Leading UK motor traders have predicted that the industry faces a long road to economic recovery.
A recent poll by Castrol Professional found 70% of dealers believe economic recovery is still more than a year away, while 67% say the new car market will not return to pre-recessionary levels for five years.
“While the majority of the dealers we spoke with do believe that we are beginning to emerge from the trough, the general consensus is that the recovery is likely to be a slow, and possibly painful, process,” said Nigel Head, Castrol FWS & OEM marketing manager – UK and Ireland.
“With the vehicle scrappage scheme expected to come to an end in early 2010, dealers need to be confident that they have robust revenue streams in place to enable them to survive in what appears will be a tough post-scrappage market.
“If they have not done so already, now is the time that dealer principals should be ensuring that key revenue-earning aftersales staff are sufficiently trained and motivated, and have effective processes in place to enable them to capitalise on every profit opportunity.”