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Car dealers won't be casualties of a ‘Blockbuster’ moment before 2030, says ICDP

Steve Young

Today’s car dealers that they will not fall by the wayside as the primary casualties of a “Blockbuster moment for car retail” between now and 2030 according to the ICDP’s European Dealer of Tomorrow report.

Published this week and a development of a research which began 25 years ago, the research paper into the evolution of Europe’s car distribution model attempts to highlight the direction of travel for car “sales” and “purchasing” over the next 12 years.

And visitors to the Automotive Management Live car dealer expo at Birmingham’s NEC on November 8 will not only get the chance to hear ICDP managing director, Steve Young, speak about the findings, they will also gain access to the report in full.

In his summary of the report and what it attempts to reveal, Young said: “ICDP’s European research programme was launched over 25 years ago with the primary objective of identifying a more effective way of distributing cars than the model which has been in place now for a century.

“That model survives despite the tensions that frequently exist between car manufacturers (OEMs) and dealers, and between dealers and their customers.”

“Young said that, currently, the model is operated with “inherent inefficiencies” in the supply chain, driving “sub-optimal solutions”, adding: “It depends on cross-subsidy of the new car sales from aftersales, and in some markets from used cars. Yet it survives…”

The ICDP report ultimately concludes that it does see a future for the individuals who operate today’s car dealerships, if they adapt to the additional challenges and complexities facing the market now.

It found that there would be a need to sell services as much as vehicles and does not, however, dismiss the notion that e-commerce platforms will play a larger role than they do now or manufacturers may choose to pursue an alternative distribution model – at least for sub-brands.

Young added: “However, we do not anticipate a ‘Blockbuster’ moment for car retailing where the sector is revolutionised an a few years, with today’s dealers being the primary casualties.”

To gain access to ICDP’s research or contact the research specialist directly, visit www.icdp.net.

Alternatively, join us at Automotive Management Live on November 8 to access the full European Dealer of Tomorrow report and hear more from Steve Young and a host of other seminars and Best Practice workshops. Register your planned attendance here: https://www.automotivemanagementlive.co.uk/.

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