As the automotive industry navigates a period of significant change in consumer trends, the National Automobile Dealers’ Association (NADA) highlights the reasons why the traditional franchise dealership model remains the gold standard for automotive retail both locally and globally.
Insights from NADA’s recently concluded US Study Tour reinforce why the franchise model, which has its origins in the early 20th century, continues to provide the most efficient and customer-centric experience for vehicle sales in South Africa and around the world.
According to NADA, the franchise dealership model was born out of a need for manufacturers to scale car sales rapidly by partnering with local entrepreneurs who understood the communities in which the car companies sought to increase their market share. By the 1920s and 30s, it became clear that a local presence was essential not just for sales, but for the complex lifecycle of a vehicle, including maintenance and trade-ins. Today,…
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