Honda brand returns to top 5 in dealer attitudes

Honda has regained its place among the top-five brands in the latest National Automobile Dealers Association's Dealer Attitude Survey, following an unusual drop to No. 6 in the previous results.

Honda's slip from the top ranks marks the first time it was missing since 2015.

NADA surveys its dealer members twice a year to let them express their sentiment toward their brands for a specific point in time.

This most recent survey was conducted in July, reflecting dealer feelings this summer.

Despite perennially positive results that placed the brand between the No. 3 and No. 5 spots over the past six years, Honda's slip to No. 6 in NADA's 2022 winter survey was largely due to low product availability.

"It is not surprising to see Honda back in the top five," said Jessica Fini, a spokesperson for the Honda brand. "We continue to have transparent and ongoing communication with our dealer body as we work through a challenging production situation."

American Honda Motor Co. has been sharply affected by supply shortages, resulting in scant inventory for both Honda and Acura dealers. Production and inventory has begun to rise across the industry, meaning higher monthly sales, but Honda reported a 5.2 percent U.S. sales decline in November.

"We aren't out of the woods yet, but have a better outlook and see our supply improving," Fini said.

Lexus came in at No. 1 while Toyota came in at No. 2 — a consistent 1-2 finish for the Japanese automaker. BMW held the No. 3 spot while Porsche came in at No. 4, the same positions as in the previous survey. Subaru, No. 5 in the winter 2022 survey, slipped to No. 7, while Kia rose one spot to No. 6.

Mazda, Acura and Audi round out the top 10. Mercedes-Benz, which held the No. 9 position in the winter results, fell out of the top 10 completely.

Rob Moran, a Mercedes-Benz spokesperson, said the brand is "committed to transforming nearly every facet of our business, which includes reshaping many of our prior dealer partner touch points and field personnel structure."

Moran says this "effort in progress, versus a fully realized implementation" is the likely cause of the decline in survey results.

Jeff Aiosa, owner of Carriage House Mercedes-Benz of New London in Connecticut, says the deterioration of the score is due to a "combination of a lot of things."

In 2021, the automaker told its dealer network it planned to cut into their trade margin to cover expenses to invest in electric vehicles, which Aiosa says is a component of the concern among dealers.

"Another thing is the executive management team — all but one individual is basically new," Aiosa said. "There's been a lot of turnover at the very top."

In June, Mercedes-Benz announced a restructuring that would give higher-volume stores more in-person attention from field representatives, leaving smaller stores with representatives based in Atlanta, and less face-time.

Despite the sentiment expressed by dealers in the survey, Moran says the brand "is confident its new strategic direction will better support our dealer partners and our brand for sustained profitable growth, and to better serve our mutual customers for the long term."