BURLINGTON, N.C. -

The National Automobile Dealers Association launched an Industry Relations Task Force last year so it could examine the impact of two-tier pricing and mandatory facility upgrades on dealerships, and as David Westcott steps into his chairmanship of NADA, it appears these two issues remain at the forefront of the minds of dealers and the association itself.

In fact, the Burlington, N.C.-based dealer said he surveyed NADA’s board of directors — 63 members strong and representing dealers across the U.S. — and found “two-tier pricing is at the top of their list of concerns.”
And while he emphasizes his role as chairman is not to “micromanage” or run the “day-to-day management” of NADA, Westcott is ready to lead the organization as it tackles these and other challenges facing dealers in 2013.

“ A couple of challenges we’re facing are two-tier pricing and mandatory facility upgrades, which are symptoms of a bigger overall problem — manufacturer intrusion into dealers’ businesses,” Westcott said when asked by Auto Remarketing what he thought were the biggest issues facing franchised dealers today. “Two-tier pricing is a critical issue, and NADA will continue its discussions with manufacturers.”

He continued: “We have to be cautious when talking about two-tier pricing, because we’re not suggesting that incentive payments go away. We’re suggesting that incentive programs be fair and equitable to all dealers, large and small. That’s critical, because NADA represents all dealers from the largest to the smallest. The facilities issue is another major concern.

“As (2012 NADA chairman) Bill Underriner stated in his remarks to the Automotive Press Association in Detroit last October, facility image programs have to be flexible. Auto manufacturers that build flexibility into these programs have more success,” Westcott added. “When programs are not flexible and don’t consider local conditions, there’s a much higher likelihood of pushback and controversy.”

Goals for Tenure

Westcott has been a NADA board member since 2002, was the organization’s vice chairman for 2012 and has served previously as the president of the North Carolina Automobile Dealers Association. His background on NADA committees is extensive and diverse, and includes chairmanships of dealership operations, government relations and regulatory affairs committees.

Moving into his latest venture, Westcott has several goals in mind.

“As chairman of NADA, you lead the association, not micromanage it. My goal is not to come in and make major structural changes, but to improve on what exists. Every department has some situation that I’m going to provide input. I’m going to guide and lead, not do the day-to-day management,” he said.

“We have a tremendous staff at NADA with 320 employees. They are talented, dedicated and quite capable. We are always looking for better ways to serve our dealer members,” Westcott continued.

“Last year, we created an Industry Relations Task Force to take a close look at how two-tier pricing, as well as mandatory facility upgrades, are affecting dealerships,” he added. “We already have a long range strategic task force in place to look at the convention of the future, because that is where we reach the largest number of our members at one time. We are committed to doing whatever we can to help each one of our dealer members succeed.”

Changing Marketplace

For most every industry — automotive or otherwise — rapidly advancing technology and increased digitalization have caused a sea-change in how business gets done. On an auto dealership level, Westcott has seen this wave of technological impact affect customer behavior, advertising, inventory acquisition and more.

Auto Remarketing asked what Westcott believes to have been some of the biggest changes since he got started as a dealer in 1981, and he pointed to this digital revolution, saying now is “an exciting time to be a dealer.”

“In today’s world, technology is changing so fast it’s often difficult to predict changes over the next six months. Several years ago, our customers used to come into the dealership to look at new cars to figure out what they wanted,” he said.

“Today, they know what they want before coming into the showroom. Technology is continuing to change most everything the dealer does — where to advertise, selecting inventory and how to deliver cars,” Westcott continued. “It’s really amazing to watch my 3-year-old grandson use my iPad. Just imagine how that is going to evolve by the time he is 5 years old.

“It’s an exciting time to be a dealer. Mobile technology and social media are significantly influencing the car buying process. These technologies offer dealerships an exciting way to connect and build trust with prospects and customers like never before,” he added. “The workshop program at the NADA convention, and later hosted online through NADA University, provide a strong lineup of programs specifically to address the use of mobile technology and social media, as well as how to engage with the customers in their 20s and 30s whose use of these technologies is second nature.

“Programs like ‘Digital Moments that Matter’ address how to use mobile and social to build relationships with the customer before, during and after the purchase process. We also have a full array of programs online through NADA University that teach strategy and tactics for employing these new technologies, not only in sales, but also the service experience with customers.”

Ready to Lead

In sharing his excitement about taking on the role of representing the nation’s franchised dealer body, Westcott looked back at NADA’s nearly century old history; of the association being a dealer advocate in Washington, D.C. in the early 20th century and its exponential growth since then.

And it appears he has a strong appreciation of the organization’s past and how it can foster advocacy for dealers now and in the future.

“I’m honored and excited to serve as NADA’s chairman for 2013. It’s rewarding to be elected to the position by my peers, who own and operate new-car dealerships across the country. NADA, which is one of the nation’s top trade groups, has a tremendous legacy as well,” Westcott said.

“The NADA story began back 1917 when 30 auto dealers traveled to the nation’s capital, where they successfully convinced Congress that the automobile was a necessity of American life, and thus, prevented the imposition of a luxury tax that would have increased the cost of new vehicles,” he continued.

“That’s an important legacy and one that we are proud to continue. Today, NADA is stronger than ever. We represent nearly 16,000 new car and truck dealers, with 32,500 franchises — both domestic and international. And we are committed to doing whatever we can to help each one of our dealer members succeed. I’m especially excited to represent all of the dealers in the U.S., large, medium and small.”

Joe Overby can be reached at joverby@autoremarketing.com. Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.