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I understand dealers are currently negotiating the terms of Monaco Dealer Contracts. I’m hit with déjà vu.
Remember when Monaco was making noises about Franchise of the Future? Remember how it was going to set the standard for customer brand loyalty and for dealer/manufacturer relationships? Then there was the news that Monaco would be paying salespeople directly for selling your units. Then we heard about the requirement to buy and place pylons and furniture, leased from Monaco and paid from FOTF funds. I have to wonder how many dealers have some spare furniture for sale now… Next was the debacle of Monaco offering product at a 40% discount to a single dealer without sharing that discount among the dealers who were supposed to be in an existing loyal relationship. Finally, bankruptcy, unpaid warranty claims and heavy losses on current inventory.
My question -- what makes Navistar think all that history was wiped out with the bankruptcy? Why do they think they can offer a dealer contract that is so one-sided as to say that you can’t make changes to the facility or add another line without their approval? They want traveling customers (who didn’t buy from you) given priority over routine service work for other customers. Yet the dealer’s still haven’t been paid for work already done. They also boldly require that no other product can be displayed with any greater prominence that it displays their product.
I don’t get it. Can someone help me to understand where the thinking is? How is the new ownership doing anything to make dealers whole after being abused by the former company?
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