ICDP publishes report

ICDP has published its European Dealer of Tomorrow report which suggests authorised repairers could become a sale and service point for franchised dealer networks.

The report is based on a consolidation of ICDP’s research over the last couple years and covers topics such as retail trends including online and new physical formats; the threats from the ‘ACES’ – autonomy, connectivity, electrification and sharing; along with changing customer behaviour and the underlying economics.

Steve Young, managing director of ICDP, said, ‘We anticipate more separation of sales and service points in franchised dealer networks, with the possibility that some points would be authorised repairers rather than owned and operated by the franchised dealer. This could translate into even less interest from dealers in running their own bodyshops.’

He continued, ‘There will be further moves towards bundling of sales, service, insurance and other new services in a ‘just add fuel’ type offer – this will be promoted by OEMs, but also by large leasing companies when they are defleeting, leading to changes in body repair sourcing as OEM and leasing company preferred insurers increase their influence.’

ICDP’s European research programme was launched over 25 years ago with the primary objective of identifying a more effective way of distributing cars than the model which has been in place for a century.

That model survives despite the tensions that frequently exist between car manufacturers (OEMs) and dealers, and between dealers and its customers. The model is operated with inherent inefficiencies in the supply chain driving sub-optimal solutions. It depends on cross-subsidy of the new car sales business from aftersales, and in some markets from used cars.

Steve concluded, ‘Overall, we do see a future for the businesses and individuals who operate today’s dealerships, if they adapt to the additional challenges and complexities that face us now, and that will only increase over the next decade.’