Dealers Expected to Alleviate Supply Issues with Q1 New Car Orders

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MotorVise Automotive’s Fraser Brown said franchised auto retailers should work hard to secure the supply of new cars early on with a campaign of marketing and sales events in the first quarter of 2022.

The founder and chief executive of the auto consultancy firm believes retailers should aim to act quickly in order to place customer orders early in the new year and alleviate long customer delivery times.

Talk to AM in the last magazine (January 2022), industry analysts have suggested that shortages of semiconductors and other components will not allow new car supply to pick up until the third or fourth quarter of next year.

Brown said: “Moving forward in the queue for new cars will result in continued profitability during what could yet be another period of uncertainty after Omicron’s spread. This could prove to be a pivotal time for 2022. “

While Brown advised that an audience already showing signs of caution regarding retail and hospitality should remember COVID-19 safety procedures in showrooms before any sales event, he said the priority would still be “the need to get potential customers through the doors during Q1”.

“While cars ordered in the first quarter may not arrive until April or May, those sold-only orders can be placed immediately, allowing the dealership to secure their supply,” Brown said.

“The first orders also generate additional business through the resulting trades, which, given the equally high demand in the second-hand market, is just as important. “

the AM Outlook 2022 survey results gave an overview of uncertain expectations for the supply of new cars for the new year.

The rise of the COVID-19 Omicron variant across Europe will only hamper efforts by OEMs to regain ground lost due to component shortages.

Last month AM spoke to Suzuki Motor UK automotive director Dale Wyatt who made the bold move to import incomplete cars due to the shortage of semiconductor chips.

Dale Wyatt, Automotive Director, Suzuki GB, told AM that a decision to import thousands of cars into the UK without infotainment systems – which incorporate satellite navigation and sound systems of the vehicle – and to obtain its own solution locally, would now bear fruit.

“It’s been a struggle, but the reality is, if we hadn’t taken this step, our retailers wouldn’t have had these vehicles to sell,” he said.


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