Video: Manufacturers provide outlook for 2012

Video: Manufacturers provide outlook for 2012

13/01/2012 in News, All News, Car Manufacturer News

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The Society of Motor Manufacturers and Traders Ltd (SMMT) spoke to UK automotive industry colleagues to gather their views on the outlook for 2012, in particular focusing on the upcoming products they have coming to market this year.

Featured in this video:
- Paul Everitt, Chief Executive, SMMT
- Mark Terry, Managing Director, Chevrolet UK
- Linda Jackson, Managing Director, Citroen UK
- Jon Williams, Managing Director, Toyota GB
- Tony Whitehorn, President and CEO, Hyundai Motor UK
- Tim Zimmerman, Managing Director, Peugeot UK
- Anthony Ireson, Director, Marketing, Ford of Britain

 


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Chevrolet UK

Chevrolet's iconic name hasn't been enough to maintain sales growth in a tough UK market in 2013, but brand heads claim this is a result of not trying to buy volume business.

Bosses believe that the key to long-term growth is increasing brand awareness, particularly in terms of what models are on offer.

A recent tie-in with animated movie giant Dreamworks for the launch of Turbo, a children's film, may help reach a key demographic of parents with young children, who can be tempted by its core range of saloons, estates, SUVs and superminis.

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Renault (UK)

Renault has been focusing on product quality and service in its bid to win back customer confidence, but the next challenge is turning that into stable market share.

Strategies include focusing on product-based selling rather than discounts and altering perceptions of the brand. At the end of 2011 it announced it was to cut its network by a third and will also be cutting the Laguna, Modus, Wind, Espace and Kangoo car from its model range from February 1.

The 190 dealer network will go down to "around" 135. Some of the closures will be within the Renault Retail Group but Renault was unable to quote an exact figure as discussions are ongoing.

The move is aimed at returning the French carmaker's UK operations to profitability as AMi understands 50% of the dealer network has been running at a loss.

Effort is also being directed at retaining more customers after three years to generate greater parts and servicing income.

Stabilising market share and building brand image may involve selling fewer cars, but with a greater focus on profitability as Renault drives towards its challenge of introducing a raft of electric vehicles. Market share has fallen annually since 2010 - a not unexpected result, the manufacturer says, calling it a "strategic move". 2012 saw a new Clio, more efficient engines and a push on electric vehicles, the Z.E range.

Renault has also launched a dealer star rating to allow customers to share their experiences at each of the French brand’s dealerships online.

In June 2013 chief operating officer Carlos Tavares told AM the business in the UK needs to sell 75,000 units a year to be sustainable and wants to reduce the amount of discounting on the model range.

Renault registered 40,760 cars and 14,710 vans in the UK last year which takes it to 55,470 units combined.

Note: Manufacturers administer the franchised contracts for cars and LCVs in different ways. Broadly, for some the contract to sell cars and LCVs is managed through a separate dealer contract. For others one contract covers both vehicle types.

AMi seeks to acknowledge the difference and reflect it in the count of each dealer groups total franchised outlets (franchised businesses) and sites (locations).

Renault administers car and LCV sales under a single contract.

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Market Share

market share

Total Sales

How do dealers rate the value of the franchise?

total sales guide
overall rating

Toyota (GB)

Toyota has endured two challenging years which have seen its sales slip, caused by both internal and external events. The challenge now is to halt the slide in 2012 and return to growth.

A product offensive will go some of the way to delivering that increase, including the first full year of new Avensis and Yaris, along with a host of hybrid launches, covering Yaris, the Prius+ seven-seat MPV and Prius Plug-in.

There is also a focus on maintaining consistency of service across the retail network and ensuring dealers are profitable by ensuring customers stay in the franchised network for servicing work as their vehicles get older.

Retention of the 0-8 year Toyota parc is around 34%, compared to about 60% for Lexus.

Note: Manufacturers administer the franchised contracts for cars and LCVs in different ways. Broadly, for some the contract to sell cars and LCVs is managed through a separate dealer contract. For others one contract covers both vehicle types.

AMi seeks to acknowledge the difference and reflect it in the count of each dealer groups total franchised outlets (franchised businesses) and sites (locations).

Toyota administers car and LCV sales under a single contract.

Read more

Subscribe To AMi

Market Share

market share

Total Sales

How do dealers rate the value of the franchise?

total sales guide
overall rating

AMi enables you to:

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  • Identify the fastest growing dealers
  • Assess brand relationships
  • Benchmark performance
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AMi is available on subscription. To find out more download our digital brochure or call Sara Donald on 01733 366474 or email sara.donald@bauermedia.co.uk.

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