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Lotus UK makes agency model retail switch ahead of Emira deliveries
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Lotus UK’s new franchised retail newtwork is comprised of:

Lotus Birmingham: Rybrook, Hockley Heath, Birmingham

Lotus Bradford: JCT600, Bradford, West Yorkshire

Lotus Bristol: Rybrook, Cribbs Causeway, Bristol

Lotus Essex: Endeavour Automotive, Colchester, Essex

Lotus Exeter: Hendy Group, Marsh Barton, Devon

Lotus Glasgow: Park’s Motor Group, Hamilton, Lanarkshire

Lotus Kent: Caffyns, Ashford, Kent

Lotus Nottingham: Central Nottingham, Nottinghamshire

Lotus Prestbury: Oakmere, Prestbury, Cheshire

Lotus Poole: Hendy Group, Poole, Dorset

Lotus Silverstone: Silverstone, Silverstone Race Circuit, Northamptonshire

Lotus Southampton: Hendy Group, Eastleigh, Hampshire

Lotus Surrey: Bell & Colvill, West Horsley, Surrey

Lotus UK authorised repairers:

Lotus Cheshire: Oakmere, Northwich, Cheshire

Lotus Norwich: Stratton, Long Stratton, Norfolk

Lotus Surrey: Bell & Colvill, Guildford, Surrey



 

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Please explain
 
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Discussion Starter · #4 ·
Please explain
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From the Lotus-UK forum..............

Lotus UK has completed the switch to an agency model agreement for its 13 franchised car retail sites ahead of the arrival of the new Emira coupe in showrooms.

The Hethel-based, Geely-owned hypercar and sports car manufacturer said that its dealerships – operated by Bell & Colvill, Caffyns, Hendy Group, Endeavour Automotive, JCT600, Oakmere, Parks Motor Group and Rybrook – had adopted the new model.

And it said that a further 10 open points would be filled by new retail facilities “soon”, with North London, Manchester, Aberdeen, Edinburgh, Cardiff, Belfast, Milton Keynes, Sussex, Newcastle and Sheffield all set to gain a franchise point.

The changes come as part of a Vision80 strategy which has brought the introduction of the £2m Evija hypercar, the forthcoming Emira sports car, the introduction of a new retail corporate identity and the development of a new £100m manufacturing facility at its Hethel headquarters and Technology Centre at Warwick.

Geoff Dowding, Lotus’ executive director for sales and aftersales, said: “This UK network restructure marks a watershed moment for Lotus as the transformation of the business and brand continues.

“We now have the right partners in the right locations with the right business model, and again Lotus is pioneering. We are the first OEM to have an agency agreement in place right across the UK network.”

He added: “This is an exciting development and it’s just the start: we will be announcing several more in the coming weeks and months.”

Back in 2019, as Lotus unveiled its plan to accelerate its growth through the Vision 80 strategy, Dowding said there would be "no palace structure" of the retail network.

Outlets serving the largest cities will naturally reflect the strength of their marketplace, he said, adding that there is still a place for the “small, amazing little businesses” within the network now that are willing to grow with the brand.

Lotus’ wholesale switch to an agency model comes as mainstream OEMs Stellantis, Volkswagen and Mercedes-Benz prepare the new contract type for their retailers.

In a guest opinion article for AM ICDP managing director, Steve Young, said that both dealers and OEMs recognised that agency “requires a fair and sustainable remuneration model for dealers, to replace the traditional margin and bonuses”.

He added: “As some of our own dealer interviewees put it, ‘it all comes down to the numbers’.”

Lotus’ switch to an agency retail model comes just a month after the end of production of its long-standing sports car line-up of Elise, Exige and Evora models, the restructure coming ahead of the start of production of its new Emira in the coming months.

Lotus UK said in a statement issued this morning (January 18) that its 13 franchised car retail sites and three authorised repairers will soon feature the exterior signage elements of the new Lotus retail identity – launched last year.

New interior elements of the CI will be added throughout 2022, it said.

Trevor Weller, Lotus’ director of global retail development, said: “We are extremely close to finalising new retail agencies in North London, Manchester, Aberdeen, Edinburgh, Cardiff, Belfast, Milton Keynes, Sussex, Newcastle and Sheffield.

“These new showrooms will enable Lotus to maximise coverage across the whole of the UK, and provide an excellent platform for us to promote the new product range that starts with the Lotus Emira sports car later this year.”
 

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Thanks for sharing. What does the agency model practically mean?

If I understand it correctly; with car markets heavily influenced by the Internet, dealers such as Mercedes, VW and now Lotus will be selling the cars directly from the factory, through the dealerships as delivery points of sale, dealers will no longer be buying the cars to sell them. Other means will be in place so that dealerships can still make similar margins, but it essentially sells the car at the same price across the entire market place.

Tool manufacturers like HILTI & FESTOOL have have in essence been doing a similar format for more than 20 years by not allowing their tools to be sold at different prices keeping the integrity of the tool and its's value at a premium which also helps to maintain quality.
 

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So the dealerships essentially become real estate agencies, selling cars instead of real property. OEMs are the property owners (aka sellers), and the dealership sales agents become the parallel of real estate agents, in a sense. Right? 🤔
 

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So the dealerships essentially become real estate agencies, selling cars instead of real property. OEMs are the property owners (aka sellers), and the dealership sales agents become the parallel of real estate agents, in a sense. Right? 🤔
Real Estate brokers are number one in my hate list. I have not encountered a more misaligned model where they (1) add no value, (2) squeeze you to pay more as a buyer and/or sell low just to get a deal, and (3) have no real skin in the game.
But thanks for the comparison!
 

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If I understand it correctly; with car markets heavily influenced by the Internet, dealers such as Mercedes, VW and now Lotus will be selling the cars directly from the factory, through the dealerships as delivery points of sale, dealers will no longer be buying the cars to sell them. Other means will be in place so that dealerships can still make similar margins, but it essentially sells the car at the same price across the entire market place.

Tool manufacturers like HILTI & FESTOOL have have in essence been doing a similar format for more than 20 years by not allowing their tools to be sold at different prices keeping the integrity of the tool and its's value at a premium which also helps to maintain quality.
Thanks, interesting. So if Porsche did this, as mortals could maybe aspire to get an allocation for a non-SUV P-car?
 

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So if all sales are built to order, don’t expect a test drive anytime soon. Make friends with people above you on the reservation list.
I'm sure they will still build demo cars. Lotus knows that many people won't buy something they haven't driven yet. I think the bigger picture is that there won't be 10 Emira's sitting at a dealership waiting to be sold like the many Evora's before it
 

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So if all sales are built to order, don’t expect a test drive anytime soon. Make friends with people above you on the reservation list.
No, have no fear in this regard. At least in the case of the Emira, the dealers will be able to get a car with the intention that it stays at the dealership and that they do not sell it if they want Lotus to look kindly upon them in the future. But don't let that stop you from making more friends ;)
 

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I'm sure they will still build demo cars. Lotus knows that many people won't buy something they haven't driven yet. I think the bigger picture is that there won't be 10 Emira's sitting at a dealership waiting to be sold like the many Evora's before it

It doesn't mean there won't be cars at a dealership it just means the dealership won't own them, if I understand correctly how this works. Look at the surge in used car internet sales with Caravana and CarMax...mostly of that happens online these days.


After years owning a design showroom I closed it down in 2020 (during Covid). It just wasn't worth the competition with Internet and free shipping. If you stock one thing they want something else.

The consumer has brought this on all by themselves. There is a reason so many are screaming "buy local", the money than circulates in the neighborhood and not up the food chain to a corporation and someone trading stocks and Crypto in their pajamas....
 

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That’s more or less the system we have in France. Some cars are at the dealership ( owned by the dealership) for test drive and showroom ( these cars are usually sold after a while with a good discount).
But the majority of people build their car excactly how they want it and then wait for the car to be built and delivered. You have to wait but at least you have excactly what you want.
 

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....Looks like GM bypassing local dealers to sell parts. New marketplace allows car owners to buy parts directly from GM
"Customers can choose to get their parts delivered or to pick them up at a local dealer, where staff can answer questions about repairs."

I don't expect most dealer parts/service dept folks will be very enthusiastic about spending much time or energy on a transaction where they were essentially bypassed in the $$ chain. Which is not to say it's a bad idea.
 

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"Customers can choose to get their parts delivered or to pick them up at a local dealer, where staff can answer questions about repairs."

I don't expect most dealer parts/service dept folks will be very enthusiastic about spending much time or energy on a transaction where they were essentially bypassed in the $$ chain. Which is not to say it's a bad idea.
With online ordering Toyota parts sometimes at a discount compared to dealers it's already happening. Problem is then there will be less incentive to stock locally forcing many into online situation anyway.
Interesting times!
 

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"Customers can choose to get their parts delivered or to pick them up at a local dealer, where staff can answer questions about repairs."

I don't expect most dealer parts/service dept folks will be very enthusiastic about spending much time or energy on a transaction where they were essentially bypassed in the $$ chain. Which is not to say it's a bad idea.
Adapt or die. If they want to stay in business they will adapt or they'll be replaced. Most of us have no problems ordering items on Amazon and many times prefer it. It used to be Amazon was cheaper, then they didn't charge taxes and so on. Now I find myself paying more for the convenience.
 
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