Steering an independent UK motor group: Part 1. Survival and success

Stop Press! Medium sized independent motor groups out-perform large PLC’s during the recession. Not much new there. They often do. Many independents, particularly established family owned dealer groups, certainly are surviving this recession, measured between 2007 and 2010, What is less well known is why. That’s not to say that all of them survived. A number of established family-owned dealer groups ceased trading or were significantly reduced in size. But not only did many survive, some actually prospered.  Which begs two questions: why did many independent groups do better than larger PLC’s and why did some out-perform their peers? If you study the AM100 and the Sunday Times’ Fast Track 250 it’s evident that the ingredients for survival are different from the ingredients  for success for medium-sized, independent motor groups. Many are survivors; fewer are successes. So what makes a survivor?

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Why did Fiat marry Chrysler?

The deal Fiat really wanted had three elements: Chrysler, Opel and Fiat.. They only got two, so the profit formula needs revising. With Opel missing, Fiat won’t be able to sell mid-size cars in the states with US crash test compliant platforms. They’re no longer part of the deal. Fiat now have to re-engineer Chrysler platforms or buy someone else’s. More expense; more time. Meanwhile, the risk is that Ford and the Japanese pick up the spare market.

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