Dealers are coming under increased pressure to upgrade or relocate their facilities as the automotive sector and the general economy improve, according to property specialists Rapleys.

It cited strong Q1 performances from Lookers and Pendragon who both showed double digit growth

“This improved trading outlook has certainly translated to improved sentiment in the sector, with many groups continuing to grow their business, both from the acquisition of existing businesses and the development of new trading facilities,” it said.

But the improving conditions meant renewed pressure to maintain corporate standards.

“After years of patience by manufacturers regarding corporate standards, we believe many dealers are coming under increasing pressure to upgrade or relocate, and we are currently acting for a number of the top 10 groups who have active requirements in this respect.

“We see no sign that this level of activity is likely to diminish in the short term and suspect that, if anything, the number of requirements is likely to increase as the year progresses and we move into 2015,” it added.

Rapleys noted recent announcements in the sector, including:

• Lookers buys Colbornes Group for £33.6m. It operates a number of VW Group franchises in Surrey and Barnet
• Vertu buys Hillendale Group for £8.3m.  It operates Land Rover/Jaguar dealerships in Nelson/Bolton
• SsangYong appoints five new dealers to their network in Bicester, Carmarthen, Sheffield, St Austell and Witham. Their network has grown to 51 sites, up by 10 this year alone
• Kia announce plans to grow to 195 sites in the UK, up from 177 at present
• Halliwell Jones acquires Blue Bell BMW in Wilmslow
• Ridgeway starts work on a new Audi dealership at Oxford Business Park
• Inchcape gains planning consent for a new 35,000 sq ft VW dealership in Exeter
• Benfield opens a new £5.8m Ford showroom in Sunderland and £7m Audi dealership in Newcastle
• Swansway announces plans to build a new £6m Land Rover dealership in Stafford
• Park Motor Group and Ridgeway open new Maserati dealerships in Glasgow and Oxford respectively
• Sytner opens a new Lamborghini showroom in Leicester
• Glyn Hopkin opens a new Nissan facility in Bedford
• Jardine opens a new McLaren showroom in Ascot

A1 is not immune and is also in the process of moving to an new home in Burgess Hill. we are all excited about the next chapter for the business and look forward to the adventure.

original Story taken from Motor Trader news – http://www.motortrader.com/industry-news/dealers-pressure-upgrade-facilities/