That there were kickbacks and corruption because Accords and Civics were in demand is a ‘good’ problem. Much different than outright fraud.
Besides, given state franchise laws, yanking dealer chains over ‘extra$’ will always be problematic.

…these are the men (mostly) or women that actually own the business.

When Honda, Toyota et al began importing cars to the US, they didn’t import dealers with them.

They gave franchises to existing good ol’ boy ‘Merican dealers who had Big 3 franchises. In some cases – well, at least one that that I know of firsthand – they gave franchises to guys running used car lots.

Regarding the comment above about the Honda scandal. At the center of that was Rick Hendrick, he of NASCAR royalty and longtime owner of a high volume (and no doubt high pressure) Chevy store in Charlotte. He is/was one of, if not the, biggest Honda dealer in the country.

Why a perceived difference then b/w treatment at import and domestic dealerships? My bet is that the imports have strict dealer sales and service agreements (the contract b/w the OE and the dealer operator) that they actually enforce.

The domestics all have strongly worded agreements … they just don’t enforce them.

Of course the imports have the advantage of having profitable, in-demand franchises which give them all the leverage they need w/the dealer.

What Regional Sales Mgr at GM (or Ford or ChryCo)is going to threaten a a dealer who’s CSI is a bit low* but moves the metal when your overall market share is in free fall.

Or put another way; imagine you’re an OEM’s Regional Sales Mgr:

Defining Career Moment Option #1: Terminate a high volume/low CSI dealer; watch your region’s share fall; and prepare for your next career move supervising parts pickers at the Abilene parts warehouse.

Defining Career Moment Optoin #2:
Take offending dealer to lunch and, over shrimp cocktail, make a joke about the CSI and ask him to ease off the hammer a little… but just a little. Not too much; must keep metal moving! … and prepare for your next promotion.

* I understand Heard’s was a case of a lot more than sort of low CSI.

The antiquated relationship of dealer and vehicle manufacturer to consumer is one where only the consumer loses. GM will, of course, indirectly lose some business due to people who get screwed by a Heard dealership. They need to lose a lot more than just future business. They are as much to blame as Heard. Look out or he’ll be selling Volts in the future under a different name.

Read the book, “Arrogance and Accords”. American Honda was involved in the largest commercial corruption case in US history. The book was written by an American Honda executive who had direct, personal knowledge of the corrupt actions.

To add insult to injury, several of the employess’ final paychecks were made out of rubber.

I really feel sorry for anyone who got the shaft by this outfit.

Interestingly, another dealer has started advertising that they are have the “largest Chevy inventory within 100 miles”.

I was even once sued my a dealer for not paying enough months after I bought the car! Really.

Don’t get me wrong. I’ve vowed never to darken my (Warwick, RI) Honda dealer’s door again, as long as I live.

But Bill Heard was little more than a criminal enterprise, with thousands of consumer complaints, lawsuits and numerous regulatory actions against it (which is saying something, considering Ole Bill’s political pull).

I’m willing to bet dollars to donuts that GM received hundreds of letters from screwed customers asking them to intervene.

They never did.

I have bought from three different Honda dealers, and I doubt they’re any more honest then other dealers I’ve worked with. The first one I’d never do business with them ever again!