The automotive industry is currently undergoing rapid transformation, and according to industry expert John O’Hanlon, forging strong partnerships will be essential for navigating the economic and structural complexities of the retail landscape.
During the Vehicle Remarketing Association’s recent seminar, O’Hanlon, who serves as the chief executive of Waylands Automotive, shared valuable insights into how industry players can thrive in today’s ever-evolving automotive landscape. He stressed the importance of adaptability and collaboration as crucial elements for success in this fast-paced industry.
A major challenge highlighted by O’Hanlon is the potential decrease in profit margins for dealers, particularly those who have traditionally excelled in retail. As prices continue to rise, he noted that dealers may not necessarily benefit from increased margins, necessitating a focus on volume to overcome rising costs. However, the limited market capacity poses a significant challenge, which is likely to result in casualties within the industry.
With manufacturers taking control of finance, dealers are now required to put in extra effort to ensure they do not lose out, with O’Hanlon emphasizing the importance of selling finance as a means to selling insurance and other add-ons. He underscored the crucial role of franchise dealers in delivering a superior customer experience, which results from a close partnership between the dealership and the manufacturer.
Shifting focus to the electric vehicle landscape, O’Hanlon reflected on the strategic partnerships that Waylands has established with brands embracing electrification. He emphasized the significance of selecting partners with a clear industrial strategy, recognizing the essential role these partnerships could play in simplifying the retailer’s job and positioning them for success in the growing market.
O’Hanlon also addressed the aftersales challenges presented by the emergence of electric vehicles, highlighting the looming threat to traditional revenue streams, particularly concerning the sale of oil and second services. He stressed the importance of a proactive approach to aftersales services, emphasizing the significance of annual Electric Vehicle Checks (EVC) and retention improvement strategies.
In conclusion, O’Hanlon advocates for scaling up and forming partnerships that comprehend the intricacies of the dealership business to thrive in the evolving automotive landscape. He emphasized the importance of collaborating with partners who understand the business and the necessity to adapt to changing market dynamics and the economic landscape.
In a rapidly changing industry, it is evident that resilient partnerships, adaptability, and a focus on customer experience will be crucial in ensuring success for both dealers and manufacturers in the automotive sector.
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