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Cost cu t t in g C ar g o

7th November 1991, Page 100
7th November 1991
Page 100
Page 100, 7th November 1991 — Cost cu t t in g C ar g o
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Which of the following most accurately describes the problem?

• Iveco Ford is claiming that routine servicing costs on the new Cargo are 40% below that of the competition.

Service intervals on the fourcylinder engine have been extended to 30.000km and 40,000km on the six cylinder. A basket of 100 spares, covering % of the those used for servicing a 7.5-boners, will cost 27% less for the new Cargo than its rivals, says the company.

17 Iveco Ford says that large operators are making too many demands on manufacturers.

"They are demanding a guaranteed pence per mile price from us but expect to do their own servicing in-house," says Iveco Ford's managing director Alan Fox.

"This is madness, they don't work to standard times like our

dealers. They can take as long as they want and still expect us to guarantee running costshe says.

Iveco Ford is confident that the introduction of menu pricing will show operators that its franchised dealers do not charge more than non-franchised workshops. The price for a job will be set before the vehicle is taken in and will be the same throughout the country.

There are about 1,500 jobs currently on the price menu. This is expected to increase to several thousand in the near future and will inctude all routine maintenance and most in-service jobs.

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