Volvo, the most valued brand by dealers for the second consecutive year

Volvo is the most valued brand by its dealers, according to the “V_CON” report prepared by the consulting firm MSI for Faconauto, which was presented today during its Congress & Expo. This study analyzes the degree of satisfaction of distributors with the brands they represent in the most important aspects of the business.

The study, which has collected data from dealerships from 22 manufacturers representing almost 90% of the national market, places the Swedish brand with the highest score (9.3), followed by Cupra (8.6) and Seat ( 8.4). On the contrary, the brands that got the worst score were Citroën (1.8), Peugeot (2) and Opel (2).

The biggest concern for dealers is once again the fall in the profitability of their businesses. 66% placed their average profitability below 1% on turnover, compared to 67% in the previous year’s survey, while 27% of the concessions claim to have a negative profitability, a statistic that in the previous year was 26% . Only 12% place their profitability above 2%, a figure that the sector considers reasonable for the level of investment and the business risk they assume. Volvo, BMW and Cupra are the most satisfied networks in this section, while those of Peugeot, Citroën and Opel were the dealers that rated their brands the worst in this regard.

Overall, the study shows a slight uptick in confidence in dealerships, with 5.8 out of 10 believing the brand will continue to do business in the next five years, almost half a point more than in last year’s survey. . In addition, the appreciation of dealers regarding the return on investment also increased, although with very poor figures, with only 4.2 out of 10 claiming to be satisfied. In this sense, only 4 out of 10 concessions indicate that the value of their business has improved or will improve in the last year. Volvo, Cupra and Kia dealers were the ones that best assessed the return on investment they make, compared to Peugeot, Opel and Citroën, which occupy the last positions.

Distribution model

In a current context, in which many brands are renegotiating the relationship model they have with their dealers, the study specifically asked about the role that the agency contract is gaining in these negotiations. Thus, 40% of dealers consider that relations with their brands are evolving towards said agency contracts, from the current, majority model, based on distribution contracts. Regarding the agency contract, the dealers surveyed highlight that it will reduce their stock (34%), will give more predictable margins (27%), and will mean making fewer investments (21%).

An issue that has also been addressed in this year’s study has been the mistrust of dealers regarding the Next Generation European Funds. 45.9% say they trust them a little, and 24% do not trust them.

The commercial policy of the brands has also occupied a large part of the survey, which has analyzed the new, used and after-sales vehicle departments. In all of them, the dealers have rated their brands below 4 out of 10 and have shown a very negative opinion, particularly regarding the objectives, with a score of 3. The networks that have scored the best in this section were Cupra, Volvo and Mercedes -Benz, compared to Opel, Peugeot and Citroën, which were the worst rated.

The standards that manufacturers set for their concessions were also the subject of analysis. 5.5 out of 10 of those asked stated that these standards help them to have an advantage over their competitors. Volvo, Kia and Seat were the networks that saw the most utility in these standards for their businesses.

Regarding the digitization of processes, 55% assured that the investment in digitization by brands is insufficient, while the quantity, quality and management of leads (customer contacts generated through digital processes) are considered positively again only by 5 out of 10 dealers. In digitization, the brands most valued by their networks were Volvo Kia and Cupra, in the opposite direction, they were Opel, Peugeot and Citroën.

In relation to the orientation of the manufacturers towards electrification, the report gives a score of 5 out of 10 regarding the general satisfaction with this process of the dealership with the brand. Volvo, Cupra and Renault are the best rated brands in terms of electrification, while Peugeot, Opel and Citroën were the worst rated.

Finally, the report analyzes the orientation of its manufacturers towards new mobility solutions. In this section, the brands with the best score have been Volvo, Renault and Kia, while Suzuki, Fiar and Opel registered the worst evaluation by their dealers.

See the complete study:

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