Multi-brand service at the end?

Multi-brand service at the end?

This constantly increasing complexity of vehicle models and systems is already presenting many multi-brand service companies with major challenges. According to the current study “European Aftermarket 2030: Success through Coopetition” by the management consultancy ICDP, this development could continue. The study makers predict that it will become increasingly difficult for a classic multi-brand workshop to cope with the complexity of the vehicles with personnel know-how and the appropriate workshop equipment. According to the ICDP experts, independent workshops will therefore increasingly specialize in a smaller number of brands and gradually come into even greater competition with authorized workshops.

This process is being accelerated, among other things, by the switch from private vehicle ownership to various forms of leasing. Customers often take out maintenance packages that are managed by the leasing company. This then decides when, where and at what price maintenance will be carried out. This inevitably reduces the workshops' margins. 

Accident repair market is shrinking 

The decline in accident repairs is said to be even greater than in the service business. Due to the increase in driver assistance systems, the market will shrink by up to 20 percent, although the European vehicle population is expected to grow to almost 300 million vehicles (as of 2017: 268 million). The study authors therefore expect further consolidation in the repair market, and competition between OEMs and IAMs is likely to continue to intensify. With a view to the entire aftermarket, ICDP speaks of the “new” paradigm of coopetition. A small number of parts dealers, workshops and service providers have to both compete and cooperate. This is necessary in order to be economically viable from now on.