22 April 2013

Over the first quarter of this year I’ve heard a lot of comments from Auto Retail Network members about how manufacturers have set sales targets for 2013 way too high.

Last week, for the first time, I found a manufacturer willing to talk openly about targets. Nissan’s MD Jim Wright admitted that last year manufacturers under-called the market. As a result they weren’t about to make the same mistake twice, which is why it seems as if 2013 sees some retailers facing a double increase in their targets.

And at first thought, this kind of statement looks likely to wind up retailers who think their new car sales targets for 2013 are too high.

However, a conversation this week with Ancaster boss Stephen Wood, also threw up a valid point; high targets are good for  dealer and manufacturer, because it means selling more cars and therefore making more money. Although he did add that manufacturers need to provide the tools to enable retailers to sell the cars.

And by ‘tools’ I take this to mean appealing cars that offer good value and attractive finance offers, too. It’s then up to the retailer to do what they do best: sell the cars to customers.

Judging by the  figures so far this year, at least for retail sales, it looks like retailers are doing a good job and look set to have a great year (again). Fingers crossed.

And by the way, the full interviews with both Jim Wright and Stephen Wood will be in the May issue of Auto Retail Bulletin. If you’re not a subscriber, do register for a free magazine trial.

Tristan Young

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Tags: 2013 new car sales, Ancaster, Jim Wright, new car market, Nissan, sales targets