A Message from VADA President and CEO Don Hall
December 2024
As I trust this time of year does for you, the holidays offer me a moment to look back before we go forward.
We kicked off 2024 with our “buy-sell” legislation in the General Assembly that established clear guidelines for dealership sales transactions, ensuring predictability and fairness in these critical business events.
Our biggest story of the year was the announcement by Gov. Glenn Youngkin and Attorney General Jason Miyares on the end of the California electric vehicle mandate in Virginia, which goes into effect Jan. 1. This decision led to significant national media attention. Our initial support of the California Air Resources Board standards was done to drive demand for EVs in Virginia and support dealer interests; doing so put you in a stronger position for manufacturers to send EVs to the Commonwealth. But EV demand and other factors — incentives, grid capacity — have not kept pace. While we remain committed to selling and advocating for EVs in addition to ICE vehicles, we must find a balanced approach that considers industry realities, consumer needs, and progressive policies.
June was our annual Convention in Isle of Palms, S.C. Look back on photos and find yourself in them if you attended. And save the date for 2025 at The Omni Homestead Resort.
This fall, our friend and former VADA chair Dave Perno of Loyalty Automotive was named the Time Dealer of the Year for Virginia.
In October, I joined a group of community college leaders as we traveled to eastern Tennessee to experience their trade education programs at schools in our neighboring state. I wrote about the experience, and our team has been tasked with partnering with community colleges to grow technician jobs in Virginia.
And I’m proof that it is never too late to learn something new: This year I enrolled in NADA Academy, a year-long experience that is giving me an even clearer window into your operations. The experience has been insightful and rewarding and I have put much of what I have learned into practice.
What’s next? Fairness for warranty and recall work.
The slower pace of the holidays hits the gas as soon as the confetti clears, as the General Assembly convenes on Wednesday, January 8.
This year we are going to improve the process for warranty and recall repairs (download our one-pager at this link)
As you know, manufacturers often manipulate reimbursement rates for warranty and recalls, paying dealerships far less than retail. This practice forces dealers to absorb the cost of manufacturers’ product quality issues, harming small businesses and leaving skilled technicians unfairly compensated for their work on increasingly complex vehicles.
Our 2025 legislation in Virginia will look to fix it by:
- Removing arbitrary pricing practices that reduce reimbursements for parts and labor, instead relying on statutory calculations
- Prohibiting manufacturers from slashing part prices for recall repairs and allowing dealers to return unused parts for those repairs
- Ensuring technicians are paid for diagnostic and communication time when working directly with manufacturers
- Allowing dealers to request timely reimbursement for extended rental car expenses incurred due to parts delays
Importantly, our bill protects consumers from paying higher rates resulting from pass-through costs. And it protects our skilled workforce that is essential to maintaining vehicle safety and reliability.
Keep an eye out for ways that you can help us pass this important legislation in 2025.
Prepare for these 2025 Update in Retail Automotive
If you ask any dealer member why they are part of VADA, the answer will be because of our knowledge and ability to stay on the forefront of the laws and rules dictating this industry.
Twice a year (as we did this month), we update dealers on the latest legal and legislative happenings to ensure our members continue to operate consistent with state and federal rules. We also take a moment to lay out our priorities in Virginia, where in 2025 we will pursue legislation to ensure fair reimbursement to dealerships and technicians for warranty and recall work.
Get the entire update here, including the full audio presentation, short topical clips, and even a downloadable PDF.
Announcing VADA Live
Next year will also see a new method of communication from VADA with VADA Live.
This video and audio podcast series provides a new way for dealers and anyone involved in the industry to stay on top of trends, take deep dives into issues facing dealership teams, and meet the men and women who are leading Virginia dealership operations. We have been quietly producing a few videos to get rolling, which you can find at vada.com/live, or on our YouTube page. Much more to come.
A Final Word
I have spent 45 years in this industry, most of them with VADA. That’s more than many of our current third or fourth generation dealers. Like you, this industry has not only supported me in a career, but has given me lifelong relationships that I deeply value.
We spend a lot of time with our fellow coworkers and peers — often even more than the time we get at home with our actual families. Be sure to thank those around you and show them gratitude this holiday season.
Close the year strong, take a breath, and let’s make 2025 a success for our people, our customers, our communities, and our families. Happy Holidays.
