8/1/2023
The automotive industry in the United States is a fundamental pillar of the national economy and a source of pride for many Americans. It involves many organizations that are relevant to its image and development. In this article we will see what the NADA is and what functions it has.
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What is the NADA?
In essence, the National Automobile Dealers Association is an organization dedicated to representing car and truck dealers before the U.S. Congress and other federal agencies. They currently have more than 32,500 affiliated businesses and are adding new members every year.
Headquartered in Washington DC and Tysons (VA), it performs a series of tasks that we will detail below. This century-old institution includes members of the American Automobile Association (AAA) and the American Truck Dealers (ATD), whose contributions to the economy are very important.
NADA Annual Convention
The first event of the National Automobile Dealers Association took place in Chicago during 1918. Since then, it has been considered one of the most important meetings of the automotive industry in the USA.
Each year, experts, dealership owners, manufacturers and exhibitors gather to share ideas and innovations in one place. It is an opportunity for the industry's key players to showcase the latest products and services for those selling new and used cars.
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Likewise, the owners of these businesses have the unique opportunity to converse with top executives of the most relevant car companies. This allows them to establish alliances, exchange knowledge and discuss the challenges they face.
Basic functions of the NADA
We have already seen that the main function of the NADA is to defend the interests of national and international dealers before various federal agencies. Also, this work is accompanied by others that are also important, such as:
- Publishing automotive industry reports and projections.
- Providing educational opportunities for both owners and employees.
- Promoting the benefits of buying from local dealerships to the media, stakeholders, influencers and the public.
- Promote consumer education on the most relevant aspects of vehicle financing.
- Monitor federal legislation on taxes, covenants, vehicle sales, safety and environmental regulations.
- To serve as an intermediary in dealer-manufacturer relations to communicate to manufacturers the challenges related to car sales and purchases.
A Brief History of the National Automobile Dealers Association
The history of the National Automobile Dealers Association begins in 1917, when 30 owners met in Washington DC. Their purpose at that time was to convince Congress that automobiles were not luxury items.
After lowering the luxury tax from 5% to 3%, 130 auto industry leaders met in Chicago to elect George Brown as the first NADA president. From there, they focused on increasing membership.
The first legislation promoted by the National Automobile Dealers Association was the Anti-Auto Theft Act. Passed in 1919, it made it a federal crime to pass a stolen vehicle into another state.
The used car price study began in 1922. Due to members being unable to pay subscription fees and the Great Depression, the organization nearly went bankrupt during 1932. As a result, they had to change headquarters and implement other measures.
In 1933, the NADA published its first Official Used Car Guide, which contained the price in 21 regions of the USA. By the 1930s it had 30,000 members, set the standard for vehicle valuation and began educating dealer owners.
Following its involvement in World War II and the cancellation of its convention in 1943, there were other significant developments:
- During the Korean War, the association fought against price controls and the elimination of taxes on new cars.
- To improve the image of car dealers, the organization launched a campaign in the 1950s to encourage them to adopt more ethical practices.
- In October 1971, the NADA Automotive Education Center was established at Northwood University (MI), a first-of-its-kind research facility.
- In 2009, the NADA, Chrysler, General Motors and dealership owners did what possible to avoid the close of business during the crisis in real estate.
- In 2010, the organization led the campaign in support of the Campbell amendment, which left the concessionaires out of the Consumer Protection Agency.
- In mid-2015, this institution sold its used car guide business to JD Power and Associates.
Despite its name, the NADA certainly is an integral part of the varied institutions related to the automotive industry.
Español: Qué es la NADA (Asociación Nacional de Vendedores de Autos)