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Honda Australia to drastically reduce dealer numbers, concentrating on a smaller premium range with a no-haggle pricing structure.

Like the rest of the country the car industry is going through turbulent times. And whilst car dealerships are open for business the coronavirus is a further dampener to sales. Profitability for many has become a major issue – the challenging conditions evidenced by 23 months of declining sales. With more than 60 competing imported brands and with our dollar now below 60 US cents some importers are expected to restructure – Honda Australia the first to move announcing it will drastically reduce its dealer network from July 1 next year, and work with a smaller more premium car range under a new pricing structure – a structure that will see a one price – no haggle system and a warehouse holding operation. The move designed to improve profitability for its Japanese parent will see the small City sedan and Jazz hatchback dropped, the reduced dealer count handling three core models – the CR-V and HR-V SUV’s and the Civic small car range.

I’m David Berthon

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