New NADA Task Force Sets Vigorous Agenda on Facility Image and Stair-Step Incentives

William P. Underriner — July 2012

COMMENTARY
  
Underriner
2012 NADA Chairman
Factory-mandated dealership upgrade programs and stair-step incentives (or two-tier pricing) are two highly-contentious issues facing many new-car dealers. Some of these programs, as currently administered by the auto manufacturers, are also causing confusion among consumers and disrupting business.

To address these issues with auto manufacturers, the National Automobile Dealers Association has created an Industry Relations Task Force, which set a vigorous agenda at its first meeting in June. The work of the task force is a high-level priority and has been fast-tracked.

As each day passes, NADA recognizes that dealers are reaching deadlines to make huge financial decisions about investing in their facilities. Working on an expedited timeline, the NADA task force will meet face-to-face in Washington in early August to explore all options to support dealers.

In addition, Phase II of NADA’s facilities image study, which is currently underway, will analyze return-on-investment. And questions that will evaluate dealer opinions and experiences with facility programs have been added to NADA’s Dealer Attitude Survey for July. The survey is conducted twice a year.

NADA policy is clear: All dealers – large or small, urban or rural – should be treated fairly by their manufacturers. Automakers should be flexible and give all dealers an equal chance to benefit from these programs.

Bill Underriner
NADA Chairman