The National Franchised Dealers Association (NFDA) unveiled the findings of its Winter 2024 Dealer Attitude Survey (DAS) on April 8, providing a comprehensive overview of the automotive business landscape. Conducted over a five-week period, posed 59 questions to franchised dealers, garnering 2,321 responses from 32 franchised networks, equating to an overall response rate of 63%.
Sue Robinson, Chief Executive of NFDA, emphasised the survey’s significance in offering invaluable insights into the challenges, trends, and opportunities shaping the industry. Robinson highlighted that the DAS delves into the intricacies of the dealer business landscape, assessing profit levels, new and used car margins, and evaluating the relationship between manufacturers and dealers.
Dealer satisfaction regarding current profit returns experienced a slight decrease, with an average score of 6.1%. Kia led with a score of 8.8, followed by MINI and Lexus. Conversely, dealer satisfaction levels for future profit returns appeared more optimistic, with Kia once again securing top spot.
The DAS indicated that used vehicle margins continue to outperform new vehicle profit, with Kia scoring high on both fronts. Audi received the lowest average score for both new and used vehicle margins.
Dealer satisfaction with their ability to do business with manufacturers on a day-to-day basis increased by 0.6% to 7.1%. Stellantis Group brands saw significant improvement in manufacturer relationship, while Jaguar experienced a decline.
Sue Robinson highlighted the subdued current profit levels but expressed optimism from dealers in respect of profitability over the medium term. She noted the improvement in dealer satisfaction in relationships with manufacturers, particularly with Stellantis Group brands. However, dealers’ confidence in meeting manufacturers’ sales targets reflects market uncertainty.
Robinson concluded by acknowledging dealers’ resilience in navigating through challenging conditions, including a cost-of-living crisis, global supply chain issues, and the fallout of the Russia-Ukraine conflict.
