Car dealers' dilemma Henderson Gleaner
* Is in debt to you for large sums of money every month.
* Manipulates what you can sell.
* Dictates price without regard to local market conditions.
* Floods your market with competition to capture market share.
How long do you think that partnership would be viable?
Not long, you say, but this is squarely the position in which new-car dealers have found themselves and is much of the reason for the recent turmoil in the retail automobile market, especially with the so-called Big Three domestic automakers.
As with most complex problems, this train-wreck-waiting-to-happen has been in the works for decades. There can be no dispute the great majority of the blame rests with the manufacturers.
The general public views many auto dealers as caricatures created by late-night talk show hosts. Remember Johnny Carson mimicking outrageous TV commercials with the funny toupee and plaid jacket?
While we may have to endure the occasional pricing rant on TV, the image of the new-car dealer certainly has changed for the better. What drove these grown men and women to such bizarre marketplace behavior in the first place? Simple answer: The New Car Dealer Franchise Agreement.
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The Jackson Citizen Patriot - MLive.comSmall-business corner: Rick Reynolds, a licensed insurance professionalThe Jackson Citizen Patriot - MLive.comI focus on church insurance and small-business insurance. … (The agency also offers) personal insurance, life, health, annuities, home, auto and commercial; and more »
