SAN FRANCISCO, Jan. 24, 2015 /PRNewswire-USNewswire/ -- In
his first keynote address as chairman of the National Automobile
Dealers Association, Bill Fox
delivered a message to critics of the franchised dealer
network.
"The automotive franchise system is the best and most efficient
method of bringing new vehicles to the driving public," Fox said
today in remarks at the NADA Convention & Expo in San Francisco. "The franchise system breeds
competition that benefits consumers, manufacturers and local
communities alike."
Fox, a multi-franchise dealer in upstate New York, highlighted the economic impact of
the nation's new-car dealers.
"We sold more than 16.4 million new cars and light trucks in
2014. We saw total sales of more than $700 billion—more than 15 percent of all retail
sales. We employ more than 1.2 million people in well-paying jobs
averaging $53,000 per year that
cannot be exported. That adds up to a $55
billion payroll. And we generate $13
billion in taxes," he added.
NADA has forecasted sales of nearly1 7 million new cars and
light trucks for 2015, and "more sales mean more employment and
more opportunity in the retail-auto industry," he said.
"Dealers are fierce competitors that drive consumer costs down
and ensure superior customer service. And we advocate for our
customers on warranty and recall claims with manufacturers. For
dealers, the return is a mere 2.2 percent on sales. Does that
sound like we aren't competitive? Not to me."
Fox added that new-car dealers support thousands of local
charities and are the face of manufacturers in every town
throughout America.
"It was dealers who survived wars, recessions, a depression, oil
embargoes and manufacturer bankruptcies," he added. "We survived
all that because we are leaders—not followers—of change. This is
the industry that changed everything. The reality is that dealers
are catalysts for change."
In response to critics who complain about state franchise laws,
Fox said that "these laws, which vary from state to state, have a
common objective: They seek to level the playing field between
dealers and the manufacturers—for the benefit of the citizens of
those states."
"Franchise laws create price competition that saves consumers
money," he added. "It's a fact that if a consumer wants a Chevy, he
or she benefits when two or more Chevy dealers compete for their
business.
A recent study looked at car sales in Texas where researchers found that when
multiple dealers compete to sell a car to a customer, the average
price of a Toyota Camry dropped $450.
Take away dealers, take away competition and consumers pay
more."
The auto industry has survived because it is rooted in dealer
innovation and value, Fox said.
"Dealers have adopted the Internet because we know we often make
our first impressions digitally. We've adopted technology that
includes our customers in the sales process more and more," he
said. "We are innovative and we offer the consumer what they
want and need—value."
The NADA convention, which runs Jan.
22-25, is expected to draw more than 23,000 attendees from
across the global auto industry.
Considered the "Automotive Industry Event of the Year," the NADA
convention includes dealer-manufacturer franchise meetings,
hundreds of educational workshops for dealers and their managers,
hundreds of exhibitors at the Expo and numerous networking
events.
About NADA
NADA represents more than 16,200 new-car dealerships with both
domestic and international franchises. For more information, visit
www.nada.org.
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SOURCE NADA