Dark clouds are gathering over the car dealership sector, according to an article in the Czech daily Hospodářské noviny. It writes that a growing number of automobile manufacturers are planning to increase the percentage of cars they sell directly, without going through dealers. And according to a new study by KPMG, between 30 and 50 percent of all car dealers will stop trading by 2025. In the Czech Republic, Volvo Car is one of the brands that are considering shifting to direct sales within the next 10 years. Whereas consumers used to visit 8 to 10 showrooms, writes HN, today they tend to need just one visit, having collected most of the information they need on the Internet.
Dealerships could become more of a collection point and a service location. But even Volvo wants to make the change a gradual one. “Many of our dealers invested tens to hundreds of millions of crowns into our brand, so we feel an obligation to give them a chance to pay off and profit from it,” says Šárka Heyna Fuchsová, head of Volvo Car’s Czech representation. Škoda Auto’s spokesman said the company has no plans to limit the activities of its business partners and wants them to expand. “On the other hand, even our sales network is gradually developing,” said Vítězslav Pelc.
