A MESSAGE FROM THE PRESIDENT A National Challenge to the Franchise System BY COULTER McMAHEN, PRESIDENT/CEO, LADA Across the country, franchised automobile dealers are facing significant challenges to our business model. A recent move by the Alliance for Automotive Innovation, which represents nearly every major automaker, has raised deep concern for dealers and the state associations that represent them. In July, the Alliance submitted a letter to the U.S. Department of Justice’s Anticompetitive Regulations Task Force. This letter was sent without prior notice or discussion with NADA, which speaks volumes about the current tone of the conversation. In that letter, the Alliance argued that many state-level franchise laws, including those that ensure fair warranty reimbursement, protect against encroachment and preserve dealer territories, are “outdated” and “anti-competitive.” In essence, they are challenging the very framework that keeps the retail auto system fair and functional for consumers and dealers alike. For years, NADA, the Alliance and state dealer associations have worked together on issues shaping the broader industry. That history makes this development troubling, but more importantly, it underscores why strong engagement, both nationally and locally, remains essential to protecting our industry. STRONG GRASSROOTS ADVOCACY AT HOME AND IN WASHINGTON Our Legislative Roadshow this August showed just how powerful our network is when we come together. Over the 4
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