Honda is embroiled over a fight between its dealers and prices being displayed over at TrueCar.com. Honda has told dealers that it will not give them allowances for advertising if they continue to advertise vehicles below invoice on TrueCar.com, an internet auto sales service. Honda thinks that disclosing the cut-rate prices is damaging the brand and is making dealers compete with one another for buyers rather than with other automakers. What the deal with TrueCar is, is that the prices at which dealers are willing to sell cars at, are disclosed to all the visitors on the site. TrueCar is owned by several of the US' largest auto shopping services.
Honda's part of the issue is that it wants to protect its brand image and support pricing. Honda's attempt to withdraw its dealers from participating in this website extends to Acura dealerships. Advertising allowances that may be cut can allocate up to $600 a vehicle.
Industry analysts say Honda's decision may backfire as Honda shoppers that access the website will notice that there are no longer any Honda vehicles on the website and they will simply move to other brands / dealerships who are advertising their cars on the site, including Honda's competitors, Toyota and Nissan.
