TSLA393.450-31.85%
GM76.0000.48%
F13.350-0.29%
RIVN18.6301.45%
CYD43.390-2.9%
HMC28.0200.76%
TM174.5904.93%
CVNA68.5900.72%
PAG179.4202.34%
LAD306.23015.93%
AN186.4102.08%
GPI288.3901.79%
ABG205.4007.38%
SAH83.7300.68%
TSLA393.450-31.85%
GM76.0000.48%
F13.350-0.29%
RIVN18.6301.45%
CYD43.390-2.9%
HMC28.0200.76%
TM174.5904.93%
CVNA68.5900.72%
PAG179.4202.34%
LAD306.23015.93%
AN186.4102.08%
GPI288.3901.79%
ABG205.4007.38%
SAH83.7300.68%
TSLA393.450-31.85%
GM76.0000.48%
F13.350-0.29%
RIVN18.6301.45%
CYD43.390-2.9%
HMC28.0200.76%
TM174.5904.93%
CVNA68.5900.72%
PAG179.4202.34%
LAD306.23015.93%
AN186.4102.08%
GPI288.3901.79%
ABG205.4007.38%
SAH83.7300.68%


Do manufacturers actually want to replace the franchise system? – Don Hall | VADA

On this episode of Inside Automotive, Don Hall discusses the franchise system, and its importance for automakers and dealers alike

Dealers are increasingly worried that the franchise system is under attack from major OEM brands, who may stand to gain more from a direct-sales model instead. On this episode of Inside Automotive, Don Hall, president and CEO of the Virginia Automobile Dealers Association (VADA), and one of the most recognized leaders in auto retail, joins host Jim Fitzpatrick to discuss the latest on the conflict between franchisees and franchisors.

“What I’ve seen over the years…[manufacturers] are making this big grab to have more and more control over the dealers,” begins Hall. While many retailers are aware of the increasing authority OEMs exercise over their franchisees, the tendency of many business owners to focus on their corner of the market without being aware of the big picture is, in Hall’s eyes, of equal concern. “The manufacturers have made the decision: they want to get more in your pockets,” he adds.

There are multiple reasons why abandoning the franchise system would have major consequences for both OEMs and former dealers. One such issue, Hall explains, is the lack of transparency on the side of automakers. While some retailers have started to warm up to the idea of an alternative sales system, Hall remarks: “The fact of the matter is this…I assure you manufacturers cannot help themselves. They will give you a figure today, and that figure will change tomorrow.” Instead, he cautions dealers to exercise caution when listening to pitches from their automaker partners.

Automakers also stand to suffer by subverting the franchise system, Hall notes. The current strength of the car business is thanks to retailers who have represented their brands well while adapting to their local markets and improving the quality of care they provide to their consumers. That customer-focused attitude is essential, not only to the interests of dealers and consumers but to the longevity and profitability of car makers themselves, argues Hall. “No matter what is going on out there, if the customers are demanding these things, [dealers] will do it,” he concludes.

Watch More


More from Daily Automotive News
Feddon Automotive Group sells Fort Walton Mitsubishi to 401 Group

Feddon Automotive Group sells Fort Walton Mitsubishi to 401 Group

- July 2, 2026
Canada's 401 Group of Companies acquired Fort Walton Mitsubishi in Fort Walton Beach, Florida, from Feddon Automotive Group in a transaction that closed on June 30, 2026. The dealership has...
AutoNation adds Audi, Mercedes-Benz and Porsche Stores in California

AutoNation adds Audi, Mercedes-Benz and Porsche stores in California

- June 30, 2026
AutoNation acquired three luxury dealerships in Fremont, California, from Fletcher Jones Automotive Group in a transaction that closed on June 22, 2026. The acquisition includes Audi Fremont, Fletcher Jones Motorcars...
California wants to decide what tires you can buy. What could possibly go wrong?

California wants to decide what tires you can buy. What could possibly go wrong?

- June 29, 2026
California regulators say they're trying to save drivers money. That's the sales pitch behind the state's proposed Replacement Tire Efficiency Program, a regulation that would establish energy-efficiency standards for replacement tires...
ClearShift expands into new-vehicle retail with Freedom Ford purchase

ClearShift expands into new-vehicle retail with Freedom Ford purchase

- June 26, 2026
ClearShift, owned by Jeff VanderWal, acquired Freedom Ford in Gunnison, Utah, from JL and Sarah Larson in a transaction that closed in June 2026. The dealership will continue operating under...
CBT News
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.