Tag Archive | "Franchised garages"

DEALER GROUP COMPLAINS ABOUT ‘AGGRESSIVE PRICING” OF TRADE CLUBS

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DEALER GROUP COMPLAINS ABOUT ‘AGGRESSIVE PRICING” OF TRADE CLUBS


A dealer group has noted the ‘aggressive pricing’ of VM parts chains makes it ‘less attractive’ for franchised dealers to sell parts for older models.

In a Group Accounts Statement filed at Companies House by John Grose, Director Ian Twinley noted that: ‘Both Ford and PSA continue to restructure their parts distribution models which is making it less attractive for the franchised dealer and therefore a sector that we will reduce our activity. In the retail sector we are all seeing a huge transformation in small package distribution driven by the digital revolution, which is likely to continue for some while yet and have further impact on OEM parts distribution’.

 

VM initiatives such as PSA’s Euro Repar make spares ‘less attractive’ to franchises

Both Ford and the PSA brands are represented by John Grose, and both have expanded their trade club-style offerings in order to tempt independent garages to buy parts directly from them rather than from the all-makes factor chains. PSA has been particularly aggressive with the roll-out of its Auto Repar offering that includes several different tiers of parts quality. Ford has also tried a number of initiatives, including the Quick Lane soft franchise garage model.

 

The Group Accounts Statement also noted that John Grose has taken a number of actions to prepare for a worst-case no deal Brexit, which included stockpiling common service and repair part numbers as well as securing ‘additional headroom in funding’ to meet any volatility in cash flow.

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OBITUARY: ARNOLD CLARK

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OBITUARY: ARNOLD CLARK


Renowned car dealer Arnold Clark has died at the age of 89.

Clark set up in the used car business in 1954. His first sale was a pre-war Morris 10/4 followed by others, allowing him to open a site in Glasgow’s Park Road where he eventually opened a Morris franchise.

By the 1960s Clark had acquired a number of other dealerships, allowing his firm to expand into car finance, vehicle rental and crash repair. Today the firm has 200 dealerships representing 24 VM brands.

A statement from the family read: “He was a beloved husband, father, grandfather and a great friend and employer to many.

“He was an inspiration and the family will continue to carry on his vision. He will be greatly missed”.

Clark had ten children from two marriages and passed away ‘surrounded by family’.

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ISSUES FACING INDEPENDENTS ‘MORE COMPLEX THAN EVER’


Andy Savva

Andy Savva, Managing Director of Savva Automotive, filled a seminar room at a recent trade show with his presentation, ‘A New Service Way: Effective and Efficient workshop’ aimed at boosting productivity, margins and morale within the independent garage.

“The issues facing us working in the independent sector are more complex and challenging than ever before”, he said. “From human resources to competition from fast-fits and dealers, your actual image, tooling, training and of course, technical advancements in vehicle design are all problems we as an industry are facing”.

During his presentation at Mechanex Sandown, the garage entrepreneur displayed images, comparing ‘good’ and ‘bad’ garages in 2016 that he worked with; explaining that employers should be maintaining a healthy and safe working environment, with tools labelled and placed in an appropriate area to utilise workshop capacity effectively.

Savva also provided guidance to help garages calculate the correct labour rate instead of charging the ‘going rate in the area’ for individual businesses while attempting to bridge the gap between independent and franchised garages. He said: “Generally, independent garages see franchised garages as competitors and franchised garages historically, put us down as independents” he continued: “I believe we both should be a collective progressive, professional sector where a consumer has the choice to go and have their car repaired properly in an honest fashion. I don’t believe we should have this culture of ‘them and us’ because that’s what’s keeping us segregated and our industry unprofessional”.

Other industry talks included: ‘DPF Diagnosis, Recovery and Repair’ orchestrated by ADS Director Frank Massey and ‘The Future of MOT training’ hosted by representatives from the RMI.

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