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NADA News Release

21 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.