5:28 pm, November 27, 2013
A SEAT dealer has told Car Dealer of his disgust at the Spanish company’s decision to terminate the business of its sponsored dealerships.
A high profile independent franchise holder, who did not want to be named, told Car Dealer Magazine on Wednesday that it is facing the prospect of selling-up because of the decision.
We reported on fears the VW Group had changed its policy and was pulling support for Independent dealers it financially supports.
At first there were rumours all VW Group sites in similar situations were affected, including Skoda, VW and Audi. Car Dealer has now received statements from all manufacturers implicated and ALL have said this is not their policy.
However, we understand, a number of Seat dealerships have been given notice to decide whether to stump up cash to continue in business, find a new owner or face having their contract canned.
Former Liverpool Seat owner Steve Feathers tweeted @CarDealerMag yesterday saying: ‘It’s been happening steadily over the past couple of years. I had to sell @liverpoolseat to Johnsons Cars Limited.’
The tweet has since been deleted, but we also received phone calls from similarly affected dealers.
One anonymous dealer told us: ‘I understand the reason for the decision is we have not been able to generate enough revenue and the sponsored sites have not been able to capitalise on the resurgent market.
‘Their view is we cannot take Seat to the next level. I can see both sides of the coin – there is the commercial sense but we now have to sell up.
‘I can’t see how that is fair.’
Car Dealer spoke to another dealer involved in the process who refused to comment on the story.
When we approached Seat for a comment, the company said: ‘These allegations are totally unfounded. We have a two-year notice termination policy on both sides. No way would we ask them to make a decision in 48 hours.’
Skoda, VW and Audi have all also confirmed that they are not pulling support for any supported independent dealers they have on their books, despite the rumours currently circulating.
A Skoda spokeswoman said: ‘This is not something we are doing.’
Comment: Read Baggott’s blog on Seat’s cull
