OFFICIAL PUBLICATION OF THE LOUISIANA AUTOMOBILE DEALERS ASSOCIATION

2025 Pub. 2 Issue 3

A Message From the President: A National Challenge to the Franchise System

Across the country, franchised automobile dealers are facing significant challenges to our business model. A recent move by the Alliance for Automotive Innovation, which represents nearly every major automaker, has raised deep concern for dealers and the state associations that represent them.

In July, the Alliance submitted a letter to the U.S. Department of Justice’s Anticompetitive Regulations Task Force. This letter was sent without prior notice or discussion with NADA, which speaks volumes about the current tone of the conversation. In that letter, the Alliance argued that many state-level franchise laws, including those that ensure fair warranty reimbursement, protect against encroachment and preserve dealer territories, are “outdated” and “anti-competitive.” In essence, they are challenging the very framework that keeps the retail auto system fair and functional for consumers and dealers alike.

For years, NADA, the Alliance and state dealer associations have worked together on issues shaping the broader industry. That history makes this development troubling, but more importantly, it underscores why strong engagement, both nationally and locally, remains essential to protecting our industry.

Strong Grassroots Advocacy at Home and in Washington

Our Legislative Roadshow this August showed just how powerful our network is when we come together. Over the course of several days, our team brought together dealers and legislators across Louisiana to discuss key policy issues and gather feedback ahead of the 2026 legislative session. The participation was exceptional, and the input we received will directly shape LADA’s advocacy priorities moving forward.

In September, LADA leadership joined our Louisiana Congressional delegation in Washington, D.C., during the NADA Washington Conference, where hundreds of dealers from across the country met with lawmakers to defend the franchise system. The message was clear: Franchised dealers are the backbone of their local economies, providing jobs, generating tax revenue and giving back to their communities.

We are fortunate that Louisiana’s Congressional delegation stands firmly with our dealers and recognizes the vital role we play in our state’s economy. Our ongoing challenge at the national level is to ensure that all policymakers in Washington share that same understanding and continue to uphold the state-based framework that has served both dealers and consumers so well.

Big News from the LADA Workers’ Compensation Fund

I am pleased to share some very positive news from the LADA Workers’ Compensation Fund. Beginning Jan. 1, members will see meaningful savings through a 15% rate reduction and a 46% dividend return, which is the largest distribution in the fund’s history.

These results reflect the program’s financial strength, our members’ dedication to safety and the value of working together through an association-driven fund designed to serve Louisiana dealers. It is a clear example of what can be achieved when dealers unite around shared goals and sound stewardship.

New Member Portal Launched This Fall

We were also proud to launch our new online member portal this October. The updated platform makes it easier than ever to manage your membership, access exclusive resources and stay connected with LADA. I encourage every member to log in, explore the new features and confirm that your company’s contact information is up to date as we prepare for our annual dues renewal period in January.

Looking Ahead

As we look toward the year ahead, remember that LADA will always be on the front lines advocating for you, but we can only be as strong as the dealers we represent. Your involvement, your voice and your commitment to doing what is right for your business and community are what make this association strong.

Together, we will continue building on this year’s progress and ensure Louisiana’s dealers remain independent, competitive and protected for generations to come.

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