News and views from ICDP
Caveat emptor – let the buyer beware
In the last couple days we had the news in the UK that the distributor of a Chinese car brand had ceased trading and of a decent football result in Mexico. As I know little about football, but something about the car industry, I’ll stick to commenting on the first story which I’m sure will generate fewer headlines and hours of TV coverage, but I would argue is the more important story.
Attracting aftersales customers
In ICDP research outputs and in my blog previously, we have talked about the need for franchised dealers to extend their aftersales business out to older age vehicles and additional repair categories in order to address the natural decline that will follow as BEVs become an ever-increasing part of the younger parc that the dealers have previously focused on.
Fighting on two fronts
As I write this, I am returning from the Automotive News Europe Congress in Brussels, as usual a high-quality event with a stellar list of senior industry speakers and panellists (and me). I was involved in getting the ANE Congress started in the 1990s which shows my age, but also the loyalty of the great people at Crain Communications who bring me back on occasions.
The aircraft carrier has landed!
When the industry is not worrying about electrification, tariffs or supply chain disruption, we currently spend a lot of time focused on the impact of the ‘new entrants’, mainly those from China. We compare their progress to that of the Koreans and Japanese before them in the 1990s and 1970s.
Something for everyone
Last week we had a few news reports that made me think about the question of the product portfolio offered by the car manufacturers and what the connection is between that and market success. If you are present in only certain segments, you will exclude yourself from the consideration set of customers who are focused on others, and your market share potential will consequently be limited
“Crisis, what crisis?”
As everyone in the UK will be only too painfully aware, we are facing turmoil in our domestic politics again. I appreciate that we are not unique in that regard, but given that we have been in a more or less constant state of chaos since the announcement of the Brexit referendum just over ten years ago, I think I could make a strong case for a gold medal in this particular discipline.
Beijing Show Reflections
I got the opportunity with my dealer hat on to visit the Beijing Auto Show last week – first time to a Chinese show since pre-pandemic, and my first time to Beijing. As I am sure that you are all aware, the Beijing Show is on a different scale to any other, so comfortable shoes were critical, but it was great to see the industry on Chinese home ground.
Efficiency or effectiveness?
I got a cold marketing call yesterday on my mobile. Nothing new about that you probably think. It was from a double-glazing company – which at least in the UK is also nothing new.
What price local knowledge?
The ICDP team is currently planning the research programme for the coming year, and one of the topics we are going to return to after a gap of some years is the relative attractiveness of a national sales company compared to an independent distributor for a manufacturer in a specific market.
Business success is not a solo effort
A couple weeks since my last blog, due to the demands of the ICDP Spring Members’ Meeting in Amsterdam last week. We had a good attendance (although more would always be welcome) and some great discussions around the various presentations.
The second largest purchase in your life?
I’ve been struck a few times recently by the inclusion from industry executives, consultants and journalists in presentations, blogs and media interviews of the oft-quoted ‘fact’ that buying a new car is the second largest transaction in your life.
In a digital world, property is still key
There has been a constant background noise from many quarters, but mainly from the general consultancy and technology sectors, predicting the death of the dealership and a move to purely online car sales.
Will BEVs kill the aftersales cash cow?
According to Greek legend, Damocles was a courtier in the court of Dionysius, the ruler of Syracuse in the 4th century BC. As a demonstration of his absolute power and ability to end the life of Damocles in an instant, Dionysius hung a sword above the head of the poor courtier by a single horsehair.
Seeing the bigger picture
We’re all guilty sometimes of being task-focused – zooming in on a particular task, finding a solution and getting it done – a management approach which was closely associated with a senior Ford executive I worked with which was colloquially known as JFDI (Just **** Do It).
Making sense of the Chinese new entrants
Surely nobody can be too surprised that the Chinese brands (excluding cars produced in China by global brands such as BMW, Dacia and Volvo, and brands that are ultimately owned by the Chinese, but are managed in Europe, such as Polestar) captured over 5% of the European market in 2025.
What has technology done for the used car market?
The challenges of the used car market have been well documented in the last couple years. Whatever your role in the industry – manufacturer, dealer, lender, leasing company, service provider – you will almost certainly have faced some impact from the challenges of the used car market.
Are we missing a key member of the team?
Firstly, welcome back to a New Year! Hopefully you had a chance to grab some rest, and have now fully recharged your personal batteries so that you are not suffering from any range anxiety for your journey through 2026…
Copy nothing?
As we approach the end of the year and the Christmas holiday period, this will be my last blog of the year (unless something really catches my attention or makes my blood boil). Rather than focus here on the biggest issues of automotive distribution, I thought it might be an appropriate time to talk about something other than my specialist subject.
Answering the wrong question
Perhaps those of us who are Brits have the best perspective on the progressive decline of the European motor industry. To my surprise when I checked through the 1970s, there were only 12 UK car assembly plants operated by the volume and premium manufacturers at that time (i.e. excluding Aston Martin, Lotus, Rolls-Royce etc.)
Is this the start of something big?
Each year, ICDP produces the ‘magnum opus’ of European distribution networks – the European Car Distribution Handbook (ECDH) that profiles the size of franchised sales and service networks for now 50 brands across 35 European markets. The Handbook was first published in 2007, so provides a long history of the evolution of networks, with brands and markets added (and occasionally removed) to reflect our changing landscape.