Honda motors influence on dealers.

[NoHonor937]

I’ve read a couple posts of dealerships being assholes and I’m curious if anyone who’s worked for THE HONDA MOTORS or a dealership knows how much influence Honda has over the dealership? Does the dealership bend over backwards for them or is it a constant battle between the two? I understand that dealers are authorized to sell their cars but that doesn’t seem difficult to get. Thoughts or insights? I worked for Tenneco automotive which makes shocks for gm but we seem to be at the mercy of gm and constantly try to impress them. We’re under contract though so that could change things.

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[SCOPESYS]

I’ve read a couple posts of dealerships being assholes and I’m curious if anyone who’s worked for THE HONDA MOTORS or a dealership knows how much influence Honda has over the dealership? Does the dealership bend over backwards for them or is it a constant battle between the two? I understand that dealers are authorized to sell their cars but that doesn’t seem difficult to get. Thoughts or insights? I worked for Tenneco automotive which makes shocks for gm but we seem to be at the mercy of gm and constantly try to impress them. We’re under contract though so that could change things.

My Understanding is that Honda Dealers live in constant fear and concern about what Corporate Honda will do to their Dealership, if they do not represent Honda in the many ways that Corporate Honda desires.

So yes, the Dealership does bend over backwards to keep their Dealership contract with Honda.

This might not be so apparent when dealing with Service Consultants !!, Salespeople, or the Service manager, but if you want to get a Dealers attention, just talk to the Dealership's GM, and let them know that if they do not adequately resolve any issue you have, that your next step is to put together all the documentation you have about the situation, and escalate it direct to Honda Corporate,

Then stand back and watch the GM bend over backwards to stop you from doing that !!!

 

[TimberWolf]

Look up the dealer franchise laws in your state. US dealers have a lot of power, thanks to their lobbying efforts. Car companies can only do so much to rein in dealers.

 

[REBELXSi]

Pretty sure Honda has more power than their dealers. Wouldn't make sense any other way.

 

[SCOPESYS]

Look up the dealer franchise laws in your state. US dealers have a lot of power, thanks to their lobbying efforts. Car companies can only do so much to rein in dealers.

Really don't think that is true in the USA.
Dealers exist at the pleasure of the car manufacturer. If the Dealer does not meet the expectations of the Car Manufacturer, they loose their relationship with the manufacturer, and then become a dealer of NOTHING !!!

For example, if the Car Manufacturer says " Re-design your showroom, in this style, in this color, and with these feature.. the Dealer Jumps to it, or they are out.

If The Manufacture gets complaints about a Particular Dealer, then the Dealer is on the line to defend themselves, or risk penalties (like not getting their allocation of new cars) or even loose their relationship with the manufacturer.

I sometimes think that the Dealer screws their customers as Paybacks, for the tough way the manufacturer make them bend over and ....------- .
. They don't call it the "Service Dept" for no reason !!!

 

[xcoreflyup]

Tenneco automotive is the supplier and GM is your customer..of course you will need to impress them.

 

[TimberWolf]

Really don't think that is true in the USA.
Dealers exist at the pleasure of the car manufacturer. If the Dealer does not meet the expectations of the Car Manufacturer, they loose their relationship with the manufacturer, and then become a dealer of NOTHING !!!

So, you obviously didn’t bother to look up state franchise laws.

http://faculty.som.yale.edu/FionaSc...iseLawsDealerTerminationsandtheAutoCrisis.pdf

https://www.usnews.com/opinion/econ...anchises-are-bad-for-consumers-and-innovation

 

[SCOPESYS]

So, you obviously didn’t bother to look up state franchise laws.

http://faculty.som.yale.edu/FionaSc...iseLawsDealerTerminationsandtheAutoCrisis.pdf

https://www.usnews.com/opinion/econ...anchises-are-bad-for-consumers-and-innovation

Well, thank you for telling me from up in Canada, what the laws are here in the USA !!

Not that what you posted was so much law, but rather law opinions.

Having said that, and having taken the time to read those two post, it still clearly says that a manufacturer can terminate their relationship with a dealer, given due cause.
A dealer "Pissing off" customers, and thereby reduce the sales number of the manufacturer's Car, would seem to be "Due cause".

From personal experience, and my dealing with Dealers over the year, it is very apparent that when you finally get to talk to the guy at the Top of the Dealership (GM or whoever), they take any potential issue that could be reported to the manufacture in a way to poorly reflect on the Dealership, very seriously, and will literally "bend over backwards" to avoid such reports getting back to the Car manufacturer.

The "Service Advisers" (or whatever fancy name they want to call themselves,) could care less - so getting them to do anything much than feed you a line of BS, is normally a total waste of time.

 

[Rickmeister 48]

When I was going through my mess of getting my lemon replaced, I was told by some dealers and then verified by Honda, that the dealerships don't even have to do warranty work on your car if they don't want to. Again Honda verified this and pretty much said they can't make the dealer do anything.
The Only power Honda seems to have is weather or not to authorize a dealership to replace something under warranty. If they don't and the dealer replaces it, they won't get paid.

 

[Gruber]

I wish US car dealers had less power and manufacturers more. It may be even worse in Canada because of less competition.

 

[NoHonor937]

When I was going through my mess of getting my lemon replaced, I was told by some dealers and then verified by Honda, that the dealerships don't even have to do warranty work on your car if they don't want to. Again Honda verified this and pretty much said they can't make the dealer do anything.
The Only power Honda seems to have is weather or not to authorize a dealership to replace something under warranty. If they don't and the dealer replaces it, they won't get paid.

That seems fucked up. The manufacturer should literally be able to tell the dealer to do what ever they want. Or take their license.

 

[Snoopyslr]

The manufacturer really doesn't have much say in what a dealership can/can't do. The only thing the manufacturer gets involved in is warranty issues because the dealership is sticking them with the bill for it.

Why do you think the dealership conglomerate is lobbying so hard to push Tesla out of states. Tesla is screwing up their entire money machine they've built by letting people buy directly from the company. This is an amazing too because it eliminates the middle man making money for doing next to nothing, it encourages business in smaller mechanic shops who become Tesla certified technicians, and it collapses yet another monopoly that we've allowed to be created in this country at our expense.

Buying cars should be like going to Best Buy and getting a TV. This car costs $21,000. No haggling, no inflated prices because the dealership wants new tile floors or the sales guy wants a bigger commission. Here's your product, here's your price.

 

[Gruber]

Buying cars should be like going to Best Buy and getting a TV. This car costs $21,000. No haggling, no inflated prices because the dealership wants new tile floors or the sales guy wants a bigger commission. Here's your product, here's your price.

Maybe it should, but it won't be until haggling is banned by law.

Selling at a price adjusted to each particular buyer, based on smart salespeople is a absolutely a winning strategy to maximize both volume and profit. Any car maker who would go the fixed price route (like refrigerators) will lose money or market share or both as long as others are haggling. Tesla can only afford it because their fixed price is extremely inflated due to great demand and enthusiasm for their unique product. And btw. Tesla never made any profit.

Whether someone wants haggling to be banned depends on her self esteem. Those who think they are smart and persistent will buy cheaper than the fixed price would be, others will pay more than average and finance the former. Of course I'm in the first group , so haggling is OK with me. I save, because others pay enough, so that the dealers can afford to let a few cars go with almost no profit (only to nice people ) just to boost their sales numbers.

 

[Rickmeister 48]

They can haggle all they want with me. I know what I can and can't afford and if they won't give me what I can afford, I walk out. I've had to do it two or three times, including buying my 2017 civic. Jerk was trying to put us in a fit, telling me we couldn't afford the civic we wanted,an ext, not to mention I was putting six grand down. I walked out and the next day, they call back with a deal in my terms. Jerks.

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