Amateur questions on the automotive sector

[plaguedbyfoibles]

Hi all.

I used to work as an IT contractor for JLR, which was my first real exposure to how OEMs work.

That being said, I regret not being able to use my time more wisely there, in terms of learning more about how OEMs operate.

I have a few questions if anyone wouldn't mind answering some of them:

1. How many dealerships are still OEM-owned versus franchised? https://www.am-online.com/AM100/ gives me the largest franchised dealer groups, but how many can sell D2C? Reading https://www.bcg.com/publications/2023/shifting-to-... suggests that, in the age of online, it is only the MSRP that matters now.
2. To what extent are franchised or main dealers independent? It seems that, even if they're independent, say a franchised Honda dealer, they still have to procure certain services from the OEM, may be locked into buying X cars a month from the OEM, might have to lay out their showrooms a certain way etc.
3. How does the CX journey differ with the OEM to franchised dealer pipeline under a franchise model, as opposed to an agency model, or ordering a car from an entirely independent dealer that does not use OEM branding? If I try to order a service for my Vauxhall, for instance, on their website, they say I make the booking directly from my local retailer, instead of going through the Vauxhall booking form on their website. In this case, is Vauxhall essentially a third-party retailer who otherwise routes your booking request through to the local retailer but charges their own fees for doing so?
4. What are the advantages of the franchise vs the agency model? I've read that, even if you have a franchise model, the inventory risk still lies with the OEM because the OEM offers new stock finance at 0% APR for a few months for the franchised dealers. How can the agency model reduce costs for OEMs, especially as it relates to product mix, mitigation of bullwhip effect etc?

Any and all answers greatly appreciated. No obligation, however!

Edited by plaguedbyfoibles on Saturday 5th September 20:50

[Turn7]

47 months lurking to post that ?

Why are the questions strangely formatted , like thyve been C&P by a bot almost.

[plaguedbyfoibles]

Turn7 said:

47 months lurking to post that ?

Why are the questions strangely formatted , like thyve been C&P by a bot almost.

Uh, I'm not a bot lol, just forgot I had this account.

I used to work for JLR so most of my time was taken up there. However, since I only ever really worked in the IT department there, I am interested in knowing more about the world of OEMs and dealers.

[Panamax]

You need to read up on the EU "block exemption" which covers vehicle distribution and servicing. Without that you're just fumbling in the dark.

[plaguedbyfoibles]

Panamax said:

You need to read up on the EU "block exemption" which covers vehicle distribution and servicing. Without that you're just fumbling in the dark.

Thanks, currently going through that.