{"id":96597,"date":"2026-02-20T20:00:31","date_gmt":"2026-02-20T23:00:31","guid":{"rendered":"https:\/\/automotive.einnews.com\/article\/894201836"},"modified":"2026-02-20T20:00:31","modified_gmt":"2026-02-20T23:00:31","slug":"automakers-and-dealers-rely-on-each-other-can-they-get-along-better","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/02\/20\/automakers-and-dealers-rely-on-each-other-can-they-get-along-better\/","title":{"rendered":"Automakers and dealers rely on each other. Can they get along better?"},"content":{"rendered":"<div><img data-opt-id=758893364  fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i1.wp.com\/imgproxy.divecdn.com\/3rdgnasSpbMZVJr10YuZeBzUExRmwwu4IExcXnaORds\/g:ce\/rs:fit:770:435\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9UcmF2ZWxlcl9UZXJyYV9yZXNpemVkLmpwZw==.webp?ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i1.wp.com\/imgproxy.divecdn.com\/3rdgnasSpbMZVJr10YuZeBzUExRmwwu4IExcXnaORds\/g:ce\/rs:fit:770:435\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9UcmF2ZWxlcl9UZXJyYV9yZXNpemVkLmpwZw==.webp?ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i1.wp.com\/imgproxy.divecdn.com\/3rdgnasSpbMZVJr10YuZeBzUExRmwwu4IExcXnaORds\/g:ce\/rs:fit:770:435\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9UcmF2ZWxlcl9UZXJyYV9yZXNpemVkLmpwZw==.webp?ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i1.wp.com\/imgproxy.divecdn.com\/3rdgnasSpbMZVJr10YuZeBzUExRmwwu4IExcXnaORds\/g:ce\/rs:fit:770:435\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9UcmF2ZWxlcl9UZXJyYV9yZXNpemVkLmpwZw==.webp?ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i1.wp.com\/imgproxy.divecdn.com\/3rdgnasSpbMZVJr10YuZeBzUExRmwwu4IExcXnaORds\/g:ce\/rs:fit:770:435\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9UcmF2ZWxlcl9UZXJyYV9yZXNpemVkLmpwZw==.webp?ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i1.wp.com\/imgproxy.divecdn.com\/3rdgnasSpbMZVJr10YuZeBzUExRmwwu4IExcXnaORds\/g:ce\/rs:fit:770:435\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9UcmF2ZWxlcl9UZXJyYV9yZXNpemVkLmpwZw==.webp?ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i1.wp.com\/imgproxy.divecdn.com\/3rdgnasSpbMZVJr10YuZeBzUExRmwwu4IExcXnaORds\/g:ce\/rs:fit:770:435\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9UcmF2ZWxlcl9UZXJyYV9yZXNpemVkLmpwZw==.webp?ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i1.wp.com\/imgproxy.divecdn.com\/3rdgnasSpbMZVJr10YuZeBzUExRmwwu4IExcXnaORds\/g:ce\/rs:fit:770:435\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9UcmF2ZWxlcl9UZXJyYV9yZXNpemVkLmpwZw==.webp?ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i1.wp.com\/imgproxy.divecdn.com\/3rdgnasSpbMZVJr10YuZeBzUExRmwwu4IExcXnaORds\/g:ce\/rs:fit:770:435\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9UcmF2ZWxlcl9UZXJyYV9yZXNpemVkLmpwZw==.webp?ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i1.wp.com\/imgproxy.divecdn.com\/3rdgnasSpbMZVJr10YuZeBzUExRmwwu4IExcXnaORds\/g:ce\/rs:fit:770:435\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9UcmF2ZWxlcl9UZXJyYV9yZXNpemVkLmpwZw==.webp?ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i1.wp.com\/imgproxy.divecdn.com\/3rdgnasSpbMZVJr10YuZeBzUExRmwwu4IExcXnaORds\/g:ce\/rs:fit:770:435\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9UcmF2ZWxlcl9UZXJyYV9yZXNpemVkLmpwZw==.webp?ssl=1&w=1600&resize=1600&ssl=1 1600w\" fifu-data-src=\"https:\/\/i1.wp.com\/imgproxy.divecdn.com\/3rdgnasSpbMZVJr10YuZeBzUExRmwwu4IExcXnaORds\/g:ce\/rs:fit:770:435\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9UcmF2ZWxlcl9UZXJyYV9yZXNpemVkLmpwZw==.webp?ssl=1\" class=\"ff-og-image-inserted\"><\/div>\n<div class=\"editor-note\">\n<p>Editor\u2019s note: This is a reported column, in which Steve Finlay periodically explores the relationship between automakers and dealers for WardsAuto.<\/p>\n<\/div>\n<p>The automakers started it.<\/p>\n<p>They\u2019re the ones who created the franchised dealership model.<\/p>\n<p>That\u2019s of note of late, because some startup automakers these days are bypassing the traditional franchised-dealer network and selling cars factory-direct.<\/p>\n<p>It\u2019s become an industry sore point for some players.<\/p>\n<p>Pioneer automakers such as Henry Ford devised the system of independent franchisees selling and servicing vehicles. They did so for three reasons.<\/p>\n<p>They didn\u2019t want to:<\/p>\n<ul>\n<li>Bear the costs of owning individual stores across the country.<\/li>\n<li>Oversee a nationwide sales staff.<\/li>\n<li>Pay the cost of carrying inventory across the U.S..<\/li>\n<\/ul>\n<p>\u201cManufacturers have their hands full designing and building cars. It\u2019s more than a full-time job,\u201d Tim Jackson, former president of the Colorado Auto Dealers Association, told WardsAuto.<\/p>\n<p>Automakers and dealers maintain a symbiotic relationship, meaning they are different from each other yet interdependent.<\/p>\n<p>Dealer-automaker relationships can run hot and cold, but essentially the franchise system has worked well, said Jackson. \u201cEveryone has an important role to play.\u201d<\/p>\n<p>Sure, dealers can get miffed at automakers on <a href=\"https:\/\/www.wardsauto.com\/news\/archive-wards-automotive-author-tackles-topics-some-dealers-don-t-want-to-talk-about\/791319\/\">issues like stair-step incentive plans<\/a> that can result in dealers selling cars at a loss to hit monthly incentive quotas. <a href=\"https:\/\/www.wardsauto.com\/news\/archive-wards-mazda-quietly-cuts-dealerships\/773535\/\">Trimming dealership ranks<\/a> is another hot-button item.<\/p>\n<p>Conversely, dealers can irk automakers when, say, sales and customer satisfaction levels aren\u2019t high enough.<\/p>\n<p>The latest automaker-dealer flareup involves the Volkswagen Group\u2019s decision for its new offshoot, Scout Motors, to <a href=\"https:\/\/www.scoutmotors.com\/newsroom\/scout-branded-vehicles-return-to-the-los-angeles-auto-show-for-the-first\">sell electric vehicles directly to consumers<\/a> when the vehicles hit the market.<\/p>\n<p>The National Automobile Dealers Association <a href=\"https:\/\/www.wardsauto.com\/news\/auto-dealers-seek-more-policy-wins-in-2026-including-curtailing-direct-sal\/811741\/\">has dug in over that one<\/a>.<\/p>\n<p>And 10 Colorado dealers representing VW, Audi and Porsche (all in the VW Group) <a href=\"https:\/\/www.denverpost.com\/2026\/01\/24\/vw-dealerships-sue-colorado-scout-motors-sales\/\">have sued the state<\/a> for granting Scout a dealer license.&nbsp;Scout would join EV makers Rivian, Lucid and Tesla by selling directly to consumers. Among other things, it\u2019s a way to control prices.<\/p>\n<p>But the direct-to-consumer sales strategy comes with risks:&nbsp;Only one of them, Tesla, has been profitable so far. And Tesla is something of an anomaly among the factory-direct set.<\/p>\n<p>\u201cIt was a long, long time before Tesla went into the black,\u201d Jackson said. (Tesla still struggles with the servicing side of the business.) \u201cRivian and Lucid are losing money. I think it\u2019s largely because they don\u2019t have dealers.\u201d<\/p>\n<p>Are there times when everyone in the industry gets along just fine?<\/p>\n<p>\u201cHah! That\u2019s a fair question,\u201d said Jackson. \u201cThe short answer is yes. My recommendation would be to create more of those moments when they are interacting.\u201d<\/p>\n<p>Ironically, some ex-auto executives have crossed over and now head major dealer groups. Example: Michael Manley, CEO of AutoNation, the country\u2019s largest dealer group. He formerly served as managing director-North American operations for Stellantis.<\/p>\n<p>In the 1990s, automakers were wary as dealership consolidation grew, spearheaded by AutoNation (then part of Republic Industries).<\/p>\n<p>There was even a wild rumor that AutoNation intended to introduce its own vehicle line. Well, that didn\u2019t happen.<\/p>\n<p>\u201cAutomakers need to realize they\u2019re not good at selling cars,\u201d said Jackson. Conversely, dealers presumably wouldn\u2019t excel at making them.<\/p>\n<p>How do both sides work out their differences without pulling out the stilettos?<\/p>\n<p>Tim Manning, senior vice president of retail operations for Mazda North American Operations, offers some tips.<\/p>\n<p>\u201cHaving good dealer relations is very important to our management team,\u201d he told WardsAuto. \u201cIt centers on being transparent, honest and direct.\u201d<\/p>\n<p>That doesn\u2019t mean automakers always telling dealers what they want to hear. And vice versa.<\/p>\n<p>\u201cWe\u2019re open to engagement at dealer council meetings and through multiple videos for dealerships and employees,\u201d Manning said. \u201cEvery month, we discuss what we did and didn\u2019t do well. Nothing is off-limits.\u201d<\/p>\n<p>In recent times, Mazda trimmed its U.S. dealership ranks to avoid over-dealering. There are now 540 Mazda stores, down from a peak of 900 outlets in 2000.&nbsp;&nbsp;<\/p>\n<p>Can closing dealerships get messy?<\/p>\n<p>\u201cIt can, though I wouldn\u2019t use that word,\u201d Manning said. \u201cThere were a lot of honest, transparent conversations. We were clear on what we expected. Many dealers were clear on what they were and were not willing to do. It helped us decide the path forward.\u201d<\/p>\n<p>Is diplomacy important in such interactions?<\/p>\n<p>\u201cThe answer is yes, but there are still hard discussions to be had,\u201d said Rob Sickel.<\/p>\n<p>He is chairman of Mazda\u2019s National Dealer Advisory Council and heads Pine Belt Enterprises, a Lakewood, New Jersey, dealer group that represents Chevrolet, Chrysler, Dodge, Jeep, Ram and Subaru. The dealer group is also a partner in two Nissan stores and a Cadillac dealership.<\/p>\n<p>Declining to get into specifics, Sickel said dealer-automaker conversations can get animated. \u201cBut we have them in the right way. Sometimes we don\u2019t always end up where we want. Sometimes they don\u2019t end up where they want. It\u2019s collaborative, though.\u201d<\/p>\n<p>There\u2019s also this dynamic: \u201cDealers generally don\u2019t like being told what to do,\u201d said Sickel. \u201cEspecially if it costs them money.\u201d<\/p>\n<p><strong><a href=\"https:\/\/blockads.fivefilters.org\"> <\/a><\/strong> <a href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\"> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8230; the relationship between <span class=\"match\">automakers<\/span> and dealers for WardsAuto &#8230; Association, told WardsAuto. <span class=\"match\">Automakers<\/span> and dealers maintain a &#8230; market. The National <span class=\"match\">Automobile<\/span> Dealers Association has dug &#8230; specifics, Sickel said dealer-<span class=\"match\">automaker<\/span> conversations can get animated &#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-96597","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/96597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=96597"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/96597\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=96597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=96597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=96597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}