15 March 2021

Retailer relations with their manufacturer partners have started 2021 in the best position for six years, according to the latest NFDA Dealer Attitude Survey.

The survey, carried out in January, recorded a score of 6.3 out of a possible 10 in the all-important ‘How do you rate your manufacturer overall?’ category. The last time there was a higher score for this question was in January 2015.

Scores have been rising for the past two years but are still not at the levels seen in 2013 and 2014 when it hit 7.2.

Topping this chart was Lexus with a score of 9.5. Kia came second and Toyota and Mercedes took equal third.

The most improved brand was Audi with a rise of 2.0 to a score of 7.3 which also meant it jumped to seventh place from 19^th six months ago. Sister brand VW saw the second largest rise with a score of 6.7, up from 5.0 in mid-2020. Jaguar was the third highest riser in terms of score, although it’s still firmly in the lower half of the table.

The latest Dealer Attitude Survey saw Alfa Romeo return to the bottom of the chart with a score of just 1.8, one of the lowest on record for the ‘How do you rate your manufacturer’ question. It was also the fastest faller with a drop of 2.4 points.

Hyundai which has been at the bottom of this list for both of the 2020 surveys came in equal second from last with Jeep and Fiat, while three more of the Stellantis brands; Vauxhall, Abarth and DS took the next lowest places. DS joined the listing for the first time in this survey.

Hyundai has been languishing at, or near, the bottom of this table since Ashley Andrew took over from Tony Whitehorn in 2019. A year ago, Hyundai’s dealer council sent an open letter of complaint to the national sales company complaining about actions that impacted retailer profitability.

Commenting on the results Sue Robinson, NFDA chief executive, said: “The NFDA Dealer Attitude Survey is vitally important to gauge the health of the business relationship between dealers and manufacturers and highlight any potential issues; with the challenges facing our sector over the past months, it is extremely encouraging that nearly 60% of UK dealers completed the survey.

“Despite relatively low scores for important aspects such as profit return, required levels of investment and return on capital, dealers showed higher levels of satisfaction than six months ago. However, a number of dealer networks were dissatisfied with their manufacturers’ volume target aspirations and with the overall new car targeting process.

“Positively, the majority of dealers are satisfied with their ability to do business with respective manufacturers on a day-to-day basis. As we come out of the pandemic and the economic environment improves, it is crucial that manufacturers have realistic expectations of their networks and continue to work closely with dealers.”

UPDATE

Hyundai’s dealer council boss Mike Read, managing director of Read Motor Group, claimed relations have improved since the survey was carried out: “We’re pleased to see an improvement in the results in light of the joint efforts undertaken by both Hyundai and the franchise board, specifically over the last few months. However, we believe the concerns of our dealer network over the level of support provided by Hyundai during the first lockdown were still front of mind when the survey was completed, and this most certainly has been reflected in the scoring.

“During this latest lockdown it has been clear that Hyundai’s executive team has been more receptive to the franchise board’s input and a more collaborative relationship now exists. The levels of support in this lockdown have been far more appropriate and the continued actions place the network in a stronger position for the re-opening in April.

“We remain committed to improving our partnership for the long term and we fully expect to see an uplift in the NFDA results as we move forward driven by our continued collaboration.”

Ashley Andrew, managing director of Hyundai Motor UK added: “Hyundai has been working very closely with the franchise board over the last year to support our network and to improve ways of working, ensuring greater collaboration and clear and regular lines of communication.

“Whilst we are pleased to see some improvement in our NFDA position, we would obviously have liked to have seen a more robust result in light of the efforts being made on both sides.

“We are, though, committed to building a stronger partnership for the future and are encouraged by the feedback from the Franchise Board, acknowledging our collaborative efforts to support them and to ensure they are in a strong position for the introduction of thirteen new models this year.”

A spokesman for the Stellantis brands which occupied six of the bottom seven spaces with its eight brands declined to comment on the results.

Tags: Alfa Romeo, Ashley Andrew, Audi, Dealer Attitude Survey, Hyundai, Lexus, NFDA, Stellantis