February 2021 Agency webinar

Our previous research on the agency topic has shown that it can be financially beneficial for both OEMs and dealers, and that most dealers are open to the principle of agency on new cars – subject to the terms.  In this webinar we did a deep dive on the terms, and in particular how these affect the financials of both the OEM and dealer.  We used our ‘ICDP land’ generic model to illustrate the area where there is mutually beneficial outcome, but also how changing some of the terms and the resultant financial consequences can make the model unattractive for some of the players.

We will be returning to the agency topic in the Spring Meeting, when we will have a case study on the Mercedes-Benz Sweden agency model, prepared with the kind assistance of Mercedes-Benz.

The presentation with speaking notes is available for members to download below.