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Second time around
Page 70
Page 71
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Truck manufacturers have promoted the used sector from zero priority to number-one concern. Wth MAN-ERF UK tasking its sales director to boost used vehicle sales the message could hardly be clearer.
The days of dealerships stuffing their used trucks round the back of the yard while they show off the new products at the front are long gone. Dealing in used trucks has always been big business but now it attracts the attention it always craved and justly deserves.
The latest reshuffle at MAN Diesel, now on its third leader in two years, might indicate a subdivision in trouble but restructuring was needed for MAN-ERF UK to optimise its management team.
The previous incumbent, Michael Leerning, has moved over to vehicle management systems and telematics as part of a major military contract.With David Theyers as director of vehicle logistics and asset management, this leaves UK sales director David Cussans to add MAN Diesel to his portfolio. Cussans now heads up the operation for new and used sales —from this day forth the left hand at MAN should definitely know what the right hand is doing.
Cussans has taken over a subsidiary on the rise, and he credits that to Leerning:"The building blocks that he put in place mean MAN Diesel can develop its potential.We are really excited — we can make large and quick steps this year."
Progress is a target for any business but with a finite number of vehicles under his control Cussans' first priority is not simply raising the number of used vehicles sold under the MAN Diesel banner: "What this is about is making sure we have enough people and resources to gain maximum retailing potential on vehicles that have been given residual values"
Seizing the opportunity By investing flOm in six regional used centres,i6m in stock, and bolstering its sales people for a dedicated used vehicle division, MAN Diesel is giving notice that it is retailing more of its own trucks with fewer left over for its 'preferred' independent dealers.
"In the past MAN ERF UK has missed out on the opportunity to retail its products fully," Cussans explains. "The North-East was successful and showed that it could be done — it had the resources and the people to be successful.We want to make that the case across the country."
As sales director of new and used products Cussans is empowered to develop strategies that take into account a vehicle's second life: "For example, we are selling some new products with two-year packages so they come back in time for when Euro-4 is launched to offer Euro-3 engines to operators who want them."
He aims to sell 4,000 vehicles through MAN Diesel this year, which is up 400 on last year: 2001 was MAN's peak year in terms of underwriting lease-based deals with residual values and that is fuelling this peak in the used sector.
Next year Cussans expects volumes to fall by 10%, followed by another drop in 2007:"The situation is designed so fewer will re turn in the future to help gain an optimum level of products going out and coming back in again."
He reckons the industry as a whole has benefited from the growing commitment shown by all manufacturers to backing their respective used-truck networks.
"There is growing customer confidence in the growing number of manufacturers backing their products. Customers are enjoying the benefits of financial packages and well maintained vehicles.," he says.
"Stock is young enough so the customer has no fear in purchasing used vehicles. Consistent demand is bringing the ratio of new sales against used to two-toone from three-to-one."
Market control On the used market MAN-ERF can field the TGA and ERF ECX, L2000 7.5-tonners and M2000 rigids with a solid mix of bodies.
"By controlling the mix of vehicles and volume that goes out we can avoid peak returns of a particular model," Cussans explains.The problem of one model flooding the market and damaging residuals,is one every manufacturer has suffered from at some point.
The underlying message is that the company is giving support and confidence to its dedicated sales team so they can get greater retailing success second time around, as well as the first. And that, says Cussans,will be achieved by making sure the used team is top priority. is