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TURN THE
SOUND
ON

DRIVER
OR
PASSENGER?

Take the wheel in your hands
PASSENGER

Thank you for taking the time to explore into our Used car strategy project.

success factor

Last year, PHS developed the strategy for a Europe-wide used car future. The external and internal market pressure are decisive for the concentration on the used car business, which is becoming a success factor for Porsche Holding.

Used car strategy

The Used car strategy was developed from practice for practice and includes solutions for the entire used car process from purchasing to sales to the end customer. You are behind the wheel and we look forward to supporting you with the implementation in your country.

The Porsche Holding - Used car strategy team

PUSH FACTORS
Traditional Retail Business affected by Grey Market & Digital Players

New digital players and the grey market are taking on our business with significantly reduced standards and repair costs. This enables them to achieve better yields. The Porsche Holding must become more efficient in order to open up new customer segments.

Erosion of Core -Business Revenues

The core business is under enormous pressure due to structural change in the automotive industry. Raising the used car potential helps us to actively bridge the transformation to electromobility and new mobility trends and to partially compensate for declines in our core business.

Group Initiatives with impacts on our business model

Group initiatives are having an impact on our core business. The traditional value chain in retail is influenced by this.


Unexploited potential within PHS Group

With around 500 dealerships in 29 countries, PHS is a European big player in the automotive trade. This size is a competitive advantage that needs to be exploited. Synergies between the PHS countries and the PHS dealers must be leveraged and the costs of procurement, repair, refurbishment and sales must be reduced.

PULL FACTORS

PHS group strategy “evolve 2030"

The PHS used car strategy is based on the PHS group strategy „evolve 2030”. The following two pull factors are driving the project:

  • PHS core competencies
  • our mission and vision

Relevance

Project goal

The external and internal market pressure requires a consistent concentration on the used car business, which is becoming a success factor for PHS. We want to become the largest and most profitable used car dealer in Europe and to create growth potential for our retail organization at the expense of the grey market. Concentrating on the used car business, unleashed strategic potentials for PHS are:

Increased Revenue
  • Expansion in UC-segment 3-5 years
  • New target groups
  • New formats
  • New processes (digital, fast, agile, economical)
Reduction of costs and inventory time
  • Costs of sale (handling, logistics, purchasing, refurbishment, …)
  • Inventory time reduction by increasing the turnover factor
Central international handling of used cars in the PHS
  • International market transparency data model
  • Keeping vehicles within the PHS value chain
Defence & expansion of the market position in the used car sector
  • New digital competitors
  • Group initiatives



Project Overview

Project Overview

Free trade agreement

Relevance (for PHS countries)

  • Centrally negotiated purchasing conditions
  • Efficient purchase of vehicles via IRIS Scout
  • Increased volume of used cars per country

Internal market agreement

Relevance (for PHS countries)

  • Transparency about PHS used car inventory
  • International availability of overstock
  • PHS internal purchase opportunities
  • Increase in the local used car end customer quote

Competitive repair and refurbishment

Relevance (for PHS countries)

  • Increased profitability for used vehicles
  • Improved purchase rate for vehicles in need of repair
  • Improved lead times
  • Higher stock rotation possible
  • Increased sales in existing companies

Retail infrastructure

Relevance (for PHS countries)

  • Reaching new target groups
  • Inexpensive formats for “discount” vehicles
  • Optimization of retail locations
  • International cooperation through digital PHS inventory

IRIS Data model

Relevance (for PHS countries)

  • EU market transparency
  • Numerous international sources
  • Calculation of national gross prices
  • Optional services

Goals

Goals

value chain

Improvement of the value chain (sales, aftersales, financial services products)

digitalization

Scaling and cost advantages through digital support tools

sales formats

New sales formats and processes to optimize costs and reach new target groups

Used vehicles

+ 100,000 Used vehicles to end customers

Sharepoint

Decide now – are you driver or passenger?

Take the wheel in your hands and shape the future of the used car market together with us.
If you have any further questions, please do not hesitate to contact your regional manager, retail business development or the UC-Strategy Team at Porsche Holding Salzburg.