Arthur D. LittleArthur D. Little

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Dealer Risk Assessment and Contingency Plan Development

Dealer Risk Assessment and Contingency Plan Development

How to evaluate and mitigate dealers’ risk of bankruptcy in order to minimize the impact on sales volume

For a longer period of time car dealers have been struggling with diminishing profitability figures due to increasing operational cost and strong competition. But now the financial crisis and the credit crunch take their toll on automotive retailers even more all over the world. For example, the level of dealer bankruptcies skyrocked from a 200 dealerships plateau up to 900 business failures per year in the USA in 2008. Dealer insolvencies directly translate into increasing risks in terms of sales volume to the car manufacturers. Therefore, systematically assessing this risk is key and the first move towards taking appropriate countermeasures that help the dealers to keep their business operations. For this purpose Arthur D. Little has developed the so-called Dealer Risk Assessment.

Released: May 2009

Download File ADL_Dealer_Risk_Assessment.pdf (.PDF, 762 Kb)

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