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Subscribe to this threadHonda tells some dealers to upgrade, or else...
(Page 1 of 1)
jordan @ May 5th 2008 5:57PM
Honestly, I don't see the problem. They signed their contracts with Honda with this possibility in mind, but it was worth it at the time, for them, to make the investment. I understand that not all markets are going to be able to afford said upgrade, but if they can't then Honda will really have to decide whether it makes good business sense to close said dealership. Most likely, Honda won't do anything, because it would make too much common sense to have them close down the dealers with 3-week wait times.
At minimum, I would hope that *all* dealers that had bad service areas would be required to make the necessary upgrades to improve service, because that reflects Honda's image much more-so than their lot size. "If your store has a 1+ week lead time for service, and you have no plans to improve that, we're gonna shut you down." Again, unfortunately, they probably won't even do that. I've lived in all different kinds of cities, and I've yet to really see a dealership be shut down by their parent.
R @ May 5th 2008 8:11PM
I agree, unless I'm missing something, this doesn't seem any different than any other franchise agreement. The local Subway got pressed heavily by corporate to up their decor standards to the rest of the Subways, and they complied, eventually.