Conti looks for new Partners
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Continental is to establish a new commercial tyre sales and service network to replace the National Tyre Service Commercial Division.
ContiNetwork, as it will be known, will comprise 55 independent dealers—"Network Partners"—each with an exclusive territory. Existing arrangements with other dealers will remain in place, but the ContiNetwork partners will be responsible for Continental's roadside support and fleet management systems, The change inevitably means that some of the seventyodd NTS Commercial Division dealerships will close.
According to Continental Tyre Group's managing director Brian Smith: "Every one of them has an opportunity to become a Network Partner". However; it is envisaged that many of the new Partners will be independent dealers. Negotiations are under way, and the new network is due to be in place by the end of June.
Smith is keen to emphasise that the change will benefit customers: "Fleet operators have told us that a high level of local service is critical for success in a pressurised market." UK tyre sales are static, and Smith insists that customer service is the priority. Though some territories will be large, dealers will be required to maintain standards in terms of call-out times and service levels. Like truck dealers, some will be expected to maintain more than one depot.
The new system is not a franchise approach—Network Partners will be free to stock other brands—but dealers will have to commit to a certain level of Continental sales. In return they will have exclusive access to some of Continental's brands and will be "preferred suppliers" for Bandvulc re-treaded tyres; Bandvulc also supplies Conti-Re, Continental's own-brand remanufacturing system. Partners will also be linked to Continental via a new e-business system covering pricing, ordering, billing and stock control.