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Built by association
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Iveco Trucks' dealer network is undergoing a three-year restructure, one in which the Iveco Dealer Association will play a central role. We speak to new chairman Rob Spittle.
Words: Kevin Swallow/ Images: Iveco AFTER SEVEN YEARS as chairman of the Iveco Dealer Association (IDA), North East Truck & Van, Sandy McDonald was succeeded last October by Rob Spittle, divisional managing director at Guest Trucks in West Bromwich. "The main aims of the IDA are to provide a clear communication channel between the dealers as a whole and Iveco as a company, and provide uniformity of services from the dealers," Spittle says.
"Guest Trucks' historical background is in the Daily van and 7.5-tonners, whereas Northern Commercial and NETV have a heavy truck background," he continues. "What we are doing as IDA is pooling together the skills of the heavy and lighter truck dealers to make a network that can work together and has a consistent level of ability."
Spittle's arrival puts the association's emphasis on to lighter vehicles. "[We bring] the knowledge of the van customer base, the ability to stock and process vans to meet customer needs. Vans have a much faster turnover, transaction on a van is much quicker you need a different mentality and focus," he explains. The main business tool that links all the dealers is service, and Spittle wants the network to provide a standard that is the same for van and trucks. "Customers don't want their vehicles off the road; it's the requirement of a quick level of service. We are creating a network that makes sure breakdowns are attended in 60 minutes.
"We work together as a network to ensure the customer is back on the road, and we rely on each other in the Assistance Non-Stop programme to manage the guarantee-of-payment system. If one of my customers breaks down in Northern Commercials' network, it contacts me to give an order number. The longer that process takes, the longer the vehicle is on the side of the road," Spittle maintains.
A consistent level of performance isn't easy for any group to maintain, but the association is keen to guarantee delivery. "The network is only as good as its weakest link," Spittle declares. "And our aim is to not have any weak links. The association has to keep it orderly so it doesn't matter whether you are in Cornwall or Scotland, the service is the same." Iveco has set itself a target of doubling its share of the heavy truck market to 15%, and the IDA has to be ready. For Guest Trucks that means investment. "Workshop equipment, workshop efficiencies and technicians in the workshop," Spittle lists. "For example, this year. I have committed to spend £90,000 on roller brake testers, which provide better safety on the road and you can present vehicles at MoT that you know aren't going to fail."
To make sure it can handle the extra business, Iveco Trucks is restructuring its dealer network. By 2011 there will be 18 heavy-truck full-range dealers managing 32 satellite sales, service and parts sites. That will be coupled with 75 Daily van sales, service and parts centres, giving a 125-strong network.
"Certainly every dealer will have met with the manufacturer to discuss the opportunities, it's done in conjunction with the association. It is up to the manufacturer to provide the level playing field, to support the dealers, to raise the bar on service all the time, and if there is a weak link, to sort that out," he explains.
The arrival of Henk van Leuven, managing director at Iveco Trucks UK, has meant change. "It's Henk's strategy to talk to every partner, and with the restructure, the association is the oil in the cogs. Change is always hard. However you implement it, there are those who accept it, those who ask why and those who don't want to know.
"From Guest Trucks' perspective, to get that 15% market share, we have to change. The network and its sales teams believe that, in Iveco, we have the best range of trucks we've ever had, We can compete with the Dafs and Scanias. As a group of dealers and as a manufacturer, the job is to convince the marketplace we also have a service support system as good as anyone's," he says.
For any long-standing manufacturer, product perception is key and the Italians have worked hard to win over an unforgiving marketplace. Spittle says: "I spent time in Turin looking at brand perceptions, and I know what's coming to the UK. [What's important] is how dealers and manufacturers are going to present themselves, focusing on brand perceptions and what customers require in terms of service.
Central to that idea is the 'Five Star' programme, which focuses on a homogenous service programme across every outlet and the new repair and maintenance deal. "The IDA looks at a programme like Five Star and asks if it is viable for the marketplace. Without a doubt, in the association's view it is: it's raising the bar to meet the marketshare expectations," he says.
It's difficult for Spittle to tell CM too much about the issues the association discusses (beyond mentioning areas such as service and sales and parts), or reveal anything about forthcoming programmes manufacturers are highly competitive about marketing and dealer issues. But it's clear the IDA has a lot on its plate with the restructure and the goal of doubling market share.
"Van Leuven has brought a clearly defined strategy to the UK [in terms of] what Iveco expects from the marketplace, what Iveco expects from itself, and what it expects from its dealer network," he concludes. •
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