TYSONS, Va. — As auto retail evolves, largely driven by developments in online sales and technology, a shift to electric vehicles and threats from direct-to-consumer transactions, the National Automobile Dealers Association wants to dispel the notion that franchised dealers refuse to adapt.
"We're willing to grow. We're willing to change, but we're also very, very optimistic about the future of the franchise model," NADA CEO Mike Stanton said in an interview at the association's headquarters here.
NADA shared with Automotive News this week a new framework on evolving business models and the dealer franchise system to provide a more defined path forward for dealers and automakers as they navigate a fast-changing auto retail landscape. The principles, in part, are intended to jump-start deeper, more meaningful discussions between franchised dealers and their automakers. They highlight five broad areas — covering topics from subscription services and over-the-air updates to vehicle reservations and data sharing — that have become more prevalent, demanding greater clarification of the dealer's role.