Lance Bradley, who takes over as managing director of Mitsubishi UK in April, is reassuring its network that he will keep dealer survival his top priority.
Current managing director Jim Tyrrell, under whom Bradley has served for nine years, is stepping down into a part-time vice-president’s role.
Bradley’s successor as sales and marketing director will be appointed internally.
“Our dealers need continuity, not dramatic changes. We have the basis of a good business, but will have to look at how to do better. Our sole objective this year is the survival of our dealer network,” he said.
On top of the franchise cost-stripping that AM reported in January, Mitsubishi UK has twice reduced Q1 targets after a poor start to new car sales in January.
The result of the reduction, said Bradley, had been an uplift in positivity within the network.
“It’s important for the dealers to have targets but they have to have confidence they can achieve them,” he added.
Dealers have a base profit margin to trade with, and earn a hold-back element linked to simple standards such as minimum demonstrator and stocking requirements. On top of that, bonuses are paid for reaching 110% and 120% of target.
Bradley said: “Ninety per cent of dealers earn the hold-back every time. There are dealers who make a decent profit hitting 100% of their target.”
Additional trading margin has been put into March’s new car sales with support from Mitsubishi Motors Europe.