So says Chris Kent, an automotive director at analysts PricewaterhouseCoopers. Already, dealers are closing because of this, a trend he says will increase.
‘Manufacturers have introduced ever-stricter standards for those who hold franchise agreements, in an effort to exercise closer control over their brand’s corporate identity,’ said Kent.
‘Such restrictions will cause some dealers to resign the franchise while others will be forced out, leading to a smaller pool of businesses representing each marque.’
Surely this is bad for competition? Not so, says Kent, due to ever-more car brands chasing declining numbers of credit-crunched buyers.
‘With current economic conditions already a serious threat to the viability of some dealerships, further closures seem inevitable.’
Kent’s findings will be explained in detail at EurotaxGlass’s ‘Driving Business’ conference, held at the National Motorcycle Museum on 13th November.
‘Input from PricewaterhouseCoopers will give our conference a real sense of relevance, at a time when dealers are under greater pressure than ever,‘ said David Burdett, MD at EurotaxGlass’s.
‘The demands of consumers, manufacturers and legislators all shape a dealer’s business, but the wider economy is possibly the greatest influence at present. Delegates will receive constructive advice on maximising profitability during these challenging times.’