AutoNation Tells Its Chevy Dealers to Stick to MSRP on Volts - or Be Terminated
By John O'Dell August 12, 2010
While some Chevy dealers hope to make a a bit of extra money gouging customers for limited supply Chevrolet Volts, those owned by the nation's largest new-car dealership chain have been told in no uncertain terms to charge no more than the Manufacturer's Suggested Retail Price, or MSRP.
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AutoNation's HQ in Ft. Lauderdale, Florida.
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Marc Cannon, head of communications and public policy for Florida-based AutoNation, which owns 230 dealerships in 15 states, told us in a meeting at Edmunds' offices this morning that the chain's 27 Chevrolet dealers have all received a notice that the MSRP on the Volt is the maximum price for which it it can be sold - plus, of course, the price of any dealer-added options.
GM has said the base model Volt, an extended-range plug-in hybrid, will list for $41,000 and an upgraded model for $44,600; both are prices before federal and any state or local incentives are applied.
Anyone involved in jacking up the price. Cannon said, will be subject to immediate termination.
While there have been no reports of Nissan dealers asking premiums for the Leaf battery electric car - in fact, several have said they'll offer it for less than MSRP when it hits dealerships in select regions of the country in December - the same policy applies at AutoNation's 24 Nissan facilities, Cannon said.
The Leaf's MSRP will range from $32,780 to $33,720 before incentives.
Both companies are offering substantial deals for 3-year leases, the Leaf EV for $349 a month with $1,999 down and the Volt for $350 monthly after a $2,500 down.
Cannon said that AutoNation's Chevrolet and Nissan dealers are reporting high levels of interest in both cars.
Dealers are free to sell for less than MSRP, or to add options that raise the price, but cannot - as one Los Angeles area Chevrolet dealership has famously said it will do - demand a huge premium just because the cars will be in short supply with anticipated heavy initial demand.
John O'Dell, Senior Editor
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Very interesting. I guess that's good news for anyone that wants to buy a Volt, except they'll still have to be lucky to secure it, since there won't be enough to go around, and this doesn't prevent all the other dealers from jacking up the price, so how much difference does it really make?
Thank goodness for sound business management and oversight. Nothing is a bigger buzz-kill for new technology than the greed-tax applied by the local dealers...who may need a few bucks in their pockets, but ultimately kill the goose that lays the golden eggs.
Three cheers for Auto-nation! In fact, that makes me someone who will actively look for a local Auto-nation Chevrolet dealership specifically to shop for a Volt.
:)
So out of fear of being terminated by GM the weasels will add in dealer packs (paint and fabric treatments, window engraving, and anything else they can think of). The packs provide 60-70% margins to the dealers and are a major ripoff to consumers. If you are dumb enough to fall for this stuff then I guess who cares?
Is Arnold Schwarzenegger anything to do with this? ;-)
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