Dealers to adapt to downturn
Vertu boss warns dealers to adapt to downturn
Motortrader.com 15th May 2009
Dealers who have not reviewed their processes since the downturn of the car market face an uncertain future, warned Robert Forrester, chief executive of Vertu Motors.
The warning was addressed to leading dealer finance managers at the recent Finance Conference co-hosted by Motor Trader and ASE, the business management specialist.
As the chief executive of Vertu Motors, a listed group which sold its first car on 27 March 2007 and now has a turnover of £750m, Robert Forrester had some sound advice on how to not just whether the storm but identify growth opportunities.
Having launched as an acquisitive group the business reviewed its business model last year to reflect the changing economic climate.
Forrester's team launched a four step programme which he said has placed the business on a sound footing. Areas addressed included cost reductions, a thorough review of the stock policy, a transformation of under-performing sites and encouraging momentum through people and processes.
"We're not at the bottom of this thing yet. You might see 25 per cent fewer customers so you need to sell 25 per cent more cars.
"There are still hundreds of thousands of people thinking of buying cars. I just want to make sure they buy from us," he said.
This is an interesting article, as it reinforces the feedback that Motor Trade Solutions have received from their own clients and is a reflection of the products and services that MTS offers.
Forward thinking businesses are grasping the opportunities that are still there in the Retail UK Motor Industry and are also keen to develop a different approach or alternative business model not just to survive, but to excel.
In trying times cost control is more important than ever and the profits are not available to pay for the countless number of new roles that appeared in dealers and dealer groups during the 90’s and early 21st century. This included Health & Safety Manager, Group Business Manager, Marketing Manager, Internet Manager, FSA Compliance, IT Manager, Training Manager, the list goes on…
The alternative is to employ similar people who demand less salary or perks, but as we all know you get what you pay for. The candidate is either too inexperienced to produce the results that you are after or worse – if they are experienced but willing to accept selling themselves more cheaply – not actually suitable.
Some businesses try to get existing staff or management to take on these roles as part of their existing position and often this works very well at first. Inevitably cracks appear and the demands of their own position produce a ‘jack of all trades’ scenario and puts pressure and stress on the individual. Something has to give.
Motor Trade Solutions are dedicated to helping the UK Motor Industry and for this part have gathered together leading people which your company can employ on an on-demand outsourced basis. This means to you that you get industry leading knowledge and techniques, but on a fixed cost basis. It fits your budget and is a lot less than an annual salary/benefits package.
It also means that your existing team can get on with what they are best at - running your business.
If you would like to know more please visit the Motor Trade Solutions website or call us for an informal initial discussion on 0845 658 6880.
Motortrader.com 15th May 2009
Dealers who have not reviewed their processes since the downturn of the car market face an uncertain future, warned Robert Forrester, chief executive of Vertu Motors.
The warning was addressed to leading dealer finance managers at the recent Finance Conference co-hosted by Motor Trader and ASE, the business management specialist.
As the chief executive of Vertu Motors, a listed group which sold its first car on 27 March 2007 and now has a turnover of £750m, Robert Forrester had some sound advice on how to not just whether the storm but identify growth opportunities.
Having launched as an acquisitive group the business reviewed its business model last year to reflect the changing economic climate.
Forrester's team launched a four step programme which he said has placed the business on a sound footing. Areas addressed included cost reductions, a thorough review of the stock policy, a transformation of under-performing sites and encouraging momentum through people and processes.
"We're not at the bottom of this thing yet. You might see 25 per cent fewer customers so you need to sell 25 per cent more cars.
"There are still hundreds of thousands of people thinking of buying cars. I just want to make sure they buy from us," he said.
This is an interesting article, as it reinforces the feedback that Motor Trade Solutions have received from their own clients and is a reflection of the products and services that MTS offers.
Forward thinking businesses are grasping the opportunities that are still there in the Retail UK Motor Industry and are also keen to develop a different approach or alternative business model not just to survive, but to excel.
In trying times cost control is more important than ever and the profits are not available to pay for the countless number of new roles that appeared in dealers and dealer groups during the 90’s and early 21st century. This included Health & Safety Manager, Group Business Manager, Marketing Manager, Internet Manager, FSA Compliance, IT Manager, Training Manager, the list goes on…
The alternative is to employ similar people who demand less salary or perks, but as we all know you get what you pay for. The candidate is either too inexperienced to produce the results that you are after or worse – if they are experienced but willing to accept selling themselves more cheaply – not actually suitable.
Some businesses try to get existing staff or management to take on these roles as part of their existing position and often this works very well at first. Inevitably cracks appear and the demands of their own position produce a ‘jack of all trades’ scenario and puts pressure and stress on the individual. Something has to give.
Motor Trade Solutions are dedicated to helping the UK Motor Industry and for this part have gathered together leading people which your company can employ on an on-demand outsourced basis. This means to you that you get industry leading knowledge and techniques, but on a fixed cost basis. It fits your budget and is a lot less than an annual salary/benefits package.
It also means that your existing team can get on with what they are best at - running your business.
If you would like to know more please visit the Motor Trade Solutions website or call us for an informal initial discussion on 0845 658 6880.
