7:56 am, November 4, 2022
Waylands Automotive CEO John O’Hanlon is preparing his car dealership business for a recession.
The boss of the Volvo and Kia group has told Car Dealer Live that as the UK heads towards a contraction in growth he is busy laying the groundwork to see his firm through it.
His comments come as the Bank of England warned yesterday that the UK faces its longest recession in history.
Raising interest rates to three per cent, the bank said although it will be longer, the recession will not be as deep as the downturn that followed the financial crash in 2008.
However, it rising mortgage payments and continued pressure from inflation is weighing heavily on car-buying consumers.
O’Hanlon is working hard with his teams to ensure his marketing messages are now on point and that customers know there are cars available to buy.
‘I think we are headed for a recession,’ he explains in the video, recorded a few weeks ago.
‘And I’m not really sure there’s a lot we can do about it.
‘We’ve got to actually make sure our businesses are best placed.
‘We’re spending a lot of time looking at how we market to our customers, making sure that we’re absolutely sending the right messages, making sure those customers are aware of what product we’ve got.’
O’Hanlon was talking to Car Dealer Live as part of our Car Dealer Power Awards, released in mid-October. His comment on recession can be seen below with the video starting at that point.
O’Hanlon said car dealers have got used to sustaining their business on lower volumes but higher margins – and it’s this that could soon change.
He suggested that with recent stronger margins dealers could ‘get away’ with ignoring ‘some of the basics’ over the last 12 to 18 months, but with an economy in recession that will not be the same.
He added: ‘Your prices have got to be on the mark and your inquiry management has got to be fantastic.
‘Whether it’s online or offline, suddenly that omni channel approach has got to be great, because customers expect a response.
‘We’re trying to make sure that we stick to the knitting and everything’s beautiful for a customer, however they arrived with us.’
In a wide ranging interview that marked his brand partner Kia’s third year at the top of the Car Dealer Power survey, O’Hanlon also talked about his thoughts on used car prices and what’s next for his business.
He also gave his thoughts on forthcoming agency sales which will transform the way car dealers sell vehicles.
‘I’m incredibly open minded about it,’ he said.
‘I really don’t mind how I am rewarded, as long as I’m rewarded for my performance and for the great job that my teams do. As long as I’m rewarded sufficiently, I don’t mind.
‘But there are risks and that’s the part that’s on every retailer to just remind our brand partners if they really make that leap, what those risks are.’
You can watch the video interview in full at the top of this post.
