On the Dash:
- NADA leadership says most dealers support government policies blocking Chinese automakers from U.S. sales channels.
- Direct-to-consumer sales battles are NADA’s top policy and legal priority in 2026.
- Dealer-backed lawsuits remain the primary tool for enforcing state franchise protections.
The National Automobile Dealers Association (NADA) is outlining its approach to support government policies that prevent Chinese automakers from entering the U.S. market and reinforcing its opposition to direct-to-consumer vehicle sales. CEO Mike Stanton announced these strategies on February 3 during the Haig Partners Maximizing Value Conference, with further remarks at the AutoTeam America Dealer/CEO/CFO Forum & Buy-Sell Summit, as reported by Automotive News.Â
Stanton revealed that approximately 95% of NADA’s 65-member dealer board supports backing the Trump administration’s initiatives to keep Chinese OEMs from selling vehicles in the United States. Although NADA is not blocking individual dealers from accepting Chinese franchises, the association remains committed to advocating for government policies that would prevent these brands from engaging in direct sales in the U.S. market.
The context surrounding the potential entry of Chinese automakers into the U.S. market continues to draw close attention, particularly as President Donald Trump has suggested that these companies could produce vehicles domestically. At the same time, analysts predict broader market entry is only a matter of time. Against that backdrop, NADA has maintained that its focus remains firmly on protecting American dealerships from unfair competition.
One of NADA’s primary objectives for 2026 is opposing direct-to-consumer sales, which Stanton deemed a top priority for the year. He pointed to ongoing disputes involving companies like Scout Motors, Tesla, Rivian, and Lucid as significant challenges to traditional dealership models.Â
Currently, NADA is supporting dealer-led lawsuits in Florida, California, and Colorado aimed at enforcing franchise laws. These legal actions cover a range of issues, including those related to Scout Motors, Honda-Sony Mobility’s Afeela EV project, and various licensing approvals that dealer groups have contested.
Stanton highlighted that NADA’s robust legal defense fund and strong financial position empower the group to vigorously defend the franchise model. He emphasized that automakers pursuing direct sales often underestimate the operational and consumer value that dealerships provide.
As the automotive landscape evolves, NADA’s commitment to preserving the traditional dealership framework remains unwavering, ensuring dealers are well-positioned to navigate the challenges ahead.
