The National Franchised Dealer Association (NFDA) has called on the government to support the industry to combat the in the energy crisis.
By October, energy bills for dealers are expected to have more than doubled, putting pressure on cash flow.
An NFDA survey found that 94% of its members believe the energy crisis will have a “significant and detrimental impact” on how they undertake business.
In a letter to Rt Hon Nadhim Zahawi MP, Chancellor of the Exchequer, it proposed a subsidy that would comprise of 25% in the value of the increase in a dealership’s electricity bill over the past six months and would last for a year.
NFDA CEO Sue Robinson said: “The unprecedented rise in energy costs over the past six months, without prompt and suitable help, will for many in the automotive retail industry prove an extremely difficult burden.”
Sue Robinson continued: “Supporting the industry at this moment in time will give businesses the time they need to renegotiate contract prices which better reflect the increasing energy costs.
“NFDA has requested a meeting with the Chancellor to discuss how best the industry and government can work together to address this critical issue.
“We have also written to the Secretary State for Business, Energy and Industrial Strategy, Rt Hon Kwasi Kwarteng MP, and two Conservative leadership candidates on the matter.”