The dealership business has always adapted to disruption, according to Don Hall, President and CEO of the Virginia Automobile Dealers Association (VADA). But in today’s market, he said adaptation means embracing technology, reducing friction and preparing for a more intense competitive environment.
During today’s CBT Live segment, Hall warned that Chinese automakers could pose a consequential challenge if they gain greater access to the U.S. market. While he acknowledged the appeal of lower-priced vehicles with advanced features, he argued that dealers and manufacturers must consider the broader effects of competing against companies supported by the Chinese government and backed by a long-term strategy around battery technology and critical minerals. Therefore, Hall believes the industry needs time and a stronger domestic response to compete effectively.
At the retail level, Hall encouraged dealers to study what Carvana and CarMax have done well. Rather than positioning them solely as threats to franchised retailers, he described them as evidence of how strongly consumers value an easy, convenient transaction. A frictionless buying and selling experience, simplified online tools and more efficient store processes can give franchise dealers an opportunity to meet those expectations while preserving their advantages in community presence, service and local relationships.
Technology adoption, Hall said, will determine which dealership organizations thrive in this environment. Customers now arrive with more information about vehicles, financing and F&I products than ever before, often gathered through digital tools before they step into a showroom. Hall urged senior leaders to listen to younger talent, give technology a central role in their operations and avoid relying on practices that worked in an earlier era. In his view, that willingness to adapt is what will sustain the franchise system in the decade ahead.
