Honda wants some US dealers to modify operations

Article by Christian Andrei, on July 24, 2014

American Honda Motors is asking hundreds of its dealers to add service bays or working hours -- or even both -- by 2018 as it expects surging sales during the period. While dealers are not required to heed Honda's requests, some of them are feel the pressure to go with the flow.

In May, Honda recalculated its so-called Minimum Requirements for Facilities, which anticipates future sales and the possible on-the-road lifespan of in each market. Honda remarked previous requirements only factored in potential sales.

The new calculations mean several Honda and Acura dealers will be requested to modify their service operations to adjust to increasing sales by 2018. Jenny Gilger, American Honda's senior manager for service operations, said that the carmaker Honda also wants it dealers to fare competitively against independent service shops.

She remarked that while dealers could opt not to heed the requests, they risk losing financially if they couldn’t provide the capacity the market needs. Honda has not revealed how many of its 1,044 Honda and 273 Acura dealerships in the US will be requested to modify their service operations.

According to Gilger, the 2018 requirement recalculation will lead to 10 percent more dealers to be requested to pursue modifications in their operations.

One of the dealers requested to extend hours is David Griffith, who owns Griffith Motors in The Dalles, Ore. But he is not sure whether to heed the request since he doesn’t have the demand to justify adding hours right now. [source: automotive news - sub. required]

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