As we move through 2025, one thing remains clear — the resilience of dealers. Despite shifting market conditions, regulatory challenges and ongoing threats to the franchise system, franchised dealers continue to be the backbone of their communities. They create jobs, drive economic growth and serve automotive customers in ways no one else can.
At the heart of NCADA’s mission is advocating for our dealers, protecting the franchise system and ensuring our members have the resources they need to succeed and drive the industry forward. As we look ahead, several key issues remain central to our commitment to our membership in 2025.
Defending the Franchise System
The challenges to the franchise system, once driven primarily by new EV manufacturers pushing for direct sales, have now extended to our own manufacturing partners. Recently, two manufacturers announced misguided plans to adopt a direct sales model through affiliated entities. These actions come despite the longstanding support and substantial investments that North Carolina dealers — and dealers nationwide — have made in these brands over the years.
While clearly prohibited by North Carolina law, we must nevertheless remain vigilant in opposing these efforts and any attempts to undermine the franchise system — a model that has long served consumers, businesses and local economies for generations.
Strengthening Dealer Protections
Defending the franchise system also requires continuously identifying dealer concerns and proactively developing legislation to strengthen the franchise laws. Through ongoing engagement with lawmakers and dedicated advocacy efforts, NCADA remains committed to protecting the rights of franchised dealers and the consumers they serve.
This year, NCADA is once again advancing comprehensive franchise law legislation aimed at enhancing dealer protections, ensuring a level playing field with manufacturers and preserving the franchise system’s critical role in our local communities. I encourage all NCADA members to stay informed on our legislative priorities this session and to actively support our efforts to protect and strengthen the franchise system.
Regulatory Challenges and Compliance
The regulatory landscape for our industry continues to be complex and ever‑evolving, presenting dealers with a range of challenges at both the state and federal levels. While recent victories in pushing back against burdensome federal regulations are a positive step forward, many hurdles remain. NCADA remains actively engaged in monitoring and addressing these regulatory challenges, working in close collaboration with NADA to advocate for policies that protect dealers and promote a fair and competitive marketplace.
At the state level, NCADA is actively engaged in addressing a wide range of issues that impact dealers, from everyday operational concerns to long-term policy improvements. Our efforts include working closely with the North Carolina Division of Motor Vehicles (DMV) to streamline processes, reduce administrative burdens and ensure dealers receive timely support in areas such as titling, registration and compliance.
Beyond these day-to-day interactions, NCADA continues to advocate for modernization efforts that enhance efficiency and improve the overall business environment for dealers. This includes pushing for legislative and regulatory updates that reflect the evolving nature of the automotive industry, such as print‑on‑demand temporary tags, digital titling and registration systems, improved dealer licensing processes, and fairer enforcement of existing laws.
By staying proactive on these state-level issues, NCADA strives to ensure that North Carolina’s franchised dealers can operate more efficiently, serve their customers effectively and remain competitive in an ever‑changing marketplace.
Your Role in Our Industry’s Future
Our industry is strongest when dealers are engaged. Whether it’s participating in our legislative advocacy efforts, attending industry events or mentoring the next generation of dealership leaders, every dealer plays a critical role in shaping our collective future.
At NCADA, we are proud to be your voice and your resource, but we need your support and involvement to make the greatest impact. I encourage you to stay active, speak up on key issues and lean on our association for guidance and advocacy.
Together, we will protect the franchise system, drive innovation and ensure that franchised dealers continue to thrive.
Thank you for your continued support and commitment to our industry.
John Policastro
NCADA President
