As auto retailing continues to evolve, so too will the relationship between franchised dealers and their automakers, said Mike Alford, NADA’s 2022 chairman.
But the evolution shouldn’t be feared, he said, pointing to opportunities on both sides.
“For years, we’ve trained ourselves to think about vehicle manufacturing and vehicle retail as two separate worlds connected by only one thing — the vehicle itself — but that’s changed,” Alford said Saturday during his first address as chairman.
“Our OEM partners are rolling out vehicle and ownership products and services after the point of sale, and with each new development, our worlds are being connected by the customer and their expectations.”
Alford, dealer principal of Marine Chevrolet in Jacksonville, N.C., and Trent Buick-GMC-Cadillac in New Bern, N.C., said retailers and automakers have a choice to make — especially as the industry transitions to produce, sell and service more electric vehicles.
“Do we see each other as adversaries, as two opposing sides, each with its own turf to protect and distrusting of each other’s motives?” he asked. “Or do we see each other as two necessary components of a single ecosystem?”
Dealers also have an opportunity to educate and inform potential EV buyers and “build a future that’s more sustainable,” Alford said.
Alford said dealers will be central to the widespread adoption of EVs, as they make “massive investments” to prepare staff and build charging stations and specialized service bays.
“If people want EV adoption,” he said, “you need to leverage this amazing network.”