Inchcape: Automotive OEM-Distributor Dynamics

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Primarily BMW, and mostly in Malaysia?

The challenge arises every time these large distributors attempt to acquire another brand. There's always some pushback from their existing brands, who feel that focus and investment are being diverted from them. So, if we wanted to bring on a new brand, we'd have to consult with Toyota and get Jaguar Land Rover on board, unless we decide otherwise. This is particularly true for the larger brands like Toyota.

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Primarily BMW, and mostly in Malaysia?

These companies are eager to compete with larger, more regional or international distributors. They are aggressive in their attempts to acquire more brands and are more willing to invest and commit to the brand. This includes investing in physical showrooms, service centers, and dedicated internal staff. They are more flexible in negotiations and are often more willing to commit than larger, regional distributors.

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I'm trying to understand where we are in this land grab. If we look at it today, Inchcape is significantly over-indexed towards traditional OEMs. They're obviously trying to get more new OEMs. If we're in the early stages of OEMs choosing their partners, that's fine. But if we're in the later stages, then it's concerning if Inchcape doesn't have a partner. I'm trying to figure out if Inchcape is getting left behind, or if they're still going to win their fair share, thereby hedging their OEM risk.

One of Inchcape's strengths is their ability to negotiate at a global level. They leverage their international presence to secure deals in different regions. For instance, if they have a successful operation in Venezuela, they might propose to the same brand to give them distribution rights in Indonesia.

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