The report highlights the importance of high-performing dealer networks for automotive manufacturers' market success in a highly competitive automotive retail market. Many dealer development programs do not generate the expected results, but a step change in dealer performance can deliver a high return on investment for both OEMs and dealers. The report proposes an integrated approach to Retail Performance Management (RPM) to improve retail performance and maintain franchise attractiveness to prevent high-performing retailers from defecting to more attractive franchises. The saturated automotive retail markets are characterized by cut-throat competition, and the accelerated consolidation of dealer networks is a sign that many dealers are not sufficiently competitive to survive alone. The message to both OEMs and dealers is clear: only high-performing dealers will survive in the long run. The report also notes that profitability development and profitability spread are deteriorating, and the size of retail groups is increasing.
