San Francisco-More than 25,000 auto dealers, exhibitors, media, and guests from 32 countries converged on San Francisco on Feb. 9-12 for the National Automobile Dealers Association's (NADA) 91st annual Convention & Exposition.
Attendees took advantage of 39 workshops, featuring topics ranging from legal compliance and profitability boosters to Web advertising and service-lane tips; and participated in OEM franchise meetings, product demonstrations, and general sessions throughout the four-day event.
Keynote speaker General Motors Chairman and CEO Rick Wagoner spoke about dealer consolidation during the convention's opening session, held at Bill Graham Civic Auditorium on Feb. 9.
"At GM, we believe the decision to close or consolidate dealerships has to be a mutual decision between individual dealers and their OEMs," Wagoner said. "At GM, we want our car dealers to be profitable so that you can invest in world-class facilities and a top-notch work force."
Wagoner also said dealers and manufacturers must work together to reduce the growth in U.S. oil consumption, oil imports, and greenhouse gas emissions. First, together they can "create the right regulatory environment" by pushing for a single national standard on fuel economy and greenhouse gases. Second, they can push for creation of the infrastructure for electric, hydrogen, and E85 vehicles, he said.
"Ethanol fueling stations today represent less than one percent of the 170,000 gas stations in the U.S. despite our best efforts to grow this number," Wagoner said.
The GM chief mentioned GM's joint manufacturer-dealer dealer profitability task force, whose work resulted in the recent increase in dealer margins and wholesale floor plans.
Wagoner also pointed to the Automotive Youth Education Systems (AYES) as a program that dealers and manufacturers have successfully worked on together for more than a decade. Since 1995, 4,500 dealers have mentored some 13,000 students who became techs, he said.
During the opening session, Timothy J. Smith, president of Bob Smith BMW/Mini in Calabasas, Calif., was named Time Magazine Dealer of the Year.
Talk show host, comedian, and car enthusiast Jay Leno closed the general session with an hour of nonstop standup comedy.
Leno concluded his performance by saying that the auto industry is in an "exciting time," particularly with the advancements in alternative fuels and new products.
"This is my hobby," Leno said. "I love what you guys do."
At the convention's general session Feb. 11, NADA Chairman Annette Sykora said that despite the recent passage of the Corporate Average Fuel Economy (CAFE) bill, the fight over the legislation is only just beginning.
Sykora, dealer principal of Smith Ford Mercury in Slaton, Texas, and Smith South Plains Ford, Lincoln-Mercury, Dodge, Chrysler, and Jeep in Levelland, Texas, is the first woman to chair of the National Automobile Dealers Association. She also represents the franchised new-car dealers of northern Texas on the association's board of directors.
"Take a look at the issues we're facing -- dealer profitability, CAFE, and finding the next generation of employees," she said. "Any of these issues could torpedo our business. This is not the time to sit back and hope the cycle will pass."
The way automakers go about reaching the goal of 35 MPG by 2020, as mandated by the CAFE Bill, will determine what vehicles dealers will be selling and the future of the new car business, Sykora said.
"There are plenty of unknowns being fought over in court and at the regulatory level," she said. "Ultimately, consumers will determine how successful the fuel economy policy is. You can't wave a government wand and make them buy a particular type of vehicle.
"We have to maintain a dialogue with both manufacturers and policymakers to make sure that consumer needs remain at the center of product development," she said. "Dealers need to get involved in the debate."
NADA supports a single, coherent fuel-economy standard for the entire country, Sykora said, as opposed to what she described a "confusing and costly state-by–state approach."
To close the general session, former "NBC Nightly News" anchor and lifelong newsman Tom Brokaw regaled the audience with stories of success, grief, and triumph.
In other convention news, NADA President Phil Brady was given the Automotive Hall of Fame's 2007 Industry Leader of the Year Award at their annual awards luncheon on Feb. 10.
Brady took the opportunity to praise dealers, who have survived "extraordinary challenges" in recent years.
"It all works best when we all do what we do best--manufacturers produce world-class products and dealers provide first-class sales and service experience for customers."
Hall of Fame Chairman Jason Vines also gave Distinguished Service Citations to Susan Cischke, Ford Motor Co.'s senior vice president for sustainability, environmental, and safety engineering; Josephine Cooper, Toyota Motor North America's group vice president for government and industry affairs; Ron Gettelfinger, president, UAW; Frederick Henderson, General Motors vice chairman and chief financial officer; and Lyn St. James, racecar driver, speaker, and author.
Citations were also given posthumously to David Hermance, executive director for advanced technology vehicles at Toyota Technical Center U.S.A.; and David Mungenast Sr., founder of Dave Mungenast Automotive Family.