03 February 2014

It was not just the unseasonably cold, wet weather that might have made the 200-or so UK auto retailers who made the trip to NADA in New Orleans feel at home. For the first time in several years, Brit dealerships and our cousins from across the pond are facing some very similar challenges.

Big on the NADA agenda was the issue of financial regulation. We don’t yet have the political climate when an unelected quango can impose single rate finance but, make no mistake, regulatory life under our own FCA is going to be very different (don’t miss our webinar on the topic.

Then there’s the fear among US retailers that the recovering economy will encourage manufacturers to ramp up production and push for market share – upping incentives, driving down gross margins and leading to ‘over inventory’.

And finally, on the back of rapidly increasing new car sales (especially on leases), US retailers are looking at a used car ‘bubble’ – not now, but down the line in 2016/17. The economists are hedging their bets on whether that will destabilise values.

These are all issues that should be striking a chord on this side of the Atlantic. The NADA response is to come out fighting.

Incoming chairman, Forrest McConnell declares they have a ‘kick-ass’ team working with government in Washington and tells the manufacturers not to “intrude into dealer business”; reminding them it’s the retailers who invest “billions” in facilities, products and people.

The 20,000-plus delegates lap it up – and head home suitably fired-up to live the American dream.

As always, NADA is the fascinating mix of power politics, basic best practice, new ideas and folksy schmaltz that can be served up only in America. If you weren’t there, we’ll have a full report in the next Auto Retail Bulletin and the best, best-practice tips in upcoming issues of Auto Retail Manager.

As the say in the USA: don’t miss it.

Rupert Saunders

Join our LinkedIn group and share your your views with us – and other readers. If you’ve been forwarded this issue of Agenda by a colleague, why not sign up for your own free trial?

Tags: financial regulation, NADA, new car sales, our blog, US retailers, used car sales, webinar