The Retail Automotive Alliance has targeted overall cost reductions of £10m per year for its members.

Its key priority for 2006 is to improve finance penetration and to work closer with the major finance houses to improve F&I performance.

“We know this is a big target but we are working hard towards it,” says Philip Maskell, chairman of the RAA and managing director of Essex Ford Group.

Formed in January 2005, the RAA is a not-for-profit organization made up of 22 privately owned dealer groups. It has a combined turnover of £2.41bn and a total of 209 dealerships representing 14 different franchises, more than half of which are Ford.

“We are not desperate for new members but we are happy to discuss the potential with people who can add value to the RAA,” adds Maskell.

Meanwhile, a new remarketing contract with the RAA is to be launched in April through Manheim. More than 30,000 vehicles, equivalent to a sale value of nearly £100m, will be offered each year in auctions across eight of Manheim’s 18 UK centres.

“This new contract generates benefits for our members. We can create a marketing presence as a group, which individual members would not be able to do on their own,” says Maskell.

The sale programme will adopt the new RAA identity as an umbrella brand, but will still use individual dealer brands to promote the sales on a local basis.