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Manufacturers still in control – survey

Dealers are confident about raising profits under the revised block exemption rules, despite acknowledging that carmaker control over their businesses is likely to tighten.

The latest RMI franchised dealer attitude survey reveals margins have fallen over the past 12 months, but 70 per cent of retailers believe profit potential will rise over the next year. The full report is out next month, and the initial findings make interesting reading.

Almost all (97 per cent) retailers say carmakers exert considerable control over their business, while 90 per cent expect that control to increase. Their views will shock EU commissioner Mario Monti, whose objectives include redressing the balance of power away from carmakers. Despite this, most dealers expect relationships with carmakers to improve.

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