Industry and Regulatory Issues Top List of Dealer Concerns
Orlando, Fla. – Despite the industry and regulatory challenges of the moment and an uncertain future, David Westcott, the new chairman of the National Automobile Dealers Association (NADA), said he remains confident about the future of the auto retailing. He said one of the biggest challenges facing dealers is their relationship with manufacturers.
“The issues posed by stair-step incentive programs and by mandatory facility upgrades are just two of the most recent examples of manufacturers intruding into dealers’ businesses,” said Westcott, in remarks at the NADA Convention and Expo in February.
Westcott, a Buick GMC dealer in Burlington, N.C., said the development of stair-step incentives are an understandable response to the need for higher sales by the manufacturer, but “many stair-step incentive programs raise fundamental questions of fairness.”
With diverse markets, some larger or more affluent than others and often located in the same geographic area, Westcott urged dealers to press manufacturers for ways to make sure that all dealers, from the largest to the smallest, are treated fairly and equitably. “Sometimes facility upgrades are needed, but that decision must be tied to the particular needs of a dealership and not driven by a one-size-fits-all mandate,” he said.
Westcott urged dealers to become part of an effort to remove government mandates by providing feedback on how “useless and obsolete policies” are affecting their stores, so that NADA could look into getting rid of them.
Highlighting a recent success, Westcott in his first speech as NADA chairman, raised a booklet in his hand and asked if anyone knew what is was. “This is the insurance booklet that practically no one ever asked for, but dealers were still required to have on hand for our customers or face a $1,000 fine,” he said. “Did you know this requirement was on the books for 21 years. But not anymore – we fought and Congress got rid of it.”
“Some of these regulations are just plain silly,” Westcott added. “This year, we are looking to eliminate the rule that requires a dealer to sign a document that basically says a new car has an emissions system. Seriously, has anyone here ever gotten a car from the factory that didn’t have a muffler?”
Westcott said the federal government is forcing the auto industry through a period of rapid change, citing several challenges, such as higher fuel economy requirements, potential regulation of auto lenders by the Consumer Finance Protection Bureau and tax reform. “The impact that vastly higher fuel economy requirements will have on the number of new vehicles our customers are willing and able to buy could be dramatic,” Westcott said. “And who knows what unintended adverse consequences will result from the major tax reform efforts in Washington.”
More Industry

Nebraska Rooftop Changes Hands
The Gregg Young Automotive Group has sold its second dealership to Janssen Auto Group, both in Plattsmouth, Neb.
Read More →
Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →