Honda Dealers Net Bigger Profits

Latest figures from Honda prove it continues to be the franchise to invest in.

August 2006 delivered the 13th consecutive month of improved net profitability for the Honda dealer network.

Year to date the average net profitability of a Honda dealer was up to £107,000 - a whopping 97% (£53,000) improvement over last year.

As an investment opportunity the brand makes a compelling case - annualised return on capital employed for the average Honda dealer is strong at 17.1% and the top third of Honda dealers (65) take this figure up to 35%.

In an increasingly tough operating environment, the composite net average profit percentage throughout the Honda dealerships is also well ahead too - 1.4% compared to the independently assessed industry average of 0.6%.

Nearly three quarters (72%) of Honda dealers reported improved year on year net profit and the top third averaged 2.9% ROS and £215,000 profit.

"This is a strong performance in a tough marketplace," commented Ewan Ramsay, General Manager Honda (UK) Car division, "What's particularly pleasing is that the growth has come from improved operational performance across all areas of dealership departments. This is great news for existing franchise holders and will no doubt gain the attention of prospective investors. Honda remains committed to working with its dealers to deliver further growth and improved network profitability."

Published 26 October 2006 Melanie Carter

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