Q1 2025 Disruption Outlook: NADA is aiming to disrupt potential industry disruption in auto retail

May 6, 2025 | The Presidio Group

As some automakers explore distribution channels that could reshape automotive retail, the National Automobile Dealers Association is fighting back with hard data. The persistent threat of direct-to-consumer sales that seek to limit, or eliminate, interactions between consumers and franchised retailers in part prompted NADA to commission an analysis of distribution methods from consultancy Oliver Wyman.

The study’s key finding: Franchised dealerships remain the most cost-effective way to distribute vehicles.