Large European Dealer Groups – will they be given the task of managing dealer consolidation in OEMs’ future network plans?


Publication Number: Management briefing 150

Author: Pascal Haubenreisser

Date: March 07, 2019

Tags: New vehicles, Dealers

Downloads: 8Rating:

Tracking developments in the automotive and general retail environments is a core activity within ICDP’s research programme.  Alongside our annual survey of OEM sales and service networks in our European Car Distribution Handbook (ECDH), we have recently assessed the evolution of large dealer groups at EU-5 market-level, concluding that some players have found growth opportunities against a backdrop of declining network numbers, accompanied by steady ongoing consolidation in the number of actual dealer investors.  Nevertheless, these larger players across Europe must adapt further if they are to cope with the intensifying pressures on the current dealer model.  Simultaneously, OEMs are still struggling with the ongoing challenge of improving overall network efficiency whilst trying to provide a consistent omni-channel experience across their networks.  Could a new, joint network approach with the large dealer groups solve some of these issues, and what might it look like?

This briefing draws in particular on data from our national Top dealer group rankings by revenue, from our 2018 “Guide to Europe’s Largest Dealers” published by Automotive News Europe (both covering non-manufacturer-owned operators only), and from data obtained through our recent dealer investor survey with 140 CEOs of major European dealer groups (Investors are the total number of different owners involved in the franchised dealer system).

Please follow the link on the right to download this management briefing.