NADA chief blasts factory 'intrusion'
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DETROIT -- The chairman of the National Automobile Dealers Association criticized manufacturers last week for "intrusion" into dealers' operations by requiring facility renovations and creating two tiers of pricing for retailers.
"Two-tier pricing and mandatory facility upgrades are symptoms of a bigger overall problem: manufacturer intrusion into dealers' businesses," NADA Chairman Bill Underriner said during a speech to the Automotive Press Association.
Underriner restated NADA's view that stair-step programs, which pay dealers escalating bonuses as sales targets are hit, hurt brand values and dealers' relationships with customers. Dealers who aren't paid the bonuses are at a disadvantage relative to dealers who receive them, creating an unlevel playing field, NADA says.
NADA assembled a task force this spring to examine the controversial two-tiered pricing and factory image programs. Underriner said the group is developing a list of actions to take on the stair-step issue.
On the facilities issue, Underriner said the task force by year end will have developed metrics to measure the return on investment in factory image programs.
You can reach Mike Colias at mcolias@crain.com.
