A growing new car market has given dealers an opportunity to rebuild their aftersales customer base. However, it has not been an easy journey. To boost the attraction of new cars, many manufacturers have been bundling free or discounted service plans into the offer, risking the erosion of dealers’ retail recovery rates. Dealers have also told us that short-cycle PCPs, such as Ford’s two-year Options plan, give few chances to earn from a service before the customer is brought back in to swap into a new model.

This means franchised dealers must do all they can to retain every customer for aftersales. The past 10 years have seen fast-fit chains and independents eat into the franchised networks’ share of the UK aftersales market. If you want to fight back, our insight features this month will help. Volvo Car UK has already started, revealing major changes designed to help its dealers compete better on service.

♦  There have been some structural changes at AM. With our digital business enjoying rapid growth, Jeremy Bennett has moved to become B2B head of digital, overseeing the online side of AM plus our sister brands Fleet News and Rail. He’ll still occasionally write for us as an associate editor.

Stephen Briers, Jeremy’s predecessor, is now editor-in-chief of the AM, Fleet News and Commercial Fleet brands. AM managing editor Tim Rose remains day-to-day head of the magazine.

 

 

Elsewhere in AM:

Rupert Pontin examines how PCPs and manufacturer pressures on volumes are raising concerns of a return to a buyers’ market.

Prof Jim Saker warns that dealers may need to ignore the statistics on the decline in showroom visits to build a relationship with the customer.

 

In next month's issue of AM – published June 26

 

Face To Face: Hodgson Automotive

Managing director Steve Hodgson explains why he devotes his energy to ensuring his Newcastle business is a top performer for all its franchises – and the benefits it enjoys as a result.

 

First drive: SsangYong Tivoli (see our gallery of images here)

The Korean brand has carved out a niche off the back of its big, tough, cheap SUVs. Now that it enters the fashionable B-segment crossover market, with a price ticket below £13,000 and a five year warranty, should mainstream brands be concerned?

 

Acquiring effectively

Expert business advisors in the fields of accountancy, property, taxation and funding will share their tips for franchised dealers on how to acquire and expand most effectively.

 

The AM100 2015 Supplement

The financial performance of the UK’s 100 largest franchised dealer groups analysed.