Motor Industry Overview 2012Deloitte Motor Industry Services |
The annual Deloitte Motor Industry Services - Australian Industry Overview 2012 report has detailed how in vehicle terms, the strength of the Australian economy helped underpin a market, which although down marginally on 2010 due to the impact of natural disasters, was strong enough to break through the million unit mark for just the fourth time.
According to the report’s author, Danny Rezek, Deloitte Motor Industry Services partner, this has been a year where there were mixed fortunes for global markets, both in broad economic terms and in vehicle sales, while the continued solid growth of the Australian economy has made the market here stand out, bringing the attention of many multinational car companies.
Read and download the Deloitte Motor Industry Services Industry Overview 2012,
Key highlights of the report were:
- The Top performers plan to make 5% net profit on sales
- They then focus on the non-financial KPI’s that make this up (internet and showroom statistics, service retention and CRM measures) and their level of achievement
- The focus is on the customer, not the franchise. A focus and reward structure built around creating value per customer interaction and maximising front end gross means the need to chase back end (re-earnable) margin isn’t as critical
- People generate 100% of the gross and represent 70% of the costs. So the top dealers ensure their people are trained, developed and rewarded. The parts department continues to provide an important source of income to help offset the profit drain commonly experienced by the vehicle operations
- Staff resource levels are increasingly being adjusted to best practice levels and there is a greater focus on cash flow and inventory management.
Deloitte Motor Industry Services, Industry Overview 2012
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