Vehicle dealers are concerned about the standards imposed on their dealerships by their manufacturer. Investment levels continue to rise even though market conditions and dealer profits have remained difficult, according to the NFDA Dealer Attitude Survey Summer 2012 results.
The NFDA 2012 Dealer Attitude Survey, published today (Monday 3 September 2012), shows that there has been a small rise in the overall value of the franchise. • When asked how satisfied they are with their profit return by representing their brand, the all dealer average increased from 2.7 to 2.9. • Land Rover, BMW, Kia, Mercedes and Toyota were recorded as the top 5 franchises • The least valued franchises by respondents are Honda, Seat, Mitsubishi, Renault and Alfa Romeo.
However, the trend towards diminishing dealer/manufacturer relationships, highlighted in the Winter 2011-2012 Dealer Attitude Survey, continues: • When questioned about their ability to do business with their manufacturer on a day-to-day basis, 64% of networks reduced or maintained their rating since the last survey. • When questioned about the partnership they have with their manufacturer, 57% of dealers reduced their rating and 64% scored below the average mark.
Although profits and profitability ratings have improved slightly in this survey dealers remain concerned about the standards imposed on their dealerships: • When rating the partnership they have with their manufacturer, 45% of networks improved their score. • When asked about the future profitability of their business the all dealer average improved from 3.0 to 3.2. • When questioned about the dealer standard their manufacturer sets them only 36% of networks improved their rating and the majority of respondents gave a score below the average point.
Sue Robinson, director of the National Franchised Dealers Association, commented: “Manufacturers are still demanding high investment levels from dealers even through vehicle sales are low in comparison to sales pre-recession. This is coupled with changes to EU legislation that will allow manufacturers to exert greater control and demands on dealers and their facilities.
“Manufacturers continue to take an aggressive stance when setting targets. Manufacturers have used the reported rise in registration figures during 2012 as an opportunity to increase targets. Many dealers feel they have little ability to negotiate with manufacturers on targets.”
Click here to download a PDF of the survey.
Click here to download an analysis of the results.
ENDS
NOTES TO EDITORS:
National Franchised Dealers Association (NFDA) represents franchised car and commercial vehicle retailers across the UK
