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Dealer roundtable: Insights from powerhouse state association presidents

In today’s special episode of Inside M&A, hosts Dave Cantin and Jim Fitzpatrick host a virtual dealer roundtable. The panel features a powerhouse of state association presidents: Brian Maas, president of the California New Car Dealers Association (CNCDA); Darren Whitehurst, president of the Texas Automobile Dealers Association (TADA); and Ted Smith, president of the Florida Automobile Dealers Association (FADA).

The Dave Cantin Group’s 2025 Market Outlook Report was released today, and it highlights the seven critical themes driving the automotive industry in 2025.

How to support California dealers during the wildfires

The devastating wildfires that are blazing across Southern California have impacted millions of families, including thousands of dealership employees. In the most devastating situations, many have lost everything. If you’re able to, consider contributing to the NADA Foundation’s Emergency Relief Fund to support those who have been affected by the tragic wildfires.

Dealer outlook on President Trump’s second term

Cantin observes that the past six months have been marked by economic uncertainty, with varying implications for different states. Representing three of the largest dealer markets, Maas, Smith, and Whitehurst offer unique perspectives on how their states are preparing for potential changes under President Trump’s second term.

In Florida, Smith conveys a sense of optimism, noting that the state’s general attorney was recently appointed as the U.S. Senator to fill Marco Rubio’s position. Smith also highlights that people tend to overlook the fact that a president doesn’t have unlimited power, and it will take time to effect meaningful regulatory and legislative changes.

Whitehurst reports that he and many fellow Texas dealers are “cautiously optimistic” and are pleased with some of the changes occurring at the federal level. Many dealers are hopeful that the transition of power will ease regulatory burdens and reduce the requirements imposed by federal agencies, which have been hampering dealerships’ ability to serve customers effectively.

California, historically a blue state, saw more people leaning toward red during this presidential election. Maas describes it as a mixed bag, and the state is balancing a complex dynamic between federal and state legislations and demands. While many dealers are optimistic, there’s a fair share of hesitance due to ongoing tension between Governor Newsom and the Trump administration. Changes at the federal level may benefit dealers, but resistance from California’s state government is likely. Dealers in CARB states face additional challenges due to the California Air Resources Board‘s stringent regulations, which require 35% of the 2026 model year to be all-electric. Maas emphasizes that it’s highly unlikely—virtually impossible—for manufacturers to meet this standard. As a result, manufacturers may reallocate internal combustion engine (ICE) vehicles to non-CARB states, potentially devastating inventories in CARB-compliant states.

Electric vehicles are here to stay

Cantin affirms that EVs and hybrids are no longer a niche market—they are here to stay. However, dealers are facing growing challenges with the push towards electrification.

Maas celebrates California’s significant progress in EV adoption. EV penetration is approaching 25% of all new vehicles sold when counting all manufacturers, including direct-to-consumer sellers, and 13% when considering franchised dealers alone. However, he notes that challenges such as affordability and insufficient charging infrastructure make it unlikely California will reach 100% electrification anytime soon.

In Florida, the story is quite different. Many consumers view their vehicles as an extension of their personality and lifestyle, and they want the freedom of choice. Florida’s frequent severe storms and flooding also pose challenges for EV adoption. Dealers report that EVs are slower to sell, resulting in excess inventory. This situation is exacerbated by manufacturers’ production quotas, which have led to an oversupply of EVs in markets where demand remains tepid.

Whitehurst echoes similar concerns in Texas, where vast rural areas lack the infrastructure to support EVs. Dealers in Texas are selling EVs at a loss, and the pressure to meet production requirements creates further strain. Dealers are pushing back against these challenges while working to adapt.

Trends in consumer sentiment

The panelists agree that consumer confidence is a key driver of the automotive market’s recovery and growth.

Maas highlights the importance of stability and consistent policy to enable manufacturers to plan effectively and dealers to predict the types of products they’ll receive. The back-and-forth nature of political shifts creates uncertainty, which hinders long-term planning.

Whitehurst emphasizes how the uncertainty surrounding the presidential election caused many consumers to delay purchasing vehicles. However, he notes that dealers in Texas remain optimistic, believing that 2025 will see stronger consumer confidence.

Smith underscores the media’s powerful influence on consumer sentiment. He advocates for positive and consistent messaging to encourage consumer confidence and drive purchasing decisions.

The mounting tensions between dealers and OEMS

OEMs are exerting greater control over dealer networks, enforcing stricter requirements on imaging, infrastructure, and even acquisitions.

Whitehurst points out that OEM demands lack consideration for the financial impact on dealers, and oftentimes, the investments result in little to no ROI for dealers. He’s hopeful that upcoming meetings, such as those at NADA Show 2025, will foster better communication and cooperation between OEMs and the dealer body.

Smith stresses that dealerships remain the best and most competitive way to sell cars. Direct-to-consumer brands like Tesla and Rivian bypass the essential dealer-consumer relationship, resulting in a less personalized experience. Smith’s greatest concern is the rise of OEM programs bypassing the franchise system, such as VW’s Scout Motors, Sony-Honda’s Afeela, and the Hyundai-Amazon collaboration. Even though Hyundai’s program technically involves dealers, it diminishes the dealer-centric sales model.

Maas critiques OEM executives who believe they understand retail better than dealers. Dealers have a deep understanding of their communities and customers, which cannot be replicated at the corporate level. Maas stresses the importance of open communication between OEMs and dealers to ensure mutual success.

Forecasts for 2025

Texas: Whitehurst emphasizes the optimism of Texas dealers, who are seeing rapid population growth as an opportunity to sell more vehicles.

Florida: Smith expresses concern about federal regulators and OEMs attempting to bypass franchise laws. He’s determined to protect the competitive market and franchise system against these threats.

California: Maas agrees with Smith and questions why OEMs would compete against their own dealers when the dealership model is already the most effective distribution system. He remains optimistic that the dealership community will find solutions to these challenges in 2025.

Overall, the panelists express confidence in the automotive industry’s resilience and adaptability. By addressing challenges collaboratively and embracing opportunities for growth, dealers and OEMs alike can ensure a prosperous future for the industry.

"Dealers are optimists. What a gift to represent people who always think the future's going to be better. And it's our job to help them make that happen." – Brian Maas
"I tell dealers that they are a great grassroots advocacy because they're the ones that have the connections with the consumers. The manufacturers don't, and they need to be listening to their dealers about what the consumers want." – Darren Whitehurst
"Those three programs [Scout Motors, Sony-Honda Mobility, and Hyundai-Amazon platform] represent a direct affront to the presence of my dealers. We're not going to sit back and watch it without taking some critical actions." – Ted Smith

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Jasmine Daniel
Jasmine Daniel
Jasmine Daniel is a staff writer and reporter for CBT News. She holds a BFA in Writing from the Savannah College of Art & Design and has over eight years of experience in SEO, digital marketing, and strategic communication. Her storytelling skills bring breaking news to life, delivering timely, impactful stories that resonate with readers.

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