RAA emerges asdealer supergroup

The Retail Automotive Alliance is a joint-venture involving 20 franchised dealer groups running 155 sites in the UK. Each group has an equal shareholding in the organisation and will retain full individual control of their businesses. Talking to Motor Trader last week Philip Maskell, RAA inaugural chairman and managing director and chairman of the Essex Ford Group, said the move had been prompted by changes to the block exemption regulations which will see the removal of the location clause in October. He also highlighted the shared benefits of collective buying which could put the alliance on a more equal footing with the major plc groups. “We're not positioning ourselves to beat up manufacturers on prices – this is much wider than just buying cars. We see it as an opportunity to benefit from collective buying,” he said. “This new alliance will ultimately become more competitive with the large groups by seeking equivalent economies of scale but have unmatchable regional and brand focus – particularly as we face the challenges post-October 2005 with the abolition of the location clause,” he said. “We're looking to influence the franchised industry. All our members will retain their independence and our name will not be customer facing. We want to see our individual brand equities improved – we're positioning ourselves as progressive and positive not defensive,” he said. The group has its basis in the Ford network with representation of 100 blue oval sites but is independent from the manufacturer and intends to grow with more dealer groups which will improve its multi-franchise mix. Ford's former finance director Paul Knight has been appointed as managing director and the business is formally launched at an inaugural meeting in London on Monday. According to Maskell the participating members buy between 1.5 and two million litres of oil a year and he expects to achieve significant economies of scale on future purchasing of lubricants and other consumables. The alliance will also cover finance provision, shared vehicle storage facilities and PDI centres as well as human resources elements including private health care. Maskell also said the RAA was looking at establishing its own car rental operation. Maskell said the launch was not a “knee-jerk reaction” to changes in the industry, which has seen the consolidation of large dealer groups, as it has been in the pipeline for 12 months and is based on a model commissioned by Professor Garel Rhys of the Cardiff Business School. “This is a remarkable initiative – possibly unique in the world. There should be significant benefits to this alliance on operational, franchising and purchasing projects,” said Rhys. Maskell confirmed the alliance is looking to recruit more partners who will be given the opportunity to buy shares in the business.