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The NFDA has recently met with representatives of the “German Federation for Motor Trades and Repairs”, ZDK (Zentralverband Deutsches Kraftfahrzeuggewerbe). The meeting offered an ideal opportunity to discuss common concerns, to analyse risks and opportunities of future sales concepts as well as to debate other issues affecting dealers.
The meeting was attended by Antje Woltermann and Melissa Nelles from ZDK and dealers representing Mitsubishi, Volkswagen, Ford, Jaguar Land Rover, Hyundai, and Mazda.
NFDA also hosted a delegation of 12 franchised dealers from Denmark, which was led by Rene Toender, Adviser for the Automotive Industry on Disruption and new Business Models. The purpose of the visit to the United Kingdom was to observe examples and new practices that dealers could implement in Denmark.
Stephen Latham, Head of Operations of the NFDA, commented: “Interestingly, it appeared that the challenges that Danish franchised dealers face with their supplier manufacturers are very familiar also to UK dealers. Particularly: Block Exemption, Brand and Corporate Identity and Targeting.”
Danish dealers stated that approximately 20% of their registrations are pre-registrations, which are necessary to achieve their manufacturers’ target aspirations.
The relatively small size of the Danish market – it accounts for only 10% of all registrations in the UK – adds additional pressure on businesses. Therefore, in order to spread the costs, many dealers have opted for multi-franchised businesses with usually two or three brands.
Both Danish and German groups have been looking at many facets of the franchised dealer industry in the UK including meetings with other associations and a visit to Rockar, the Hyundai boutique dealership which operates at Westfield, to discuss whether this innovative way of selling cars could work in their countries.