Following last month’s look at the pressure on margins, it’s time we turn to a less frequently discussed issue: the consumer change cycle.
This month we switch focus from pre-registrations to scrappage, as the other most frequently discussed method of stimulating the market.
European press has reported that “three in every 10 new vehicles in Germany, including luxury BMWs, are sold not to the customer, but to car- makers and their dealers”.
Following last month’s exploration of ‘downsizing’, we now turn to profit and the factors affecting dealers’ margins over recent months.
Where does the dealer network best focus its attention when the current market becomes economically tough?
