There is widespread agreement that climate change is a major threat to our futures and the motor industry is taking an innovative lead by developing alternatives to the traditional carbon producing internal combustion engine (ICE).
Original Equipment Manufacturers (OEMs), their National Sales Companies and franchised car retailer networks need to upweight plans to stop the erosion of overhead absorption across the franchised sector, if the viability of their operations is to be improved and customer confidence maintained.
The digital age has empowered consumers with a wealth of information. Where once automotive dealers shouldered the weight of the customer journey from start to finish, that script has now been flipped.
Franchised dealers need to recruit more technicians, target increased retail work and address poor workshop utilisation to buck the trend of “an institutionalised acceptance of low overhead absorption”.
Many of us expected Q1 loses for Tesla last week, but I for one hadn’t anticipated such eye-wateringly bad figures. The firm lost over $700m in the first quarter of 2019, one of its worst quarterly results ever.
There needs to be a sweeping change in the role of technology both at the point of sale and online, placing consumers in control of their finance experience and just as importantly to provide lenders with a rigorous record of the customer’s finance buying experience.