As the automotive industry grapples with evolving regulations, direct sales concerns, and potential tariffs, the Greater New York Automobile Dealers Association (GNYADA) is working to protect franchise dealers and streamline business operations. Joining us on the latest episode of Inside Automotive is Mark Schienberg, president of GNYADA, to discuss the association’s 2025 agenda, the ongoing debate over direct sales, and what to expect from the highly anticipated 125th anniversary of the New York Auto Show.
First, Schienberg highlighted several key legislative issues the association is tackling in 2025, including credit card surcharges, warranty parts reimbursement, and administrative costs such as documentation and safety inspection fees. He noted that the New York Department of Motor Vehicles is undergoing major software upgrades, which could impact dealership operations.
Additionally, he expects direct sales legislation to remain a contentious issue, particularly as automakers explore new retail models.
One of the most pressing concerns for franchise dealers is the potential for legacy automakers like Volkswagen to bypass traditional dealerships and sell vehicles directly to consumers through brands like Scout Motors. Schienberg accentuated that despite technological advancements in the car-buying process, franchise dealers remain a critical resource for consumers by providing transparency, local support, and service. He also acknowledged the industry’s push toward faster and more customer-friendly transactions, with many dealer groups implementing streamlined processes to enhance the buyer experience.
Moreover, Schienberg addresses the growing concerns over potential 25% tariffs on imported vehicles, stating that such measures could significantly affect both manufacturers and dealers. He notes that dealers are wary of further economic shocks, especially after enduring challenges like supply chain disruptions, chip shortages, and COVID-related setbacks.
However, on a more positive note, Schienberg shared details about the upcoming 125th New York Auto Show, celebrating over a century of automotive excellence. The show remains a premier industry event, attracting major OEMs, executives, and media attention. This milestone event is expected to showcase cutting-edge vehicle technology and innovations, solidifying its reputation as the longest-running auto show in the country.
“A 25% tariff does send shivers up everybody's back because it just about impacts every brand that's out there.” – Mark Schienberg.
