The European automotive industry has faced a six-year downturn that has impacted sales volumes and profit margins for both OEMs and automotive retailers. Despite forecasts of a rebound in 2014, sales volumes are not expected to return to pre-crisis levels. OEMs and NSCs have focused on short-term tactical actions instead of investing in more structural measures, such as rethinking the distribution model and restructuring the retail network. Car dealers have struggled to survive due to their lack of vision for the future and an inability to identify recovery actions needed to bounce back to profitability. Car retailers' profitability erosion and business continuity issues represent a high-priority risk for OEMs.
