29th March, 2018 · Study Tour

What happened in Vegas?

1 minute to read

AADA Executive Director of Operations Brian Savage and outgoing (2017) NADA Chairman Mark Scarpelli

AADA Executive Director of Operations, Brian Savage, has just returned from Las Vegas where he attended the 2018 NADA Show. The NADA show incorporates the Dealer convention and Expo, attracting 23,000 registered attendees, including a large international contingency, along with over 500 exhibitors, in what is the biggest show of its kind in the world.

Several industry issues were placed under the spotlight at the show, but one of the most commonly discussed and the subject of many formal presentations, was the effect on dealers of the disruption that is occurring currently in the automotive sector. Disruptive technologies like vehicle electrification, autonomous vehicles and the emerging ride sharing platforms are all seen as significant threats to the franchise dealer model.

The good news is that while new car dealers will have to prepare for these changes and adapt their business models to suit, the industry experts do not believe these disruptions spell the end of the franchised new car dealer. On the contrary, most see them as an opportunity for dealers to enter new areas of the market.

Despite the positive messages however, dealers in the US and other developed international markets continue to find challenges in manufacturer relationships and by extension franchise agreements, margin compression and continual intervention by government and regulators. Without exception, dealers in the US and across the world, look to their respective industry associations to help them work through these issues and deliver positive outcomes for consumers and dealer franchisees.