With the NADA Show now behind us, we have a clear picture of what’s top of mind for 2025. In today’s episode of Inside Automotive, Tim Jackson, former president and CEO of the Colorado Automobile Dealers Association (CADA), shares his insights from the 2025 NADA Show.
One of the most significant topics at this year’s show was the anticipated shifts in federal regulations under the new Trump administration and policy changes that will affect emissions standards, fuel efficiency, and EV incentives. Many dealers are watching closely as CAFE standards revert to previous levels, which could impact vehicle availability and pricing. Meanwhile, ongoing debates over California’s ability to set emissions standards continue to create uncertainty. Industry leaders are advocating for a single national standard to avoid the complexity of complying with varying regulations across states.
The rise of electric vehicle (EV) adoption was another primary focus, particularly in states like Colorado, which has emerged as a leader in electric vehicle sales. In the fourth quarter of 2024, EVs accounted for 31.5% of new car purchases in Colorado, surpassing California’s rate. Jackson attributes this growth to a combination of federal and state incentives that have made EV ownership more accessible. However, the sustainability of these incentives is now in question, as the new administration has signaled plans to roll back subsidies. This could slow adoption rates and impact dealer strategies in the coming years.
Dealers also expressed concerns about inventory availability and financial conditions. While supply chains have stabilized compared to previous years, uncertainty remains around automakers’ production levels and allocation strategies. Interest rates continue to be a significant factor in consumer affordability, with many in the industry hopeful that the Federal Reserve will implement rate cuts to stimulate demand. Additionally, the growing trend of direct-to-consumer sales models from manufacturers like Scout Motors and Sony Honda Mobility (SHM) has raised questions about the future of dealership operations. Despite these challenges, NADA’s lobbying efforts have successfully blocked new FTC regulations that could have negatively impacted dealer profitability.
Another area of industry uncertainty is the potential impact of new tariffs and manufacturer realignments. Trade policy changes could affect vehicle pricing and the competitiveness of imported models. OEM partnerships, such as those between Nissan and Honda, underscore the changing dynamics among automakers. Dealers are closely monitoring these developments to understand their impact on brand positioning and dealership networks.
Despite these challenges, Jackson remains optimistic about the industry’s trajectory. The SAAR is projected to remain above 17 million vehicles, indicating steady consumer demand. As regulatory policies evolve and market dynamics shift, dealers will need to remain agile, leveraging advocacy efforts and adapting their business models to maintain profitability.
"Having a one national standard for emissions, even if it’s a tough standard, makes a whole lot more sense than having multi-state standards." – Tim Jackson
