Automakers erode dealer margins

TO THE EDITOR:

Regarding “Nissan considers dealer margin cut on Ariya EV to offset R&D,” autonews.com, April 2: I am constantly amazed at manufacturers who accuse dealers of gouging when they continue to erode profit margins by lowering sticker price for both vehicles and parts. This is a “do as I say and not as I do” scenario.

When I was a district sales manager in the late ’70s, Mercedes-Benz dealers had 25 percent gross profit built into the sticker price and sold vehicles for that profit. Now that it has been reduced by almost 50 percent, retailers rely on finance and insurance and addendum to make up the difference. Who is really driving this?

JAMES RICHTER, Owner, Warwick InfoTech, Calera, Ala. Warwick InfoTech provides fixed operations support to dealers.