Honda tells some dealers to upgrade, or else...
And maintenance wasn't the only issue Honda chose to address with particular outlets. The changes Honda asked dealers to make include increasing or improving a building's site size, showroom area, service department area, and number of parking spaces, among other things. They are the kinds of changes certain to make customers happy.
Dealers, though, are none too pleased. One dealer said Honda's asking him to invest more than $2 million, and his market doesn't support that. Another dealer, also facing a $2-million-plus bill for requested changes, said the increased debt load would decrease the value of his business should he sell. Honda, of course, doesn't think it is asking too much. Dealers feel that Honda is threatening not to renew their franchise agreements if the changes aren't made, but Honda says it doesn't really have that power. Nevertheless, dealers have been told they have until May 31 to lay out their improvement plans, and until January 2010 to break ground.
[Source: Automotive News - sub req'd]
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