Mazda plans to boost profits

MAZDA is aiming to improve its network's business performance and put its retailers in the top quartile for dealer profitability in the UK.


With the brand predicting record new car sales, in excess of 50,000 units this year, managing director Rob Lindley said the network needs to develop its used cars and aftersales business to raise profitability levels.
Speaking to Motor Trader, Lindley said sales would beat 2004's record of 48,600 units as the brand benefits from a full year of MX5 sales and improved availability of diesel units across its Mazda 3 and 6 ranges.
Lindley also said dealers were likely to improve profitability levels this year after a dip in 2005.
“I'm optimistic on profitability and it's my goal that our franchise ends up in the top 25 per cent in dealer profitability. There are opportunities with the product range, the increasing servicing parc and there's a growing opportunity in selling used cars as our volumes grow,” he said.
The brand is currently piloting used car schemes as growing levels of three-year old cars return to the network.
“There's more focus on used car sales than there's been before. We're currently working with Polk on profiling our used car business and we have some pilot dealers which we're working with to identify the used stock they need to hold. We're also looking at ways of helping dealers procure more two to three-year-old stock through our relationship with leasing and contract hire companies,” he said.
Lindley also said he was working with the network to reduce unnecessary costs, with the brand repaying 75 per cent of first quarter new vehicle stocking charges to all dealers who hit their December sales targets.
“We wanted to give dealers a good start to the year,” he said.
l See full interview on page 10.

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