Wednesday, October 08, 2008
Economic Climate will lead to Dealer Closures
"A massive reduction in the size of retail networks seems to be the only way out of the terrible situation facing our industry" - Subaru UK managing director Lawrence Good
Britain’s economic meltdown could claim dozens of dealerships in the next few months.
Closures are imminent as businesses seek to cut the cost of vehicle marketing, believes Subaru UK managing director Lawrence Good.
“A massive reduction in the size of retail networks seems to be the only way out of the terrible situation facing our industry. It’s obvious the most popular marques are being the hardest hit.
"Brands suffering losses in both volume and margin will be forced to slim down.
“The credit crunch will change the face of car retailing and it will happen soon – I’m sure we will see a lot of closures in six months’ time,” Good told AM.
Casualties
He suspected the casualties could include “a couple” of Subaru dealerships which may be pulled down by collapsing sales of a bigger brand in the same showroom.
The banking crisis and slump in new car sales has left some dealers looking very vulnerable, said Good. “My forecast is that in six month’s time, areas now being served by five dealers will have only three and we’ll see an increase in the number of authorised repair centres.”
DATED: 08.10.08
FEED: AM
