UCN
Used Car News
2/14/2022
NADA Show: Up Close and Personal By Jeffrey Bellant
IN THIS ISSUE:
Rush - Dated Material
• NADA Preview • Retail Markets • Wholesale Numbers
Mike Stanton, president and CEO of the National Automobile Dealers Association, is excited about the return of a live NADA convention, after last year’s virtual event. “First off, we’re just so looking forward to reconnecting and getting together,” he said. “It’s been great to see the enthusiasm for an in-person NADA event.” The convention is set for March 10-13 in Las Vegas. Meeting virtually clearly doesn’t offer the same experience and networking opportunities that in-person conventions do, he added. “There’s a lot of pent-up demand for the in-person meeting,” Stanton said. “We see it in our exhibit floor, which is oversold with a waiting list. “Our registrations are as strong as they were two years ago and the sponsorship opportunities that we had available are sold out, and then some.” Stanton said the focus is on the future, which is what NADA conventions are typically all about. “What are people thinking? How do we need to evolve? How do we get better?” he said. Franchise dealers, more than anyone, have struggled with a shortage of inventory due to a lack of semiconductors and problems with the supply chain. “Inventory is No.1,” Stanton said. “Dealers have been very profitable, but they want to sell cars and make customers happy. “So, when they can’t match a customer to a car – and they have to wait – that’s just a source of frustration.” While Stanton would like to see supply shortages “in the rearview mirror,” he added that’s not likely to happen anytime soon.
It’s one reason why NADA – which encourages training, education and 20 groups – always cautions against complacency. “When times are good it’s easy to let your guard down and maybe not be as vigilant about running your business,” Stanton said. “There’s never a good time to be complacent.” Like other industries, NADA sees workforce challenges, such as a shortage of auto technicians. “But we’re seeing some upside, too,” Stanton said. “We’re seeing better productivity on the sales floor. But I do hear quite a bit about
(employee shortages) in some markets.” Despite the pandemic, profitability was still strong in 2021. “We also think there’s an opportunity to better align with our OEM partners on customers,” Stanton said. “If we act more collaboratively with our vendors and OEMs, and view our industry as an ecosystem where we work together with a focus on the customer, we’ll be in a better position than we are today.” As consumer demand changes, the industry has to evolve. ‘With our model, we offer a competitive Continued on page 3