“We market to our territory because we want those customers back in our workshops,” he said.

The wait for Jaguar to shift up a gear has left the business needing to optimise its other opportunities. In 2013, Hatfields’ used car volume was up 20% and F&I income rose 23%. To achieve this, the group has expanded its used car stocking policy, retailed more non-franchise part-exchanged cars and selected older cars, and broadened its add-on product range with a particular focus on GAP, paint protection, and tyre and alloy wheel insurance.

“We still believed that there was more money to be made out of selling a car and that the additional revenue streams were just that, additional. Whereas in this ever-muddling market you’re never certain necessarily where you’re going to make your profit from. So you make sure that you’re offering everything, because if you end up making nothing from the car, you need to make something from the add-on products.”

Hatfields also changed the pay plans for its salespeople to better reward them for add-on sales. Williams said this wasn’t driven just by the group’s desire for extra revenue, but also was necessary to keep the Jaguar salespeople from leaving in response to the brand’s lack of new models.

“The last thing we can afford is to lose Jaguar salesmen who’ve been with us for years. I don’t want to recruit a load of Audi or BMW salesmen to sell to the Audi and BMW customers who’ll come to us in the future, I want Jaguar people selling Jaguars to those customers, delivering that different experience.”

 

The tough choices that led Hatfields to a successful turnaround

To outside observers, Hyundai may seem an odd fit in a group otherwise focused on premium brands that appeal to high earners. Managing director Gareth Williams explains that Hatfields took on Hyundai in 2006 when it was a low-volume, niche brand.

It was the quality and value of the cars that made the franchise attractive. Initially, Hatfields represented the Korean brand at four sites – York, Bury, Manchester and Oldham – but the latter two were closed in late 2007. It also exited from its five Chrysler Jeep operations in stages during the past decade as the carmaker battled for survival, replacing one with a Volvo franchise. Hatfields is still an authorised repairer for the US brand.