Services - Manufacturer Relationships
Navigating OEM relationships with authority and experience.
The relationship between a dealer group and its manufacturer partners is one of the most consequential - and most complex - in the automotive sector. HCP Group brings principals who have managed these relationships at the highest level, on both sides of the table.
What This Involves
Expert counsel on OEM relationships, franchise agreements and manufacturer negotiations.
Manufacturer Relationships advisory at HCP Group covers the full spectrum of dealer-OEM dynamics - from franchise agreement negotiation and renewal, to performance improvement plans, network rationalisation, and the management of manufacturer expectations during periods of business change. We work with dealer groups across the Middle East who need counsel grounded in direct experience of how manufacturers think, what they prioritise, and how to navigate their processes effectively.
Why It Matters
Manufacturer relationships are not transactional. They are long-term, interdependent, and governed by dynamics that are rarely visible from the outside. The ability to navigate them effectively - to understand what a manufacturer will and will not accept, and why - is a capability that takes decades to develop.
Our Approach
How we deliver this work.
Franchise agreement advisory
We advise on the negotiation, renewal and restructuring of franchise agreements - bringing experience of what is achievable and what the pressure points are likely to be.
Performance plan navigation
When manufacturers impose performance improvement plans or threaten franchise withdrawal, we provide counsel on how to respond effectively and protect the business.
Network and portfolio strategy
We advise on the strategic management of multi-brand portfolios - including decisions about which manufacturer relationships to prioritise, develop or exit.
Relationship repair and development
Where manufacturer relationships have deteriorated, we bring the experience and the credibility to help rebuild them on a more productive footing.
The Outcome
Dealer groups that engage HCP Group for manufacturer relationship advisory gain access to principals who have managed these dynamics from the inside - and who bring the authority, the relationships, and the experience to navigate them on your behalf.
Common Questions
Frequently asked questions.
How do you negotiate franchise terms with a Japanese OEM in the Gulf?
Japanese OEM negotiations in the Gulf require understanding the manufacturer's regional priorities, their assessment of your dealer group's performance relative to network benchmarks, and the specific leverage points that are available at the time of negotiation. The most effective approach combines strong operational performance data, a credible forward plan, and direct engagement at the right level within the manufacturer's regional structure. HCP Group principals have managed these negotiations from both sides of the table.
What should a dealer group do when facing a manufacturer performance improvement plan?
The first step is to understand precisely what the manufacturer's actual concerns are, which are often different from what the formal PIP document states. The second is to respond with a credible, operationally grounded improvement plan that addresses those concerns directly. The third is to manage the relationship actively throughout the PIP period, maintaining regular communication at the right level. HCP Group has navigated this situation multiple times and understands how manufacturers assess dealer group responses.
How important are OEM relationships for automotive dealer groups in Saudi Arabia and the UAE?
OEM relationships are the single most important strategic asset for a franchised dealer group in the GCC. Franchise allocation, model availability, capital support, and the manufacturer's response during difficult periods are all determined by the quality of the relationship. In the Middle East, where franchise structures and OEM regional operations have specific characteristics, managing these relationships effectively requires advisors with direct experience of how they work in this market.
Can HCP Group help with franchise renewal negotiations?
Yes. Franchise renewal is one of the most consequential negotiations a dealer group undertakes. We advise on preparation, ensuring your operational and financial position is as strong as possible before entering negotiations, and on the negotiation itself, including what terms are achievable and where the pressure points are likely to be. Our principals have direct experience of franchise renewal negotiations across multiple OEM relationships.
What does network and portfolio strategy advisory involve?
Network and portfolio strategy advisory addresses the strategic management of multi-brand dealer group portfolios, including decisions about which manufacturer relationships to prioritise, develop or exit; how to structure the network for long-term performance; and how to position the portfolio ahead of significant market changes such as electrification or agency model transitions. This is particularly relevant for family offices and ownership groups managing multiple franchise relationships across GCC markets.
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If this area of advisory is relevant to your situation, we welcome an initial conversation. All enquiries are received directly by our principals and treated with complete discretion.
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