The Louisiana Automobile Dealers Association (LADA) plays a critical role in the state’s retail automotive environment, working with legislators to preserve the franchise model and help dealers drive success for their businesses. Recently, Coulter McMahen became the association’s new President and CEO, bringing a wealth of experience in the industry to his position as well as a plethora of new solutions to improve the car buying experience. McMahen joins CBT Now, hosted by Jim Fitzpatrick, to discuss the latest news from LADA.
Key Takeaways
1. McMahen shared his early exposure to the automotive world in Shreveport, Louisiana, where he worked in various roles at a dealership from a young age. His journey from cleaning cars to practicing commercial litigation and now leading the LADA highlights his deep-rooted connection and commitment to the auto industry.
2. McMahen emphasized the significant economic contributions of the automotive sector in Louisiana, noting that the association represents over 300 new car and big truck dealerships, contributing to substantial job creation and sales tax revenue. This underscores the retail automotive sector’s vital role in the state’s economy.
3. As the LADA’s new leader, McMahen is focusing on educating both the public and legislators about the benefits and importance of the franchise dealership model. His aim is to protect and promote the interests of the dealers and the broader automotive industry in Louisiana.
4. McMahen highlighted a major issue facing dealerships in Louisiana: rising insurance costs, partly due to the state’s litigation environment and natural disaster risks. Addressing this challenge through legislative efforts and insurance reform is a top priority for his tenure.
5. McMahen notes the franchise system is beneficial for both dealers and consumers, ensuring competitive pricing and accessible service. Additionally, the appointment of the first female chair of the LADA board, Kristie McMath-Hebert, marks a significant milestone in the association’s history and reflects a broader commitment to effective and diverse leadership within the industry.
"And like you said, $733 million in sales tax revenue, $33 million in inventory tax. And look, we're job creators; 33 ,600 jobs [were] created by our dealerships. And so, it's important that I'm the messenger of that, and I convey that message to the legislature, but also the general public on why the franchise model works." — Coulter McMahen
