Webinar: Lucky Losers November 2015

Christophe Guillaneuf

Publication Number: Webinar

Author: Christophe Guillaneuf

Date: November 24, 2015

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Christophe hosted our Lucky Losers Webinar on 24th November, the presentation and speaking notes are available for members to download.

Over the past decade, across the major European markets, the number of car manufacturers franchised service outlets have declined, on average, by 14%.  In some markets and for some brands, the drop has been much more significant than this average.  In general, where they exist, the second-tier networks have been more affected by this decline than dealers.  This drop can be the result of hard to manage (although sometimes predictable) external factors.  But it can also be the result of car manufacturers and/ or main dealer strategic decisions.  Anyhow, while part of the car manufacturer franchised outlets which have been terminated has exited the market in a way or another, a share of terminated ARs has remained operational and operate now as independent players. We have decided to call these players “Lucky Losers”.

In this webinar on 24th November we addressed a central question: “Is there a risk that these “Lucky losers” create a true competition for their former brand?”

The webinar was split into 4 broad sections:

(1) Assess the number car manufacturers franchised service outlets which have been terminated in EU7 and the share of those remaining in the market as independent players
(2) Explore the main reasons for their termination
(3) Investigate the changes in the behaviour of outlets owners losing the franchise although continuing the business as independent in terms of parts purchase, service offer, customer profiles, etc.
(4) Alert car manufacturers about the risks related to further or large cut in the parts business