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“The relationship between car dealers and car manufacturers recorded an average score of 6.2 – 0.3 points lower than the winter 2015 survey, suggesting that a number of dealer networks are slightly less satisfied with their relationship with their manufacturer.”, said Sue Robinson, Director of the National Franchised Dealers Association commenting on the NFDA Summer 2015 Dealer Attitude Survey, published today.
This year’s NFDA Summer 2015 survey had 1573 responses from a total participating dealer network of 4270 which equates to 37% response rate. This is a significant response rate which gives a good representative picture of the dealer/manufacturer relationship in the UK. The number of responses was marginally higher than in the winter, where we received 1554 completed surveys. There were 28 franchise networks in the survey which represent dealers from across the UK.
Robinson continued, “Of particular concern are the results for questions that involve profitability, targets and pressure to register vehicles. Answers to these questions showed that even in a strong market, some manufacturers are still pushing registration growth at the expense of dealer margin.”
The survey shows a decline in dealer satisfaction with their manufacturers on the all-important question about the overall value of the franchise.
Dealers returned an average score of 4.7 when asked how satisfied they were with their new car targeting process. This score indicated that in general dealers were dissatisfied with the targeting process with their manufacturers.
Profit and profitability ratings also saw a decline. The results suggest that dealers are less optimistic about future profit returns than they were previously.
When dealers were asked ‘how satisfied are you that your manufacturer dealer standards are fair and reasonable’, the average score for the summer 2015 survey was 6.4.
Robinson concluded, “On a more positive note, there are a number of franchises that appear to have scored above average for most questions, and appear to have maintained a strong relationship with their dealer networks. These include top scoring brands BMW, Lexus and Kia, and in particular Mercedes, who out-performed most brands in the all-important questions.”
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