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No gain without pain
Page 52
Page 53
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lveco's plan to increase its market share to 15% in three years will result in some casualties among its dealer network.
Words Steve Banner
Iveco IS carrying out a major restructuring of its truck dealer network as part of its bid to capture 15% of the heavy truck market by 2011. "We're reducing the number of main dealers from 24 to 18," says managing director Henk van Leuven. "We've identified the ones we want to keep and the ones we're going to lose, and we've concluded the necessary discussions with all of them. "If you're going to make a fair return on your investment as an Iveco truck dealer, then you have to reach a certain critical mass," he continues. "As a rule of thumb, you will have to be selling 200 heavy trucks annually." Shrinking the network will give the remaining dealers more of an opportunity to reach that target, as well as encouraging them to remain loyal to Iveco and make the necessary investment in staff and facilities to ensure that total UK sales grow.
The six whose franchises have been terminated have received two years' notice. Iveco has declined to disclose their names and locations.
Hauliers might be forgiven for wondering just how good the quality of aftersales support provided by those six will be now they know they are being axed. "By law both they and we are obliged to act as though nothing has happened," van Leuven replies. "We will continue to support them in every way, as we have done in the past, and give them their normal objectives along with the accompanying bonuses."
Iveco operators may also fear that aftermarket cover will suffer once the notice period ends and the businesses concerned either shut or take on another franchise.
"The 18 dealers we're keeping have committed themselves to helping develop heavy truck service and parts coverage nationwide," says van Leuven. "That will take us from the 20 to 25 workshops that do most of our heavy truck servicing at present to more like 50." •