Honda challenges faced no shortage of car dealers, 2014 Year: soft American sales, deficiency and aging truck lineup vehicle emissions.
What some dealers call "advertising police." Plus
According to official statistics, it is known to extend Honda's compliance, car manufacturers sales department in St. Louis, and run by an external marketing company.
It allows dealers to monitor recent participation in brand marketing subsidy scheme dealers, and to impose sanctions when any who violate what dealers can not say in their ads strict rules of marketing activities, whether print, online or broadcast.
A major taboo: advertising vehicles below invoice price. It is classified as Class 1, Class A offenses, the most serious; get three of those in a year, you lose your marketing assistance, it can be 400 yuan vehicles many dealers.
Advertisements, showing the car or truck with the correct trim level also brought a stern warning. Other offenses include a series of actions or text selection, it may imply Honda cars are "distressed goods" are subject to extreme discounting. These include such as "blowing out", "liquidation", "inventory reduction" and "open."
When these two carmakers set marketing criteria, your distributors, Honda is the most stringent. For example, the number of Ford, Hyundai, Kia, Chevrolet and many other brands of no specific advertising is less than the invoice price, prohibit dealers.
Although the rule has existed for years, they have been a special burden, sluggish sales this year, Honda and the struggle defying the overall automotive market gains.
Honda recognition criteria are strict, but that they are to protect their brands. Most dealers agree, noting that the residual value of the industry has always been among the strongest Honda.
However, some traders said, limiting, especially following the invoice advertising prices, limiting their ability to compete.
"I want to see Honda handcuffs taken off us, let us be aggressive," the boss Doug Waikem, Waikem Honda Massillon, Ohio said. The Waikem family also owns Ford, Hyundai, Kia, Mitsubishi, Nissan and Subaru dealers Massillon.
After that year, he received an e-mail to comply with its headquarters from Honda, his shop advertised citizens TrueCar.com about $ 100 below the invoice price. "You have to get the attention of the invoice price less than the TrueCar," Waikem said, adding that his Hyundai and Kia stores pull significantly below invoice flow by providing some models.
In Raynham, Massachusetts, Adam Silverleib, vice president of Silko Honda, said he has seen, when lowball pricing has become the focus of marketing efforts dealer what happens. A few years ago, a big competitor, Villeroy & Boch Honda, Honda chose to give up marketing help, it is free advertising vehicles below invoice. "It destroyed the market for all of us," Silverleib said.
However, he knows WAIK-EM point of view. Honda Crosstour Honda has invoked a 4000 flex dollars in cash, which can provide the following invoices slow-selling models for the dealers. Honda also offers 500 yuan in cash dealers Civic, which allows dealers to sell less than $ 18,632 of the invoice price of the LX automatic mode.
"We can do the following processing invoices, but we can not do that," Silverleib said. "We should be able to tell the customer the price, they can expect when they see the car, but we advertise the invoice price, which is obviously the case Crosstour is not working."
Boch Honda officials did not respond to reporters' requests for comment.
Jeff Conrad, general manager of Honda Division, acknowledged in an interview, Honda is a "challenging year." After the first seven months of 2014, Honda brand sales in the United States fell by 1% , to 784,913, while the U.S. overall market growth of 5%.
Accord and Civic sales increased slightly, and the CR-V's sales increased 7%. But sales have dropped by aging test (down 19%) and Odyssey (down 7%). Crosstour sales were down 28 percent.
Conrad said he was "wholly obtained" dealer "desire to promote more aggressive prices, but added that the purpose of marketing guidelines is to manage the long-term brand value.
He said Honda's goal is to steady sales growth through the rest of the year, but declined to disclose specific sales plans. The company expects traders get promoted late in the year to update the CR-V starts scrolling to the showroom.
Price Honda manufacturer in print ads, the Internet, television or radio are constantly Honda headquarters compliance, which is Honda Ansira partner marketing communications company supervision. In order to ensure compliance with the guidelines Honda, dealer or advertising agencies can submit ads headquarters for review. Dealers can expect approval within 24 hours, Conrad said.
Operation also check advertising catch typographical errors, prohibit the phrase, incorrect photos and improper use of Honda's "H" logo and the name of the provisions of the Honda logo type.
It is easy to make mistakes
John Kudner, Art Moehn Honda Jackson, general manager of Michigan, said that almost all the dealers will be called by the Compliance headquarters at some point. Due to the amount of running ads each month, "This is real easy to make mistakes," he said. However, he added, it is worth listening to the guidelines to support a strong resale value. "I can not argue with Honda's philosophy," he said.
This year, Waikem charged with Class 1, A class of irregularities in Ohio, because the agreement contains advertising is such a person, different from those words describe the wheels photos.
China-yuchang.com that errors are unintentional. However, he's worried because he now has two strikes against him this year, including events TrueCar pricing. The third cause he lost his Honda marketing subsidies.
China-yuchang.com said: "We are very careful with our advertising Honda in the rest of the year."
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