athelstan
Member Since: 03 Nov 2009
Location: Reality
Posts: 2658
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Re New Vehicle Profit Margins
Per unit it is the country distributor that makes the largest percentage profit margin per vehicle, followed by the official dealership. The manufacturer makes the least percentage profit per unit sale.
However, when looking at the business model from another perspective - volume. It is on an annual turnover basis that the manufacturer reaps the biggest fiscal reward, followed by the national distributor and finally the official dealer.
When a manufacturer combines the role of both producer and national distributor they are really optimising their revenue opportunities.
This is the business model that all motor manufacturers follow. The more efficient and effective the manufacturer becomes the greater the reward for all parties in the supply chain. Alternatively, the go bust a.k.a Rover or enjoy massive state intervention currently PSG, and Kia.
(Data source:SMMT & Red Consulting)
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28th Oct 2014 7:28 am |
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