Against a backdrop of rising automotive retailer insolvencies, flat demand and thin margins, Coachworks and Motor Trade Consulting UK believe they have put together a programme that will enable businesses to thrive in 2013, whatever the macroeconomic landscape.
Karl Davis, Managing Director at Coachworks, said: “We all know what’s happening out there. Automotive industry insolvencies are running at about 10 a week, and that rate is likely to increase – even when failures in most sectors are falling.
“Net profit has been hovering around the 1 per cent mark for several years, while barometers like the BDO Business Confidence Index show there is little faith in things getting better.
“We believe we have come up with a programme that will enable retailers to identify transformational growth regardless of what’s happening in the rest of the industry.
Dealerships that have survived four years of some of the worst market conditions in living memory need to be congratulated, but survival alone is not enough – now it’s time to start enjoying business again.”
Motor Trade Consulting UK is run by Simon Parker, one of the industry’s most knowledgeable personalities. Mr Parker has been in the sector for more than 25 years with funding providers, accountants, manufacturers and retailers.
He has extensive experience, especially on the financial and analytical side of the sector, with brands including Volvo, Toyota and Lexus.
Coachworks has been delivering business improvement programmes to dealerships and manufacturers across the UK for 10 years. Mr Davis joined the industry as an apprentice mechanic before achieving success in car sales, general management and at a strategic level with manufacturers.
Final details of the first initiative are being fine-tuned, but it will involve a one-day interactive event showing the importance of planning around business needs – not the aspirations of manufacturers or the vested interests of managers with one eye on bonuses.
It will give senior management the tools to calculate the untapped revenue potential in their businesses and a route to achieving it in weeks rather than months.
Mr Parker said: “When Karl and I sat down and talked about the challenges and opportunities facing the industry, I don’t think either of us expected to be so excited by the solutions we came up with.
“The event will be in place in time for retailers to ensure a fast start to the year, allowing them to make their own luck in 2013.”