Isn’t a cooperative approach such as the National Automotive Service Task Force (NASTF) always more effective than the legislative/regulatory approach?
A cooperative approach works only if both sides have something to gain and there is third party enforcement. Neither is the case here. . However, it is clear from statements made by the car companies that many of them only made this promise to avoid legislation. Once that threat goes away, we fear many will go back to their old ways. Further, the car companies and their dealers have become much more aggressive in marketing their parts and service to the car owner. According to the National Automobile Dealers Association (NADA), even though dealership parts and service department sales comprise just 11.8 percent of typical dealer’s total sales, it contributes 48 percent of the total operating profit. New car sales make up 60 percent of total sales, but only contribute 35 percent of total profit. History has shown that the marketing and competitive interests of the manufacturers will override their current promise once the legislation has disappeared from their radar screen. In addition,
Related Questions
- Isn’t a cooperative approach such as the National Automotive Service Task Force (NASTF) always more effective than the legislative/regulatory approach?
- How will service fees be paid in the future and how did the Task Force determine if fees were competitive and reasonable?
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