Guest commentary: Words are driving dealer-automaker tensions as much as actions

 

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As the automotive industry moves into a new era of electric and autonomous vehicles, tensions between dealers and automakers are rising. However, according to a recent guest commentary in Automotive News, it's not just actions driving the tension, it's also words.

The author, Richard Trevino II, is an automotive franchise attorney who says that misunderstandings and ambiguity in contract language can lead to friction between dealers and automakers. Dealer agreements often include broad language that grants automakers significant control and decision-making power, which can make dealers feel like they're not being heard or respected.

Trevino suggests that both dealers and automakers should work together to clarify expectations and avoid misunderstandings. Automakers should be more transparent in their decision-making processes and involve dealers in the development of new products and programs. Meanwhile, dealers should advocate for themselves and communicate their needs clearly, rather than simply accepting whatever is handed down from the automaker.

Trevino also notes that dealers and automakers should work towards greater trust and transparency, which can help to alleviate tensions and build stronger partnerships. Improvements in communication and collaboration could ultimately benefit both parties by driving greater customer satisfaction and loyalty.

As the automotive industry continues to evolve, it's likely that tensions between dealers and automakers will continue to rise. By taking steps to improve communication and build stronger, more transparent relationships, both dealers and automakers can work towards a more productive and positive future.