I think the 'Hendy' map above illustrates part of the problem in the Uk and maybe elsewhere in Europe. New car sales are typically dominated by large corporate groups , most of whom operate a selection of different dealerships , each in its own separate,expensive , purpose built premises festooned with the manufacturers logo .
These tend to be concentrated on particular industrial estates and the same group may operate a Honda dealership on one side of the the road, a BYD dealership just across the road, A VW dealership just round the corner, plus many more. And they may repeat the same concentrations in adjacent towns.
It has advantages. They can share management and administration staff for the whole group , swop staff between premises depending on demand , share 'hidden' facilities such as storage yards and large workshops etc.
But it does mean if one particular brand is not selling in sufficient numbers to support the cost of a separate showroom the corporate management are very tempted when a 'new kid on the block' such as BYD offer a good deal in promised sales figures and covering the cost of rebranding the premises. And if like Hendys they dominate the Honda dealerships over a large area, it could have serious consequences .
There is a Honda dealership in Canterbury, operated by Barratts, who also have other dealerships, but all in the Canterbury area. A few years ago Barratts closed their Citroen dealership primarily because Citroen management changed their terms of trading, leaving Barrett's too little profit. I think several other dealerships also decided to close at that time. It may have been Citroens policy to downsize in this way. Maybe Honda are thinking the same. But various new Chinese brands are eager to take over these outlets , perhaps offering dealerhips attractive terms as a 'loss leader' until they get established.
