The effect of the global crisis on the automotive industry is no news, and is clearly reflected in the data of the latest reports:
A key indicator that measures the impact of the Aftersales Department on the dealership’s bottom line is the Absorption Rate. This indicator is especially important in times of lower sales, since it reveals to what extent the dealership’s expenses are covered by the Aftersales Department.
If a dealership has several stores and decentralizes parts purchasing, the per-store FIFO costing method lets you analyze the profitability at each location.
The dealership’s Administration Department needs a Manager that can maintain strong, efficient and profitable performance.