Fanie Scholtz & Peter Viljoen : Do Dealers Love The Agency Model?
In this week's episode, we're joined by two talented leaders in the automotive industry - Fanie Scholtz, a Managing Director at FS Media, and Peter Viljoen, Managing Director at SydSen Uthintane (PTY) LTD.
They share how they paired to work on a big project popularly known as Let's talk Automotive, a weekly automotive talk show, as we also discuss the big question as to if Dealers Love The Agency Model.
What we discuss in this episode:
How Fanie and Peter met, the story behind them joining hands and collaborating in making Let's Talk Automotive, and what the project is about.
Fanie and Peter share how important creating content is for growing a business, especially for the automotive industry, in a way that original, high-quality content demonstrates to your customers that you are reliable and knowledgeable. It's more important than ever to get content onto our social media platforms that add value, is interesting, and is funny and entertaining. In that way, we will build relationships of trust that will lead to that potential buyer on the other side of that device becoming a customer.
Peter shares an observation he made about dealers who make content; he notes, "A mistake that the dealers start making when creating their content is they make that content around the vehicle itself. And they try and put specials out there. And it's not enjoyable for the consumer to watch that kind of content. So making the exciting content is essential, even if it's not about the vehicles."
We discuss the commonalities that exist within the automotive industry in different countries. Comparing South Africa to the rest of the world, where the commonalities reside in defining a business from a financial point of view in that South Africa has a competitively intense market, and they also have dealer operations that are very small compared to most parts of the world.
Fanie and Peter dig deep into the positive and negative Impact of the pandemic on the dealership landscape and how the automotive industry pumped the brakes hard in the early months of the global COVID-19 pandemic. Sales had dropped, but the industry's engines never shut down. From the third quarter of 2020 to the first quarter of 2021, automakers worldwide saw rapid (and, in some cases, record) low production levels. As with multiple industries and geographic regions, the pandemic has accelerated the trends already forming along the mobility value chain.
With plenty of dealers expressing different feelings about The Agency Model, debates are still ongoing about the potential benefits and impact on the automotive sector. With the Covid-19 pandemic still looming over the economy, it faces an uphill battle. The current economic situation has made it clear that original equipment manufacturers (OEMs) and dealerships must transition to a sustainable sales model. Although such a transition promises cost savings and price and customer data control, it also carries significant risks if not carried out with caution.
The big question is: Do Dealers Love The Agency Model?
Listen to the full episode for insights and context from Fanie Scholtz and Peter Viljoen!
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Thanks, Fanie Scholtz and Peter Viljoen!
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