OFFICIAL PUBLICATION OF THE Illinois Automobile Dealers Association

Pub. 14 2024 Issue 1

Chairman’s Message: IADA Charges Ahead

It is my great pleasure to address our membership as this year’s IADA chairman. I’m honored and humbled to be able to serve in this position. I have been involved with IADA for many years and in many capacities. Also, I watched as my father served as IADA chairman in 1997 and know firsthand the critical role that IADA plays in promoting our Illinois dealership industry and protecting our Illinois motor vehicle franchise system.

As we look over the 100+ years of IADA’s history, it’s amazing to note how some of the issues that challenge us today have changed so little over the past century. The ongoing intrusions into the management of our business by the manufacturers seem to be a fact of life that must be continually dealt with. Ford tried imposing stringent requirements on its dealers in order to sell electric vehicles, and several EV-only manufacturers continue to campaign full bore for the right to sell directly to consumers. I believe many manufacturers would love to see the agency model in place in the United States.

I assure you that IADA does all in its power to protect the franchise model. When some may sit back and see how things play out, IADA charges ahead. When Ford announced its Model E modifications to the Ford dealer agreement that would have reduced dealers to delivery agents, IADA fully funded the successful dealer protest. The dealer victory in the Model E protest will protect hard-earned rights for all franchised dealers in Illinois. In fact, the Illinois protest is a model for dealers throughout the country.

We are challenging Illinois’s SOS and AG office (funding nearly the full dealer lawsuit) from allowing Rivian, Lucid and other manufacturers to deliver vehicles in Illinois without using franchised dealers.

We secured another huge victory when we amended the Illinois Motor Vehicle Franchise Act to require manufacturers to compensate franchised dealers fairly for warranty work on vehicles, and we are currently battling Volkswagen, who has filed a lawsuit to overturn our warranty reimbursement bill. Our bill has translated into a much needed revenue increase for our dealers.

As we partner together through our state association, IADA, we ensure that we are best positioned to protect the investments in our dealerships and fight against any future threats from overreaching government regulations or Illinois Motor Vehicle Franchise Act violations.

I want to personally thank all our dealers who are actively engaged in supporting IADA efforts and encourage everyone to stay diligent as one unified voice. I look forward to an outstanding 2024 and will do all in my power to ensure that IADA remains one of the premier dealer associations in the country.

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