Friday, September 05, 2008
Car Dealers Evaluate Partnerships
NFDA Survey Reports'Car dealers are operating in a challenging business environment, and are evaluating all aspects of their business, including the benefits of manufacturer partnerships' said Sue Robinson, Director of the RMI National Franchised Dealers Association (NFDA), commenting on the findings of the latest NFDA Dealer Attitude Survey. The NFDA Summer 2008 Dealer Attitude Survey, published this month, shows that dealers are looking carefully at the balance between manufacturer requirements, and the services they gain through the relationship. In broad terms, dealers are largely satisfied with their current arrangements:
60 per cent of dealers are happy with level of control exerted by manufacturers.
70 per cent of dealers are satisfied with the value, price and image of the product they represent. However, when looking at specific elements, satisfaction levels are lower:
52 per cent of networks are satisfied with the profit return of their franchise.
54 per cent are satisfied with future sales targets. Commenting on the survey, NFDA Director Sue Robinson said: 'Dealers are looking at all aspects of their operations at present in order to maximize efficiencies. This includes the manufacturer requirements they must meet, and the services provided to them as a result of this partnership. If there is a balance between what they must do and what they gain from the relationship, dealers will be satisfied. However if demands are too onerous, with scant benefits to show for it, dealers will question their current arrangements. 'For the most part dealer gains seem to be equitable with the requirements they must meet, and with the Block Exemption Regulation (BER) up for renewal, many will be looking towards preserving long term cordial relations to offset the potential changes that may occur in the industry. The NFDA is working with Government in Brussels and Westminster to put the case for continuity in the industry. The rights and freedoms that have assured the current manufacturer dealer relationship work for the most part, and need to be preserved. We are attempting to achieve this for the industry.'
DATED: 05.09.08
FEED: AW
60 per cent of dealers are happy with level of control exerted by manufacturers.
70 per cent of dealers are satisfied with the value, price and image of the product they represent. However, when looking at specific elements, satisfaction levels are lower:
52 per cent of networks are satisfied with the profit return of their franchise.
54 per cent are satisfied with future sales targets. Commenting on the survey, NFDA Director Sue Robinson said: 'Dealers are looking at all aspects of their operations at present in order to maximize efficiencies. This includes the manufacturer requirements they must meet, and the services provided to them as a result of this partnership. If there is a balance between what they must do and what they gain from the relationship, dealers will be satisfied. However if demands are too onerous, with scant benefits to show for it, dealers will question their current arrangements. 'For the most part dealer gains seem to be equitable with the requirements they must meet, and with the Block Exemption Regulation (BER) up for renewal, many will be looking towards preserving long term cordial relations to offset the potential changes that may occur in the industry. The NFDA is working with Government in Brussels and Westminster to put the case for continuity in the industry. The rights and freedoms that have assured the current manufacturer dealer relationship work for the most part, and need to be preserved. We are attempting to achieve this for the industry.'
DATED: 05.09.08
FEED: AW
