TSLA409.990-12.25%
GM73.100-1.76%
F13.030-0.37%
RIVN13.350-0.44%
CYD50.4400.44%
HMC25.210-0.97%
TM187.370-3.31%
CVNA66.030-1.14%
PAG159.750-2.43%
LAD264.8902.97%
AN181.940-2.21%
GPI317.1803.56%
ABG176.280-2.89%
SAH74.0600.1%
TSLA409.990-12.25%
GM73.100-1.76%
F13.030-0.37%
RIVN13.350-0.44%
CYD50.4400.44%
HMC25.210-0.97%
TM187.370-3.31%
CVNA66.030-1.14%
PAG159.750-2.43%
LAD264.8902.97%
AN181.940-2.21%
GPI317.1803.56%
ABG176.280-2.89%
SAH74.0600.1%
TSLA409.990-12.25%
GM73.100-1.76%
F13.030-0.37%
RIVN13.350-0.44%
CYD50.4400.44%
HMC25.210-0.97%
TM187.370-3.31%
CVNA66.030-1.14%
PAG159.750-2.43%
LAD264.8902.97%
AN181.940-2.21%
GPI317.1803.56%
ABG176.280-2.89%
SAH74.0600.1%


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
GM hits the breaks on electric trucks as reality crashes the EV party

GM hits the breaks on electric trucks as reality crashes the EV party

- May 18, 2026
For years, Americans have been told the future of driving is settled. Electric vehicles would take over, gas engines would fade away, and anyone questioning the timeline was “anti-progress.” That...
Ken Ganley Auto Group acquires Mercedes-Benz of Bedford in Ohio from Penske (1)

Ken Ganley Auto Group acquires Mercedes-Benz of Bedford in Ohio from Penske

- May 15, 2026
Ken Ganley Auto Group has acquired Mercedes-Benz of Bedford in Ohio from Penske Automotive Group. The transaction closed on May 6, 2026, and the dealership will retain its name and...
Garber Automotive Group acquires Grieger's CDJR in Valparaiso, Indiana

Garber Automotive Group acquires Grieger’s CDJR in Valparaiso, Indiana

- May 14, 2026
Garber Automotive Group has acquired Grieger's Chrysler Dodge Jeep Ram in Valparaiso, Indiana, from Grieger's Motor Sales, Inc. The dealership will remain at its current location and has been renamed...
Why the military just called Detroit's Big Three automakers

Why the military just called Detroit’s Big Three automakers

- May 14, 2026
There’s a conversation happening behind closed doors in Washington that should make every American pay attention, and it has nothing to do with EV mandates or fuel economy targets. This...
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.