Car Retailing Faces Upheaval Says
just-auto.com
LONDON, May 9 http://www.just-auto.com -- The
car-retailing sector in Europe is facing massive upheaval over the next five
years, according to just-auto.com managing editor, Dave Leggett.
In an editorial on the site at
http://www.just-auto.com/editorial_detail.asp?id=57, he maintains that 'the
traditional car retail structure is under mortal threat.'
He adds that: 'Manufacturers look increasingly under pressure and their
relationships with dealers and customers are up for review. Just look at what
Mercedes-Benz in the UK has done recently: effectively sacked its whole
franchise dealer network as part of a comprehensive restructuring that
anticipates the end of 'block exemption' in Europe. Other manufacturers will
certainly follow DaimlerChrysler's lead.'
He concludes: 'High prices in some markets are part of the same flawed
industry structure as 'block exemption' in Europe and global vehicle
manufacturing overcapacity. Who pays for the swanky dealership occupying
prime real estate? That's right, the customer. A leaner supply or 'value'
chain is coming, but the last link -- vehicle manufacturer to customer -- is
long overdue for massive upheaval.'
Read the full editorial at
http://www.just-auto.com/editorial_detail.asp?id=57
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