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Motor industry likely to outsource services

Outsourcing sales and marketing services in the motor industry is likely to increase in 2009 as manufacturers move to cut overheads by making widespread redundancies.

Motor industry consultancy Network Automotive said many manufacturers are already drawing up plans to reduce headcount dramatically and will place key programmes such as public sector sales and Motability with external suppliers.

Managing director Colin Bruder said: "The recession is placing manufacturers in a Catch-22 situation.

“There are several new car sales sectors, and Motability is the best example, where they cannot afford to continue employing dedicated sales and marketing teams but cannot afford to ignore the sales opportunities."

He added that many manufacturers will solve this by outsourcing programmes to consultants, removing permanent staff from their overhead and turning to external suppliers to add flexibility.

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