UK automobile supplier Pendragon stated pandemic challenges and a world chip scarcity would result in car provide points within the close to time period, at the same time as a tighter management on prices and a digital push helped it to chop its losses in the beginning the 12 months.

Automakers and sellers have been dealt a blow as a world scarcity of semiconductors has led to manufacturing stops for autos.

“There’s going to be some turmoil within the enterprise over the subsequent 6-18 months on the subject of the availability of latest and used autos,” CEO Invoice Berman instructed Reuters on Wednesday, though he indicated that the resultant improve in demand may result in higher margins for the corporate.

“We’re actively working with OEMs to verify we’ve the correct provide of autos, however usually instances we’re sort of at their mercy on the subject of that,” stated Berman, who has been operating the corporate for simply over a 12 months.

Berman’s deal with slicing prices and constructing digital technique helped the corporate report a narrower loss for the primary two months of the present 12 months following a return to annual revenue for 2020, regardless of a droop in gross sales.

In January and February, Pendragon delivered 20,000 autos with out clients having to go to a dealership throughout lockdown, Berman stated.

Pendragon stated it was additionally concentrating on underlying pretax revenue of 85-90 million kilos ($116-$123 million) by monetary 12 months 2025, in opposition to a determine of 8.2 million kilos final 12 months.

By means of January and February, the corporate, which is predicated in Nottingham, central England, posted an underlying pretax lack of 4.8 million kilos ($6.6 million), in contrast with a lack of 8.2 million kilos in the identical interval final 12 months.

Pendragon is Europe’s fourth-largest dealership group by income, in response to Automotive Information Europe’s 2019 Guide to Europe’s Biggest Dealers. It has 177 new-vehicle franchise factors within the UK.