Merger tacho fears
Page 6
If you've noticed an error in this article please click here to report it so we can fix it.
VEEDER-ROOT'S General Manager Alec Dawson is protesting to the Department of Transport about the "near-monopoly" which he claims will result from the merger of the tachograph interests of the Lucas Group and Smiths Industries.
The merger between Lucas Electrical and Smiths motor accessories interests has led to the establishment of a new corn pany, Lucas Electrical and Electronics Systems, of which Lucas owns 80.1 per cent and Smiths the remaining 19.9 per cent.
David Gent, of the Lucas Group, confirmed that the new company will continue to market and service the full range of both Kienzle and Smiths tachographs through the existing networks.
Alec Dawson told CM that, when tachographs were made compulsory, the DTp agreed that the three companies then marketing the instruments in Great Britain should be allowed to sponsor up to 150 calibration stations each; this figure was later increased to 155.
Veeder-Root and Lucas Kienzle had reached their ceiling, while Smiths had about 140 stations. Each station had to be inspected and approved by the DTp, which had set very high standards for buildings, equipment and staff training.
In making the original allocation of stations between manufacturers, said Mr Dawson, the DTp had deliberately treated all three as equals, without regard to their respective market shares.
'Now, unless something is done, Veeder-Root will be faced with only one competitor who nevertheless has two-thirds of the calibration stations," he said.
"Besides being a near-monopoly this breaches the original arrangement with the DTp. We shall be asking the Department to take steps to restore the equal treatment originally agreed between all concerned."
Earlier this week the DTp had no comment to make on the matter.
According to Lucas Electrical, the Smiths tachograph range will continue to be marketed separately by the existing Smiths team, so there is no immediate likelihood of a single company handling two thirds of the market.