National Automobile Dealers Association

Commentary: Employment at New-Car Dealerships Rising

By NADA Chairman Forrest McConnell, III — May 2014

NADA Chairman Forrest McConnell IIISelling cars is not the only thing franchised new-car dealers contribute to the nation’s economy. Next to stocking their showrooms and lots with vehicle inventory, auto dealers create many jobs in their communities. Between the need for quality sales consultants and expert service technicians, America’s new-car dealers employ 1 million people nationwide.

Rising auto sales are having a positive impact on the economy, and dealers across the country are hiring. More than 1 million people were employed at U.S. new-car dealerships last year. It marked the first time reaching this milestone since falling during the recession in 2009.

New-car dealers employed 1,008,800 people in 2013, up 3.4 percent from the previous year, says NADA Data 2014, an annual report on dealership sales and financial trends.

New-car dealers employed an average of 57 people with an average payroll of $3 million last year, up 3 percent. Total payroll for all new-car dealerships in the U.S. was $53.7 billion last year.

Franchised new-car dealerships are an economic engine on Main Street, U.S.A, and these good paying jobs cannot be outsourced or sent overseas.

For a complete financial profile of U.S. new-car dealerships, check out NADA Data 2014.

Forrest McConnell, III, is president of McConnell Honda/Acura in Montgomery, Ala.

Bill to Cut Auto Dealership Red Tape Headed to White House

H.R. 724, a bill that repeals an unnecessary paperwork burden on small business auto dealerships, is headed to the president’s desk. The NADA-backed measure, which passed the U.S. Senate on May 22 by unanimous consent, eliminates a 1977 federal mandate requiring auto dealers to verify that new vehicles are compliant with the Clean Air Act. “All new cars and light trucks delivered to dealerships from the factory already come with documentation that the vehicles conform to federal emission laws,” said Forrest McConnell, NADA chairman and a Honda/Acura in Montgomery, Ala. “Requiring dealerships to fill out a form to recertify that a new vehicle complies with the Clean Air Act is redundant and unnecessary.”

Deadline to Participate in Dealership Workforce Study is June 30

Stay ahead of the competition. Participating dealerships will receive two complimentary reports designed to improve recruiting and hiring decisions.

Attracting and keeping talented employees is a major challenge for new-car and -truck dealers. To assist with this task, NADA and ATD members can participate in the 2014 Dealership Workforce Study. The enrollment period ends June 30. There is no cost to participate, and dealers will receive two complimentary reports, which include:

• 2014 Dealership Workforce Study Basic Report, a custom report that compares the individual dealership’s compensation for 60 job positions, employee benefits programs, hours of operation, work schedules, and retention and turnover to the aggregated data of other participating dealerships, both regionally and nationally; and

• 2014 Dealership Workforce Study Industry Report, which provides an overall industry-wide analysis of the aggregated DWS data, including hiring and retention trends, demographics such as generational differences and the gender gap, compensation, tenure, employee benefits statistics, plus hours of operation and work schedules for all U.S. regions, as well as an economic overview of 2013 and forecast for the future.
Dealers can enroll as individual dealerships or dealer groups using a secure, web-based process that includes completing a survey and uploading payroll data. Dealers can enroll at For more information, send an email to or call (800) 557-6232.

NADA Foundation Seeks to Increase Charitable Giving through Ambassadors Program

The Ambassadors program of the National Automobile Dealers Charitable Foundation will provide more than $250,000 in grants to hundreds of local organizations across the country this year. “Our goal is to increase the number of Ambassadors in the program,” said Bob Mallon, chairman of the NADA Foundation. To become an Ambassador, an individual, association or a company makes a tax-deductible contribution of $10,000 in their name or in recognition of someone living or deceased. They are then eligible to provide a $1,500 grant to an organization of their choice every three years in perpetuity. Today, there are 670 Ambassadors, which includes 54 state and metro dealer associations. Thirteen of the 54 dealer groups have three or more ambassadorships and are designated Ambassadors of Distinction. They can provide $2,000 grants each year. For more information or to become an Ambassador, contact the NADA Foundation at (703) 821-7102 or