Russia Newsletter
ICDP now publishes a monthly newsletter on activities in the Russian Market;
the latest edition can be downloaded by following the link on the left.
New Report on Progress,
Crisis, Reform: a decade of supply systems strategies
Supply systems set the context for the wider retail strategy for
any manufacturer. ICDP has conducted research on new vehicle supply since the
early 1990s, and so has been allowed a unique insight into progress made in system
capability, changes in system management, and differences in approach by manufacturer
and market. Over the last decade the supply systems for Western European markets
have been through both a significant period of evolution and a dramatic economic
cycle. By revisiting the data and interview notes made whilst researching new
vehicle supply, used car remarketing and new car margins over the last decade,
it is possible to assess the impact of both the economic cycle and changes in
system management and these are considered in this report. A working excel sheet
of
data is also available for members to download.
New
Management Briefing on Strengthening
the pyramid - improving the profit of the new car selling system
The need to improve the efficiency of the franchise system has been
a growing theme in recent years. Even before the global crisis struck in 2008,
interest was being expressed in ways to lower the cost of the dealer-based
model of sales and after-sales for cars – and this interest was by no
means confined to mid-range manufacturers. And, while the immediate downturn
is looking less
severe or prolonged than was expected a year ago, the strains on the business
model are still a concern to all players. In response to this, ICDP has made
the exploration of a low cost system a priority issue in its 2009-2011 programme,
and during 2009 has been carrying out initial desk and field research, looking
both at the car sector to analyse the problem and options to solve it, and
at other value chains to identify lessons from their experience. The focus
of this
work has been on the new car system, rather than after-sales, as it is here
that a need for reform is particularly recognised and reported in this management
briefing by Peter Bailey and John Whiteman, with its high establishment costs
and low margins as well as its potentially positive feedback effect on after-sales.
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