Automotive Retail Business

stock.xchngA new study by Roland Berger forecasts a 6 percent drop in car sales in Europe in 2012. The market is expected to recover in the medium term, but the ongoing debt crisis is putting roughly 20 percent of automotive dealers under financial pressure which, in turn, puts the majority of car sales at risk.

In addition, automotive manufacturers are often unclear about the actual financial situation of many dealers, especially those that handle multiple brands.

For these reasons, manufacturers must quickly take action to minimize risk and support those dealers most in need of assistance. A detailed risk analysis in combination with cashflow scenarios can secure sales volume, market share and sustainable profitability for dealers despite tough market conditions.

The report is available to download from the Roland Berger website.