William Underriner is the newly elected chairman of the National Automobile Dealers Association's board of directors. Underriner is the president and co-owner of Underriner Motors in Billings, Mont., and previously served as NADA's vice chairman and Montana director, as well as NADA treasurer. Underriner began his term in early February.
What do you think will be the biggest challenges that dealerships face going into 2012?
Dealers face an economy that is growing slowly. As a result, unemployment remains high by historical standards. A positive point is that home values seem to be stabilizing in most states. Unrest in the Middle East could lead to higher gas prices, which would result in car buyers looking at a narrower range of vehicles. We believe Europe will solve its credit challenge, but the longer it takes to resolve leads to more uncertainty in the world’s credit markets.
Do you expect the improvements the industry saw in 2011 to continue?
Yes, the U.S. economy is gradually building momentum and the auto industry is leading the way. Most automakers had new-car sales increases in 2011. Only those manufacturers that were hard hit by the natural disasters in Asia experienced declines. Paul Taylor, NADA chief economist, is forecasting U.S. sales of more than 13.9 million new cars and light trucks this year. (In 2011, about 12.8 million new vehicles were sold.) Looking ahead at 2012, interest rates are at historically low levels, so it’s a good time for car shoppers to consider buying a new car or truck. We expect incentives to remain strong this year as automakers compete for market share. Trade-in values on used vehicles should also remain higher than average.
What are your top priorities for NADA heading into the start of your term? Are there particular goals/areas you plan to focus on?
My focus in 2012 will be (1) meeting with automakers to discuss the findings of the factory image study, which is analyzing the cost effectiveness of dealership remodeling programs; (2) working with the administration, members of Congress and federal agencies to come to a meaningful compromise on the proposed fuel economy rules; and (3) long-term planning for NADA, such as the future of the NADA Convention and Expo and NextGen [social networking] initiative.
How is the value/importance of fixed-operations changing for dealerships in this new economic climate?
Fixed operations are critical to every dealer in the country. If you don’t have good fixed operations, you could be out of business. Dealers have to build value with their clients through fixed operations in order to maintain a healthy business operation.
Is/will NADA be doing anything specific relative to fixed-ops for members moving forward — i.e., new education programs, etc.
Fixed-ops workshops, presented by NADA University, are offered to dealers and their managers at the NADA convention. NADA University offers workshops on this topic throughout the year.
We’re heading into an election year — are there particular issues of importance to dealers that you’d like to hear candidates talking about?
We’re watching the fuel economy issue closely. The No. 1 question that must be asked is: How many people will no longer be able to afford a new vehicle if the federal government raises the price of a new car by about $3,000? We’re analyzing the rule with this principal question in mind. And we’re urging Congress to do the same. We want to make sure that the car in 2025 is affordable for the average American. We need fuel economy policies that encourage the sales of fuel-efficient vehicles, instead of risky mandates that frustrate consumer demand and depress fleet turnover.
Many of the administration’s current policies, while well intentioned, have adverse, unintended consequences. For example, onerous regulations from the administration’s healthcare policies could make it much more expensive for dealers to hire new employees and will slow job growth. Similarly, in the financial services arena, ill-advised regulations could make it increasingly difficult to extend financing to car buyers.
William Underriner is the newly elected chairman of the National Automobile Dealers Association's board of directors. Underriner is the president and co-owner of Underriner Motors in Billings, Mont., and previously served as NADA's vice chairman and Montana director, as well as NADA treasurer. Underriner began his term in early February.
What do you think will be the biggest challenges that dealerships face going into 2012?
Dealers face an economy that is growing slowly. As a result, unemployment remains high by historical standards. A positive point is that home values seem to be stabilizing in most states. Unrest in the Middle East could lead to higher gas prices, which would result in car buyers looking at a narrower range of vehicles. We believe Europe will solve its credit challenge, but the longer it takes to resolve leads to more uncertainty in the world’s credit markets.
Do you expect the improvements the industry saw in 2011 to continue?
Yes, the U.S. economy is gradually building momentum and the auto industry is leading the way. Most automakers had new-car sales increases in 2011. Only those manufacturers that were hard hit by the natural disasters in Asia experienced declines. Paul Taylor, NADA chief economist, is forecasting U.S. sales of more than 13.9 million new cars and light trucks this year. (In 2011, about 12.8 million new vehicles were sold.) Looking ahead at 2012, interest rates are at historically low levels, so it’s a good time for car shoppers to consider buying a new car or truck. We expect incentives to remain strong this year as automakers compete for market share. Trade-in values on used vehicles should also remain higher than average.
What are your top priorities for NADA heading into the start of your term? Are there particular goals/areas you plan to focus on?
My focus in 2012 will be (1) meeting with automakers to discuss the findings of the factory image study, which is analyzing the cost effectiveness of dealership remodeling programs; (2) working with the administration, members of Congress and federal agencies to come to a meaningful compromise on the proposed fuel economy rules; and (3) long-term planning for NADA, such as the future of the NADA Convention and Expo and NextGen [social networking] initiative.
How is the value/importance of fixed-operations changing for dealerships in this new economic climate?
Fixed operations are critical to every dealer in the country. If you don’t have good fixed operations, you could be out of business. Dealers have to build value with their clients through fixed operations in order to maintain a healthy business operation.
Is/will NADA be doing anything specific relative to fixed-ops for members moving forward — i.e., new education programs, etc.
Fixed-ops workshops, presented by NADA University, are offered to dealers and their managers at the NADA convention. NADA University offers workshops on this topic throughout the year.
We’re heading into an election year — are there particular issues of importance to dealers that you’d like to hear candidates talking about?
We’re watching the fuel economy issue closely. The No. 1 question that must be asked is: How many people will no longer be able to afford a new vehicle if the federal government raises the price of a new car by about $3,000? We’re analyzing the rule with this principal question in mind. And we’re urging Congress to do the same. We want to make sure that the car in 2025 is affordable for the average American. We need fuel economy policies that encourage the sales of fuel-efficient vehicles, instead of risky mandates that frustrate consumer demand and depress fleet turnover.
Many of the administration’s current policies, while well intentioned, have adverse, unintended consequences. For example, onerous regulations from the administration’s healthcare policies could make it much more expensive for dealers to hire new employees and will slow job growth. Similarly, in the financial services arena, ill-advised regulations could make it increasingly difficult to extend financing to car buyers.
About the Author
Brian Albright
Brian Albright is a freelance journalist based in Columbus, Ohio, who has been writing about manufacturing, technology and automotive issues since 1997. As an editor with Frontline Solutions magazine, he covered the supply chain automation industry for nearly eight years, and he has been a regular contributor to both Automotive Body Repair News and Aftermarket Business World.