There is a better way, of course, one in which automakers and their dealers work more closely together, grow their collective businesses and provide an unrivaled customer experience. That’s why, in 2022, NADA worked with state associations, dealer councils and dealer leaders from around the country to create a framework for dialogue to address the biggest opportunities we face. The result was last fall’s launch of NADA’s Guiding Principles on Evolving Business Models and the Dealer Franchise System, which is available at nada.org/principles.
The words on the page are now being put into action. Dealers are having productive discussions with most automakers. In many instances, they are spending time debating the best approach to our age-old challenges, with different automakers and dealer bodies opting for different go-to-market strategies. What’s more, important new topics — like better approaches to data sharing and downstream revenue sharing and finding ecosystem efficiencies, to name just a few examples — are being added to the discussions.
Automakers appreciate that dealers are increasingly leaning into the dealer-factory relationship. And dealers appreciate the clarity that most automakers are providing by publicly committing to them and recognizing the competitive advantage they provide.
So let’s stop with the threatening rhetoric. It’s a distraction that takes time and effort away from what is most important. To win today, we need to be committed not just to strengthening our relationship, but to remembering that our words about that relationship matter every bit as much as our deeds.
