UK DEALERS have been urged to rethink their retail model as the automotive fraternity faces a tsunami of conflicting opinions, a rush by some OEMs to install the agency system, and the sudden withdrawal from agency plans by key UK prestige player, JLR.

In a podcast led by Cox Automotive’s insight and strategy director, UK-based Philip Nothard, the outspoken head of Suzuki UK, Dale Wyatt, has urged dealers to return to the ‘push’ retail model to ensure they have consistent and ongoing vehicle sales.Mr Wyatt has been one of the UK’s biggest opponents of the agency model, presenting arguments on behalf of his Suzuki dealer network during the growth of the concept in Europe over the past two years.

Cox Automotive has been one industry organisation that believes the UK automotive is transitioning back to a push model.

This follows COVID-related supply-chain disruptions and the high demand witnessed in the past year alongside diminishing lead times. 

It said that manufacturers were investing more in marketing to encourage sales, a ‘push’ hallmark.

Mr Wyatt said that dealers must become reacquainted with the skills needed to operate in a ‘push’ market to succeed in 2024 and beyond.

He said that some dealers had veered into complacency and needed to be more proactive to succeed in an altered commercial landscape.

“Many people don’t have the muscle memory for performing in a push market. That’s one where you’ve got to create activity rather than manage it.” head of Suzuki UK, Dale Wyatt

“We’re in a period of what I call post-COVID cosiness. The key thing to think about now is how to survive in a market that punishes inactivity and rewards consistent proactivity.” 

He said the market was also affected by internal and external forces, noting that new and ongoing geopolitical events and shifting market dynamics will impact the sector this year. 

“The used residual values issues, as well as the shortage of three to seven-year-old cars, will have an impact,” Mr Wyatt said.

“It’ll be interesting to see what happens to early-generation EVs too. They could prove to be quite undesirable in the used market.”

Cox Automotive’s Philip Nothard agreed that the market is changing.

“The changes we’re seeing underline the fact that it’s time for dealers to get their running shoes on and get back to selling, as opposed to order-taking,” Mr Nothard said.

“Supply has increased significantly, and the market is ripe for agile business owners to do what they do best.

Dale Wyatt

“Recent changes in automotive mean that dealers must adapt, whether that means getting the most out of the technology they already use or focusing on new tech such as AI.

“It’s impossible to overstate how significantly circumstances have changed and how altering perspective could bolster your strategy.”

Mr Wyatt said for dealers to remain competitive this year, mindset was hugely important and that dealers’ to-do lists should become ‘do-it-now’ lists.

“I also think too many are following the crowd,” he said. 

“There are close to 40 brands in the UK now, 100s of products and thousands of places to buy them. 

“There are plenty of businesses delivering bad experiences to customers. 

Philip Nothard

“To stay competitive, it’s about getting your core processes right. Let your people shine and do the basics brilliantly. 

“Don’t get in the way of your management team, become an enabler rather than a blocker.”

Mr Wyatt also described the agency model as “a design-and-build project rather than a purpose-built one.” 

“If you watch Grand Designs, the houses are invariably fantastic by an episode’s end,” he said.

“But they normally go over budget and take much longer than planned. That’s how agency will go; some will get it right, and a lot will get it wrong in the process.”