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Outsourcing will lead to job cuts

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

Motor industry consultancy Network Automotive said that many manufacturers intend to reduce headcount dramatically and will place 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: “The way that many manufacturers will solve this is by outsourcing to consultants, removing permanent staff from their overheads and turning to external suppliers to add flexibility. “

Outsourcing means manufacturers are able to have an effective sales and marketing campaign at a much reduced cost, said Bruder.

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