Traditional automotive retail channels (franchised and independent retailers) are significantly fragmented. The majority of these retailers are small- to medium sized businesses, often family-owned and run. There are dealer groups that are international in scope and publically listed, but these are the exception. While reducing dealer fragmentation may require increased external regulation from automakers and regional governments, the potential increase in dealer profitability due to brand rationalisation, fewer cannibalised sales, and more standardised facilities is immeasurable.
The ideal environment for a successful dealer is characterised by less credit-intensive vehicle orders with financing from an array of responsible lenders, selective automaker incentive schemes, smaller inventories, and dealer-specific parts & service operations. Although a harmonised future state will not likely be achieved across entire geographic regions, each contains elements of an ideal dealer network.
More than 1,500 skilled PwC professionals comprise our global automotive network, which is driven by eight Centres of Excellence to provide guidance, offer analysis, and deliver solutions to firms across the entire automotive industry value chain. Autofacts, PwC’s industry-differentiating service offering, includes a global research team dedicated to delivering data analysis, assembly and capacity forecasting, and support to advisory services to our clients and their stakeholders.
PwC provides the following services that address the issues and challenges you may be experiencing in rightsizing your retail network: