Replacement Vehicle

Implementation of replacement vehicle program for a leading automobile brand

About This Project

Our client, a well-known leading automobile specialized in luxury vehicles wanted to: 1) introduce to the clientele a new value-added service in one of their key Latin-American markets that guarantee better mobility and increased convenience; 2) boost sales of new vehicles in the replacement car category; 3) improve profitability for the entire dealers’ network to ensure brand loyalty, laying a foundation for future expansion of the network.

Altair was asked to design the strategy for this new service and implement the project.

Altair’s Solution

With a clear understanding of the client’s ambitions and potential challenges posed by the market, the Altair team worked closely with company executives following a three-stage plan:

Stage 1 – Diagnosis
  • Conduct extensive analyses focusing on understanding the status quo, including the fleet-related technical data and prices, regulatory environment, and principal barriers of entry. This effort helped determine how the company should organize its operations to accelerate growth.
  • Lead workshops with key stakeholders (mainly dealer partners) to identify best practice in the market and how functions and activities should be owned and shared.
Stage 2 – Design
  • Help design operating procedures, metrics and tools to govern alignment among regional teams, mitigate expected risks and maintain focus on goals, clarifying income generation scheme, responsibilities of the regional team and dealers, project timeline and client communication protocol.
  • Develop business cases concerning dealers with scenario study.
  • Run a project management office in charge of follow-up, continuous monitoring and development of contingency plans.
Stage 2 – Implemewntation
  • Based on the research and designing efforts, insights and workshops, Altair presented a marketing plan that embed ownership of sales and marketing within the dealers’ network to boost cooperation and accountability, combining PUSH and PULL methods: Dealer network: integration and training & End customer: targeted media effort, both online and offline.
  • Leverage shared service functions for channels that could be scaled across regions.
  • Establish mechanism for ongoing monitoring and metrics to measure the success of the project, namely profitability of the vehicles, fleet availability and management, level of activeness of the offerings.


With proper approval from the executives, Altair helped carry out the replacement car program. Once fully implemented, the model showed immediate results: In two years, the replacement vehicle fleet in the country almost tripled and customer satisfaction of the service increased by over 40%, loyalty increased by 10%. There were also signs showing that the growth in replacement vehicle service boosted the sales of other products/services of the brand. Feedback from the dealers’ network was generally positive.



Automotive, Mobility
Customer Care, Replacement Vehicle

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