Carmakers and dealers Are More Closer

[jenny21]

Carmakers and dealers Are More Closer

The recession has forced carmakers and franchised dealers to work more closely together with both sides expecting less in the way of financial commitment from each, according to Network Automotive, the independent consultancy. Managing director Colin Bruder said: "The recession has meant that there has been simply less money in the pot for both manufacturers and dealers, and this has undoubtedly affected their relationship.

Standards
"Dealers are no longer able to afford to follow the type of stringent standards specified by manufacturers in recent years, especially where this requires considerable investment.

"In turn, manufacturers can no longer provide the kind of marketing support seen in recent years. Special offers involving low cost finance, for example, have become much rarer."

Bruder said that instead, manufacturers and dealers were concentrating more on getting the basics of their businesses right at the lowest cost in order to provide the best value to each other.

He continued: "For manufacturers, this may be as simple as ensuring that vehicles currently in high demand are readily available to dealers in order to maximise opportunities for new car sales.

"For dealers, it may be a renewed concentration on customer relationship management in order to ensure that as much loyalty to the manufacturer is achieved as possible."

Opportunity
Bruder pointed out that the recession, while bruising for dealers and manufacturers, had actually provided an opportunity for an improvement in the relationship between the two parties.

He explained: "One of the positive things about tough times is that they bring people together, and this has been seen in manufacturer and dealer relationships over the last year, we believe.

"We are starting to encounter a spirit of co-operation where each party tries to help the other rather than the ‘us and them' attitude that has sometimes characterised these relationships in recent years."