It is my privilege to serve as Georgia’s NADA Director. It is gratifying to be part of such a supportive organization. NADA supports dealers not only in Washington but also with manufacturers. It also promotes the many benefits of franchise dealerships to the media, lawmakers and the public. The many programs and services NADA provides make being a member of NADA a no-brainer. Learn more about the benefits of NADA membership and join today.

Here’s a summary of just some of the issues on NADA’s agenda in the months ahead:

VW/Scout Direct Sales

VW’s attempt to sell Scout vehicles directly to consumers and Sony Honda Mobility’s announcement of intentions to sell directly to consumers, without utilizing franchised dealerships, is misguided and bad for consumers.

Recently, the Colorado Motor Vehicle Dealer Board granted VW-owned Scout Motors a dealer license, allowing VW/Scout Motors to sell new, used and wholesale vehicles directly to consumers in Colorado. The Colorado board’s decision to allow VW/Scout to undercut their franchised dealers sets a troubling precedent that undermines important protections for both dealers and consumers.

NADA will work closely with the Colorado Automobile Dealers Association (CADA) as next steps are determined. NADA continues to oppose VW/Scout’s direct-to-consumer strategy nationwide by supporting litigation in California and Florida to protect the state vehicle franchise model and consumers. In addition, NADA, through its Legal Defense Fund, has assisted GADA in a direct sales challenge brought by Lucid Motors.

NADA will continue to work with state association executives to determine the best paths forward to protect the franchise system and stand behind dealers.

Reset of CAFE Rules

President Trump and the National Highway Traffic Safety Administration (NHTSA) announced a plan to overhaul Corporate Average Fuel Economy (CAFE) standards starting with 2022 model year vehicles. This comes after findings from the Trump administration that previous standards improperly factored in the efficiency of non-gas vehicles, resulting in unachievable requirements. The revised fuel efficiency standards, combined with the administration’s proposal to eliminate Biden-era EPA standards, will relieve regulatory pressure on manufacturers to produce EVs in excess of consumer demand.

NADA plans to submit written comments for the record and testify at the NHTSA hearing in support of the proposed CAFE standards.

So-Called “Right to Repair” Legislation

The REPAIR Act (H.R. 1566/S. 1379) creates a legal path for unlimited third-party access to all vehicle data, which would create intellectual property and data security risks. The REPAIR Act would also open warranty and repair work to independent dealers. The REPAIR Act is being considered as a candidate for inclusion in this summer’s Surface Transportation Reauthorization bill, often referred to as “the highway bill,” which is reauthorized every five years.

NADA, along with other industry stakeholders, will be sending a letter to the subcommittee in opposition to this legislation and will continue its efforts to prevent the passage of this bill and block its inclusion in the upcoming Surface Transportation Reauthorization bill.

Tariffs

The threat or imposition of tariffs on countries critical to U.S. auto manufacturing and supply warrants NADA’s engagement. NADA is working with stakeholders across the auto industry and is engaging the administration and Congress to protect dealer interests. 

In November, the U.S. Supreme Court heard oral arguments in Trump v. V.O.S. Selections Inc., which addresses the legality of President Trump’s tariffs under the International Emergency Economic Powers Act (IEEPA). While the case could generate significant headlines about tariffs, it’s essential for dealers to understand that the case does not significantly impact the tariffs on vehicles and vehicle parts.

Stay informed about the latest NADA issues and events. While GADA always makes its best effort to pass important NADA information to you, I encourage you to maintain NADA membership, read NADA emails and participate in NADA’s many educational offerings. 

I wish you all another successful year, and I look forward to working together.

Matt Laughridge
NADA Director