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Mazda reports dealer profitability increase

Mazda has reported that its dealer UK dealer network of 157 sites have reported an improved margin from 0.8% in 2008 to 1.5% this year.


Mazda's top quarter of best performing dealers have shown a return on sales of 3.7%, up from their 2008 level of 3.5%.

Despite the rise in margin, turnover across the dealer network still dropped by 11%, but Mazda says it has still outperformed the market as a whole with sales volumes down 25.9% year-to-date, according to figures from the Society of Motor Manufacturers and Traders.

Jeremy Thomson, Mazda UK managing director, said: “We have reacted by reducing the stock levels at dealerships and moved to secure wholesale funding from to banking giant Santander.

“That decision alone has helped reduce interest costs on stock by more than 40% making a significant contribution to dealer profitability.”

Thomson is looking to entice more dealers to join the Mazda network and is hoping to fill some open points.

Thomson said the success of the Mazda2 and launch of the new Mazda3 was also helping profitability.

Mazda said its dealers are reporting an operating profit for the first five months of the year up 24.1% over the same period last year.

Aftersales and used car operations profits were up 6.2% and 12.3% respectively.

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