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Are OEMs the biggest enemies of dealers?

Alex Snyder

President Skroob
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May 1, 2006
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I was listening to a few podcasts about Digital Retailing this week and it seemed like the evil roadblock has shifted from DMS systems to OEM programs.

We all know how restrictive OEM programs are on dealers' marketing desires, but when you begin to think about margin compression it sounds like a disgusting double punch. Is the OEM fully aware of all the restrictions they put on their retail channels? Do you think they see the bigger picture? Or are dealers missing the bigger picture?

Things OEMs do to suffocate dealers (please add more to this list with your comments):

  1. Taj Mahal showrooms
  2. Maintaining an inventory count that isn't realistic
  3. Pushing dealers to roach cars
  4. Killing the dealer's brand for some bland OEM of City name
  5. Co-op programs
  6. Approved vendors
  7. Pricing policies
  8. Special tools for service to work on specific models

Can we make a list of positives?
 

✨ AI Highlights

Dealers express frustration that OEMs have become the primary obstacle to dealership profitability through restrictive mandates including expensive showroom requirements, unrealistic inventory demands, margin-killing co-op programs, and forced vendor approvals. The thread explores whether OEMs understand the cumulative impact of these restrictions on dealer economics or if dealers are failing to see the bigger strategic picture. A data security concern about Toyota/Lexus dealership systems is briefly mentioned but doesn't develop into substantive discussion.

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