Role of NADA in the US Automobile Market

Have you ever wondered how car dealers and car manufacturers resolve issues between themselves? or What happens when a new law comes up and is disliked by the dealer community? or Where do the dealers get their set of rules to be followed while doing business? Worry not we are here to tell you about one such organization that plays a vital role in balancing all these elements.

What is NADA?

National Automobile Dealers Association or commonly known as NADA is an American trade organization based in Chicago, Illinois has a listing of more than 16,000 car dealers and franchises for new cars. Being the primary trade association of the American automobile industry, NADA maintains control by making regulations for the good of both the dealers and the consumers. It’s NADA that sets a general guideline for all the dealer

Apart from listing dealers and franchises, NADA keeps an eye on federal legislation and regulations which affects the dealerships directly. NADA also publishes forecasts and reports about the latest industry trends which helps all the dealers to maintain a good business structure throughout the states.

NADA has been a crucial part of the American Automobile Industry since 1917 and since then NADA has changed the perspective of many people towards the automobile industry. In their long list of achievements, we have made a timeline of how they came into existence and many more.

NADA Timeline

May 1, 1917

Formation of NADA

30 automobile dealers formed an organisation and tried to convince the US Congress to mark automobiles as “Mass Consumer Goods”

May 1, 1917
July 1, 1917

New President Elected

Adhering to their needs, 130 Auto Dealers met and elected George Browne, a dealer from Milwaukee, as their first president.

July 1, 1917
January 1, 1919

Passed their First Law

Motor Vehicle Theft Law was passed and is considered a federal crime since then.

January 1, 1919
January 1, 1922

Used Car Valuation

NADA began used car valuation for the American market.

January 1, 1922
January 1, 1928

Membership Fees Updated

Member fees converted into sliding scale. Different fees for people for different income groups.

January 1, 1928
January 1, 1933

First Guide Published

NADA published their first guide called “Official Used Car” and they set the standard for appraising used cars.

January 1, 1933
January 1, 1971

NADA Education Center

In 1971 ground broke for NADA Automobile Education Center in Midland, Michigan on Northland University Campus.

January 1, 1971
May 18, 1973

NADA Automobile Education Center Commencement

Funded by NADA members, the center has hotels, offices, classrooms and a kitchen.

May 18, 1973
January 1, 2009

NADA’s role in Automotive Industry Crisis 2008-10

NADA, Chrysler and General Motors worked together to prevent dealerships from closing down during this tough time.

January 1, 2009
January 1, 2015

Sold their 82-year-old business

NADA sold its 82-year old Used Car Guide business to J.D. Power and Associates.

January 1, 2015
January 1, 2017

NADA launches its informational Website

NADA launched their first website to help educate people about car dealers and their impact on economy.

January 1, 2017

All the above-mentioned timestamps tell us what NADA is in the American auto industry. Throughout the ups and downs in the American economy, NADA has helped dealers to remain functional. One such example would be the Great Auto Industry crisis in 2008, during this tough time Nada alongside Chrysler, General Motors and few other companies helped dealers so that they keep working as usual.

Below are some FAQs concerning how NADA works and what does it do?

FAQs

How does NADA act as a bridge between car dealerships & car manufacturers?

NADA serves as one of the best platforms for representatives of various automakers, to settle out any disputes/discrepancies between them and the dealerships. NADA does everything on the basis of many existing laws regarding dealer franchising that serves as a common ground for both parties.

How does it settle disputes between car manufacturers, workers & government?

When did it first come into play and made an impact?

How important is NADA in the current scenario? (Trustworthiness)

NADA acts as one of the testings and proving grounds for consumers who are looking for unbiased information on the car that they want to purchase. NADA gives accurate information about the dealers, listings, car information and other important details that are mostly unseen in auto review websites.

Does NADA give a good picture of the sales of cars via factory shipments & dealerships?

NADA is one of the best sources of understanding and analyzing the sales of different dealerships. It gives a real picture of how a dealership is growing on various parameters and gives the dealers, a parameter of improvement.

What are the future expansion plans of NADA?

NADA has plans for their Expo till 2024 and as of now, no change is coming to their policies and dealers.

NADA for Trucks?

NADA has a separate division for trucks called ATD or American Truck Dealers established in 1970. This division represents 1800 heavy- and medium-duty truck dealers all over the United States. This committee’s chairman is elected every two years.

NADA Show

Yep, they also have their own show, First hosted in Chicago in the year of 1918 and they have hosted their annual show for more than 40 years now. This convention has have had many important guests overtime including George W. Bush, Bill Clinton, Hillary Clinton, and Henry Ford II.

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