Forrest McConnell III took over as chairman of the National Automobile Dealers Association (NADA) at the 2014 NADA Convention & Expo in New Orleans this year. He is president of McConnell Honda/Acura in Montgomery, Ala., and was the 2013 vice chairman of NADA. He represents Alabama’s franchised new-car dealers on NADA’s board of directors.
What do you think will be the biggest challenges dealerships face in 2014?
We have major concerns with the Consumer Financial Protection Bureau’s (CFPB) assault on dealer-assisted financing. So far, the CFPB has refused to disclose the methods it’s using to conclude that there are problems with the current indirect lending model. The CFPB has also failed to study the impact these changes would have on consumers. Democrats and Republicans in Congress share these concerns, which is why they have called upon the CFPB to allow for greater public participation on this issue. If the CFPB carefully considers the facts on the ground, it will have a greater appreciation for the fact that the dealer-assisted financing model has been enormously successful in reducing the cost of – and increasing access to – credit for millions of Americans.
What are your top priorities for NADA heading into the new term? What areas do you intend to focus on?
We’re working on several fronts to help dealers protect and secure their data and to promote the franchise system. Regarding data, NADA has worked for years to inform dealers and others in the industry about the federal regulatory responsibilities dealers have with respect to their data. Last fall, NADA provided dealers with comprehensive written guidance on this issue and began hosting a new round of related webinars. Ensuring that dealers have the tools they need to comply with these rules and to otherwise protect their data will be high on my list of priorities. We will also focus on the importance of the independent dealer franchise system. The franchise system is the most efficient, consumer-friendly way of retailing cars and trucks, and NADA has the responsibility for making sure that all constituencies understand why. This will also be a priority.
Will NADA be pursuing any new programs specific to fixed operations?
Yes, NADA University will provide fixed-ops training throughout the year and during the 2014 NADA Convention & Expo. The workshops will be presented live at the convention, and the recordings will be available in the NADA University Store on March 1. Convention workshops in the Parts track include topics such as inventory control, hazmat transportation regulations, accessories sales, and service and parts communication; and convention workshops in the Service and Body Shop track will cover technician retention, ROI analysis, performance analysis and absorption.
We’re heading into another election season. Are there particular issues or pieces of legislation you think dealers should pay particular attention to?
The CFPB’s effort to eliminate "meet or beat" financing offered by auto dealerships will increase the cost of credit for consumers and reduce its availability. To address this, NADA is urging Congress to continue to exercise oversight over the CFPB so that the bureau will justify its actions. Our other legislative priorities include protecting the LIFO accounting method and opposing a tax increase on medium and heavy-duty trucks.
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