Increasing the retail margins of a luxury segment automotive company

A luxury segment automotive company needed to increase its operating results in the U.S. market. Senior leadership had concluded that key to doing this was increasing the manufacturer’s margins.

Strategy& undertook a comprehensive independent assessment to benchmark all of the key activities, transactions, and financial flows involved in the manufacturer-dealer-customer relationship. With the active help and participation of dealers, we compared the client’s results to its direct competitors. The team identified “win-win” opportunities to increase the manufacturer’s margins while attempting to preserve the retailer’s return on invested capital.