AM Round Table: Tensions rise among car dealers as margins fall

(Message from AM's editor: This round table was held in February, before anyone was aware of the full impact of coronavirus and the current lockdown) 

Franchised retailers expressed their concern about the profit return amid rising vehicle prices, falling margins and the expectation of supply constraints from key manufacturer partners, as they attempt to mitigate the effects of new CO2-based CAFE regulations while rolling out new electric vehicle (EV) products.

John Clark Motor Group chairman, John Clark, was first to express what he saw as the erosion of the sector’s profitability since he started his business in 1977. “I’m looking for 2% on turnover and we’ve achieved that in certain years”, he said. “Some years we’ve been just 1% and I can’t accept that with the level of investment that’s required.”