Driving new vehicle sales in a way that manufacturers could never duplicate;
Saving automakers money because dealers handle service and marketing costs at the regional and local level;
Saving consumers money because of the franchise model’s inherent inter- and intra-brand competitiveness.
Chairman McConnell discussed why the franchised dealer network is the most efficient and cost-effective way to sell and service vehicles and how a network of independently owned retailers compete fiercely against one another with regard to pricing and financing, all of which benefit consumers. In addition, franchised dealerships create hundreds of thousands of jobs, billions in tax revenues and support thousands of local communities in which they operate.At the Forum, the NADA Chairman also discussed how dealerships benefit consumers when it comes to safety recalls, stating that an extensive network of franchised new car and new truck dealers can respond to recalls faster and more efficiently than a single manufacturer or factory-owned store.If manufacturers sold directly to customers there would be “zero” competition in pricing, parts and services. Customers would be stuck paying full sticker price because there would be no “same brand dealership” to compete for the sale to the customer.