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These factors spell brilliant future
Page 124
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• The only reservation Arnold Parker, chairman of the Factoring Services Group, has about the introduction of the Single European Market in 1992, is that it will be the European firms which will benefit.
Parker, who has been to the United States this year to study the aftermarket, in a speech to the Institute of the Motor Industry, in London, said: "The way the Japanese and the Americans have been buying into Europe over the past few years indicates to me that it is the Sonys, Datsuns, Echlins, and Tennaco Walkers who will gain most.
"A few British and European firms feel that they are ready for 1992 because they have rented a warehouse in Holland or somewhere. They are only scratching the surface.
"The emphasis on service will open up opportunities for tremendous growth by the small but enterprising independent company. We will see private individuals build up businesses which will turn them into multi-millionaires where before they would have been just ordinary, successful middle-class businessmen."
Compared with 1989, the European business community of 1999 will be brilliant, he said.
The effect of 1992's harmonisation will turn Europe into a market similar in size and scope to that of the USA, he said. And the major difference between the USA and the UK automotive aftermarket is the structure, with the warehouse distributor a vital part of the supply chain in the States.
So will warehouse distributors become standard in Europe? His view is that transEuropean manufacture and supply will become standard. Some rationalisation is bound to come.
However, the simple basic structure he looked at with envy in the USA is breaking up, he said. Major retail chains have gained in importance, and manufacturers are bypassing warehouse distributors.
While the European market will introduce warehouse distribution on a slightly larger scale than at present, his view is that market forces will decree that our present informal system will prevail.