The report focuses on the issue of dealer risk in the automotive industry and the need for a systematic assessment and mitigation plan to minimize its impact on sales volume. The methodology involves three steps: data gathering and static risk analysis, dynamic risk analysis, and contingency plan development. The authors of the report are from Arthur D. Little's Automotive & Manufacturing Group in Italy, Central Europe, and Germany. The report concludes that dealer insolvencies pose a significant risk to car manufacturers and that a dealer risk assessment is key to taking appropriate countermeasures. The benefits of this approach include helping dealers keep their business operations and minimizing the impact on sales volume.
