david castro
Executive Advisor
European Car Dealerships,
what about near future?
June 2009
© David Castro – davidcastromiranda@hotmail.com

david castro
Executive Advisor 2
Dealerships Future
 Brands, dealers owners are thinking to make
decisions, but who will make them first?
 Decisions
 What brands are planning to do?
 Are brands thinking to terminate some dealers
contracts?
 What are dealers owners thinking about?
 What are the different alternatives dealers can
face?
 Is it time to make decisions? Of what kind? Who first?
 Where are the boundaries of the critical ratios?
Copyright and photographs by David Castro - davidcastromiranda@hotmail.com July 2, 2009

david castro
Executive Advisor 3
Brands Matrix Analysis & Actions to be done
• RISK
• Dealer Cash position
• CSI
• Dealer Standards
Terminate Help Dealer
• Succession alternatives Debt
High Dealer
• Current Debt contract Refinance or
buy Dealership
• Potential Sales next 5 years
• Market Share in the influence area RISK
• Current Car Stock in days/value
Suggest Offer to buy
dealers to Dealers with
• Car Sales Low
merge or sales financial risk
• Less than 700 cars a year the business
• Between 700 to 1.500 cars a year
• More than 1.500 Low High
Car Sales
Copyright and photographs by David Castro - davidcastromiranda@hotmail.com July 2, 2009

david castro
Executive Advisor 4
Dealers Owners Matrix Analysis & Actions to
be done
• Cash Situation
• Good
• Bad
Looking for
• Car Sales adding Looking to
Good New expand,
• Less than 700 cars a year buying
Brand.
• Between 700 to 1.500 cars a year Expand dealers
• More than 1.500 Cash Looking to
Service
Situation sell the
Refinance
business
not the Looking to Debt or
Bad property merge Increase
long term
debt
<700 700-1.500 >1.500
Car Sales
Copyright and photographs by David Castro - davidcastromiranda@hotmail.com July 2, 2009

david castro
Executive Advisor 5
A Poll
The poll was done using linkedin
facilities. Get more Brands
After asking Automotive Experts
Close
about the future of the
Dealerships in Europe the findings
were quite balance. Sell
It is evident that something is
going to happen. Only 5% think Merge
no movements will be done.
Let’s wait and see! 0% 20% 40%
Copyright and photographs by David Castro - davidcastromiranda@hotmail.com July 2, 2009