Commentary & Voices
Historic Weather Challenges NADA Show 2025, Highlights Auto Industry’s Resilience
Tuesday February 4, 2025
New Orleans was hit by a historic snowfall just as thousands of attendees were arriving for the NADA Show 2025. The rare winter storm brought the heaviest snowfall the city had seen in over 130 years, adding an extraordinary twist to one of the automotive industry’s most significant events.
Despite the weather-induced travel chaos, which had attendees relying on every mode of transportation, from planes to trains to automobiles, the event showcased the automotive sector’s uncanny ability to adapt. The snowfall, while a logistical challenge, became a fitting metaphor for the industry’s resilience. Cox Automotive demonstrated remarkable adaptability and determination in response to the unexpected conditions, hosting 670 product demonstrations and 175 client meetings across the three-day event.
While attendees swapped travel tales on the show floor, the real buzz was focused firmly on the future of the auto industry. Attendees from Cox Automotive were energized by discussions about what lies ahead for the auto market in 2025 and beyond and how new technology, new tools and new ideas will help the best and brightest in the industry thrive in the years ahead.
Here are some of the key takeaways from the event from the leadership team at Cox Automotive.
Steve Rowley, President
“Our conversations at NADA were full of energy and optimism – for the near-term market outlook and the longer-term transformation of the industry through digital technology and AI. I am continually amazed at the resiliency of auto dealers in the U.S. and their never-ending push to improve the consumer experience and drive value for their businesses. It’s no surprise they want more from us – more innovation, more data intelligence, more creative solutions that help them sell more vehicles and get more efficient. As always, our time together at NADA is a reminder of how important this work is and renews our commitment to help them accomplish just that.”
Jonathan Smoke, Chief Economist
“Dealers affirmed our optimistic outlook and expect growth. The only forecast theme they question is growth in EVs, but I think that’s related to timing and the understanding that tax credits are not gone yet.”
“Client feedback indicates that, while our macro view of the market is accurate, actual experience may vary: There is a clear and sharp difference in performance and expectations depending on the brands represented.”
“I continue to believe there are some policy worries about tariffs, but the bigger concerns are with the franchised dealers in the California Air Resources Board (CARB) states, and how OEMs will respond to uncertainty about California’s waiver.”
Ken Kraft, Chief Marketing and Sales Officer
“This was an NADA like no other. The perseverance, creativity, adaptability and grit of the dealers in making it to New Orleans was remarkable. It speaks volumes about this industry and our clients, and those characteristics were on full display at NADA this year.”
Brian Finkelmeyer, Senior Director, Insights and Advisory
“Our forecast for the 2025 is calling for a 1-2% retail sales increase, but I feel the optimism among the dealers at NADA suggests results will be much better! Dealers I spoke with were particularly interested in finding solutions to help them with the growing challenge of finding quality used vehicles on which they can make money. The other big topic was how AI can help their operations run more efficiently. And that, I heard routinely, was more important than ever because the industry has experienced a 35% decline in variable gross margin as inventories and discounting began returning to more normal levels – so dealers are unsurprisingly looking for ways to improve efficiencies in every corner of their business.”
Lori Wittman, President of Retail Solutions
“We’ve hit the ground running in 2025, starting with the excitement (and crazy weather) of NADA! Despite the challenges, our team found a way to showcase tools and strategies to help our customers succeed. Hearing directly from dealers was a top highlight for me, reminding me how important our work is. They’re focused on getting the most profitable deals and looking to us for tools to be more efficient and to help them deliver a great consumer experience.”
Dale Pollak, Executive Vice President and Founder of vAuto
“Dealers are feeling good about their businesses and the year ahead. They sense the same opportunity as Cox Automotive – based on the data and expected market dynamics, dealers will sell more new and used vehicles in 2025. That’s good news.
Amid this optimism, though, I was struck by two things I didn’t hear dealers talk about at the convention – the future state of new and used vehicle profitability, given the recent declines we’ve seen in both in the past two years, and the potential impact on their businesses from federal policy changes, such as new tariffs. It’ll be incumbent on all of us at Cox Automotive to help dealers navigate these challenges as dealers recognize the need to address their risks.”
Grace Huang, President of Inventory Solutions
“As I talked with clients at the 2025 NADA Show, two things were clear – they are increasingly focused on the transition to electric vehicles (EVs) and how AI will impact their businesses. That’s why at Manheim, we’ve been making significant investments in both of these areas, providing scalable solutions for used EVs across our 75 locations, as well as leveraging AI throughout our marketplace to optimize everything from condition reports to valuations, decisioning and more. By harnessing the power of innovation – as we’ve consistently done throughout our 80-year history – we’re ensuring our clients are well-equipped to navigate the complexities of the automotive landscape in 2025 and beyond.”
Joe Kichler, Senior Vice President of Digital and Supply Chain
“Dealers showed up to the NADA Show optimistic and ready to learn about how they can move their businesses forward. It was great to see how many dealers are recognizing the critical role logistics can play in their overall success, as the Central Dispatch team was busy demonstrating how its fully integrated marketplace can help them take control of their supply chain, increase efficiencies and boost profitability. I left the show energized, not just by the conversations we had, but also by the resilience and determination of the dealers who attended despite the historic snowstorm. The future is certainly bright.”
Check out the new retail and inventory solutions showcased at NADA Show 2025.