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Mazda retailer profitability has doubled

Used cars have been instrumental in doubling Mazda retailer profitability during the first five months of this year, as sales of used cars climbed by 20% year-on-year to the end of May.

Rob Lindley, Mazda UK’s managing director, says the return on sales has risen to 1.9% which, despite being “no great shakes”, places Mazda among the top franchise performers on profit.

Increased new car volumes, up 10% during the five months, have been driven by 4,500 MX-5 sales and 5,000 units for the Mazda5 compact MPV, Mazda’s third and fourth best selling models respectively.

Lindley says: “These figures are gratifying for our 109 sales partners because used car sales have traditionally been our Achilles heel, but now with a critical mass of new cars, things are moving on.”

Mazda hopes to keep its retailers among the top four most profitable brands. Lindley adds: “If I cannot deliver that return I cannot ask them to invest in the franchise.”

Meanwhile, Mazda’s European president James Muir reveals that a larger new generation 6, its fleet mainstay, is likely to reach dealers next autumn. Its engine line up will include a new 2.2-litre diesel, which Muir claimed would meet 2010 Euro 6 emission standards.

Mazda has benchmarked VW’s Passat in developing the 6, which Muir says: “Raised the bar in terms of styling and quality.”

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