A STRONGER RELATIONSHIP
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Derek Brinklow, network development director for Renault Trucks UK, says the changes reflect the manufacturer's ability to strengthen its brand by requiring dealers to purchase more CVs from the manufacturer.
"Renault Trucks sees the introduction of the new legislation as having a neutral effect on the dealer network. The revised agreements have been prepared mostly on the basis of reflecting the changes in the law only. Previously, the network was evaluated on the basis of the ability of individual dealers to meet the operating and quality standards attached to the agreement. For the most part, this is unchanged and emphasis will continue to be placed here, with regards to brand, operating and quality standards," he says.
News that Renault Trucks won't encourage its affected dealers to become solus is welcomed, but Brinklow points out that much of the multi-franchising activity is mainly on the repairer side of the BER agreements, which will not change at this stage. "The major consideration here would have to be a realistic one based on the ability of the respective networks to invest in solus dealerships to protect a franchise position," he says.
Concerns raised by multi-franchise dealers have centred mainly on the change in the need to purchase the higher level of contractual products. "But as we do not have dealers who distribute full range competition from the same site, this is not a major consequence.
"It has been pointed out, however, that any future dealer growth plans that could have included provision for multi-franchising will need more serious consideration," he adds.