In recent car dealer news, Cox Automotive has earnestly emphasised the pressing need for car manufacturers to bolster their investments in supply chains to ensure profitability in the years ahead. This assertion comes as a part of the firm's newly unveiled AutoFocus quarterly insight report, which has garnered contributions from some of the most esteemed professionals in the automotive sector.

The thorough report indicated that it isn't merely supply chains requiring monetary infusion. There's a significant call for substantial investments in vehicle distribution and the ongoing technological evolution. Such advancements are seen as paramount for car brands to thrive in an ever-evolving market landscape. It's not just about self-development though; the report passionately urges manufacturers to upscale vital business elements and establish partnerships with fellow manufacturers. Such collaboration, it suggests, is the linchpin to attaining optimal outcomes.

Philip Nothard, Cox Automotive’s Insight and Strategy Director, has penned down some insightful thoughts in the report. He highlights a newfound zest amongst OEMs (Original Equipment Manufacturers) to collaborate, with the aim to tackle manufacturing challenges that have emerged in recent years. Such collaboration is not merely a nice-to-have, but rather imperative, especially considering the mutual benefits it offers. The motor trade news within the report also alludes to recent challenges – significant shifts in production targets, raw material bottlenecks, and labour shortages owing to changing employment preferences.

Further insights come from Owen Edwards, Head of Downstream Automotive at the accounting titan, Grant Thornton. Edwards casts a spotlight on the profound influence of the electric vehicle (EV) shift on manufacturers' profitability metrics. He cautions that the ramp-up in the supply chain shouldn't just focus on new drivetrain technology. As traditional OEMs still find profit avenues in ICE (Internal Combustion Engine) vehicles and legacy components, the decreasing market share of ICE vehicles globally suggests an impending dip in profitability. There's also the pressing matter of some OEMs reportedly not reaping ample profits from Battery Electric Vehicle (BEV) sales, whilst simultaneously ramping up investments in new battery and vehicle tech.

In conclusion, the automotive industry stands at a pivotal juncture. To future proof their businesses, franchised car dealers are advised to be 'omni channel fit', and manufacturers must strategically plan their moves, keeping both present realities and future prospects of ICE vehicles in view.

See the original article on cardealermagazine.co.uk.