AutoNation banning dealership employees from charging more for the Chevrolet Volt

Article by Christian Andrei, on August 30, 2010

To prevent overcharging for the upcoming Chevrolet Volt and Nissan Leaf, AutoNation Inc. has announced that dealership employees are banned from charging higher than the sticker price.

AutoNation spokesman Marc Cannon said that violators of the policy will faces consequences, which could include termination. But if customers opt for dealer-installed options for their vehicles, then the price is expected to go above the sticker price and is permitted.

Cannon clarified that price gouging contradicts manufacturer and government objectives for vehicles such as the Volt since federal subsidies aim to entice more people to drive alternative-technology vehicles. Cannon said that a fair market price is ideal but not when the consumer is being taken advantaged of and especially when you consider the government subsidy.

When sales begin for the Volt, an extended-range plug-in, and the Leaf, a battery electric car, these units are expected to be in short supply.

The Volt will start arriving at dealerships this fall with a sticker price of $41,000 (including shipping). Meanwhile, the Leaf starts selling in December with a sticker price of $32,780. However, Nissan has yet to announce the shipping charge for the Leaf.

The government will offer a $7,500 federal tax credit for buyers of either car. General Motors Co. has stated previously that it is discouraging dealerships from overcharging for the Volt; however, manufacturers can't prevent a retailer from seeking a premium.

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