Vision 2000
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Thomas Hardie Commercials and Volvo subsidiary Manchester Truck & Bus are to merge in a move which will create one large, independent Volvo distributor covering much of the North-West. The new business will trade under the Thomas Hardie banner: Volvo says it will become the third of the regional distributors called for byits Vision 2000 strategy. This plan will lead to the reduction of the current Volvo network from more than 20 distributors, possibly to as few as 10 by the end of the decade.
The manufacturer's Iwo Scottish distributors have already been replaced by Volvo Truck & Bus Scotland, while Volvo Truck & Bus South has supplanted a trio of distributors in southern England. Both these distributors are owned by Volvo, as are Nottingham Truck & Bus and Darlington Commercials. However, the Hardie/MTB merger does not mean that Volvo is now pursuing a policy of disposing of its distributors, says the manufacturer. "Each situation is being treated on its merits," says a spokesman. The Hardie move means nearly 500 people at 10 sites, primarily in and around Liverpool, Manchester and Preston, will come under a single banner. Ken Strolin and Tony Timmins will continue as directors of the combined company; they say that the economies of scale they can now achieve will give customers a higher and more cost-effective standard of service.
"We can reduce costs by having only one senior management team and one central accounts department rather than duplicating everything," says Strolin. Manufacturers and distributors increasingly argue that pinched profit margins mean the only way truck distributors can survive is by having access to large territories which generate big volumes of business.
Thomas Hardie's used site at Middlewich, Cheshire and the Manchester Truck & Bus used outlet at Trafford Park will both continue trading, says Strolin. The company will be taking on the Mitsubishi light trucks franchise—Volvo is now distributing Mitsubishi Canters in the UK—and is likely to concentrate Canter activities at Trafford Park.