“In five years’ time all this will be gone.”
That’s a pretty powerful statement, by anyone’s standards.
What makes it even more weighty is that it was delivered by the head of the UK’s largest franchised dealer group, Pendragon, at AM’s Franchised Dealer Conference.
(To read this interview in our AMe digital magazine, click here)
A delegate in the audience had asked him about the impact of the internet on motor retail.
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As editor, Tim is responsible for the media content, planning and production of AM's multiple channels (AM print and digital magazines, website, social media and contributing to our events planning). He interviews and writes about as many franchised dealer groups and UK divisions of motor manufacturers as possible, to explore the issues facing UK motor retail and understand what solutions dealers and suppliers are using to overcome these.
kevthebass - 22/02/2012 10:05
Perhaps no one was surprised because Mr Finn's comments were hardly new, people have been saying exactly the same thing for years. I'm sure there will be changes but buyers will still need to drive the vehicle they are contemplating purchasing, even if they then order it online. Aftersales has been more profitable than sales for the past 20+ years and yet is pretty much an afterthought for most franchised dealer groups, most need to improve CSI significantly and are too expensive. What's needed is a massive reduction in overheads, including the "glass palaces" that attract no additional customers, provide no customer service benefit (have you ever tried to park at any main dealership?) just additional costs which need to be recovered. A trip around mainland europe will reveal a totally different vehicle franchise approach, very few "glass palaces" and far more small owner-operated sites which would never meet the "franchise standards" imposed in the UK. Buyers will travel further for their exciting new vehicle purchase (or get it delivered!)but will not travel for the "distress purchases" of aftersales, so the network should reflect that. Given that new vehicles sales make minimal profits (thanks to the internet and dealers living off manufacturer rebates) it's not rocket science to work out that used vehicles and aftersales provide the best profit opportunities, that's why there are so many independents making a very good living. Of all the dealerships in the country I had rather hoped that Pendragon Group would be the first to disappear. Finally, centralised national workshop bookings, cheaper; possibly, better for customers; almost certainly not. A vehicle repair workshop is a very complex and fluid entity, it cannot be operated efficiently from a remote location, no matter how sophisticated the DMS, not even Pinewood!