Würzburg/Germany, August 31, 2007
Car businesses in Germany are making less and less money! Paradoxically, despite developments in the sector being satisfactory as such, a warning has been issued by Wilhelm Hülsdonk who is Master of the Federal Guild (Bundesinnungsmeister) and Vice-President of the German vehicle trade association (ZDK). The danger arising is this: to be able to render good services, businesses in the car trade need well qualified staff and appropriate equipment, and to be able to invest in both of these they do not just need a good turnover but they need to be making a profit. And that is precisely where the sector is tripping up.
One of the main reasons is this: all too often, good services in the sector are sold at a loss, according to Wolfgang Michel, Editor-in-Chief of the German motor trade magazine "kfz-betrieb" in the latest edition of the magazine published on August 30, 2007. He goes on to say that the motor trade is being influenced by very serious structural changes and a shifting of the market.
During the first automobile business sector conference in Cologne, Mr. Michel discussed the findings of a survey on services recently commissioned by Exxon Mobil. Experts from the automobile business sector are of the opinion that the lean growth of 1.5 percent in turnover in the after-sales business is not a sufficient foundation for the car trade to be profitable. Moreover, the experts point out that given the discount mentality of a wide circle of customers this result will further increase the sector's earnings risk.
Mr. Michel names three main conclusions: firstly - no standard concepts in after-sales but instead individually designed customer services. Secondly - the many "marketing islands" need to be joined together to make one united front. Thirdly - the sector should constantly bring to mind the fact that it is people who are the key to success. The central focus of companies, he says, must be on job training and further training because consistent training is absolutely indispensable to the business.
"kfz-betrieb" is a specialist magazine published by Vogel Auto Media, Würzburg/Germany. It is the most widely read specialist magazine in the German car trade, celebrating its 95th anniversary in 2005 and fulfilling the role of official publication of the German vehicle trade association (ZDK), which represents the interests of over 40,000 car dealer businesses and repair garages. Current daily news from the entire motor sector is available at www.kfz-betrieb.de and also in the newsletter issued daily.
If you have any queries, please feel free to contact:
Konrad Wenz
Head of "Services & Technology" Department
Editorial office of "kfz-betrieb" - weekly journal & website
Vogel Auto Media
97064 Würzburg
Germany
Phone +49 (0)931 418-25 56
Fax +49 (0)931 418-20 50
Email: konrad_wenz@vogel-automedien.de
