S5E01 - Mastering the Balance of Leadership At Your Dealership
About this episode
Mike Stanton, president and CEO of NADA, discusses the current challenges and optimism within the dealership industry, focusing on affordability, interest rates, and public policy. He emphasizes the importance of franchise laws in protecting dealers and consumers, and addresses the complexities of car buying compared to simpler retail experiences. Stanton also explores dealer consolidation, its impact on local presence, and the need for continued dealer engagement in advocacy. The conversation highlights the evolving landscape of automotive retail and the critical role dealers play in navigating regulatory and market changes.
NADA President & CEO Mike Stanton discusses dealer sentiment around affordability concerns, NADA's work to strengthen the dealer environment, key public policy initiatives and strengthening the franchise system.
In this episode you’ll hear:
- The pulse on dealer economic concerns
- How NADA is addressing technician shortages and training
- Protecting dealers and remaining compliant with Artificial Intelligence
For more information about our guest, visit their LinkedIn.
Episode Breakdown
0:00 - How are dealers feeling this year?
3:42 - Franchise laws are evolving
10:17 - Effects of dealer consolidation
13:17 - How do you pronounce NADA?
13:52 - Addressing technician shortages and training
16:04 - What Mike is excited for this year
16:42 - Protecting Dealers and remaining compliant with AI
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NADA
"the energy on this floor here at NADA,"
NADA is a group that helps car dealers in the U.S. work together and share important information about selling cars.
NADA stands for the National Automobile Dealers Association, which is a trade organization representing car dealers in the United States. They often hold events and provide industry insights.
leasing
"And our dealers are looking for more leasing,"
Leasing means you pay to use a car for some time, like renting it, instead of buying it. After the lease ends, you give the car back.
Leasing is a way to use a car for a set period by paying monthly fees without owning it outright. It often involves mileage limits and conditions on the car's condition at return.
interest rates
"interest rates to improve."
Interest rates are extra money you pay when you borrow money to buy or lease a car. Lower rates mean cheaper payments.
Interest rates are the cost of borrowing money, expressed as a percentage. They affect how much you pay monthly on car loans or leases.
franchise laws
"That's always an important aspect of our industry, and franchise laws, of course, are a big component. Where do you see franchise laws evolving over the next few years to continue to help"
Franchise laws are rules that decide how car companies and their dealers work together to sell cars. They help make sure dealers follow certain rules and protect buyers.
Franchise laws govern the legal relationship between car manufacturers and their authorized dealerships, affecting how cars are sold and serviced. These laws can impact pricing, dealer operations, and consumer protections.
franchise agreement
"a lot of which is dictated by the franchise agreement with the manufacturer. So at NADA, we support the states."
It's a deal between a car company and a car dealer that says how the dealer can sell and fix the company's cars. It sets rules for things like prices and where the dealer can operate.
A franchise agreement is a legal contract between a car manufacturer and a dealership that outlines the terms and conditions for selling and servicing the manufacturer's vehicles. It governs aspects like pricing, territory, and operational standards.
Volkswagen
""...Well, of course, I mean, we've all read and heard about VW and Scout, Luluzoni and Honda...""
Volkswagen is a big car company from Germany that makes popular cars and works with many dealers around the world.
Volkswagen (VW) is a major German automotive manufacturer known for models like the Golf and Passat, and for its global dealer network.
Honda
""...and Scout, Luluzoni and Honda and their misguided, foolish attempts to divert resources...""
Honda is a well-known car company from Japan that makes cars and motorcycles and sells them through dealers.
Honda is a Japanese automotive manufacturer known for reliable cars and motorcycles, with a widespread dealer network.
direct-to-consumer sales
""...foolish attempts to divert resources from their own dealer partners and compete directly with their own dealer partners.""
Direct-to-consumer sales mean car companies try to sell cars straight to buyers without using dealers, which can cause problems with dealer rules.
Direct-to-consumer sales refer to manufacturers selling vehicles directly to customers, bypassing traditional dealerships, which can disrupt established franchise laws.
Tesla
""the one exception being Tesla, they write it into orbit, early adopters, government subsidies, and a pretty darn good product,""
Tesla is a company that makes electric cars, which run on batteries instead of gas.
Tesla is an American electric vehicle manufacturer known for pioneering mass-market electric cars and advanced battery technology.
early adopters
""the one exception being Tesla, they write it into orbit, early adopters, government subsidies, and a pretty darn good product,""
Early adopters are people who buy or use new things before most others do, helping the product become popular.
Early adopters are consumers who start using a new product or technology before it becomes mainstream, often helping to validate and popularize it.
government subsidies
""early adopters, government subsidies, and a pretty darn good product,""
Government subsidies are money or help from the government to make certain products, like electric cars, cheaper or easier to buy.
Government subsidies are financial incentives provided by governments to support certain industries or products, such as electric vehicles, to encourage adoption and development.
Rivian
"but you look at Rivian and Lucid,"
Rivian makes electric cars that are trucks and SUVs, designed for outdoor activities and rough roads.
Rivian is an American electric vehicle manufacturer known for producing electric trucks and SUVs with a focus on adventure and off-road capabilities.
Lucid
"but you look at Rivian and Lucid,"
Lucid makes fancy electric cars that are very fast and can drive a long way on a single charge.
Lucid is an American electric vehicle manufacturer that focuses on luxury electric sedans with high performance and long range.
autonomous vehicles
"Now there's talk about autonomous vehicles."
Autonomous vehicles are cars that can drive on their own without a person controlling them.
Autonomous vehicles are cars equipped with technology that allows them to drive themselves without human input, using sensors, cameras, and software.
dealership
"and just the amount of work it takes to run a dealership."
A dealership is a place where you can buy cars, get them fixed, and buy parts.
A dealership is a business authorized to sell and service new and used cars, often including sales, financing, body shop repairs, and parts supply.
body shop
"Both from a sales, finance, body shop, serp, parts."
A body shop is where cars get fixed if they have dents or damage to their outside parts.
A body shop is a facility within or associated with a dealership that repairs vehicle body damage such as dents, scratches, and collision repairs.
serp
"Both from a sales, finance, body shop, serp, parts."
SERP means the different parts of a car business that fix cars, sell parts, and do other services besides selling new cars.
SERP stands for Service, Equipment, Repair, and Parts, referring to the various departments and services a dealership manages beyond just selling cars.
deal jacket
""The average number of documents, right, in a deal jacket at a dealership is 150. This is a highly government regulated transaction.""
When you buy a car, the dealer keeps all the important papers in one folder called a deal jacket. It has everything needed to complete the sale and make it official.
A deal jacket is a physical or digital folder that contains all the paperwork and documents related to a car purchase transaction at a dealership. It typically includes contracts, financing agreements, disclosures, and other regulatory documents.
ASC (Automotive Service Excellence)
"NADA, ASC, which is Automotive Service Excellence, and the State Workforce Agency."
ASC is a group that gives certificates to car mechanics to show they know how to fix cars well.
ASC, or Automotive Service Excellence, is an organization that certifies automotive technicians to ensure they meet industry standards of knowledge and skill.
competency-based registered service technician apprenticeship program
"So launch the first national standardized competency-based registered service technician apprenticeship program."
This program helps people learn how to fix cars by practicing and proving they can do the job well before they become official mechanics.
A competency-based registered service technician apprenticeship program is a formal training system where aspiring automotive technicians learn skills through hands-on work and assessments, ensuring they meet specific industry standards before becoming certified.
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