July 30, 2020
Category: Faconauto News
The Proassa magazine for July analyzes the situation in the automotive sector and provides data on the forecasts for the future.
The automotive sector is one before the pandemic, and a different one after the impact of COVID-19. The priorities of the concessionaires’ business have changed and their objectives too. Therefore, from the new number of Proassa magazine 3 basic priorities are indicated that the concessionaires, and the sector in general, have to take into account at present.
The analysis was carried out by Manuel Díaz, Partner in charge of the automotive sector at PwC Spain. In his text, he assures that the “first priority of any entrepreneur or executive in the sector is the survival and sustainability of the business itself”. Macro changes such as electrification, autonomous driving … are still present but, most likely, will slow down.
With all this, and with the basic objective of surviving over time, the 3 priorities that must focus the lines of action of the dealers are:
Cash management. They believe that it is essential that there are sufficient resources to face the challenges of the present and the future.
Search for efficiency. They point out that it is not only about reducing costs but transforming “the management model into the new environment”. They believe the concessionaire should prepare for it because demand will not return to pre-COVID-19 levels for at least a while. Therefore, flexibility, efficiency and adaptability will be essential.
Omni-channel. Digitization has taken an important step and digital sales will continue to be very present after the impact of the coronavirus. Therefore, the concessionaires must focus their efforts on adapting their operating model and preparing the coexistence of the different existing channels.
Manuel Díaz ends his analysis by asking the dealer networks a question. “Really, do any of you consider that in 10-15 years you will be able to continue earning money (little) from the sale of new cars, used cars or the workshop, as we understand it today?”
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