“In five years’ time all this will be gone.”
That’s a pretty powerful statement, by anyone’s standards.
What makes it even more weighty is that it was delivered by the head of the UK’s largest franchised dealer group, Pendragon, at AM’s Franchised Dealer Conference.
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An award-winning journalist and editor, with two decades of experience covering the motor retail industry, and accredited by the Institute of Leadership and Management (ILM) plus the National Council for the Training of Journalist (NCTJ)
As editor of AM since 2016, Tim is responsible for its media content, planning and production across AM's multiple channels, including the website, digital reports, webinars, social media and the editorial content of AM's events, Automotive Management Live and the AM Awards. His focus is on interviewing senior leaders of franchised dealer groups and motor manufacturer national sales companies to examine latest developments in UK motor retail.
kevthebass - 22/02/2012 10:05
Perhaps no one was surprised because Mr Finn's comments were hardly new, people have been saying exactly the same thing for years. I'm sure there will be changes but buyers will still need to drive the vehicle they are contemplating purchasing, even if they then order it online. Aftersales has been more profitable than sales for the past 20+ years and yet is pretty much an afterthought for most franchised dealer groups, most need to improve CSI significantly and are too expensive. What's needed is a massive reduction in overheads, including the "glass palaces" that attract no additional customers, provide no customer service benefit (have you ever tried to park at any main dealership?) just additional costs which need to be recovered. A trip around mainland europe will reveal a totally different vehicle franchise approach, very few "glass palaces" and far more small owner-operated sites which would never meet the "franchise standards" imposed in the UK. Buyers will travel further for their exciting new vehicle purchase (or get it delivered!)but will not travel for the "distress purchases" of aftersales, so the network should reflect that. Given that new vehicles sales make minimal profits (thanks to the internet and dealers living off manufacturer rebates) it's not rocket science to work out that used vehicles and aftersales provide the best profit opportunities, that's why there are so many independents making a very good living. Of all the dealerships in the country I had rather hoped that Pendragon Group would be the first to disappear. Finally, centralised national workshop bookings, cheaper; possibly, better for customers; almost certainly not. A vehicle repair workshop is a very complex and fluid entity, it cannot be operated efficiently from a remote location, no matter how sophisticated the DMS, not even Pinewood!