MOTORING NEWS - The franchised retail motor trade in South Africa is holding up well despite the continuing economic slump and subsequent decline in the sale of new vehicles.
This is according to the retail dealer financial health indicators which are computed monthly by Sewells Group.
“The indicators for the first quarter of 2016 differ quite a bit when compared to the same data for the first quarter of 2015 but there are still far more positive than negative trends in the various operational divisions,” explained Warren Olsen, the CEO of Sewells SSA.
“Using the key indicator of return on operational assets (%ROOA) we still see a year-on-year rise, even if it is only by 8.3% for passenger car dealers. Heavy truck dealers do not fare as well, with an improvement of only 1.7% over the first quarter of 2015.
“Using the key indicator of return on operational assets (%ROOA) we still see a year-on-year rise, even if it is only by 8.3% for passenger car dealers. Heavy truck dealers do not fare as well, with an improvement of only 1.7% over the first quarter of 2015.
However, in both cases the total return on assets is still in the vicinity of 22% which is excellent when compared to dealer return on assets in most other countries in the world.”
Sewells obtains its data by analysing the monthly financials of more than 85% of the retail dealers and is able to track their financial and operational performance.
Sewells obtains its data by analysing the monthly financials of more than 85% of the retail dealers and is able to track their financial and operational performance.
This information is then utilised by Sewells Group to assist the dealers to improve underperforming areas of their operation.
