Mini's sales volume boost so far this year could help dealerships bolster profitability, executives told dealers Saturday.
Sales volume has risen 14 percent this year through February from the year earlier, and March will finish with strong sales, said Thomas Felbermair, vice president of Mini of the Americas.
"This has been the first time [in] five years that Mini has been in a turnaround situation, and that was thanks to the Countryman," he said.
New- and used-vehicle gross profit per unit are increasing, he said, but volume has been the most significant driver of improved profitability. If dealers multiply increasing sales by a healthy gross profit per unit, "you will see a very positive trend in profitability in the first quarter for the dealers," he said.
Despite success in the first quarter, profitability remains a challenge for dealers, said Michael Vadasz, general manager at Otto's Mini in Exton, Pa.
"We have these big facilities. It's a matter of overhead. It's a matter of cost structure," he said. "Dealers invested in the brand with a very specific retail volume in mind for the nation, and unfortunately, we just haven't gotten there."
Still, the mood among Mini dealers is positive. "They love the car," Vadasz said. "The cars are better than they've ever been qualitywise. We know we have a great product."
The brand has room to improve, Felbermair added. "We have not achieved everything we are looking for, but we have a plan for how to get there."
