A key message to franchised dealers that came 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 at the convention in Las Vegas: “Our primary mission at NADA is to ensure that the franchise system remains strong.”
In the USA, many states have laws which aim to protect franchised dealers’ investments from actions by the OEM which could impair their ability to compete. The protection is far stronger than that which the UK laws provide for our franchised dealers.
He said activity by OEMs to compete against their own franchise investors, by beginning direct sales, “will not go unchallenged”. He cited the examples of Scout Motors, a start-up brand backed by Volkswagen Group, and Sony-Honda, a joint venture between the two Japanese companies which aims 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 pointed out that franchised dealers in the USA sold 96.2% of all the vehicles there in 2025. “Price, competition, safety, convenience, access to competitive financing, local jobs, tax revenue, community involvement and charitable contributions are all part of the value that dealers provide, values linked to the franchise system. The system works for our country, our communities, our automakers, and, most importantly, our customers.
“Now, the bottom line is, when dealers compete, our customers win, however misguided attacks on our system continue, 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 more than 18,000 dealerships in 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 build relationships with their elected representatives because it is vital to ensure these people understand the industry and its challenges.