Motor Industry Services Alert | KPMG | AU

Motor Industry Services Alert

Motor Industry Services Alert

Keep up-to-date with monthly insights and best practice information for the automotive industry. In this edition, we discuss the top ten things you can do to win back business in tough times.


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The Motor Industry Services team aim to help dealer principals and general managers to uncover opportunities to achieve best practice in their dealerships. Our monthly alerts share knowledge and discuss current issues and changes within the motor services sector.

Current edition – June 2018

Top ten 'good habits' for tough times

Over the past few months we have been hearing the same comments from dealers and the industry… times are tough! Which is why we have dedicated this edition of our Motor Industry Services Alert (PDF 390KB) to going through the top ten things you can do, to win back business in tough times.

In the industry we have a very simple saying that I have always felt encapsulates how dynamic the car business is:

“The distance between the penthouse and the outhouse is a short walk.”

The motor industry is a barometer of consumer confidence, and things like impending interest rates and falls in property prices (albeit not realised) just makes our customers sit back and wait (procrastinate), when really nothing has really changed in their life or the economy. And this is the situation we find ourselves in at the moment – whilst business confidence has improved, consumer confidence is down. People are worrying about the future – house prices generally have moved sideways, and their take home pay is not increasing too much.

Because our businesses are so finely tuned, we are often unprepared for these blips in consumer confidence, and we often find during the ‘good times’ we have developed bad habits, which need to be fixed to fill the void caused by this lapse in consumer confidence.

The problem with the car business is that all our profit comes from the last 10 percent of the business we do. From those last 10 vehicles sold for the month, the last 4 days of service sales. So when that last 10 percent drops off, our profits tend to take a much larger dive than would normally be the case, as we follow consumer confidence, and the market, down.

In reality, that 10 percent is still out there, we just need to work harder for it. Go back and perform those good processes that have dropped off.

If you have any questions or would like assistance with implementation, please contact us.

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