At the request of the Hyundai Dealer Council and Hyundai, NADA’s focus has been on assisting the Hyundai Dealer Council in its efforts to address all questions and concerns about this pilot program and larger partnership. NADA is aware that these discussions between the Hyundai Dealer Council working group, Amazon and Hyundai are continuing in good faith. Why It Matters: The poor wording and rollout of the Hyundai-Amazon announcement in November understandably resulted in a wave of inaccurate reporting as well as deep concern across the auto industry (both dealers as well as other automakers) about the program and its potential ramifications for Hyundai dealers as well as dealers of other brands. FORD The Big Picture: NADA continues to communicate dealer concerns with Ford, especially as it relates to Model e and the improvement of their working relationship with their U300 dealers, formerly known as Select Dealers. And NADA will continue to request that Ford consider adjusting the Model e program based on current EV market adoption realities. What’s New and What’s Next: In January 2024, Elena Ford visited NADA HQ in Tysons, Virginia, for a day‑long discussion on dealer concerns, dealer training and federal policy actions that impact dealer and OEM operations. The NADA meeting with Ford to discuss the dealer attitude survey results was held in May. Why It Matters: In late 2022, Ford announced the Model e program aimed at setting new standards for dealers to qualify to sell and service Ford’s EV vehicles. This program not only mandated EV-related infrastructure at dealerships, but also obligated dealers to spend money on new software systems, training expenses and in-store technology. Ford’s own estimates put this cost at well over $1 million for many dealers. Also included in the Model e program were mandates to change a dealer’s sales process, service process, inventory stocking strategy, job requirements and qualifications. Since the announcement date, Ford has suffered an endless wave of dealer dissatisfaction based on the cost, complexity and, in some cases, adjudicated illegality of the Model e program. HONDA/SONY — VW/SCOUT The Big Picture: NADA has met with and continues to communicate with leaders of both Honda and VW to express dealer concern that each may be attempting to implement a direct‑sales retail model for its new brands. What’s New and What’s Next: Although neither company has yet to publicly announce its distribution channel for the newly created brands, NADA will continue to proactively discuss this topic with each company and respond accordingly once a public statement is made by either regarding the distribution channel for these brands. Additionally, NADA had a meeting with VW in early April, and asked for introductions to the U.S. Cupra team to discuss their planned market entry as reported in Automotive News. Why It Matters: In late 2022, Volkswagen Group announced the rebirth of the Scout brand, designed to be an all-EV SUV/Truck brand. No distribution method was specified at the time, nor has one been announced or specified since. In January 2023 at the Consumer Electronics Show (CES), Sony announced a new car brand, built in partnership with Honda. There was no discussion of dealers being allowed to sell these vehicles, but the initial conversation left open the possibility that dealers would be allowed to service them. Any direct-sales model would, to say the very least, undermine any automaker’s relationship with its franchised dealers, all of whom have made significant investments in their current and future brands. I will close with the same message you’ve heard me say many, many times — please get involved in local and state politics; “know” your local legislative representatives; support GADA with your presence and your checkbook; and be an active member and supporter of NADA. You will be making a wise “investment” in your future. All my best. God Bless, Steve Middlebrooks Heyward Allen Cadillac GMC Buick Toyota Athens, Georgia THE GENERATOR 10
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