Industry and regulatory issues top the list of dealer concerns
Feb. 14, 2013 /PRNewswire-USNewswire/ -- David Westcott, a Buick, GMC and Suzuki dealer in
Burlington, N.C., is the new chairman of the National Automobile Dealers Association, a trade group representing nearly 16,000 new-car and -truck dealerships in the U.S.
Despite the industry and regulatory challenges of the moment and an uncertain future, Westcott said in his first speech as NADA chairman that he remains confident about the future of 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 keynote remarks at the NADA Convention and Expo in
He 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 raised a booklet in his hand and asked if anyone knew what is was.