NJ CAR: President’s Message

By James B. Appleton, President, New Jersey Coalition of Automotive Retailers (NJ CAR) On Aug 7, 2023

New Jersey’s 500+ neighborhood new car and truck dealerships are the economic engine on Main Street in communities across the Garden State. These dealerships represent a $40.1 billion industry that drives the state’s economy and sparks fierce inter- and intra-brand price competition. The franchise system of independently owned and operated local businesses prevents manufacturer monopolies and promotes highway safety by offering convenient, free-of-charge warranty and safety recall repair service.

New Jersey dealers are also critical and reliable job creators, directly employing or supporting more than 71,000 jobs in the Garden State. They provide good paying, local jobs that can’t be outsourced and offer benefits and opportunities for advancement and professional development.

The dealer franchise model ensures that safety recalls and warranty work are addressed fairly and efficiently, because the dealer’s economic interests are more closely aligned with the consumer than the manufacturer. State franchise laws require manufacturers to pay dealers to find and respond to safety and quality concerns, which creates an extra layer of accountability for consumers and highway safety.

Lastly, let’s remember that franchised dealer profits stay right here in New Jersey and get reinvested in facilities, training, tools, equipment and more. A manufacturer-controlled, direct-sale model, on the other hand, produces no benefit for consumers, but represents a windfall for Wall Street investors and Silicon Valley venture capital funds.

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