Honda Canada’s decision to reduce dealer profit margin on vehicle sales isn’t “set in stone,” company President Jean-Marc Leclerc said April 25, as Honda revealed plans to greatly expand its local manufacturing footprint with a $15-billion investment in Ontario.
He added that the change does not reflect any move by the automaker to migrate away from traditional dealerships, heading off concerns from some dealers that Honda is tiptoeing toward the so-called agency model. But many dealers, including several of Canada’s largest dealership groups, immediately mobilized to push back.
Not all Canadian dealers have been as quick as others to push back against the change, citing Honda’s commitment to find other ways to make up for the slimmer margin between the vehicle invoice price paid to Honda by dealerships and the sticker price paid by consumers.
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