NADA's guiding principles: What it's for and what it's against

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 forWhat 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

NADA's guiding principles: What it's for and what it's against

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