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Dealers feel share drops

13th February 2003
Page 50
Page 50, 13th February 2003 — Dealers feel share drops
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Which of the following most accurately describes the problem?

• When a manufacturer's truck market share and sales volume plummet nationally, how does that affect its dealers?

That's the question anyone examining the Renault and MAN-ERF networks could be forgiven for asking.

Renault saw its volume virtually halve in 2002, and its share slid from 6.9% to 3.7%. ERF volumes collapsed by 52.6%, while MAN registrations dropped by 22.7%.

"Our dealership did very well locally in 2002, however," says Brian Silvey, managing director of Hull-based Renault outlet Thompsons. "We took 10.64% of the market above 3.5 tonnes in our territory, and captured 24% of 6x2 tractor sales.

"As a consequence, we finished up as Renault sales dealer of the year, and one of our lads was made salesman of the year." Silvey attributes this success to the fact that Thompsons does much of its business with small to medium-size haulage companies, and doesn't rely on a few big fleet operators for its volume. "We've got a strong used operation too, and that helps to keep the firm buoyant."

Widnes ERF dealership Perris & Kearon kept buoyant in 2002 by adding MAN to its portfolio. That gave it access to several new customers.

"I'm aware that some other ERF dealerships have suffered though," managing director Steve Bradley observes. "They have downsized, and they've lost salesmen. So far, we've sold 15 of the new ERFs since the end of last year, however, and 28

MAN TG-As are about to go on the road locally."

The full impact of the drop in Renault, ERF, and MAN registrations is likely to be felt in three to four years' time. Fewer

three to four-year-old trucks around at that stage will mean lower workshop throughput and parts sales than expected, and fewer desirable used vehicles.

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