NADA to Automakers: Stop Unfair Business Practices
The automotive business is unique in the world of retail in one big way: because of the cost of the product their selling and the commitment it requires both of customer and dealer, automakers are compelled to control the retail experience the way they control their advertising and marketing in other ways. If it's, say, Cadillac, they want their dealers to evince the "Art and Science" iconography of the brand, established over a decade ago.
Or if some dealers aren't pushing the metal as well as others, they want to give them what they would consider a friendly nudge. Dealers, however, see both as a Big Brother influence on their affairs.
It's not a new story, but it's always current: auto dealers and automakers have a relationship that looks more
like a state of perpetual detente than a marriage (though one might argue that most marriages are also states of detente.)
The issue of the day is two-tier pricing and mandatory facility
upgrades, the former (from the automakers' perspective) a way to motivate slow starters, and the latter a way to support the brand image and equity all the way to retail.
From the auto dealers, it's a "don't tread on me," issue. at a press event in Detroit, Bill Underriner, chairman of the National Automobile Dealers Association, said "Two-tier pricing and mandatory facility upgrades are symptoms of a bigger overall problem—manufacturer intrusion into dealers' businesses,"
NADA has a dealer task force to focus on the fairness of the two-tier pricing programs."The history of our industry is littered with automaker attempts to impose one-size-fits-all programs on dealers. These efforts at top-down control almost always fail," added Underriner, a Buick, Honda, Hyundai and Volvo dealer in Billings, Mont. "We favor lawful, equal and fair treatment by a manufacturer for all its dealers. Unfortunately, history shows that, at times, manufacturers create incentive programs that favor some dealers over others."
Recent Marketing Daily Articles
-
Mobile Important For Hispanic Shoppers May 23, 5:10 p.m.
Marketers looking to capture more of the growing Hispanic market in the U.S. would do well ... -
CoreBrand: Brand Favorability Low May 23, 4:33 p.m.
Brand consultancy CoreBrand says awareness isn't everything. Awareness is up across the board for the top ... -
Ford Launches European Campaign May 23, 1:36 p.m.
Ford of Europe is backing the 2013 UEFA Champions League Final football match and launching a ... -
Study: Social Media Driving CSR May 23, 11:32 a.m.
With tax evasion and third-world factory collapses dominating headlines, a new study on the role of ... -
Mondelez Goes Social, AR In Band-Tour Sponsorship May 23, 8:14 a.m.
In two firsts for the company, Mondelez International is using a fan as a social media ... -
Beer Category Grows Most In Brand Rankings May 23, 12:40 a.m.
Beer was the highest growth category in this year’s BrandZ rankings -- up 36% year-over-year, according ... -
Saks Soars; Target Misses May 22, 6:10 p.m.
It’s a buzzy week for retailers. While mass chains such as Target and Lowe’s say the ... -
Cricket Makes More From Less May 22, 4 p.m.
Prepaid wireless carrier Cricket Communications is taking direct aim at customers of the larger, post-paid companies ... -
Seattle's Best Promos New Drive-Thru Format May 22, 3:43 p.m.
Seattle’s Best Coffee has simultaneously opened 10 “drive-thrus” in the Dallas/Fort Worth area. This marks the ... -
Balance Bar Unveils 1st National TV Ads In 10+ Years May 22, 6:26 a.m.
Balance Bar -- one of America’s first nutrition/energy bar products (launched in 1992) -- is looking ...
Be the first to comment on "NADA to Automakers: Stop Unfair Business Practices"
Leave a Comment