The increasingly competitive car market is forcing manufacturers to adopt tighter controls over car dealerships. This seems likely to result in the closure of a number of dealerships. Chris Kent, of analysts PricewaterhouseCoopers, predicts this scenario in a speech he will be delivering to the forthcoming EurotaxGlass’s conference in Birmingham.
According to Kent, “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. 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. Competition for sales will remain fierce, however, with a broader range of car brands chasing what may well be a dwindling number of prospective buyers”.
Kent’s presentation, entitled “Driving Business – opportunities for profit and growth in an uncertain market”, will offer advice to dealers who are struggling in the current economic climate. David Burdett, managing director at EurotaxGlass’s, said, “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”.