Honda UK managing director Jean-Marc Streng says the brand is exploring the possibilities of the agency franchised retail model as it draws to the end of “phase one” of its retail network restructure.

Speaking to AM more than two years after the Japanese brand took the bold decision to cut its network from 155 to “around about 100-to-125 with 200 retail sales, minimum, per dealer and an average return on sales of 2%” by 2022, Streng says the tally now stands at 130.

That is set to be reduced further – to 115 – within the next six months in what he described as the completion only of “phase one” of Honda’s network restructure.

Further changes will see the network divided into geographic market areas in a process that will result in other dealership closures.

“What we are going to propose next is a larger market area to existing dealers, but that won’t involve much more reduction of outlets,” he says. “We believe that with the volume we now have, the scale is about right.”