‘Auto dealers know how to compete’

Editor's note: An earlier version of this story incorrectly quoted NADA Chairman Geoff Pohanka while referencing brands that are direct sellers.

Preserving, protecting and promoting the new-vehicle franchise system are the primary objectives for 2023 NADA Chairman Geoff Pohanka as he stands with dealers to tackle the industry’s challenges this year.

Pohanka addressed a packed house on Saturday at the NADA Show, emphasizing some of the friction between dealers and their brands, including the growth of digital retailing, electric vehicle sticker prices and the rise of direct sellers.

“Dealers and OEMs essentially want the same things: to give a customer a great buying experience and to sell lots of cars and trucks,” Pohanka said. “We don’t always agree on how to do that.

“OEMs often don’t understand how complex it is to sell the car,” he said, while some manufacturers think that building a so-called omnichannel with an “order now button” is a surefire way to boost sales.

“There are hundreds of steps that we take before handing the keys over to a customer,” Pohanka said.

Acknowledging the collective desire to be part of the growing market for EVs, Pohanka said it is fueled by consumer demand but involves government regulations that are difficult for OEMs.

Such regulations could “financially exhaust” some manufacturers, he said.

The rising cost of commodities to manufacture batteries also will make EVs more expensive and price some consumers out of the market, forcing them to buy a used car or keep what’s already in their driveway.

“That’s not good for the economy, the environment or public safety,” Pohanka said.

He urged that brands that are direct sellers need to be held accountable to the same laws and regulations as everyone else.

“The grass is not greener on the other side,” he said. “It’s greener where you water.

“We can borrow the best ideas from our franchise competitors and combine them with their own innate strengths. We can double down on what we do best and compete,” Pohanka said.

“Auto dealers know how to compete.”