Tag: current automotive news

But already on the hook for costly dealership upgrades tied to electrification such as the installation of EV chargers, retailers say they have already done their part and shouldn’t be penalized because Honda can’t handle its own expenses.

“It’s a bit cheeky to expect dealers to shoulder the costs of the manufacturers’ margin implications,” one dealer said.

Margin is also already lowest on sales of the Honda Civic and CR-V, meaning dealer profitability on the brand’s two highest-volume vehicles will be particularly hard hit.

WAYS TO MAKE UP LOSSES?

Some dealers expect the company to give retailers other ways to make up the margin losses. Honda Canada, they say, has expressed openness about allowing dealers to charge buyers administrative fees on purchases, a practice not allowed by the automaker in the past. Such a solution could effectively pass costs along to consumers.

“These things are always shocking, but as long as they are working on an offset, that’s the important thing,” one dealer said.

Not all retailers are approaching the issue with as much leniency. Sources say a range of dealers, including several of Canada’s large dealership groups, are mobilizing to push Honda to reverse course. They’re also exploring other