A Discussion on the U.S. Auto Sector with Mike Jackson, Chairman and CEO, AutoNation, Inc moderated by Wall Street Journal reporter Mike Spector.
On multi-tiered incentive or "stair-step" pricing schemes:
"These programs that price vehicles far under the actual value and cost are unfair to consumers because they are not available to all and therefore create a level of mistrust between consumers and retailers. Stair-step programs are disruptive, they question legality and they promise the unreal. They also collapse the resale value of the car and therefore pull the rug out from under the brand. From all perspectives - the retail, the OEM, the consumer - star-step programs are not sustainable. There, I've said it. Boom."
Mike Jackson, Chairman and CEO, AutoNation, Inc.
Auto Retailing: The Next 100 Years
"When you have $200 billion invested in communities throughout the country like the members of the NADA do, Washington cares about our opinions. The decisions in Washington have a huge impact on the affordability of cars and trucks; they've become far too expensive for many Americans.
From excessive mandates and regulations all the way to the ongoing use of indiscriminate "stair-step" pricing schemes, coupons and other practices by automakers, we need to re-think what real gains we're generating and then negating by these programs. Are they really worth it? Our goals should be the same. Volume growth and a great customer experience. It might be tough to negotiate, but we need an outcome that benefits all of us."
-- Mark Scarpelli, Chairman NADA.