Industry issues

Increasing costs of manufacturing in Australia

Graham Killer Graham Killer

How it affects your business

Consolidation in the market has helped dealers maintain profitability. Some franchisees are preparing for the loss of local manufacturing by adding brands to their dealerships.

Until then, major issues for dealers include:

  • possible damage to consumer ‘brand sentiment’ 
  • ability to keep selling vehicles that will no longer be manufactured 
  • the number of dealer sites compared to distributors with similar market shares 
  • costs of holding parts inventory of discontinued models

How Grant Thornton can help

Toyota, Ford and Holden dealers must minimise the impact of manufacturing closures. Grant Thornton can review and benchmark your operational performance and offer advice on:

  • how to improve business processes 
  • how to integrate services 
  • how to analyse costs 
  • whether you need an additional franchise to increase gross profit 
  • how to create business plans for franchise applications