Thursday 20 November 2014

NADA tells Nissan to butt out of dealer surveys

BY: Lindsay Chappell

The National Automobile Dealers Association has rapped Nissan's knuckles for "actions by some Nissan representatives" to boost scores in a survey of dealer attitudes toward automakers.

In a July 24 letter to Nissan dealers, NADA said that over the summer it became alarmed that some Nissan field reps may have pressured dealers to give favorable responses on the NADA Dealer Attitude Survey.

"We want you to know that NADA considers any attempt to coerce you into giving responses that you don't believe in is unacceptable," the letter said. It said NADA can drop responses from areas where it determines that the survey has been "subverted."

A statement issued Friday, Sept. 26, by Nissan North America acknowledged NADA's concerns.

"We have cooperated fully with NADA during the survey process, and we understand that the organization will exclude any questionable surveys to ensure that the highest levels of integrity are maintained," the Nissan statement said. "Nissan does not condone manipulation of the NADA Survey, and we will take appropriate action against any party that is found to be interfering with this process."

NADA surveys dealers in winter and summer. The attitude survey is intended to be a confidential report card on dealer-factory relationships. NADA privately presents the survey results to automakers and dealers.

Nissan received low marks in the winter 2014 attitude survey, which signaled a decrease in the number of dealers who believed the value of the franchise would rise.

Nissan's top U.S. management has responded to retailers' gripes by declaring a mission of "making our dealers happier and more profitable" in the words of Jose Munoz, Nissan's North American chairman. Last year, Munoz launched a newly designed sales-incentive approach that addressed dealer complaints that Nissan's previous stair-step program was too unpredictable.

Munoz is determined to raise the value of Nissan dealerships and improve the general perception of Nissan among retailers.

Munoz has said that by making Nissan stores more profitable, multifranchise dealers will give Nissan their top business priority.

NADA did not specify what transpired in the field to raise its concern. The association told dealers that it uses "a number of confidential methods to ensure that any questionable data or conduct comes to light."

According to comments from one Nissan dealer who asked to remain anonymous, his regional office did not overtly ask dealers to provide the survey with positive ratings. Rather, it reminded dealers how improved Nissan's performance has been in the past few years and urged dealers to take time to answer the NADA survey to have a chance of increasing the values of their dealerships.

A copy of a June 24 letter that went out to Nissan field personnel in the Northeast region from Gary Frigo, the regional vice president, obtained by Automotive News, told factory personnel that the summer survey results "will truly be a 'report card' for all of us."

"I hope you also feel as embarrassed over our Winter results as I did," the letter said.

"Let's be 100% clear," the letter goes on, "you are responsible for the scores for your current Area & District."

An NADA spokesman said Friday that the summer survey has not been completed.

"When we were informed of the situation in the region we took action and advised Nissan dealers accordingly," said a statement released by NADA Friday. "NADA has since implemented steps to preserve the integrity of the survey."


Resource: 
NADA tells Nissan to butt out of dealer surveys
NADA tells Nissan to butt out of dealer surveys

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