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Hyundai, Genesis, Subaru warn their dealers about markups

Six weeks ago, word got out that Ford's VP of sales for the U.S. and Canada wrote one of those "It has come to our attention..." e-mails to the automaker's dealer body. The VP's problem was dealers trying to get reservation deposits for the Ford F-150 Lightning well above the official $100 fee. The tomfoolery resulted in interactions "with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation." Two weeks later, GM told its dealers to cut out the reservation gaming and the markups on the 2023 Chevrolet Corvette Z06, banditry that's been going on for two years. Two weeks ago, Ford was back at it, this time about markups on the Bronco. Last week, Asian automakers swept into the melee, with Hyundai and Genesis, Subaru, and Infiniti writing letters to their dealers to deliver some variant of, "Stop pissing off the customers." Automotive News reported an SVP at Hyundai Motor America and the COO at Genesis Motor North America sent letters to their dealers expressing disappointment at "certain pricing practices which, if left unchecked, will have a negative impact on the health of our brand." One of the practices mentioned was dealer markups, another was the bait-and-switch, with dealers advertising one price then charging a higher price once the customer showed up at the lot. The letters acknowledged that dealers are separate companies to the automakers and have the right to set their own prices. The automakers cannot interfere with that; their leverage is distributing allocations and perks such as advertising support and financial incentives. So, like a movie boss letting the protagonist go on a technicality, the brands wrote, "we cannot stand idly by watching the actions of the aforementioned dealers undo all the efforts we collectively have put into making these brands what they are today." Jalopnik got tipped to a letter Subaru of America CEO Thomas Doll sent to that brand's dealers. Doll's polite yet insistent tone was the result of a letter a loyal Subaru owner sent to the automaker's VP of Customer Advocacy. In the market for a third brand-new Forester, the owner said they encountered a "tax" labeled a "Low Inventory Surcharge" of as much as $6,000, putting the Forester out of reach.

The Subaru Outback is pretty much the entire wagon market

Last year in the United States, Subaru dealers sold a new Outback wagon every 2.94 minutes. Sales were brisker the year before, when dealers sold a new Outback every 2.78 minutes. It cracked the 50,000-units-per-year barrier every year but one starting in 1997, and has shifted more than 100,000 units annually in the United States every year since 2011. From 2013-2015, Kelley Blue Book said the Outback sat on dealer lots for less time than any other car on sale. Here's a starker set of numbers: J.D. Power, as quoted in a CNBC video, put the U.S. station wagon market at 1.4% of the total U.S. car market in 2018. However, the Outback alone was 1.2%, meaning the sales of every other wagon amounted to a minuscule 0.2% of the total car market. Or, as Road & Track put it, "Out of every 20 wagons sold here, 17 are Subaru Outbacks. Damn." Without taking anything away from Subaru, we need to thank Audi again for bringing the RS 6 Avant and A6 Allroad here, even if the best the Ingolstadt brand can do is bleed marketing dollars to scrap it out with every other automaker for, well, scraps.   Related: 2020 Subaru Outback First Drive Review | The big payoff   The CNBC vid doesn't get into how the Outback became the wagon heavyweight save for a mention about it being "part wagon, part crossover" and saying it has "evolved to incorporate more attributes of SUVs and crossovers" like all-wheel drive. That take overlooks the fact that Subaru debuted the jacked-up, bold-faced Legacy Outback at the end of 1994 as a 1995-model-year offering. Subaru designed the Legacy Outback to be a wagon/SUV tweener, well after Subaru was already known for its AWD chops, and before anyone had coined the word "crossover." The Toyota RAV4, now credited as being the first crossover, didn't show until early 1996.

Subaru Viziv Evolution Concept looks strangely familiar

The Tokyo Motor Show has proven to be far deeper and more interesting in 2013 than it has been in recent years, surely a trailing indicator of the revived auto industry in Japan and throughout the world. Still, we have seen a few concept cars that have been nearly 'recycled' from shows earlier in the season.
This Subaru Viziv Evolution concept is a case in point - it looks not unlike the Viziv Concept that the company hauled over to the Geneva Motor Show in March of this year. What gives?
Well, the original Viziv wrapped its sexy crossover-coupe bodywork around a powertrain composed of a 2.0-liter diesel engine and three electric motors, two of which powered the two rear wheels (another trendy hybrid setup). This new "Evolution" of the Viziv is not dissimilar from its progenitor, swapping in a small displacement gasoline-powered engine for the diesel unit. All of this is based on reports out of Tokyo, mind you, as official information on the car is scarce at the moment.