ICDP Executive Briefings 2020

Influence of motor insurers on the crash repair sector - influencers or influenced?

Steve Young 10/20

The crash repair sector in the EU represents around a quarter of the total aftermarket, and is a significant driver of profits for some players, particularly those involved in the supply of parts and paint.  For repairers and motor insurers the situation is less positive, with a wide range of repairer profitability across the European markets, many only marginally profitable or loss making, and insurers often having a combined ratio greater than 100, i.e. loss-making on costs vs. premium income.  Compared to other parts of automotive aftersales, there is more variation in the repairer structure across the national markets, and little sign of convergence.  This raises the question as to why the markets are so different, and whether there is any relationship between different players within the sector that creates and sustains the different structures

Future aftermarket shares for OEM-franchised and independent repairers

Christophe Guillaneuf 09/20

In most major European markets, our regular surveys have shown that the market share in volume of the OEM-franchised channel declined significantly over the first half of the 2010’s.  Since 2014, under the combined effect of growth in both service packages and bundled leases, and the introduction of annual service requirements by most volume brands, dealers and authorised repairers have managed to maintain their share of R&M (repair and maintenance) operations.  However, apart from in Germany, OEM-franchised service channels are still far from being leaders when considering their share of the overall car parc.

Manufacturer online sales channels in Europe – moving from pilots to permanent fixtures?  

Pascal Haubenreisser 07/20

It is generally recognised that online sales of new car sales will become more and more important in the future as customers look for alternatives to the traditional ‘physical’ car buying process at the dealership.  ICDP continues to investigate online channels from both the consumer and industry perspectives to assess how they are developing in a fast-changing environment, drawing on our own consumer surveys, monitoring of OEM online channel developments across the main European markets, and interviews with industry specialists.  Our focus is on services which allow either a partial (i.e. paying a deposit) or a full car-buying transaction (whether an outright purchase or some form of finance deal arrangement) to take place. 

Mobile repair and maintenance services in Europe: concepts in place and future developments

Thomas Chieux 06/20

Despite the obvious customer convenience offered by mobile servicing, the offer remains relatively unexplored in the automotive aftermarket sector.  In car aftersales, there are numerous forms of ‘mobile servicing’, addressing different types of customers, with different types of vehicles.

Covid-19 – an update on the industry status and outlook

Steve Young 05/20

Over the last two months, the industry has been widely affected by the restrictions placed on businesses and individuals as part of the fight against the spread of the Covid-19 pandemic.  The ICDP team have been tracking events, addressing specific questions from individual members, considering the actions that need to be taken as business restarts and how the disruption affects longer term strategic trends.  We held our first webcast on April 29 and plan another on May 27.  This special briefing is intended to provide a brief overview of what we are hearing through our discussions and the immediate outlook in the months ahead.

MAAS provider perspectives on factors for success

Ben Waller 04/20

New mobility formats either fill new spaces between car ownership, rental, traditional taxi services and public transport, or aim to consolidate a range of offerings within a single personal mobility account and user platform. 

Global dealer groups: ongoing growth accelerates the development of omni-channel capabilities

Pascal Haubenreisser 03/20

As during the 2018-2019 research programme, ICDP continues to monitor the largest dealer groups worldwide aiming at identifying these operations, and revealing their performance including differences in operating modes across markets and continents (this is in addition to our extensive annual research on the main European markets). 

Clean cars for a post-Covid market recovery: a self-help plan for the European car market

Steve Young 02/20

The Covid-19 pandemic has rocked global economies.  A pandemic was recognised as theoretically possible, even probable, but the reality has disrupted economies around the world on a scale that some describe as being equal to the 1929 Great Depression.  European economies will be forced into an unexpected recession affecting all sectors.  Although automotive sales have stalled – new passenger car sales down 55% in March, with an even larger drop likely in April – other sectors like travel and hospitality have been harder hit.  Automotive represents a substantial 7% of EU GDP, but travel and tourism which has been even harder hit represents 4% overall, and a much larger part for some states.  It is unrealistic to expect special aid for automotive in any post-Covid recovery, given the economic and political realities.

A “clean slate” approach to sales networks

Steve Young EB 01/20

ICDP continuously looks to the future of sales and aftersales networks, and the trends that might influence those.  Our Dealer of Tomorrow report, published in 2018 described what we saw as the most likely outcome.  However, there are some who feel that more radical change is needed, and will happen, despite the very significant barriers that would have to be overcome.  This is our “clean slate” approach, presented to ICDP members over the last few months.  This reflects our views based on interviews, analysis and modelling of what a more effective model would be for sales networks from the point of view of customers, the retained dealers and manufacturers if current constraints did not exist or could be overcome.