Subaru says ‘no’ to fixed price new car sales

The Australian car distributor Subaru in Australia says it has no plans to switch to a non-negotiable fixed price sales model.

Japanese brand Subaru has joined the growing chorus of automakers saying they have no plans to switch to fixed, non-negotiable prices for new cars in Australia.

Fellow Japanese automaker Honda – and German giant Mercedes-Benz – recently switched from traditional dealership business models to fixed prices in Australia, after rewriting contracts with showroom owners and naming them as ” sales agents.

Although it is illegal for competing car dealerships to set fixed prices between themselves, a legal loophole allows automakers to reformulate their contracts with dealerships, hold all vehicle inventory and appoint showroom owners. exposure as “agents” rather than dealers.

When asked if Subaru was considering switching locally to the fixed-price business model, Subaru Australia boss Blair Read said Conduct“No, it’s not something that’s on our radar.

“We have long had a good working relationship with our dealer network. We see the real importance of this combined partnership.

“In a country the size of Australia, you need good operators. Subaru has been very strong, especially regionally (with) our dealer network. We have long-standing relationships with many dealers.

The Subaru Australia executive said the biggest challenge was getting enough stock to meet demand.

“Our focus at the moment is … to learn from the COVID management period, moving from a free supply situation to a tight supply situation,” Mr Read said.

“So our relationship over the past few years with the (dealer) network has probably grown closer, if anything.”

Joshua Dowling has been a motoring journalist for over 20 years, spending most of his time working for the Sydney Morning Herald (as motoring editor and an early member of the Drive team) and News Corp Australia. He joined CarAdvice/Drive in late 2018 and was a World Car of the Year judge for 10 years.

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