Acknowledging that the franchised dealership model is evolving, NADA has issued a set of guiding principles on its relationship with automakers going forward.
What NADA is for
What NADA is against
» Using the dealer franchise system for all new vehicles sold and serviced in the U.S.
» The further creation of different sets of regulatory requirements for different OEMs for the distribution of motor vehicles in the U.S.
» Each state applying its regulatory requirements to all entities allowed to sell motor vehicles in the state, and consistent enforcement of such requirements.
» Automakers selling vehicle features directly to consumers without dealer involvement and revenue sharing.
» Dealers working with their automakers regarding downstream revenue / subscription / activation services to enhance the customer experience and create win-win solutions for dealers and automakers.
» Inventory allocation / reservation / ordering programs that fail to fully embrace the franchise distribution system.
» Reservation / ordering programs when the customer reservation/order is placed via the dealership that the customer chooses.
» Third-party vendor agreements that do not take proper dealer protections and interests into account.
» Transparent pricing and delivery policies that are fully disclosed at or before the time the customer places the reservation / order and requiring automakers and dealers to honor any commitments made at the time the customer places the reservation / order.
» One-sided agreements that only consider the automaker's interests.
» Vehicle allocation policies (including in connection with reservation / ordering programs) that are fair, transparent and administered in a consistent and nonarbitrary manner.
» Automaker-to-dealer cost shifting that benefits the automaker only.
» Dealers and automakers sharing data pursuant to NADA's established Data Sharing Principles.
» Dealers working with their respective automakers to determine an optimal customer experience via two-way data sharing that creates win-win scenarios for dealers and automakers.
» Identifying efficiencies that may lead to a reduction of costs inherent in distribution.
SOURCE: NADA
