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Monday, December 12, 2011

Honda Warns Dealers About TrueCar - Bad for the Honda Brand!

Honda Warns Dealers About TrueCar

Mike Warwick, director of digital marketing for the seven-store Kelly Automotive Group in suburban Boston, agrees with Honda's policy toward TrueCar. "Honda's trying to protect the gross profit in selling a car and trying to protect the salespeople who are the backbone of the industry," Warwick said. Kelly, with a Honda store and two Nissan stores among its holdings, dropped out of its TrueCar contract this month after just three months as a participating dealer, Warwick said. In November alone, the group was inundated with 700 leads from TrueCar customers who took a guaranteed vehicle price that Kelly offered, he said. But the stores closed on just 20 of those deals and only three were profitable given the discounts negotiated, Warwick said. The vast majority of customers went elsewhere, using the deals negotiated on TrueCar to get lower prices for vehicles at other non-TrueCar dealers, he said. Meanwhile, Kelly had to follow up with all 700 customers, Warwick said.

Source: Bad for the Honda Brand! - Automotive Digital Marketing Professional Community

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