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Used network solutions
Page 70
Page 71
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Last year Renault Trucks UK reshuffled its management team, with Chris Sharp taking over responsibility for used sales and asset management. He talks to Kevin Swallow about the transition — and his plans for 2006.
Three years ago to the month, Renault Trucks UK marketing director Euan Harron and used vehicles director Bruce Allison were busy telling CM how things were going to be. Renault Trucks was to move away from buy-hacks in the wake of major launches from competitors; restructure its dealer/fleet set-up to accommodate bigger deals away from buy-backs and fleet; and focus on its other assets away from the Premium.
So how has it panned out? Since that interview,Allison has replaced Harron as marketing director, enabling Sharp to take over the reins of the used vehicles operation.And it says a lot for Renault Trucks UK's current position that the answer can be given in a boardroom at the JDS Trucks site in Leeds rather than back on home turf at HQ in Dunstable.
Renault Trucks UK arguably didn't get the praise it deserved for its 'asset-management' skills in the early part of the new millennium, given the situation it found itself in (CM 6 February 2003). But it was only doing its job.
Today the company is leaner and fitter than it was three years ago. Sharp was involved back then and praises Allison's asset-management work in turning Choice, one of the original used-market programmes to be made available for the retail market, into arguably the slickest operation in town.
He and Allison make a good team: they joined Renault at the same time and saw potential in the formative years of the Choice programme, giving it focus and direction.
Sharp's career with Renault began at J DS Trucks in Leeds, so it is fitting that our interview with him takes place there. He joined Renault Trucks in 1997 after three years with Dawson Rentals, and prior to that had run and then sold his restaurant in Yorkshire.
Choke in its infancy
Although Choice had been launched before Sharp's return, he explains that it hadn't really been driven:"It was still in its infancy. It was a commitment between Renault Trucks and its network to give quality products and standards to the industry. They were starting to demand that then."
The commitment is still there and Sharp is unequivocal about the status of the manufacturer and its used division:"I believe that to this day Renault is at the forefront of the used industry; the only one close to us is MercedesBenz. Other manufacturers have aspired to match Choice."
Over the past three years stock levels have shrunk. Diminishing asset management has enabled Renault Trucks UK to concentrate more on its retail application and worry less about vehicle redistribution and residuals from over-supplying the used market.
"What we don't want to do is go back to the days of giving RVs above the market value," Sharp explains."We have a managed process to give a certain volume of buy-backs for new business. Go back to 2000/2001 and we had too many buy-backs coming back. Now we've got to the stage where we have a dedicated usedvehicle sales force out in the network, which sends a strong message to the customer. Last year 1,800 vehicles were sold through Renault Trucks with 320 Premiums going overseas. mainly to Malaysia and Kenya. Export accounted for a sixth of the portfolio, which is down from 2004 when more 440s were being loaded onto freighters.
Increase in price
"We.■,.e been exporting a large proportion ol 385 and 400 products,says Sharp. "Last year was the final year that we saw a stock of vehicles reducing down to zero. There has been a definite increase in price on 385 and 400 products due to the demand for export -vehicles are being bought through the auction house.
This year the focus for export will be on the 420, which should be -a learning curve for the export market". But the domestic market remains the priority:" We've got to feed the UK market first.That's where our market is. It gives us the after-market business, and also netwo the profitability back into the dealeiship th very important.
With fewer products to handle, the manuf turer is asking the dealer network to activ seek out Renaults on the open market to ma up any shortfall in demand. "We would ask 1 network to become involved with buying fn open market to take control of the product a because of the diminishing stocks we hay Sharp explains.
A successful template for the future could the Midlum."Go back to 2003 and the Midlt product was behind Mercedes-Benz. Daf a Iveco,he says. "Now it's second behind Daf.
"That's down to the correct managemt and the Choice programme focusing attenti on quality," Sharp concludes. "The mad perception has improved it's seen as one the best 7.5-tonne vehicles in the mark From the Master to the Magnum we've go great product range."