The situation will get worse”

The situation will get worse”

Delivery bottlenecks for new cars, price increases for used cars: the car market is going crazy. Mr. Röwekamp, ​​how do you assess further developments?

The situation is likely to get worse as demand continues to grow. Rental car companies are just as affected as car manufacturers. Production has already reached its capacity limits due to increased demand. In addition, in view of the climate goals, more and more electric cars have to be produced. So it remains challenging.

In individual cases, the prices for used cars are even higher than for new cars - can you explain why that is?

On the one hand, increasing demand is leading to a shortage of supply - and on the other hand, many used car prices are not based on the manufacturers' recommended retail prices, but can be individually adjusted by car dealers to the current economic situation. This option is of course used by many car dealerships. There are even dealers who order cars as new cars and then register them as company cars in order to be able to sell the car above the list price. One car where this definitely works is the G-Class from Mercedes

What does this development mean for the automotive industry, i.e. retail?

For retailers, this means excellent and high profits, especially for used cars. This is just right for many car dealers - they had to bear high costs for conversion or digitalization and have hardly been profitable in recent years. At the same time, there are fewer cars overall, poor parts availability and more electric vehicles - and that has a negative impact on the workshop.

Do you see a danger that good salespeople could turn their backs on the industry?

Absolutely. There are now headhunters who specialize in car dealerships. There is also a myth that there will soon no longer be a need for salespeople due to digitalized sales models. Many sellers are therefore unsettled and switch to other industries. But there is definitely hope for promising car dealerships!

What can retailers do about it?

It must be explained to sellers that there are still people who want to buy from people. No matter whether digital or analogue, advice, passion and a personal level will not die out. On the other hand, companies should of course position themselves as a strong employer brand, offer benefits and communicate them.

You advise car dealerships on strategic development: What exactly will a successful, promising business model and, above all, sales look like in the future?

For the car dealerships it is now a matter of properly managing the right locations. It's often the basic things that you should return to: very good service, local presence, best relationships with private and commercial customers. There will also be digital sales like at Tesla - but an anonymous configurator will only ever be right for a specific target group. Premium customers expect more. The two distribution channels will then coexist. For car dealerships, consumers' high willingness to buy is a positive development. At the same time, many are also faced with the challenge of no longer being able to meet the increasing demand with the supply.

Consumers, on the other hand, now have the opportunity to sell their car at the best price - and still remain flexible, for example through new mobility offers such as subscription models or attractive leasing offers!

Finally, a private question: When and how (online, in a car dealership?) did you buy your last car and what model was it?

I worked in car dealerships for years and sometimes had a different car every day. But recently I had to decide on a model and I got a subscription to a Volvo XC60 - although I did this personally at the car dealership.