TSLA364.270-1.93%
GM82.200-4.42%
F13.210-0.4%
RIVN14.990-0.41%
CYD35.4000.88%
HMC32.200-0.33%
TM191.530-2.38%
CVNA65.120-0.72%
PAG212.610-2.14%
LAD316.270-5.41%
AN168.290-6.59%
GPI246.420-8.53%
ABG183.060-4.85%
SAH63.660-2.29%
TSLA364.270-1.93%
GM82.200-4.42%
F13.210-0.4%
RIVN14.990-0.41%
CYD35.4000.88%
HMC32.200-0.33%
TM191.530-2.38%
CVNA65.120-0.72%
PAG212.610-2.14%
LAD316.270-5.41%
AN168.290-6.59%
GPI246.420-8.53%
ABG183.060-4.85%
SAH63.660-2.29%
TSLA364.270-1.93%
GM82.200-4.42%
F13.210-0.4%
RIVN14.990-0.41%
CYD35.4000.88%
HMC32.200-0.33%
TM191.530-2.38%
CVNA65.120-0.72%
PAG212.610-2.14%
LAD316.270-5.41%
AN168.290-6.59%
GPI246.420-8.53%
ABG183.060-4.85%
SAH63.660-2.29%


Are Honda and Volkswagen betting against the franchise model? — John Devlin | Automotive Trade Association Executives

Dealers have grown increasingly worried that automakers such as Volkswagen and Honda will choose to sell their upcoming electric vehicles through a direct-sales system rather than using the tried-and-true franchise model. What would this shift look like and what would it mean for the retail automotive sector?

On this episode of Inside Automotive, host Jim Fitzpatrick is joined by John Devlin, president of the Pennsylvania Automotive Association and the Automotive Trade Association Executives‘ 2024 chairman. Devlin shares his insights into the franchise system’s strengths and how transparency strengthens the dealership-manufacturer relationship.

Key Takeaways

1. Devlin emphasizes the benefits of the franchise system for selling automotive products, pointing out that dealers are ready to work with companies like Honda and Volkswagen, highlighting the efficiency and benefits of the franchise model for consumers.

2. There are concerns about companies like Honda and Volkswagen moving towards direct sales models, potentially cutting out dealers from the process and creating challenges in areas such as service and warranty work.

3. Devlin suggests that there could be legal challenges across different states due to existing franchise laws that may not easily accommodate direct sales models, hinting at potential legal action if necessary.

4. The franchise system is touted as efficient and beneficial, particularly for consumers who benefit from price competition, warranty work, recalls, and overall serviceability of vehicles.

5. Devlin urges dealers to continue pressure on manufacturers like Honda and Volkswagen to clarify their intentions regarding sales models while also highlighting the need for OEMs to be transparent and clear about their strategies moving forward.

"So there's no question our system, we think, is the most efficient and works the best, especially for the consumer. We got to go back to that because the consumer wins just in the price competition alone." — John Devlin
Read More


More from Daily Automotive News
The truth about 'American made' cars - it's all a lie!

The truth about ‘American made’ cars – it’s all a lie!

- September 16, 2026
What if the biggest foreign influence in your car isn't visible on the badge? Americans are being warned that Chinese automotive technology can create national-security risks, yet some of the...

Geaux Automotive Group acquires three Louisiana dealerships

- September 14, 2026
Geaux Automotive Group acquired three Louisiana dealerships from Hudson Automotive Group in September 2026, including Ford, Chrysler-Dodge-Jeep-Ram and Volvo franchises. The acquired stores will operate as Geaux Ford Denham Springs,...
Janssen Auto Group

Janssen Auto Group acquires Gregg Young Chevrolet of Plattsmouth

- September 11, 2026
Janssen Auto Group acquired Gregg Young Chevrolet of Plattsmouth in Nebraska from Gregg Young Automotive Group in September 2026, expanding its existing presence in the market. The dealership will continue...
New York wants you to drive 20% less. So do other states! Big MISTAKE!

New York wants you to drive 20% less. So do other states! Big MISTAKE!

- September 11, 2026
New York lawmakers have a message for drivers: You are apparently driving too much. Not because you are speeding, driving recklessly, or breaking the law. The problem, according to a...
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.