Honda Squeezes US Dealers Cutting Profits And Halving Complimentary Service

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Honda Squeezes US Dealers Cutting Profits And Halving Complimentary Service
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Complimentary routine maintenance for all cars from the 2025 model year will be reduced from 2 years to 12 months

Honda is reducing dealership profits by cutting margins and setting a fixed marketing allowance, citing preparation for an electric future.Dealers are unhappy with the changes and will need to adjust to lower profits.Complimentary routine maintenance for 2025 model year vehicles will be halved from 2 years to 12 months. After a similar move in Canada, it looks like Honda dealerships in the U.S.

Honda will also enforce a fixed dealer marketing allowance of $150 per vehicle from May 1. “Obviously, Honda dealers are not happy about the change,” an unnamed dealer told the publication. “We don't think the change is appropriate but it’s also not necessarily surprising.” American Honda Motor Co senior vice president of sales, Mamadou Diallo, says the carmaker consulted with the National Dealer Advisory Board on the move. It will announce more details in April.

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