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Scorn for grey market fears
Page 14
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by Ian Wylie • Truck-makers have poured scorn on a warning that streamlining dealer networks could force disgruntled dealers into dabbling in the grey import market.
Glass's Guide, the handbook of CV residual values, says disillusioned dealers in the UK could follow the example of motorcycle retailers and specialist car importers and exploit EU competition rules by sourcing their trucks from dealers on the Continent.
In particular, Glass's cautions Mercedes-Benz that a plan to thin out its dealer network could drive displaced dealers to bring in cheaper CVs by the back door.
The number of Mercedes outlets is unlikely to change, but the manufacturer wants the number of dealer groups operating franchises to decrease from 56 to 26 by the spring through mergers and acquisitions.
Mercedes spokesman Ian Norwell admits that not all dealers are happy with the move, but he dismisses the claims made by the guide. "Grey imports of CVs will never be as significant as those of motorcycles because of the difficulty in sourcing right-hand drive vehicles," he says. "CV operators also need a good relationship with their dealer, which simply isn't possible with a grey import."
But Glass's stands by its warning. "We are not in favour of grey imports, but since the used market is not very strong at present, many dealers will have no alternative," says George Alexander, chief commercial vehicle editor of Glass's Guide. "We are already seeing Volvo FHs enter the UK via this route, because under EU law Continental dealers are required to supply vehicles on demand.
"Many tractor units are for TIR work, so buying left-hand drive isn't an issue, and EU rules also require franchised dealers to honour a manufacturer's warranty, regardless of where the truck has been sourced. Few dealers would turn away the work."