“NFDA’s Dealer Attitude Survey is a comprehensive analysis that delves into the perspectives, insights, and sentiments of the working relationship between franchised dealerships and their respective manufacturers across the UK. This is a landmark edition as we have welcomed our new data-analyst partners, Metryx, to reshape and redesign how the sector can interact and dissect the data, offering a fresh new look for easy access and analysis,” said Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA) which represents franchised car and commercial retailers across the UK, commenting on the results of the NFDA Dealer Attitude Survey (DAS) Summer 2023 edition, published on Monday 9 October 2023.
NFDA’s Dealer Attitude Survey, Summer 2023 edition was conducted over August and September 2023, asking franchised dealers’ questions about the on-going business relationship with their respective manufacturer(s). The survey attracted 2,531 responses from 32 franchised networks, equating to a joint record response rate of 68%[1]. The 2023 Summer survey showed a general downward trend across a majority of questions, with 47 out of 55 questions showing a decline compared to the previous winter 2022/23 edition.
Profit Return
Dealer satisfaction levels for profit returns has fallen on average from six months prior, from 6.7 in Winter 2022/23 edition, to 6.2 in the current Summer 2023 edition, equating to a -7.5% change. The highest three returning scores came from Kia (9.1), BMW (8.3) and MINI (8.2). The lowest returning three scores from Vauxhall (2.4), Citroen (2.2) and DS (1.2).
Electric Vehicles
The survey revealed that franchised dealer sentiment around EVs is being weighed down by the high levels of investment required for EV preparation, in conjunction to manufacturer support. In particular, dealers have raised concerns with their manufacturer’s support for on-site EV charging infrastructure, returning an average of 4.9 out of 10, the lowest returning score for the entire survey.
Used cars
The highest returning scores from the survey revolve around used car satisfaction. Dealers were most satisfied with their respective manufacturers’ used car standards, returning the highest average score of 7.1 out of 10. This was followed by total margins made from used cars, returning an average of 7 out of 10. Lexus (9), Kia (8.9) and Suzuki (8.4) were the front runners, with Citroen (4.4), Jeep (4.4) and DS (3.9) making up the bottom three spots.
Most Improved
Although returning a particularly low score, it is positive to see that new car supply is steadily improving in the UK. When asked how satisfied dealers were with their manufacturer’s new vehicle supply, the Summer 2023 returned an average of 5.5 out of 10, 0.5 points higher than Winter 2022 edition which equates to a 10% change. Lexus (7.7), Nissan (7.6) and Kia (7.5) were most satisfied and DS (3), Ford (2.8) and Jaguar (2.6) were least satisfied.
Agency
Dealer opinions around manufacturer’s approaches to future retailing agreements and contracts has fallen on average by -0.3, from 6.3 in the Winter 2022 edition to 6 in the Summer 2023 edition. Lexus has returned the highest score of 9.2, followed by Kia (9.1) and Suzuki (8.6). The lowest returning scores came from Vauxhall (2.6), Citroen (2.4) and DS (1.0).
Overall
The all-important question ‘how would you rate your manufacturer overall on a scale of 1 to 10?’ returned an average of 6.3, a 0.2 fall from our Winter 2022 edition. Kia (9.5), Lexus (9.2), and MINI (9.0) were the top performers whilst Vauxhall (2.4), Jeep (2.3), and DS (1.5) received the lowest ratings. Audi improved the most with a 26% increase in rating from the previous survey.
Following Kia’s success as the manufacturer with the highest returning score for the Summer 2023 Dealer Attitude Survey, Paul Philpott, President and CEO of Kia UK Limited, commented: “We are truly delighted to again be named the overall winner in the NFDA Dealer Attitude Survey. This Survey offers us a fantastic insight into our dealer partnership, which forms the backbone of our business. This year has been full of unique challenges, which I’m proud to say we have been able to work together to overcome. Alongside our customers, our dealer partners are at the forefront of Kia and together we work hard to make it the brand it is today: a leader in electrification; the fourth best-selling brand in the UK; and on the way to launching seven EVs in the UK by 2027.
“Whilst this is a time of celebration for us and our partners, there is no time to rest on our laurels. We will continue to navigate new and evolving challenges, deliver on the needs of our customers and the transition to electric vehicles. We are proud of our strong network partnership and are well placed to build on our excellent foundations, adapt to change and deliver world class mobility solutions.”
Sue Robinson concluded: “It is extremely positive to see the NFDA Dealer Attitude Survey has once again returned the record response rate, demonstrating the automotive industry’s unwavering commitment to sharing its valuable insights and attitudes that are shaping the retailing sector.
“The DAS is an extremely valuable and constructive tool for both manufacturers and dealers. It enables manufacturers to better understand the areas that are damaging and improving the relationships with their respective dealers. It is particularly disappointing to see the Stellantis brands again receiving the lowest scores across the board, a clear indication of a challenged business relationship and highlights a pressing need for improved collaboration and support to better align with dealer expectations and foster a mutually beneficial business operation.
“With the dynamic landscape of the automotive industry constantly evolving, it is now more important than ever to listen to the attitudes of dealers, serving as the compass that guides us towards a future sector of innovation, collaboration, and mutual success.”
Dealer Attitude Survey – Summer 2023 FULL REPORT: https://www.nfda-uk.co.uk/downloads/dealer-attitude-download/NFDA-Summer-DAS-23-Report.pdf
Dealer Attitude Survey – Summer 2023 STORYBOARD: https://www.nfda-uk.co.uk/downloads/NFDA-Summer-2023-Master-Storyboard.pdf
Dealer Attitude Survey - BRAND PERFORMANCE REPORT: https://www.nfda-uk.co.uk/downloads/Brand-Performance-NFDA-DAS-Summer-23.pdf
[1] - National response rate has been calculated using Total responses received / Total network sites - this is different from prior years where the average of brand response rates % were used.
