Ron Bloom stated during a House Judiciary Commercial and Administrative Law Subcommittee hearing that NADA's only point of contention was the speed of dealer cuts. The dealer's association says this is not true.
"NADA is on record as consistently disagreeing with the idea of drastic cuts in the number of auto dealers. Auto dealers are independent business owners, entrepreneurs who invest millions of dollars in land, facilities, vehicle inventory, parts, training and employees."
"It is the dealer who should decide, based on market conditions, when to exit the business. Since dealers cost automakers next to nothing in overhead expenses, cutting dealers at this time does nothing to make either GM or Chrysler more viable."
Indeed, NADA has opposed, more or less successfully, the dealership cuts set in place by both Chrysler and GM as part of their restructuring process.
"NADA's position on the issue of dealer cuts has been outlined on numerous occasions, including in multiple meetings with the Auto Task Force. These positions were also stated publicly in an Open Letter to President Obama that was published in major newspapers around the country."
Now that the matter has been clarified, it's enough to say... nothing has changed. NADA opposes the restructuring process, not only the fast-paced rhythm it has. How does nuance issue helps the targeted dealers NADA failed to say.
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