Missouri Automobile Dealers Association

V BUSINESS VIEW MAGAZINE VOLUME 10, ISSUE 6 One of the association’s key milestones came in the 1980s when MADA came up with the blueprint for its current motor vehicle practice laws. This went a long way towards leveling the playing field for small businesses and manufacturers on standards of operation. “Before the franchise laws, there were some liberties taken by vehicle manufacturers with their representatives and dealer agreements,” he explains. “We have, I think, a very fair and straightforward set of laws now that govern the relationship between the manufacturer and the dealership. I’m biased, of course, but I think that the dealership is the best representative of a manufacturer’s product. They have roots in their communities. They’re experts on what they sell. They evolve with the industry. They are just the best spokesperson for the manufacturer’s product. Overall, there are very good manufacturer/dealer relationships in the state of Missouri, but it seems, from time to time, that those limits get pushed by the manufacturer. And that’s when we kind of step in and clarify the law, or remove some of the vulnerabilities and do what we do at our State House.” Smith believes there’s a level of trust built into every transaction between a consumer and their local auto dealer, on the basis that small businesses participate in their communities and are usually large benefactors to high school sports, civic clubs, and municipal leadership. “They sit on chambers of commerce, they sit on bank boards, they’re elected officials—aldermen, state legislators, mayors in some cases,” he says. “And they do that not just because it’s probably part of their business protocol, but because they care about the communities they’ve set up shop in. For me, living in Jefferson City, my family has bought vehicles from the same set of dealers in Jefferson City for the last 30 years. We have a relationship. I can pick up the phone and call them and say, Hey, I’m interested in this vehicle. It’s simply the best way to buy this type of product. I know there are alternative methods out there, and I know those work well for some people. But, for the most part, we don’t see anybody screaming for change in the state of Missouri when it comes to the franchise system.”