Agency delivers ‘more opportunities’ for dual-franchising

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Agency is opening up opportunities for dual-franchising and doing business with new Chinese brands entering the UK market.

That is a key finding of the latest Savills Spotlight Research on the UK Automotive Market, which forecast further consolidation in the sector with some brands reducing their footprint and more dealer group acquisitions and restructuring.

“The agency model will inevitably require dealers to display fewer vehicles in their dealership showroom.

“This opens a window of opportunity, with some dealers opting to dual-franchise and sign partnerships with some of the new EV market entrants.

“This is expected across other OEMs, where significant network consolidation is expected, for example, with the Stellantis brands,” it said.

Motor Trader recently reported on LSH Auto transforming its Tamworth Mercedes-Benz site, originally built in the 1980s into a business incorporating two new showrooms, one for Mercedes-Benz and one for BYD.

Savills also looked at the issue of consolidation in the sector.

“Consolidation remains a prominent theme, with OEMs reducing their retail outlets as well as a significant amount of ongoing M&A activity.

“This allows opportunities for either a repurposing of existing property to house multiple franchises, or the ability to unlock value through alternative uses,” it said.

Click here for the full report

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