Outgoing Nada chairman calls on sellers to battle for franchise mannequin. In his last handle to the nation’s franchised new-car sellers because the 2024 NADA Chairman, Gary Gilchrist warned carmakers of the hazards of shifting to director gross sales and chopping sellers out of the equation.
Sellers expressed considerations final 12 months over Volkswagen’s Scout Motors and Sony Honda plans to go for a direct gross sales mannequin.
“Let me say it plainly, so it is clear to everyone: Any decision by any automaker to try to compete with or cut out its dealer partners is misguided,” mentioned Gilchrist
“Any direct-sales model would do nothing less than undermine any automaker’s relationship with its franchised dealers, and every single one of those dealers has already made significant investments in their current brands and future products.”
He additionally hit out on the ‘regulatory overreach” within the US with targets for electrical veheicles.
“Dealers have never played a more central role in delivering the best possible customer experience than they do today,” Gilchrist, a third-generation seller, mentioned on the 2025 NADA Present in New Orleans.
“And as of just a few days ago, the federal government is getting out of the business of telling you how to sell cars, and what kinds of cars you have to sell. And I have only one thing to say in response to that: It’s about time.”
Gilchrist mentioned with the brand new Trump administration NADA and sellers “can finally stop playing constant defense and can start playing more offense.”
“We’re going to push for sensible, workable and achievable emissions regulations that finally, finally put the customer at the head of the table,” Gilchrist mentioned.
“Any direct-sales model would do nothing less than undermine any automaker’s relationship with its franchised dealers, and every single one of those dealers has already made significant investments in their current brands and future products.”
In early January NADA President and CEO Mike Stanton issued the next assertion in response to Sony Honda Mobility’s announcement of plans to try direct gross sales for its automobiles:
“We are unfortunately not surprised but are still very disappointed with Sony Honda Mobility’s stated plans to sell its vehicles directly to consumers and compete with its Honda and Acura dealer network. Honda should understand that any misguided attempt to bypass or undercut its U.S. dealers will be challenged in statehouses and courthouses across the country – with NADA’s full support.”
