NEW ORLEANS -

Forrest McConnell III, president of McConnell Honda and Acura in Montgomery, Ala., officially takes the reins of the National Automobile Dealers Assocation as its 2014 chairman at the NADA Convention & Expo this weekend.

In anticipation of his new role, McConnell shared some of his objectives as NADA chairman with Auto Remarketing earlier this month, while also exploring some of the challenges and opportunities franchised dealers have at their fingertips today.

AR: As you begin your tenure as NADA chairman, what are some goals you have for NADA and your chairmanship?

FM: Dealing with public policy issues, either regulatory or legislative, in the nation’s capital is always high on the list of priorities. And on the industry side of things, we’re working to improve relationships with manufacturers. I will be traveling across the country this year meeting and talking with dealers. One of my key messages to dealers will be to stay in touch and become more active with their state and metro dealer associations, which are a lifeline to NADA.

AR: What do foresee as the biggest challenges (or perhaps most pressing issues) for franchised dealers in 2014? In what areas do you hope NADA can be the biggest advocate for dealers?

FM: We’re concerned with the Consumer Financial Protection Bureau’s assault on dealer-assisted financing. The CFPB has so far refused to disclose the methods it is using to conclude that there are problems with the current indirect lending model. It has also failed to study the impact any changes would have on consumers. If the CFPB carefully considers the facts, it will have a greater appreciation that the dealer-assisted financing model increases access and reduces the cost of credit for millions of Americans.

We’re also working on several fronts to help dealers protect and secure their data and to promote the franchise dealer system. NADA has worked for years to inform dealers and others in the industry about the federal regulatory responsibilities dealers have with respect to their data. Ensuring that dealers have the tools they need to comply with these rules and protect their data is high on my list of priorities. We will also focus on the importance of the independent dealer franchise system. The franchise system is the most efficient, consumer-friendly way of retailing cars and trucks, and NADA has the responsibility for making sure that all constituencies understand why.

AR: Conversely, where do you see the biggest opportunities for franchised dealers this year? In today’s auto market, how can a franchised dealer take operations to the next level?

FM: This year, it’s important for dealers to stay focused on their businesses as the economy improves and auto sales increase. It’s often easy to lose focus when auto sales come roaring back.

Dealers should control their costs, watch their inventory and make sure that their service, F&I and other operations are running smoothly. It’s often far too easy in a good sales year to lose sight of the tough decisions that need to be made.

AR: In light of the type of business model championed by companies like Tesla, what perspective can you share from NADA’s viewpoint on why the franchised dealer is so integral not only to the industry itself but in helping consumers as they make what’s often the second-biggest purchase they'll ever make?

FM: The independent dealer franchise system, which has been the subject of recent debate, is the most efficient and cost-effective way of selling and servicing vehicles anywhere. If automakers were allowed to squeeze out or sell without independent dealers, the competition that dealers create would give way to a handful of national and international corporations controlling pricing because there will no longer be intra-brand competition. And the losers would be consumers.

The real question is who should decide whether the market needs to be regulated, and the correct answer is that the states should decide individually what is the proper set of rules for their communities and citizens. Not surprisingly, various states have come out differently on this question, but most agree that the franchised dealer system is the right one for all manufacturers.

AR: Being a used-car publication, we’d like to hear what you would say to franchised dealers about the importance of their used operations. What role do you see the pre-owned department playing for franchised dealers in 2014?

FM: According to NADA Data 2013, new-car dealers sold more than 17 million used cars and light trucks the previous year. More than 9 million vehicles were retailed, and nearly 8 million were wholesaled. And these numbers just represent about one-third of the entire used-vehicle market in the U.S., so you can see that this side of the business is massive and provides opportunities for dealers in their used-vehicle operations. From a consumer standpoint, manufacturer certified pre-owned (CPO) vehicles are an excellent entry point for new buyers of the brand.

AR: Having seen on your NADA bio that you started off in the auto business as a young teenager, what are some of the biggest changes you’ve seen in the dealer world since then, and conversely, what are some of the foundations that have stayed the same?

FM: Advances in technology, such as the Internet, digital marketing and social media, and use of smartphones and other mobile devices, continue to change how we interact with car shoppers and our customers. But one thing that has not changed is the importance of how we take care of our customers. If your customers are not satisfied, then your business will not succeed.

AR: Finally, given your experience working with NADA’s policy and bylaw committees, how do you plan on using that experience in helping advocate for franchised dealers in 2014?

FM: I have been an NADA board member for the past six years, and you learn about the key issues and key players by serving on the various committees. I served as chairman of NADA’s Regulatory Affairs and Industry Affairs committees. As chairman of the Industry Affairs Committee, I spoke with 19 manufacturers on the facility image and stair step programs as well as a number of other issues.