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To Hull and back
Page 52
Page 53
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North East Truck and Van has cemented its commitment to aftersales in Hull with a E3m investment that includes a new franchise and new
premises. Kevin Swallow reports.
During 2007 North East Truck and Van (NETV) moved to secure Hullbased MAN service agents Torridon Commercials (from Pendragon, in July) and East Yorkshireman Trucks (in September). Combined with a new MAN franchise to go with the one in Carlisle and a new site (see panel), it represents a Dm investment.
Known primarily for Iveco, NETV's expansion might look subversive -but broadening its aftermarket activities, the bread and butter of NETV income, is paramount. Managing director Sandy McDonald explains:"It is quite a good fit.We don't employ the sales team, we support them.
"Being well spread geographically, our individual markets are quite small. Carlisle is the same size as Hull in terms of sales. The development of aftersales is the future.To get the right management structure to support the aftersales function without getting the vehicle pare is very hard.
-We've always had a good market share in Hull for Iveco. Currently it is 12.5%, not very far from [Iveco UK's managing director] Henk van Leuven's goal of 15% in three years' time.
"My strategy was to look for a brand that would complement that. Fortunately the opportunity came with MAN-between the two of them we will end up with more than 20% of the local market. It enables us to have the right investment to service the trucks."
Highly committed
The team of 50 technicians will have more than 700 hours a week to fill but McDonald underlines his commitment to aftersales as NETV expects its annual training budget to be £450,000. Block exemption has played a part in NETV's expansion as those dealers in a position to increase revenue streams do so.
"It [block exemption] is one of the things that's made it easier.lbe cost of entry for an independent dealer to be multifranchise is very difficult," he says.
The big question in terms of marketing is how N ETV plans to sell both brands from one site. On site the two franchises will be kept apart with the used sales teams remaining separate. The MAN team will report to McDonald, with director of used sales Cedric Carrick looking after Iveco.
Potential conflict with new product sales is out of McDonald's hands:"MAN markets all their own vehicles. I don't know who MAN are prospecting; they are out doing their marketing, prospecting professionally and well quite often be in on the same deal with Iveco].
"What I'm trying to do is have the expertise to look after and protect the image of both brands,he adds.
"It's healthy that both products have to fight in the marketplace. It allows us to go to customers like Andrew Lunn, for example. who run lveco and MAN.We can become a one-stop shop.Then he has to choose the product, but he will get the same quality of aftersales service from both teams.
No crystal ball
"None of us can predict the future. Look at the way the industry is going... there's a lot of pressure on manufacturers. You've got the exposure to lead times, which isn't good; a company has got to have its core revenues as predictable as possible," McDonald points out.
Which brings us back to NETV. By extending its aftersales service the key is to maintain existing standards:I want to provide the best service. If a customer comes though our doors they are going to get a professional service." •