Franchised dealers have been urged by the RMI to reject the ‘master-servant’ attitude which currently rules their relationship with vehicle manufacturers.

Speaking today at the first day of AM's autoretailing 05 convention, Matthew Carrington, chief executive of the Retail Motor Industry Federation (RMI), talked about the level of influence that manufacturers exert over dealers.

“The manufacturers are still trying to micro-manage dealers’ businesses," he says.

"This has an impact on profits and leads to those dealers taking a short term view on manufacturer relationships.

“We need to build a long term trust between dealers and manufacturers, particularly with negotiations for the next block exemption regulation starting next year.”