the assembled ATAEs (Automobile Trade Association Executives basically state/metrolevel versions of the NADA) at their national conference in Chicago last July Along the way I have developed a number of working relationships (and a few genuine As I type this Tesla is using its “Tesla Engage” platform to activate its legions of fans and convince New York governor Kathy Hochul and the state legislature to allow direct sales of its electric vehicles – and as a consequence Lucid and Rivian‘s electric vehicles if not everyone else’s – in the state If that happened it would undoubtedly be a hit to the dealers That’s especially true in the long term because of this New York law would allow a manufacturer that “manufactures or assembles exclusively zeroemissions vehicles” and “has no franchised motor vehicle dealer of the same linemake” in the state to operate directsales locations That line about “no franchised motor vehicle dealer of the same linemake” means that Chevrolet couldn’t directly sell an electric Malibu in New York even if it produced exclusively zeroemissions vehicles Think that through though how many franchise Saturn dealers do you think there are in New York? Or Mercury or Plymouth or Ge A few months ago I had a candid conversation with Mike Stanton and Dan Ruddy (the Senior Director of Business Development at NADA) where we talked about big national companies coming into “small town America” (my words) and sweeping away the little guys We weren’t talking about Ford or GM or Tesla though we were talking about Walmart and the way that company decimated local businesses crushed families and turned rural Main Streets into ghost townsthroughout the 1980s and into the 2000s And sure the local car dealer probably isn’t quite as sympathetic a character as the local pharmacy or hardware store but the fact remains that local car dealerships are often one of a town’s top employers and make up a significant percentage of their municipal tax dollars too The impact that a transition to a direct sales model might have on those small towns is unclear – and often ignored altogether in a rush to punish dealers for their wrongs both real and imagined (never mind the.
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NADA says they're 'allin' on EVs – but where they lead, will
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