Mazda UK Dealers – Success Breeds Success.
18/01/2010
Mazda has increased its % share of the UK new car market 5 years running with the 2009 result of 2.40% more than 29% better than the 2004 figure of 1.86%. Over the same period the total market has declined 22%.
Concurrent with this, the Mazda dealer network is enjoying its best trading results for years due to a variety of programmes put in place by Mazda UK. These have improved the partnership proposition.
Following on from a generally poor second half in 2008 for the whole of the UK motor trade, Mazda UK made several strategic decisions for 2009 to give practical assistance to their dealer network:
- the network would be encouraged to focus on retail sales which would deliver more profit for the dealers
- costs would be removed from the network by reducing the new unit stock level requirements
- a change in the provider of finance with lower interest rates would bring benefits
- the number of demonstrators required at dealerships would be reduced by 30%
At the same time, an increased awareness by the general public as to the distinct value and attractiveness of the Mazda range of cars brought more retail customers to the network.
As a result, retail sales and retained margin have substantially improved in 2009 as has bottom line profit. Mazda UK has also encouraged the dealers in the network to apply themselves to the cash drivers of the business and more clearly focus on the key issues beyond profit and cost controls.
National average net profit per dealer for the 11 months to November 2009 is at its highest ever point with a return on sales of 1.8%. This compares with a UK average of 1.4% according to ASE. the actual profit figure was £132,000 and covers all of the dealers that hold the Mazda franchise.
Solus Mazda dealers underpin this excellent national performance with an even better return on sales of 2.0% delivering net profit of £126,000 for the 11 months.
Within the top 25% national average the Mazda element of the total profit was £219,000 - a 3.6% return on sales within the upper quartile total of £266,000 (3.8%).
These results show how Mazda UK's practical approach to its partnership with the network and its willingness to embrace lower cost solutions to problems brought on by the economic downturn has paid dividends for both.