NADA in U.S. Strengthens Its Stand Against Chinese Carmakers and Direct Sales

The National Automobile Dealers Association (NADA) in the United States (US) has reinforced its stance against allowing Chinese vehicle manufacturers to establish a presence in the US, insisting such a move would damage the automotive sector and disadvantage consumers.

Addressing delegates at the Haig Partners Maximising Value Conference on 3 February, NADA Chief Executive Mike Stanton revealed that nearly all members of the organisation’s board back efforts to block Chinese original equipment manufacturers from entering the US. “Ninety-five per cent of our 65-member board believe the NADA should continue supporting the administration’s policy to keep Chinese OEMs out,” Stanton said, describing the potential arrival of Chinese brands as harmful on multiple fronts.

Despite forecasts from several industry analysts who believe Chinese-built vehicles will eventually reach US showrooms, and President Donald Trump’s openness to the idea of Chinese firms building vehicles within the country, NADA remains committed to resisting direct market entry. Stanton clarified that individual dealers would not be discouraged from taking on Chinese franchises, but emphasised that the association would continue opposing the brands’ ability to sell nationally.

Speaking later at the AutoTeam America Dealer/CEO/CFO Forum & Buy-Sell Summit, Stanton noted that political attitudes towards Chinese manufacturers remain volatile. He referenced a message from Senator Bernie Moreno, who vowed he would fiercely oppose any imminent arrival of Chinese brands.

Alongside its stance on foreign manufacturers, NADA is preparing for renewed battles over direct-to-consumer sales models in 2026. Companies such as Scout Motors, Tesla, Rivian and Lucid are among those pushing to bypass traditional dealership networks—an approach NADA says it will challenge vigorously using state franchise laws.

Dealer groups in Florida, California and Colorado have already launched several lawsuits targeting manufacturers attempting to pursue direct sales. Cases filed against Scout Motors, American Honda and Sony Honda Mobility accuse them of circumventing established franchise structures to sell electric vehicles directly to buyers.

Stanton reassured dealers that NADA has both the financial strength and legal strategy to defend the franchise system, promising to “throw the kitchen sink” at protecting the dealer network and arguing that manufacturers consistently underestimate the value dealers provide.