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Over 50% of dealers satisfied with manufacturer relationship

Over half of dealers are reasonably satisfied with the partnership with their manufacturer, according to the latest National Franchised Dealers Association dealer attitude survey (DAS).

The results show that 48% of networks are satisfied with the profit return of their franchise and 58% are reasonably satisfied with future profitability.

At the same time, the current difficult economic situation has solidified ongoing dealer-manufacturer partnerships, with 58% of dealers feeling they can do business with their manufacturer on a day to-day basis.

The results were based on 1,022 responses. From these responses scores have been produced on a  five point scale, running from 1 - very dissatisfied/very poor to 5 - very satisfied/very good.

Sue Robinson, director of the RMI NFDA, said: “Dealers are looking at ways to survive and thrive in the toughest trading environment seen for many years.

“Thankfully, some franchises are finding that their partnership with their manufacturer has strengthened which helps in the current climate.

However, for others there is still considerable work to be done to develop the relationship.”

Robinson said maximum efficiency was more vital than ever for dealers and could become a bigger issue throughout this year.

With the Block Exemption Regulation (BER) also due for renewal in 2010, the future cannot be easily predicted.

The NFDA is working with Government in Brussels and Westminster to put the case for continuity in the industry, as well as vital measures to help revive car sales.

These include the NFDA’s proposals for a self-financing scrappage scheme which it believes will provide “a much-needed boost to car sales, thereby helping dealers maintain and improve profitability”.

Dealers: We need your feedback

The 2009 Dealer Attitude Survey is now underway, and Sewells would like to know what you think about a range of topics that effect the way you do business.

If you would like to participate please click here.  


Sewells has started field research for its own DAS which will include areas of research which reflect the severe trading conditions and the difficulties dealers are facing during the recession.

This new section of the DAS seeks to assess dealers’ views on the effectiveness of special measures manufacturers may have introduced to help them deal with financial pressures and the market downturn.

For example - special low finance offers, special product incentives, volume bonus incentive programmes, special stocking finance support, demonstrator finance assistance, reduced sales objectives.

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