“This year’s survey reflects dealers are finding their relationship with manufacturers far tougher. The key indicators would suggest that, combined with tougher economic conditions and a more aggressive stance by manufacturers, dealers are finding their relationship with manufacturers challenging” Sue Robinson, Director of the National Franchised Dealer Association (NFDA), commenting on the NFDA Dealer Attitude Survey Summer 2011, which has seen the highest response from dealer Robinson continued “In our key question ‘how do you rate the value of holding your franchise’, Land Rover, BMW, Lexus, Audi and Nissan feature as the top five franchises. Land Rover have performed extremely well this Summer beating Lexus to the top spot in the rankings, leaving them in joint second place with BMW. The least valued franchises by respondents are Proton, Fiat, Mazda, Renault, Honda and Seat.” With the economic climate and market conditions still challenging, dealer profitability is of clear concern to the majority of networks, with a decrease to the all dealer average of -0.2 from 3.2 to 3.0. 2011 has seen margins and company profits decline across many franchises. With the difficulties in the retail market, there appears to be uncertainty amongst dealers about future profitability. The UK economic outlook is uncertain with further years of slow growth forecast and poor consumer demand possible. It is clear that the majority of dealer networks surveyed are dissatisfied with the standards their manufacturer sets them. 62% of networks responded with a decrease in score, most notably Mazda -0.7 and Audi -0.4, with both falling below the all dealer average mark. Dealer standards also appear to be an issue for Ford, Jaguar, Renault, Vauxhall and Volvo, all giving a downward rating of -0.4 and Lexus and Peugeot who fall by -0.3. Lexus however are in joint 1st position in the rankings table for standards their manufacturer set them, despite this decrease in rating. The Nissan dealer network shows a significant increase of +0.6. Land Rover are also more satisfied with dealer standards having recorded an increase in score of +0.3, as is the case for Suzuki with +0.3. Partnerships with manufacturers appear to have deteriorated amongst some networks. When asked to score their manufacturer based on the partnership they have with them, 52% of networks scored their manufacturer lower than they did on the last survey. This is also proven by a drop in the all dealer average of -0.1 from 3.7 to 3.6. Dealers are obviously feeling that their relationship with their manufacturer is less of a partnership. There are higher manufacturer demands, particularly with targets and standards. Dealers are feeling that their manufacturers are imposing standards but are not taking into account the dealers’ position, particularly in a tough market with reducing margins. ENDS NOTES TO EDITORS: For further information on the survey please contact the RMI press office. Keely Scanlan, Press Officer Tel: 020 7307 3410 Mob: 07825097697 Press Office direct line: 020 7307 3422 Press Office fax: 020 7307 3406 Web: www.rmif.co.uk Email: email@example.com
The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.