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ROUND ONE...THE FIGHT IS ON--NADA(Mothra) vs. AUTOMAKERS(Godzila)

25 October 1999

NADA Board Takes Hard Line Against Factory-Owned Dealerships

MONTEREY, Calif., Oct. 20 — The National Automobile Dealers Association's
board of directors has unanimously approved a resolution asserting staunch opposition 
to vehicle manufacturer ownership or control of dealerships.

"Independent franchised dealers are unified in their opposition to
manufacturer intrusion in the retail end of the business," said
NADA Chairman Jim Willingham when he announced the resolution.

In the resolution the board reiterated, "A franchise system of independently
owned and operated dealerships best serves the interests of manufacturers and
consumers by ensuring the most competitive
and efficient means of distributing and servicing high quality cars and trucks."

While recognizing the interest of "some manufacturers and some dealers to
enter into such partnerships," the board said, "factory/dealer partnerships 
ultimately result in manufacturers owning or controlling such dealerships
to the detriment of independent dealers and consumers."

NADA will take all appropriate actions, including support for state
legislative initiatives, to prevent manufacturers from owning or controlling 
dealerships other than through bona fide programs such as dealer development 
and minority dealer development programs.

The board instructed NADA's Policy and Bylaws Committee to ensure that the
association's membership criteria are consistent with the resolution.

The action took place at a meeting of NADA's board of directors here Oct.19.

NADA represents more than 19,500 franchised new-car and -truck dealers
holding nearly 40,000 separate franchises, domestic and import.