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'Act now to combat potential meltdown'

Supermarket giants will take-over the retail car market if franchised dealers do not adopt an integrated trading system, said business development manager Mike O'Sullivan, of conference sponsor Ebbon-Dacs.

At the AM autumn conference, 'Beyond Block Exemption", he said dealers must take action now by sharing customers and data along the supply chain to combat a potential 'meltdown' caused by overcapacity, low margins and the threat from Block Exemption revision.

“We must sell the financial benefits of customer retention,” he said.

  • Mike Hankey, director of major accounts at conference sponsor BCA Europe, said Block Exemption was a hot topic as he travelled around franchised dealer and contract hire groups.
    “There are a lot of questions over the effects of Block Exemption,” he said. “But operators should be able to buy the cars that suit prospective clients and the cars people want to buy. Whatever happens with Block Exemption, you will survive if you have a strong position.”
  • Cap Network and MMI Automotive also sponsored the conference.
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