NADA Launches Major New Initiative to Promote the Benefits of Franchised Auto Dealers




McLEAN, Va. (June 16, 2014) - The National Automobile Dealers Association has rolled out a new "Get The Facts" initiative to inform the media, opinion leaders and policymakers about the numerous benefits of America's franchised new-car dealer network through a website and variety of multimedia resources available at .

The centerpiece of the project is a two and a half minute animated video detailing the benefits of the franchised dealer system, viewable here. Other resources include a 30-second video, a fact sheet on the consumer benefits of dealers, a longer informative FAQ, a document explaining the reasons for state franchise laws, an infographic and other materials. On June 17, NADA will release a new report by renowned auto industry analyst Maryann Keller on the consumer benefits of the dealer franchise system.

"Franchised new-car dealers provide the best, most efficient and most cost-effective way to sell and distribute new cars in America, and we're proud of our businesses and business model," said NADA President Peter Welch.

"NADA's efforts will set the record straight about the benefits of the dealer franchise network for consumers, manufacturers and local communities everywhere," Welch added. "New-car dealers provide the best and most efficient way to buy and sell cars for both consumers and manufacturers, despite the misinformation and misconceptions that have surfaced over the last several months."

NADA has presented the materials to state and metro dealer associations as well as individual dealers across the country, and is encouraging them to co-brand the materials and present them on their own websites.

"Franchised new-car dealers benefit consumers through price competition, accountability on warranty and safety recall issues, and provide enormous economic benefits to local communities across the country," Welch said. "The dealer franchise network is supported by automakers as the best and most efficient way to buy, sell and service cars in the marketplace."

The "Get The Facts" initiative highlights four central benefits of franchised auto dealers, which include:

  1. Price Competition - New-car dealers compete fiercely for business and drive consumer prices down;
  2. Consumer Safety - New-car dealers take the side of consumers in warranty and safety recall situations;
  3. Local Economic Benefits - New-car dealers create well-paying local jobs and generate significant tax revenue that have a huge impact on local economies; and
  4. Added Value - New-car dealers simplify an otherwise complex car-buying experience.

There are 17,700 new-car dealerships with nearly 32,000 domestic and international franchises that employ more than 1 million people in the U.S.

For more information, visit .

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