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European Automotive Dealers' Satisfaction to New Manufacturer Contracts Varies Largely, Incentives Expected to Rise


The new SGS survey on Automotive Dealers Satisfaction with the new Contracts, Standards and Bonus Schemes revealed that there are substantial differences in how dealers rate the contracts between the lowest and highest performing OEMs.

Geneva, Switzerland, May 23, 2013 --(PR.com)-- European automotive dealers are in general happy with new contracts with OEMs. Only two percent of dealers show dissatisfaction. Premium dealers are the most satisfied of all. The attitude towards service contracts mirrors that of the overall agreements. However, the new SGS survey on Automotive Dealers Satisfaction with the new Contracts, Standards and Bonus Schemes revealed that there are substantial differences in how dealers rate the contracts between the lowest and highest performing OEMs. The study, conducted during March-April among more than 1,300 automotive dealers covering 17 brands in France, Germany, Italy and the UK, also sheds a very consistent light on insights and expectations on the level of bonuses and incentives. These are still assumed to be too low in relation to market needs and are expected to rise further across almost all brands.

“With the help of the data, manufacturers can gain insights in their competitive positioning regarding the dealer satisfaction with the new contracts, standards and bonus schemes,” says Roland Gagel, SGS Global Sector Manager, Automotive and initiator of the study. “While SGS will not reveal the brand-specific results to the public, each OEM will get a mind-opening picture on where they stand by looking at their own specific data.”

Concerning the requirements for future improvements, most of the dealers interviewed in the research indicated that the bonus and incentive administration needs to be further simplified. “The level of satisfaction in this area is only half that of warranty administration,” concludes Gagel, referring to the 2012 international SGS research on Dealer Satisfaction with Warranty and Policy Administration.

European Block Exemption

On June 1 2013, the new European Union Block Exemption Regulation (BER) for the Automotive Segment gets into effect. Almost all manufacturers have used this opportunity to review the contacts with their franchised dealers and authorized repairers (AR). Although the changes in many contracts are not as significant as expected many years ago when the BER was announced, there are plenty of discussions in the public and among dealerships about the impact of the new regulation on the contractual relation between the manufacturers /National sales companies on one side and the dealers/ AR on the other.

About The SGS Survey

SGS conducted a survey among more than 1,300 dealers for the 17 main brands of Europe, in Germany, France, and Italy and in the UK, the four largest markets in Europe. The objective was to understand the dealer satisfaction with the new contracts, standards and bonus schemes within the contractual relation to the vehicle manufacturers. Partnering with a renowned market research company conducting the survey in March and April 2013, SGS can support the manufacturer to gain insights in their competitive positioning regarding the dealer satisfaction with the new contracts.

SGS will arrange a complimentary webinar on the study results on May 29. The registrants will receive the logistics upon signing up.

Partnering with SGS opens the door to better performing processes, increasingly skilful talent, consistent and compliant supply chains and more sustainable customer relationships delivering profitable competitive advantage. Work with the global leader and take your commitment to the next level.

We have a history of undertaking and successfully executing large-scale, complex international projects across diverse industries, including the automotive sector. With a presence in every single region around the globe, our people speak the language and understand the culture of the local market, and we operate globally in a consistent, reliable and effective manner.

For more details, please visit: http://www.sgs.com/en/Our-Company/News-and-Media-Center/News-and-Press-Releases/2013/05/European-Automative-Dealers-Satisfaction-to-New-Manufacturer-Contracs-Varies-Largely.aspx?wt.mc_id=prs130534
Contact Information
SGS
Outi Armstrong
+41 22 739 9161
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http://bit.ly/12r2Qxs

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