The report highlights the importance of high-performing dealer networks for automotive manufacturers' market success. Despite significant investment in training and development programs, many dealers do not achieve expected results. To address this, Arthur D. Little proposes an integrated approach to Retail Performance Management (RPM). Improving retail performance is crucial in a competitive automotive market, as dealers face pressure to increase customer incentives and maintain profitability. Maintaining franchise attractiveness is also vital for OEMs' competitiveness, as high-performing retailers may defect to more attractive franchises. Retail-development initiatives should be recognized as a key lever for maintaining the loyalty of high-performing retailers. The report concludes that only high-performing dealers will survive in the long run, given the accelerated consolidation of dealer networks and the intense competition in the automotive retail market.
