Pub. 13 2014-2015 Issue 1

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E N O . 2 , 2 0 1 4 26 new jersey auto retailer Auto Dealers Provide An Extra Layer of Accountability BY PETER WELCH, PRESIDENT, NADA In his March 13 (Washington Post) op-ed column, “Tesla vs. the dealerships,” Charles Lane claimed that dealers have a monopoly on selling new cars. That’s like saying doctors have a monopoly on the practice of medicine. There are more than 17,600 new-car dealerships in our country competing for customer business on price and service. Tesla fixes its car prices with no opportunity for consumers to benchmark or negotiate price. There are no other Tesla retailers to compete with, and that’s bad for consumers. Cutting out dealers would not lower car prices; a factory-owned retail network requires the same investment in physical assets and the same operating expenses that dealers now shoulder. However, taking dealers out of the mix would have a negative effect. Automakers have an economic disincentive to issue recalls or incur warranty expenses. Dealers earn money by performing safety and warranty work and, therefore, are always on the customer’s side.Dealers alsohandle trade- ins, sell used vehicles and compete for service and financing business. Each state has the right to determine which vehicle sales and service system works best for its residents. Some allow automakers to sell directly, while others require dealers as an additional layer of accountability.Most believe their residents are better servedbymultiple local retailers competing for their business. Peter Welch is President of the National Automobile Dealers Association (NADA). Automotive HR Solutions provides quality outsourced hu- man resource services to automo- tive dealerships across the tri-state region. We specialize in a variety of services designed to help dealerships maximize their time, profits and em- ployee retention without the worry of maintaining an in-house HR department. Outsourcing HR services allows the auto- motive dealership to focus on its core busi- ness – the sales and service of automobiles. We will develop a customized human re- source solution that will meet the unique needs of your dealership! CALLSandyShectman for a free consultation. Labor relations negotiations and strategies | Wage and hour compliance | Recordkeeping compliance and system development | Turnover monitoring | ESI surveys | Enhance employee morale | Compensation planning and analysis | And much more….. Fully Insured | www.autohrsolutions.com TRUSTED STRATEGIC PARTNERS FOR: