The automotive industry is grappling with seismic shifts as OEMs like Sony Honda Mobility and Scout Motors explore direct-to-consumer sales models. Mike Stanton, CEO and President of the National Automobile Dealers Association (NADA), joins Inside Automotive to discuss these challenges, their implications for the franchise system, and how NADA is navigating this evolving landscape through advocacy and collaboration with key stakeholders.
During today’s conversation, Mike Stanton sheds light on the pressing concerns within the automotive retail landscape. He notes the direct sales approaches by Sony Honda Mobility with the Afila 1 and Scout Motors. Stanton stresses that these moves jeopardize the century-old franchise model and the trust OEMs have built with dealers.
In addition, Stanton details how NADA has been proactive, specifically engaging Honda directly through meetings and letters and even traveling to Japan to voice dealer concerns. Yet, the central issue is competition with dealers, as the production of vehicles like the Afila 1 in Ohio will inevitably reduce opportunities for Honda dealers. “Every sale by these ventures takes away from someone else in the market,” Stanton noted, underscoring the finite size of the U.S. auto market, which typically hovers between 15 to 17 million sales annually.
He also addressed the broader trends of EV mandates and regulatory pressures, describing the industry’s responses as sometimes “arrogant or naïve,” particularly regarding the complexities of vehicle retailing. Stanton expressed optimism about working with the new administration, highlighting meetings with agencies like the EPA and DOT to advocate for dealer-friendly policies.
Moreover, Stanton pointed to a growing sense of alignment among industry stakeholders, including Bernie Moreno, a former dealer, and Ohio’s newest senator. Moreno’s deep understanding of automotive retail positions him as a key advocate on Capitol Hill.
Finally, Stanton updated viewers on NADA’s battle against the FTC’s vehicle shopping rule, describing it as a “ridiculous” proposal. While awaiting a decision from the Fifth Circuit Court, NADA is simultaneously lobbying Congress and engaging with FTC officials to protect dealers’ interests.
"Put the laws aside, right? The laws exist for a reason so the dealers can make the necessary investments to take care of the customer. It's a system that's worked for over a hundred years." – Mike Stanton
