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Deal for dealers

27th September 1980
Page 6
Page 6, 27th September 1980 — Deal for dealers
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Which of the following most accurately describes the problem?

DEALERS' ability to handle p recession business will del who gets the biggest sharo the market, according to Ii cedes-Benz (United King& Ltd managing director E Krampe.

Speaking at the launch of company's extended range London last week (see p20), Krampe said that the reces; was making operators cut t their maintenance programn and this in turn is forcing sc dealers to close their b nesses.

The drop in demand for r vehicles has left dealers v very high stock levels, wt have to be financed by high terest rates. Workshops are E running below capacity, with result that parts and sen profits are vanishing. Redunc cies and close-downs are the evitable consequence of s events.

Operators may not suffer r from these developments, they will when the recess eases, he predicts. By second half of next year, wl operators begin to u workshops again, dealers' ab to cope will decide what typi vehicle sells best.

Mr Krampe warned that "extreme concessions" be offered at the moment by so manufacturers will underm their future.