Generally speaking, automotive OEMs, their independently owned
dealerships and ultimate consumers all expect new vehicles to be
sold from clean, attractive and modern facilities. For
decades, however, tensions have sometimes arisen between OEMs and
their dealers about the merits of facility image programs, and the
significant expense and disruption often associated with complying
with an OEM's requirement to standardize and modernize
facilities.
Most dealer agreements contain provisions requiring dealers to
update their facilities over time and upon the OEM's request
to comply with current image standards. The historic tensions
between OEMs and dealers about complying with facility image
programs have spawned disputes in the past, and these tensions can
be expected to increase given recent developments.
