State dealer groups do battle automakers' stair steps
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  2. Letter to the Editor
March 04, 2019 12:00 AM

State dealer groups do battle stair steps

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    TO THE EDITOR:

    Ever see a turtle on a fence post? Common sense tells you it didn't get there on its own.

    "Retailers' stair-step backlash heightens" (Feb. 18) reported that a prominent New Jersey dealer was resigning his memberships out of frustration with the National Automobile Dealers Association and state dealer associations, who he doesn't think are "doing enough to challenge automakers on stair steps."

    I understand the level of dealer frustration about the fact that manufacturers routinely ignore their contractual duty of good faith and fair dealing and behave as though they are above the law. I applaud Automotive News' in-depth reporting about how corrosive these factory programs have become. But it failed to report facts that clearly demonstrate many state dealer associations are doing a great deal to combat stair steps.

    I shared with the reporter certain facts that, apparently, did not advance the false narrative that dealer associations aren't doing enough. What wasn't reported:

     

    • The New Jersey Coalition of Automotive Retailers successfully lobbied for a law that made two-tier pricing illegal in New Jersey.
    • The coalition filed a lawsuit against Mazda seeking a court order to enforce that law.
    • Legal action threatened by the coalition (as well as action threatened by other state and local dealer associations across the U.S.) caused Lincoln and Cadillac to make changes to their image programs.

     

    A turtle doesn't get atop a fence post all by itself. But if you read Automotive News, you would swear turtles could fly.

    JIM APPLETON, President, New Jersey Coalition of Automotive Retailers, Trenton, N.J.

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