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New broom at the top
Page 24
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Chris Thorneycroft-Smith has now been given the top job at Iveco UK and must rein vigorate the company's faltering performance
in the heavy sector. Andy Salter reports. iomatter which way you spin it,for Iveco to achieve complete success in the UK market it has to improve its paltry share :he heavy truck sector. We're well aware of company's profitability and the undoubted cess of the Daily range, due in no small part :he efforts of the man we've come to interw — hut the paymasters in Turin want to see ults in the heavy sector, ose Maria Alapont spelt out the mission in uncertain terms at the Hanover truck show :lc in September. In confident mood Alapont s claiming a success in the European tractor tor with double-digit market share. When a mber of Her Majesty's truck press pointed the UK slice of the action was barely into gle figures, it was clear from the ensuing rm that by the next Hanover show in 2006 t performance will be different!
knd so to the man who's going to have to iver: Chris Thorneycroft-Smith. Big name, guy, BIG reputation. For the sake of space Ilrefer to him as CT-S, the moniker by which swell-known throughout the industry.
lack in October last year CT-S was proted to director. UK market, which means s responsible for all Iveco sales, marketing, work and customer service activities here in the UK. By all accounts he's spent the past 12 months knocking heads together, endeavouring to get the organisation into the shape required to deliver an efficient service to the modern road transport industry.
At Iveco's press briefing earlier this month he went on the record.saying he was looking for 8% of the UK tractor market.That's a big leap from the 3% share it commanded in 2004. Clearly the focus is going to be on the heavy sector: "We're recruiting people who know the heavy truck market, who can go and talk with the big companies," he says. "We're attracting people from our competitors and also outside of this direct business."
CT-S comes across as a jovial soul, comfortable with the press and not afraid to speak his mind.Furtheimore as we, and we suspect many within the Iveco network,have discovered, he's equally at ease when delivering a tough message. To get the organisation in shape he's had to hire, fire and give a firm kick up the rear to underperformers.
"We've looked at ourselves and assessed our strengths and weaknesses," CT-S explains. "We've looked at our resources to ensure we have the right people for the job. It's essential they understand the business. Of course there have been casualties along the way, but we've not had to make any redundancies during the reshaping of the business. We also needed the dealers with us — they are our route to market and they are essential to the success."
Feeling a bit tetchy (a day's racing at Cheltenham had been forfeited for this interview) we kick off in spiky form and wonder out loud how it feels to be handed such a poisoned chalice? There have been plenty of false dawns at Iveco when new models or personnel have promised to realise the company's full market potential; most have been nothing more than a shooting star. Poor product reliability and an organisation strangled by bureaucracy and politics have done little to facilitate market growth, so how's it going to be different this time?
We wonder how CT-S will react to such an opening gambit... CT-S quickly gathers his thoughts, ducks the question and brings the interview back to his agenda. It's a piece of deft footwork in keeping with the pair of boxing gloves hanging on the wall of his office. The message he delivers is simple, if well worn: get the customer support right and the rest, within reason, will follow.
All well and good, but frankly we hear the same message from virtually every new MD at every truck importer in the UK. "If we could only sort our customer service out we'd be market leader" is the oft-trodden road. CT-S recognises this fact and is honest enough to admit that it's not earth shattering stuff— and that he can learn from some of his competitors.
Old school
"Look at the success of Daf in the market," he says. CT-S built his reputation as an innovative marketeer at Dal in the late '80s and early '90s; he still has a bit of the old culture lurking within. "It's not because their products are any better than anyone else's, nor is it because they're giving their trucks away. It's because they have an organisation and network committed to delivering the highest standards to customers."
By implication CT-S wants the same from his network and he admits that, with one or two exceptions. there's work to be done.There are a lot of similarities between the Daf and Iveco networks. Both are independent of their manufacturers— Iveco has no wholly-owned dealers. Both have excellent geographic coverage in the UK and there's a huge vehicle parc of both brands to serve —and profits to be made.
CT-S has put in place mechanisms, which if successful, could make the Iveco networt formidable lighting force. Every member oft 26-strong network has come through the dc to outline their business plans and their grovi objectives. "It has given us and them the opp, tunity to look in detail at their business,"hesa "We want to know where their business going, how they are going to get there and wl we can do to help. It's important we recogn the people and the products will differ, depet ing on the business in their area."
It's early days, but we get the feeling the n work is beginning to knit together. though 01 time will tell if it's a false dawn. CT-S has a lot other tricks up his sleeve, but he's not about share them with us here:" Our competitors will reading this. I don't want to tell them everyth, I'm up to or I'll lose the advantage," he says.
But he's adamant it doesn't involve mortg; ing the future or doing insanely cheap deals gain market share. Expect to see initiati, launched in the run-up to the CV Show in Ap "We now have the products in place switched on dealer network who want to part of the package," he remarks. -You've se the new Iveco — we're really going somewhe Our response and enquiry levels are high a we're making money. What we're doing a planning isn't rocket science, it's about doi the business consistently right.
It's clear the time for talking is over at lye All the thoughts,ideas and well-meaning iMi tives now have to reach fruition and deli, results. Our money is on CT-S bringing hoi the bacon and we're not saying tl just because he's the b{ We'll be surprised if manages his 8% trac MIC4MMITIM market share,that seems too big a jump,but enthusiasm and drive are set to deliver marl improvements for Iveco in the heavy sector. CT-S has put in place mechanisms, which if
to customers