In a somewhat radical move Honda Australia has come under fire within its dealer group by announcing that from July 1 it will switch to fixed prices for its new cars. Discounts will no longer be entertained under any circumstances according to the company’s General Manager Stephen Collins. The non-negotiable rule will also extend to fleet sales and run out stock.

Interestingly, Honda forecasts the move with see it sell around a third less cars but aims to make more money from each sale, improve the customer experience and move the brand more upmarket. Honda Australia is also culling its national dealer numbers from 106 to around 90 with some to become service points only. Under the new retail plan Honda Australia will take ownership of all its new cars which means dealers don’t need carry millions of dollars in showroom stock on floor plan. In a similar move, Mercedes-Benz Australia plans to introduce fixed pricing from January 1 next year.

I’m David Berthon

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