ERF goes continental
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• ERF is to enter the French and Spanish heavy truck markets in 1993 — despite announcing losses of £1.15m for the financial year ended March 28.
Although the Sandbach-based truck maker finished 1991/92 in the red its losses were significantly down on last year's 2,4.24m deficit. During 1991/92 ERF raised its turnover by more than 14% and total sales were up 5% to 2,167 vehicles.
Chairman Peter Foden says the current recession in the UK market is still biting hard: "Industry is reluctant to invest in new equipment. It is difficult to forecast when the upturn will come."
But he adds: "Vehicle operat ors cannot delay their replacement programmes very much longer." Last week Foden declined to make a profit forecast for 1992/93.
ERF currently holds an 11.4% share of the sector above 15 tonnes although so far the UK market has decreased by a further 8%.
However, next year ERF will enter the Continental truck market in earnest in a move described by Foden as "one of the most important steps ERF has taken for many years".
Following an 18-month feasability study ERF has set up two wholly owned subsidiary companies in France and Spain. These will be small administrative units with ERF dealing in the main directly with its dealer network in both countries.
ERF sees opportunities to set up a strong network after the recent tie-up between Volvo and Renault and the takeover of Pegaso by Iveco. "This leaves a gap in the market with many established truck dealers looking for opportunities," Foden says.
ERF will be unveiling its lefthand-drive range — based on the 14-litre Cummins and 12litre Perkins Tx engines — at the Paris Show in October, although Foden has modest ambitions for first-year sales on the Continent:" Even 2% [of the market] would more than justify our commitment to the project."
ERF managing director John Bryant says traditional buying patterns in favour of the home producer are declining in France and Spain. After holding more than 50% of French truck sales Renault now has 39%, while Pegaso's grip on the Spanish market is just 27%.
0 ERF has rejigged its distributor network in South Wales. Starting this month ERF's operator support in the region will transfer to West Country distributor Richard Read of Longhope which will take on sales, service and parts. Further parts and service back-up will be provided by WG Davies at Swansea and the newly appointed United Transport in Cardiff.