Creating a local business feel
“We can double, maybe triple our profitability with what we’ve got,” he said.
Pendragon may be huge by dealer group standards, but Finn knows the business ultimately comes down to every single customer-facing person.
Despite the processes, frameworks and systems, they’re the person with the answers when dealing with the customer, not him.
So the aim is to create a local business feel with a team that is enthused about its operation, with brand, divisional and central support.
Staff are encouraged to engage with their customers and local communities.
Every year Pendragon holds its ‘Top Gun’ awards to recognise and reward its highest achievers.
He said even a business the size of Pendragon has not helped to change the industry in the last decade.
The biggest thing that has changed it is the internet.
“I can’t think of a single business, or a single person potentially who isn’t affected by it.
"Even people who haven’t got any internet access, who’ve never used a computer are being affected by it.
"I mean it’s huge, absolutely huge in everything.”
Given the pace at which the industry will have to run to keep pace, Finn could well be proved right in five years time.
“Don’t be distracted by the wider economic climate”
An underlying message of Trevor Finn’s interview with AM was that dealers should concentrate on what they can control and influence rather than be distracted by the wider economic climate and media gloom.
While he recognised the “dark clouds” over the industry in 2012, Finn’s assurance was that it was nothing dealers hadn’t seen before.
He described the 2008 credit crunch as “a much darker place” than today, and said Pendragon had moved forward since then and expects to move forward again this year.
“When we went into 2008 it was a little bit like driving into a big fog bank and nobody knew what was inside it, which was quite a scary thing.
Looking at 2012 people will see the fog bank, but this time they’re much more familiar with what’s in there and what to do,” he added.
Finn showed AM slides tracking the trend of new car market in the 1989 recession and subsequent slow recovery against the current economy.
It took almost a decade to reach pre-recession levels.
Excluding the influence of 2009’s scrappage scheme, the post-2008 market is following a similar pattern, which suggests it will could be 2020 before it peaks again.
“If you know that then you don’t have to get yourself all excited about how it’s going to be great again in two years time, do you?” said Finn.
“That was last time, so why would it be any different.”
As editor, Tim is responsible for the media content, planning and production of AM's multiple channels (AM print and digital magazines, website, social media and contributing to our events planning). He interviews and writes about as many franchised dealer groups and UK divisions of motor manufacturers as possible, to explore the issues facing UK motor retail and understand what solutions dealers and suppliers are using to overcome these.
kevthebass - 22/02/2012 10:05
Perhaps no one was surprised because Mr Finn's comments were hardly new, people have been saying exactly the same thing for years. I'm sure there will be changes but buyers will still need to drive the vehicle they are contemplating purchasing, even if they then order it online. Aftersales has been more profitable than sales for the past 20+ years and yet is pretty much an afterthought for most franchised dealer groups, most need to improve CSI significantly and are too expensive. What's needed is a massive reduction in overheads, including the "glass palaces" that attract no additional customers, provide no customer service benefit (have you ever tried to park at any main dealership?) just additional costs which need to be recovered. A trip around mainland europe will reveal a totally different vehicle franchise approach, very few "glass palaces" and far more small owner-operated sites which would never meet the "franchise standards" imposed in the UK. Buyers will travel further for their exciting new vehicle purchase (or get it delivered!)but will not travel for the "distress purchases" of aftersales, so the network should reflect that. Given that new vehicles sales make minimal profits (thanks to the internet and dealers living off manufacturer rebates) it's not rocket science to work out that used vehicles and aftersales provide the best profit opportunities, that's why there are so many independents making a very good living. Of all the dealerships in the country I had rather hoped that Pendragon Group would be the first to disappear. Finally, centralised national workshop bookings, cheaper; possibly, better for customers; almost certainly not. A vehicle repair workshop is a very complex and fluid entity, it cannot be operated efficiently from a remote location, no matter how sophisticated the DMS, not even Pinewood!