Dear members and friends, 

Reflecting on our recent CNCDA Annual Convention in Kona, one thing stood out to me: the invaluable insights shared by our dealer members with staff. Engagement of the attendees makes CNCDA stronger, and this year’s Dealer‑Only Meeting was a highlight of our convention. This open forum for real, honest discussion about the challenges we’re facing as an industry was invaluable to CNCDA leadership — so much so that we plan to expand this meeting next year to allow even more open dialogue on the issues that matter most to you and your dealership.

At this year’s meeting, three key topics were covered: zero emission vehicle (ZEV) mandates, the document processing charge and warranty reimbursement.

• ZEV Mandates: Dealers made it clear that the California Air Resources Board’s (CARB) push for 100% ZEVs by 2035 brings uncertainty and real, significant operational concerns. Hearing your voices, not only will CNCDA continue to advocate for policies that allow for a reasonable and fair transition to ZEVs, but we are also taking action and having conversations now that will emphasize the realities of such a heavy ask of manufacturers, dealers and California’s motoring public. We are dedicated to ensuring a smooth EV transition at a reasonable pace for all Californians and especially our dealer members.
• Document Processing Charge: The Document Processing Charge is a vital part of your operations. We understand the concerns surrounding current constraints, especially when California’s DPC is measured against the charge dealers from other states procure. Our staff is committed to helping increase this charge so that it remains both fair and reflective of the true costs of doing business in California.
• Warranty Reimbursement: Warranty reimbursement rates have also been a point of concern for many of you. CNCDA will be working closely with legislators and manufacturers to ensure that the reimbursement structure is fair and reasonable, recognizing the costs associated with the critical service work you provide and the proper compensation for the work and services you provide to California’s vehicle owners.

We heard you loud and clear during the Dealer-Only Meeting, and we’re taking action now. Your input is (and always has been) the cornerstone of our advocacy efforts. We are dedicated to ensuring your voice shapes our path forward as it remains at the heart of our staff’s daily operations and focus.

As we respond to and address these concerns, we’re also keeping an eye on new potential threats, such as last year’s Amazon-Hyundai partnership and the recent Volkswagen Scout brand announcement. This move to sell directly to consumers directly contradicts California law — specifically AB 473, which CNCDA passed last year to protect our franchised dealers from having to compete with their manufacturers. This is a developing situation, and we are prepared to act and ensure your interests are protected as these issues unfold.

Thank you for your continued engagement. I look forward to continuing the conversation as we tackle these challenges together.

Best regards,
Brian Maas, President
California New Car Dealers Association