Pub. 56 2015-2016 Issue 3

25 In an NADA research project by GlennMercer, the dealership facility was not primary as to a consumer’s choice for either the vehicle or the dealership. 18 (See Attachment 2.) Yet, a dealership may be deprived of a manufacturer’s incentive monies if the facility does not have the right paint color, tile, furniture, and “driv- ing gallery” showroom formation. 19 Mr. Mercer’s research indicates that the manufacturer may not al- ways be in tune with the needs or desires of the consumer or the deal- ership and that local decisions may be best left to the dealership owner or in cooperation with one another. Again, the state attempts to bring balance by requiring reasonableness, fairness and equity. 20 Nissan Sales and Service Agreement The Standard Provisions in Nis- san’s Agreement provide that the dealer is assigned a “Primary Mar- ket Area” (PMA); however, this geographic area is a tool for Nissan to evaluate a dealer’s performance. A dealer has no right or property interest in any such geographic area that Nissan assigns and subject to the agreement, Nissan may add, relocate, or replace dealers in a dealer’s PMA as well as change the dealer’s PMA. 21 Nissan also gives itself the right to terminate the agreement if there is any actual or attempted sale, transfer, assignment or delegation, whether by operation of law or otherwise, by the dealer of an interest in or a right, privilege or obligation under the agreement. In addition, if there is an actual or attempted sale, transfer, assignment, or delegation, whether by operation of law or otherwise, of the dealer’s principal assets that Nissan considers necessary for the dealer’s responsibilities without the prior written consent of Nissan, Nis- san gives itself termination rights. 22  DEALER FRANCHISE — CONTINUED ON PAGE 27 ATTACHMENT 2 Exhibit 5: Consumers’ Views of Facilities (1) SURVEY RESULTS Question: What matters most to you when it comes to selecting a new vehicle? Percent selecting top three factors Vehicle size, features, etc. Price Quality (of the product) Reputation (of the brand) Purchase process Financing terms Selection, Inventory Dealership facility Advertising 0 20 40 60 80 Exhibit 6: Consumers’ Views of Facilities (2) SURVEY RESULTS Question: What matters most when it comes to selecting a dealer (once you’ve picked out a car)? Percent selecting top three factors I use online research sites I shop 2-3 nearby stores I read online dealer reviews I ask friend and family I scan newspaper ads I return to the same store I go to the nearest store I pick the nicest facility 0 20 40 60 80