The Retail Automotive Alliance, launched on Monday, brings together 20 regional dealer groups running 155 multi-franchise sites in England, Scotland and Wales. With a collective turnover of £2 billion, the RAA sits notionally between Pendragon and Reg Vardy, making it a force to be reckoned with. The RAA expects to grow its membership of regional dealer groups and improve its franchising mix, which is currently dominated by Ford outlets. In a pragmatic approach it has said it will not use its power to beat down manufacturers on pricing but to achieve better economies of scale through bulk purchasing of supplies. It has also said its members will work together to address the issues presented by the removal of the block exemption's location cause in October. With its underlying regional strengths, the RAA is a welcome addition to a sector that has been accelerating towards consolidation.