Audi’s dealer help pledge
February 20th, 2009 by Richard Aucock
AUDI’s commitment to raise dealer standards need not be a financial burden, says MD Jeremy Hicks.
He praises Audi’s UK dealers for ‘transforming’ themselves in recent years. Now, ‘we want to continue this development – but not at the expense of dealer profitability.’
Hicks thus assures Audi’s UK dealers that only ‘common sense’ standards are demanded in its dealer agreement. This, he says, will ensure retailers have more flexibility in balancing their books.
He highlights demonstrators. ‘We used to be strict – demanding every retailer carries a test car of each model in stock. Now we’ve adopted a market area approach.’
Where a dealer has connected sites, a single low-volume model such as the A8 can serve as a demonstrator for all 3.
‘However, what’s interesting is that some are saying no – they have to have their own Q7, for example.
‘But it’s important to us that they have the flexibility.’
Hicks says the network transformation over the past 5 years has been dramatic. ‘We’re now onto our second generation of dealer builds, after the hangar-style initial sites of the post-VW split in the mid-90s.
‘At the time, people said these were too big for Audi. Now, many retailers are finding they’ve outgrown them…’
Attractive
Audi is, says Hicks, the most attractive franchise to have in the UK. Why? Simple. ‘You become an attractive franchise if you can generate a good profit.’
It’s a mutual relationship. Audi UK needs its dealers as much as they need them. Which is why he is so keen to maintain dealer profitability.
‘Every decision we make sees us consider dealer profitability. We have, for example, introduced specific aftersales growth targets, and used car growth targets.
‘This doesn’t make Audi UK any money – but it does help the dealer.
Audi will launch 10 new cars in the UK during 2009. ‘Every new model gives us incremental sales.’
He says 2009’s performance depends on the speed of the recovery. Hicks expects the first half to be tough, but hopes for a recovery in the second half.
What’s important, says Hicks, is that the brand has the smaller, higher-spec ‘downsized’ cars the market is now demanding.
Whether it will achieve another six-figure sales target in 2009, he would not be drawn. Of more interest to dealers is that the MD is so actively prioritising dealer profitability.
‘At the moment, it’s all about people, doing their job as well as they can.’
Exclusive by Richard Aucock
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