By SIMON HENDERY
A car dealer is challenging Honda's plans to ditch him as part of a nationwide restructuring which would see four of Honda's six Auckland yards close.
Paul Fahey, of Paul Fahey Honda in St Heliers, has gone to the High Court seeking an injunction to overturn Honda New Zealand's
decision to wind up the dealership he has run for seven years.
"I have a very good business and I feel I've been treated very unfairly," Mr Fahey said yesterday.
Honda NZ said the decision to close six of its 36 dealerships nationwide two run by the company and four by dealers was part of a technology-based restructuring aimed at improving customer service.
A Honda NZ director, Graeme Seymour, said the company wanted to make better use of the internet and a national call centre.
"This is not a performance issue with Paul Fahey or any of our other branches.
"Customers have in the past only dealt with dealers.
"Now customers can book their car in for a service in say Gore or Dunedin just by phoning the one number."
Mr Seymour rejected industry speculation that the move was aimed at increasing sales through Honda's flagship multi-million-dollar Newmarket dealership.
"It's all about taking the cost out of distribution and in the end passing that on to customers."
In the High Court at Auckland on Friday, lawyers for Fahey Motors and Honda told Justice Hugh Williams that Honda had agreed to continue supplying the dealership until a full hearing on the matter.
A date has yet to be set, but is likely to be late this year or early next.
The Business Herald understands Grey Lynn Honda dealership Percy Motors is also considering fighting Honda's plan to scrap its contract.
Percy Motors director Lance Campbell declined to comment.
Two other Auckland dealerships - in Manukau and New Lynn - are also closing under the restructuring. They are both owned by Honda.
Independent dealers in Riccarton and Lower Hutt have also been given the chop.
Honda's move follows mergers of some of Ford's Auckland dealerships and Daewoo dealers complaining "Daewoo Direct" selling had cut into their markets.
