COVID-19: Short term action planning for motor dealers
Potential disruptive impact on Motor Dealers and the immediate need for proactive Business Continuity planning.
Over the weekend just past we have seen a number of developments regarding both the spread of the virus and the UK and other countries governments responses and from this it is becoming very clear that this is going to have a significant, albeit hopefully short term, disruptive impact on businesses in most sectors, including Motor Retail.
Inevitable impacts on the day to day operation of a dealership will potentially include a reduction in the volume of dealership site footfall as we are seeing in Europe as well as an effect on the workplace with the increasing likelihood of stay at home remote working. The speed at which the picture is deteriorating is taking many people by surprise.
Preparing for tough times ahead and identifying crucial pinch points
This expected market downturn at this crucial time of the year for dealers could quickly create a liquidity and funding crisis. There are a number of crucial pinch points for motor dealers where very large tax and other payments are required to be made in the next couple of months and being proactive ahead of any downturn is crucial. The potential financial support is there for UK businesses as the note explains. It is very important to identify whether this might be required and to make plans to realise this.
The MHA Motor Advisory team have been responding to these events by considering the key areas which are likely to impact dealers and ways in which we can offer guidance and support to help them navigate through these very challenging times over the next few weeks and months.
THIS PAPER COVERS THE FOLLOWING:
- The key short term action planning areas for dealers to focus upon;
- How our MHA Motor Advisory team can support you in successfully carrying out these actions; and
- Ways in which this support can be delivered to dealerships taking into account the likely upcoming physical constraints.