Quote:
Originally Posted by possum
There is no resolution in sight for the margins, because Chrysler doesn't care about the Dealer margins. Dealer Council?, what a joke. It's almost embarrasing to act like there is a Dealer Council.
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It was interesting to see in the thread concerning the Ford Fiesta that low margins tend to be an issue for a lot of the OEMs.
Sadly, I think that's the direction the car business is headed. The margin between Invoice and MSRP will decrease because dealers have a tough time holding gross now that the majority of their customers use the Internet to price shop before going to the dealership.
The OEMs will shift money away from the Invoice/MSRP margin and create more Dealer Cash programs. While that's not a bad thing in my opinion, my bet is most OEMs will come up with programs like Ford's Blue Oval and Chrysler's Dealer Standards that force dealers to meet a set of criteria to earn the maximum level of payment.