As dealer state associations continue their advocacy for members, the Florida Automobile Dealers Association (FADA) is intensifying its efforts in response to recent challenges to franchise laws. Ted Smith, President of FADA, recently discussed their plans on an episode of Inside Automotive.
Smith highlighted the increasing pressure from Original Equipment Manufacturers (OEMs) challenging state franchise laws. He noted that some OEMs allegedly violate these laws through certain programs and policies, citing Ford’s EV program and allocation models as potential examples.
The interview underscored the vital role of state associations like FADA in advocating for dealers. Smith argued that these associations are essential in defending the franchise system and ensuring enforcement of laws protecting dealers and consumers. He called for more statutory support to empower associations to take legal action against OEMs when necessary.
Smith also pointed out the significant economic contributions of car dealers to the state, including employment and tax revenue. He emphasized that maintaining a fair and competitive franchise system is crucial not only for protecting dealers but also for safeguarding substantial economic interests and ensuring consumer protection.
The discussion revealed a reluctance among dealers to confront OEMs directly due to fear of retaliation or damaging business relationships. Smith stressed the need for collective effort through the association to address these challenges, as individual dealers often hesitate to take on powerful manufacturers alone.
Despite this reluctance, Smith urged dealers to become more active in legislative advocacy. He encouraged them to engage with local legislators in supporting laws that would allow trade associations to act against illegal practices by OEMs. According to Smith, dealer involvement is critical in securing statutory changes that can provide a regulatory check on OEMs.
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