Honda Australia cleared of wrongdoing in switch to fixed-price model – report
A former dealership has lost a court case claiming $22 million in damages after Honda Australia changed to a new sales model in 2021. A court has ruled Honda Australia did not engage in unconscionable or misleading and deceptive conduct during its switch to a fixed-price ‘agency’ model, website Lawyerly reports. Former dealer Brighton Honda sued Honda in the Supreme Court of Victoria after the company broke a five-year contract with the dealership – alleging the act had denied it future profits, while also claiming damages to the amount of $22 million. In 2021, Honda became the first car maker to change to the fixed-price model in Australia, a sales model which involves the company owning all the vehicle stock on hand at dealerships, while dealers became ‘agents’ for the brand. New car prices were locked in by the head office, and agents were paid a set fee for every car sold. However, Honda Australia – which admitted to the breach of contract with Brighton – claimed the...