Outgoing Nada chairman calls on dealers to ‘fight for franchise model’

Outgoing Nada chairman calls on dealers to fight for franchise model. In his final address to the country’s franchised new-car dealers as the 2024 NADA Chairman, Gary Gilchrist warned carmakers of the dangers of moving to director sales and cutting dealers out of the equation.

Dealers expressed concerns last year over Volkswagen’s Scout Motors and Sony Honda plans to opt for a direct sales model.

“Let me say it plainly, so it is clear to everyone: Any decision by any automaker to try to compete with or cut out its dealer partners is misguided,” said Gilchrist

“Any direct-sales model would do nothing less than undermine any automaker’s relationship with its franchised dealers, and every single one of those dealers has already made significant investments in their current brands and future products.”

He also hit out at the ‘regulatory overreach” in the US with targets for electric veheicles.

“Dealers have never played a more central role in delivering the best possible customer experience than they do today,” Gilchrist, a third-generation dealer, said at the 2025 NADA Show in New Orleans.

“And as of just a few days ago, the federal government is getting out of the business of telling you how to sell cars, and what kinds of cars you have to sell. And I have only one thing to say in response to that: It’s about time.”

Gilchrist said with the new Trump administration NADA and dealers “can finally stop playing constant defense and can start playing more offense.”

“We’re going to push for sensible, workable and achievable emissions regulations that finally, finally put the customer at the head of the table,” Gilchrist said.

“Any direct-sales model would do nothing less than undermine any automaker’s relationship with its franchised dealers, and every single one of those dealers has already made significant investments in their current brands and future products.”

In early January NADA President and CEO Mike Stanton issued the following statement in response to Sony Honda Mobility’s announcement of plans to attempt direct sales for its vehicles:

“We are unfortunately not surprised but are still very disappointed with Sony Honda Mobility’s stated plans to sell its vehicles directly to consumers and compete with its Honda and Acura dealer network. Honda should understand that any misguided attempt to bypass or undercut its U.S. dealers will be challenged in statehouses and courthouses across the country – with NADA’s full support.”