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Bernard Bradley this week takes the helm at Honda UK with the brand on the cusp of securing a 5 per cent market share and intent on continuing its drive upmarket.
Formerly head of sales, he is taking over the role of general manager of cars from Ewan Ramsay who is leaving to head up a car dealer group overseas.
Honda grew new car sales by 15.5 per cent to 20,625 in the plate-change month of September, according to the SMMT, to take a market share of 4.9 per cent.
For the year-to-date sales were up 8 per cent to almost 87,600 with market share for the first nine months running at 4.5 per cent.
Bradley claimed UK sales for 2007 would exceed 100,000 units for the first time and grow by a further 5 or 6 per cent next year.
“Most growth will come from
the business and fleet sectors but not to the detriment of retail,” he said.
The brand’s recent growth in the corporate sectors has been startling. Bradley claimed that in September, fleet sales rocketed 67 per cent year-on-year with business sales – to fleets of less than 25 vehicles – increasing 30 per cent. Retail volumes grew by a more modest 5.4 per cent.
Bradley said that in previous months in 2007 fleet sales growth had been running at about 20 per cent year-on-year.
“The Accord has driven this,” Bradley said and added that September sales had been boosted by the arrival in showrooms of the latest SE diesel and Sport GT versions of the upper-medium model.
He claimed the new CRV, introduced at the start of the year, had been “hugely successful in fleet” and admitted its predecessor “was never a strong player for user choosers”.
He said the Civic was also now more established on choice lists and claimed the Civic Hybrid would see a fourfold sales rise in 2007.
Bradley said Honda’s strength had historically been in the retail sector and that more of a balance was needed between private and corporate sales. He said fleet business still only accounted for 30 per cent of Honda’s sales compared to a market that was broadly split 50/50.
“Some of our competitors are 60 per cent fleet,” he added.
Bradley said Honda was now unequivocally pitching itself into the prestige market.
The two most significant contributors so far to this move have been the Civic and CRV but he said the next generation Accord, to be launched in mid-2008, was “clearly upmarket”.
He claimed success in the premium segment would not be defined solely by product but by the overall customer experience. He said dealers had already invested significantly in the franchise and “we will expect more in the future”.
This however, “doesn’t involve gin palaces” because “facilities must match local markets”.
He said Honda was not “over prescriptive” with franchise standards but that showrooms must be “immediately recognisable as Honda”.
Honda has just under 200 UK dealerships and no drastic change in numbers is planned.
Bradley claimed average return on sales in the network was a healthy 1.5 per cent in the year to 31 August and that this would improve with September included.
He claimed the top 66 dealer achieved ROS of 3 per cent.
“It’s vital for us to provide a profit platform if we want investment,” he said.
Just 11 per cent of the retail network is made up of Plcs, 28 per cent by small groups and 61 per cent by independent businesses. Over the next three years Plcs are expected to grow to 16 per cent of the mix but Bradley said:
“There is no plan to remove independents – this would be detrimental to the business.”
Bradley said Honda did own a small proportion of its dealerships but had “no plans to own and operate sites”.
“We have worked hard to improve relationships with our dealers – we see it as a partnership,” said Bradley. “The health of the network indicates dealers have coped with the investment.
“Everything we do must be done to grow profitability.”
Honda grew new car sales by 15.5 per cent to 20,625 in the plate-change month of September, according to the SMMT, to take a market share of 4.9 per cent.
For the year-to-date sales were up 8 per cent to almost 87,600 with market share for the first nine months running at 4.5 per cent.
Bradley claimed UK sales for 2007 would exceed 100,000 units for the first time and grow by a further 5 or 6 per cent next year.
“Most growth will come from
the business and fleet sectors but not to the detriment of retail,” he said.
The brand’s recent growth in the corporate sectors has been startling. Bradley claimed that in September, fleet sales rocketed 67 per cent year-on-year with business sales – to fleets of less than 25 vehicles – increasing 30 per cent. Retail volumes grew by a more modest 5.4 per cent.
Bradley said that in previous months in 2007 fleet sales growth had been running at about 20 per cent year-on-year.
“The Accord has driven this,” Bradley said and added that September sales had been boosted by the arrival in showrooms of the latest SE diesel and Sport GT versions of the upper-medium model.
He claimed the new CRV, introduced at the start of the year, had been “hugely successful in fleet” and admitted its predecessor “was never a strong player for user choosers”.
He said the Civic was also now more established on choice lists and claimed the Civic Hybrid would see a fourfold sales rise in 2007.
Bradley said Honda’s strength had historically been in the retail sector and that more of a balance was needed between private and corporate sales. He said fleet business still only accounted for 30 per cent of Honda’s sales compared to a market that was broadly split 50/50.
“Some of our competitors are 60 per cent fleet,” he added.
Bradley said Honda was now unequivocally pitching itself into the prestige market.
The two most significant contributors so far to this move have been the Civic and CRV but he said the next generation Accord, to be launched in mid-2008, was “clearly upmarket”.
He claimed success in the premium segment would not be defined solely by product but by the overall customer experience. He said dealers had already invested significantly in the franchise and “we will expect more in the future”.
This however, “doesn’t involve gin palaces” because “facilities must match local markets”.
He said Honda was not “over prescriptive” with franchise standards but that showrooms must be “immediately recognisable as Honda”.
Honda has just under 200 UK dealerships and no drastic change in numbers is planned.
Bradley claimed average return on sales in the network was a healthy 1.5 per cent in the year to 31 August and that this would improve with September included.
He claimed the top 66 dealer achieved ROS of 3 per cent.
“It’s vital for us to provide a profit platform if we want investment,” he said.
Just 11 per cent of the retail network is made up of Plcs, 28 per cent by small groups and 61 per cent by independent businesses. Over the next three years Plcs are expected to grow to 16 per cent of the mix but Bradley said:
“There is no plan to remove independents – this would be detrimental to the business.”
Bradley said Honda did own a small proportion of its dealerships but had “no plans to own and operate sites”.
“We have worked hard to improve relationships with our dealers – we see it as a partnership,” said Bradley. “The health of the network indicates dealers have coped with the investment.
“Everything we do must be done to grow profitability.”