NADA VIEWPOINT: WHAT DEALERS WANT - AUTOLINE THIS WEEK 2237

EV Channels Review

This Autoline This Week episode features Wes Lutz, 2018 Chairman of the National Automobile Dealers Association (NADA), discussing the evolving automotive retail landscape. Lutz expresses skepticism about the widespread adoption of mobility services like Uber and Lyft, citing research that suggests vehicle ownership remains more affordable and convenient for most consumers, even with the advent of autonomous driving. He highlights the significant cost difference between owning a vehicle (approx. 60 cents/mile) and using ride-sharing services (approx. $2-3/mile), though acknowledges potential shifts with autonomous technology reducing ride-sharing costs. Lutz also addresses the challenges dealers face, including razor-thin margins, intense competition, and the impact of potential tariffs on vehicle affordability. He expresses optimism about the future of FCA under Mike Manley, particularly with the Jeep brand. Regarding electric vehicles (EVs), while dealers welcome them and are eager to sell them, Lutz points to current challenges such as higher costs, range anxiety, limited model availability (especially in SUV/truck segments), and concerns about battery replacement costs for used EVs, which hinder remarketing. He also touches upon the evolving role of dealerships in the digital age, emphasizing transparency and improved customer service, and notes that while Tesla is a strong competitor, it doesn't pose an existential threat to the franchise dealer model.