Chevrolet MD on scrap
June 24th, 2009 by Richard Aucock
CHEVROLET MD Mark Terry says scrappage has come just the right time for the growing value-focused brand.
‘The value was there before from us. What the Government scheme has done is give added impetus to things.
‘Suddenly, customers who were unsure now have the Government’s OK on new car purchases.
‘Add in the ‘once it’s gone, it’s gone’ element, and there’s the green light to make car purchases again.’
This, says Terry, has given Chevrolet a welcome fighting chance in a tough marketplace. ‘The scheme has added an additional layer.’
Initial results are startling.
‘The biggest surprise for us has not been the mix – it’s the volume! Scrappage orders are well in excess of even forecasts; May was up 40 percent on 2008, and we’re having to positively strengthen our forecast going forward.’
This has even caused Terry to revise his overall sales aspirations for 2009.
‘My ambition was for 17,200 sales (Chevrolet did 18,300 in 2008). Now, my personal goal is to hold volume in a declining market – which will give us very strong market share gains.
‘There has been some shift in regular retail to scrappage, but incremental remains the biggest gain. We now have real momentum in the UK market.’
He was upfront in admitting top-level profitability on sales has been cut. ‘It is a challenge for profitability.
‘We had to review our dealer margin position – but retailers have been supportive. They contribute anyway, to sales initiatives, through various different means. This was a matter of us sitting down and working it all out.
‘So, yes, there’s pressure per unit, but in terms of incremental, it’s very good.’
Car dealers shouldn’t forget the added profits streams either. ‘We offer fixed price servicing, with a high take-up. This ensures good retention, good aftersales, and a better repurchase proposition.’
All of which means the UK Chevrolet dealer franchise now has real momentum. ‘Dealers are finding the Chevrolet brand is now a key part of their business.
‘Those in multi-franchise outlets, where the stronghold used to be with Vauxhall, are now seeing Chevrolet becoming very significant. They are responding by allocating resources accordingly.
‘It’s a great place to be at the moment.’
By Richard Aucock
Tags: chevrolet, mark terry, MD
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