Foden denies merger
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by David Craik • Foden is denying that a series of dealership mergers between Foden and Daf outlets are imminent despite one dealer claiming he has already been pushed out. Ex-Foden dealer Brian Kellow from Bristol says that after the acquisition of Daf by Foden's parent company Paccar last November he had been assured that there wouldn't be a dealership merger in his area.
"I was told the two would run side by side," he says. "I was struggling financially, but Foden and I reached a verbal financial package to keep me afloat for three years."
But in August this year he lost his dealership to a local Daf franchise, and claims that this move signals the beginning of a merger plan between the Foden and Leyland Daf dealer networks.
Foden marketing manager Gary Rowlands says Kellow lost his dealership because Foden was not prepared "to invest the further money to keep him afloat". There is no merger plan, he stresses. "The Daf merger solution in this case is only temporary."
Rowlands says he has talked to most Foden dealers who have told him they are happy, even though SMMT figures show Foden UK new registrations down 40% to 401 this year.
One Foden dealer says he shares Rowlands' confidence of a strong and bright future for Foden and believes that the link with Daf will "rejuvenate" the marque. As for the possibility of dealership mergers he says: "I have been personally told by Paccar that this will not happen."