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It's Time to Improve Dealer/Manufacturer Communications, Says NADA's Holloway

4 February 1998

It's Time to Improve Dealer/Manufacturer Communications, Says NADA's Holloway

    WASHINGTON, Feb. 4 -- In his keynote address to the 1998
National Automobile Dealers Association's 81st Annual Convention and
Exposition, NADA Chairman Paul J. Holloway outlined his vision for the
association in the coming year.  Holloway pledged to lead NADA in conquering
what he believes to be the biggest challenge facing franchised auto dealers: a
developing mistrust between their dealers and their manufacturers.  His
solutions include increased communication and education.
    Holloway, president of Dreher-Holloway Inc., Exeter, N.H., began, "We have
seen major changes in our business over the past few years ... and the
franchise system has weathered these changes remarkably well.  But the one
change that troubles me greatly is the growing level of distrust and lack of
respect that exists today in our industry."
    In the face of what he calls the manufacturer "fixes" for the retail
industry, including brand management, one-price selling, dealer realignment,
Internet selling, factory consolidation and buyouts, Holloway describes the
current state of the manufacturer-dealer relationship as "mass confusion."
This, he says, is part of the problem.
    "Our research clearly shows that manufacturers that are communicating with
their dealers and don't blame their dealers for their problems are the ones
showing the best profits, using fewer rebates, fewer gimmicks, building better
customer satisfaction and gaining the market share," reported Holloway.
    A top priority is to "come up with some innovative ways to allow dealers
to leave this business with dignity and confidence for their future.  That's
the least they deserve after they have dedicated their lives to this
business."
    In a major cooperative effort this year, said Holloway, NADA will work
with manufacturers to "change the negative image that we dealers have been
living with for far too long."
    "The truth is, we have one of the most committed work forces in the
country.  Now is the time for us to tell our story and change our image from
those negative stereotypes to an accurate portrayal of today's automobile
dealerships," he asserted.
    Holloway concluded by urging all dealers to join him in his effort to
improve the communications and educational efforts among and between dealers
and manufacturers.  He asked that the new younger generation of dealers as
well as women and minority dealers take a role in this effort by becoming more
active in the communications process.
    "Together, we will work to protect our franchises and make them prosper as
we approach the 21st century.  We will enter the new century stronger,
smarter, and better informed, more respected and speaking with one voice,"
pleaded Holloway.
    The National Automobile Dealers Association represents more than 19,500
franchised new-car and -truck dealers holding nearly 40,000 separate
franchises, domestic and import.

SOURCE  National Automobile Dealers Association