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Keko decides to quit UK market

9th August 1986, Page 10
9th August 1986
Page 10
Page 10, 9th August 1986 — Keko decides to quit UK market
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Which of the following most accurately describes the problem?

• Tachograph chart supplier Keko UK has withdrawn from the market because Keko in Switzerland will not supply the charts at the low prices demanded by the UK market.

Paul Francis of Bournemouth-based Keko UK says that tachograph prices in the UK are lower than in the rest of Europe and so Keko in Switzerland has

told him that it is no longer economic to supply the UK market.

Francis claims that it is fierce competition that has forced the UK prices down so low_ He says that the withdrawal of Keko UK will lead to a general price increase amongst the other suppliers and suggests that chart prices could go up by as much as 25% in the next six months. "If the prices do pick up again we expect to re-enter the market."

However, three other leading UK suppliers of tachograph charts told CM that they do not expect such a price rise as a direct result of Keko UK's withdrawal. Only one of them envisages an increase in the next six months of only 5-6%.

Tags

People: Paul Francis
Locations: Bournemouth

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