Dear NADA Directors, staff, and ATAEs,
As we enter October, I am grateful and honored to serve as your 2025 Chairman of NADA. What a few months we’ve had! Over 450 dealers and ATAEs came to Washington, D.C. to meet with lawmakers to advocate for dealer legislative priorities; NADA moved to intervene in CARB’s lawsuit against the EPA; and NADA continues to fight threats to the franchise system.
Last month, I had the pleasure of speaking with franchised dealers and ATAEs who met in the nation's capital for the 50th annual Washington Conference. It was an extraordinary milestone and event. In over 200 meetings, attendees encouraged lawmakers to cosponsor the “PART Act,” which would help law enforcement crack down on catalytic converter theft. They urged lawmakers to oppose so-called “Right to Repair” legislation, a bill that has little to do with repairing vehicles but everything to do with allowing more knock-off imported auto parts into the U.S. And, they thanked those lawmakers who voted for the “One Big Beautiful Bill Act,” which contained tax provisions that will significantly help small business dealers. ATAEs and dealers also shared their thoughts on tariffs and how they will impact their businesses.
At the Washington Conference breakfast, dealers heard directly from House Energy and Commerce chairman Brett Guthrie (R-Ky.) and Senators Bernie Moreno (R-Ohio) and Elissa Slotkin (D-Mich.). These senators played key roles in the successful passage of the CRAs that overturned California's ban on gas and hybrid vehicles.
Many of you will recall that California sued hours after President Trump signed the CRAs into law. The lawsuit seeks to reinstate California’s ban on gas, hybrid and diesel trucks, as well as its Omnibus Low NOx standards, which were unachievable. NADA and ATD have moved to intervene in that lawsuit and are defending the CRAs.
Meanwhile, the franchise system continues to face considerable challenges, prompting NADA to work closely with ATAEs to safeguard the interests of dealers and consumers and protect state franchise laws.
The California New Car Dealers Association took decisive action this summer by initiating two lawsuits—one against Scout/VW and another against Honda/Sony—on the grounds of violating the state’s franchise laws. These actions follow extensive outreach to the respective automakers, as well as a series of public communications regarding the benefits of the franchise system.
Have no doubt, we remain steadfast. NADA is committed to advocating for the franchise system as the most effective way to deliver exceptional customer experiences and meet today’s marketplace demands.
This has coincided with the unfair competitive challenge posed by Chinese OEMs as they seek to enter the U.S. market. In previous communications, I highlighted the increasing market share of Chinese automobiles in close, allied countries, as well as in emerging markets. My recent visit to Brazil further confirmed this trend.
General Motors currently holds a 10% market share in the passenger vehicle segment in Brazil. Other American automakers have not fared better; Ford has a single-digit market share there. This trend raises significant concerns, especially as Chinese automakers – with significant and unfair support from the Chinese government – are becoming increasingly competitive. Unfortunately, this external challenge is likely to persist and will continue to pose serious competitive threats to manufacturers and dealers alike.
In closing, let us not forget that the Las Vegas NADA Show is around the corner, Feb. 3 through Feb. 6, and our show chair, Trace Beck, and NADA Senior Vice President Melissa Wolpert will kick it all off with the welcome reception at the iconic home of the Formula 1 Las Vegas Grand Prix. And it only gets better from there!
This promises to be an outstanding show. Be sure to plan accordingly and register today to avoid missing out! We look forward to seeing you in Las Vegas!
Semper Fi,
Tom Castriota
