Dealers File Suit Against Toyota
03-17-08, 02:57 PM
#1
Lexus Champion
Thread Starter
Dealers File Suit Against Toyota
This may explain some of the dealer ads I've noticed of late that appear more turf war oriented than I have ever noticed.
It cannot be a good thing to have dealers suing Toyota.
Toyota’s Middlemen Business Practice Uncovered
Toyota has its back to the wall as the company received a lawsuit from its dealers regarding one of their business practices involving the use of independent distributors as a medium to sell their cars. Looks like Toyota was caught with their pants down on this one...
http://toyotabullrun.blogspot.com/20...-practice.html
It cannot be a good thing to have dealers suing Toyota.
Toyota’s Middlemen Business Practice Uncovered
Toyota has its back to the wall as the company received a lawsuit from its dealers regarding one of their business practices involving the use of independent distributors as a medium to sell their cars. Looks like Toyota was caught with their pants down on this one...
http://toyotabullrun.blogspot.com/20...-practice.html
03-17-08, 03:54 PM
#3
Lexus Champion
Thread Starter
The dealers do not like having to go through middlemen who are setting the prices, the trim packages/allocations etc.
It is explained a little better here but to see the actual suit published in a legal publication will take a few weeks since it was so recently filed.
Toyota's unknown business partners
A pair of independent distributors skim the cream from the automaker's U.S. sales
By Alex Taylor III, senior editor
NEW YORK (Fortune) -- A lawsuit among Toyota dealers has shed new light on one of the Japanese automaker's less well-known business practices: its use of independent distributors to sell cars in the United States.
The use of distributors is a practice that has been followed by Toyota (TM) for decades but one that provides little apparent benefit -- either for the company or its customers. The distributors act as middlemen -- buying cars from Toyota and reselling them to local dealers at a considerable profit. They control large swaths of territory in the South and Southwest, where Toyota sales are growing briskly.http://money.cnn.com/2008/02/28/news...oyota.fortune/
It is explained a little better here but to see the actual suit published in a legal publication will take a few weeks since it was so recently filed.
Toyota's unknown business partners
A pair of independent distributors skim the cream from the automaker's U.S. sales
By Alex Taylor III, senior editor
NEW YORK (Fortune) -- A lawsuit among Toyota dealers has shed new light on one of the Japanese automaker's less well-known business practices: its use of independent distributors to sell cars in the United States.
The use of distributors is a practice that has been followed by Toyota (TM) for decades but one that provides little apparent benefit -- either for the company or its customers. The distributors act as middlemen -- buying cars from Toyota and reselling them to local dealers at a considerable profit. They control large swaths of territory in the South and Southwest, where Toyota sales are growing briskly.http://money.cnn.com/2008/02/28/news...oyota.fortune/
03-17-08, 04:03 PM
#5
Lexus Champion
Thread Starter
j/k
03-17-08, 04:11 PM
#6
Hmm, I wonder how this affects our Hawaii Toyota/Lexus dealerships. I don't know how it works exactly, but all Toyota and Lexus cars are imported through Servco. All Toyota and Lexus dealerships are thus Servco Toyota or Lexus. Basically everyone gets their cars through them. The MSRPs are the same, but if this practice affects what the independent dealers have to pay for the car it could be interesting.
03-17-08, 04:17 PM
#7
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the whole US auto dealership law needs to be over hauled. Its the 21st century and we don't need a opec like oligopoly on car dealerships. We need to join other countries that allow customer's to purchase driectly from the manufacturer, cut out the middle men, let people buy over the internet and test drive vehicles at corporate events like Lexus and GM do at auto shows and invitations etc. Dealers are fine for people that want them, just like realtors and travel agents are fine for people that want them, but it should no longer be against the law to buy/sell cars without a middleman in the transaction to add on "undercoatings, paint sealants, and other misc crap that dealers force you to take or you can't have their car". Total BS.
I hope this lawsuit back fires and at least gets the public noticing the dealers in the US are protected b a law that goes back to the 1930's, I hate the NADA lobbyists in washington almost as mucha s I hate the NAR lobbyists (who are now getting taken to court by the DOJ for similar anticompetitive practices reguarding their MLS).
I hope this lawsuit back fires and at least gets the public noticing the dealers in the US are protected b a law that goes back to the 1930's, I hate the NADA lobbyists in washington almost as mucha s I hate the NAR lobbyists (who are now getting taken to court by the DOJ for similar anticompetitive practices reguarding their MLS).
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03-17-08, 04:23 PM
#8
Lexus Champion
Thread Starter
the whole US auto dealership law needs to be over hauled. Its the 21st century and we don't need a opec like oligopoly on car dealerships. We need to join other countries that allow customer's to purchase driectly from the manufacturer, cut out the middle men, let people buy over the internet and test drive vehicles at corporate events like Lexus and GM do at auto shows and invitations etc. Dealers are fine for people that want them, just like realtors and travel agents are fine for people that want them, but it should no longer be against the law to buy/sell cars without a middleman in the transaction to add on "undercoatings, paint sealants, and other misc crap that dealers force you to take or you can't have their car". Total BS.
I hope this lawsuit back fires and at least gets the public noticing the dealers in the US are protected b a law that goes back to the 1930's, I hate the NADA lobbyists in washington almost as mucha s I hate the NAR lobbyists (who are now getting taken to court by the DOJ for similar anticompetitive practices reguarding their MLS).
I hope this lawsuit back fires and at least gets the public noticing the dealers in the US are protected b a law that goes back to the 1930's, I hate the NADA lobbyists in washington almost as mucha s I hate the NAR lobbyists (who are now getting taken to court by the DOJ for similar anticompetitive practices reguarding their MLS).
All I can say is the dealers had to be really fed up to do this because in the meantime they have to take any crap for doing it from the middlemen and maybe also from Toyota for doing it. But since there are so many of them maybe it won't be too bad for them
03-17-08, 05:32 PM
#10
Lexus Fanatic
the whole US auto dealership law needs to be over hauled. Its the 21st century and we don't need a opec like oligopoly on car dealerships. We need to join other countries that allow customer's to purchase driectly from the manufacturer, cut out the middle men, let people buy over the internet and test drive vehicles at corporate events like Lexus and GM do at auto shows and invitations etc. Dealers are fine for people that want them, just like realtors and travel agents are fine for people that want them, but it should no longer be against the law to buy/sell cars without a middleman in the transaction to add on "undercoatings, paint sealants, and other misc crap that dealers force you to take or you can't have their car". Total BS.
Take the Camry and Accord, for instance....much simpler cars. Almost a half-million of EACH are sold, brand-new, every year.....it has been that way for years. You can't have millions cars going all the way back to back to the factory for simple oil changes or minor service. The auto plants are too busy producing NEW cars to deal with stuff like that......that is why you have local dealerships and service bays to start with.
Last edited by mmarshall; 03-17-08 at 05:39 PM.
03-17-08, 06:39 PM
#11
haha,
Knew this would happen...
I was with Toyota for 7 years.....from sales to Finance....
Good ol'e GULF STATES Toyota is responsible for the whole southwest region.
anywhere from pinstripes to floormats and leather.....this is where it came from.
Pretty much, TOYOTA builds the car (probably as plain as posssible) sells it to Gulf states, then they add all their goodies and mark it up from there.
If you buy a Toyota in the southwest region, you'll notice two prices on the manroney sticker...base and port installed MSRP
Knew this would happen...
I was with Toyota for 7 years.....from sales to Finance....
Good ol'e GULF STATES Toyota is responsible for the whole southwest region.
anywhere from pinstripes to floormats and leather.....this is where it came from.
Pretty much, TOYOTA builds the car (probably as plain as posssible) sells it to Gulf states, then they add all their goodies and mark it up from there.
If you buy a Toyota in the southwest region, you'll notice two prices on the manroney sticker...base and port installed MSRP
