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 Euro 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.

Published by GregWhitaker

Editor of CAT Magazine and an experienced motoring journalist

EAG UPGRADES WAREHOUSE MANAGEMENT

Leeds-based firm install MAM warehouse management system

Read More

SEMI-AUTOMATED BATTERY ASSEMBLY LINE ESTABLISHED

Comau UK chosen to implement highly automated production

Read More

ECP START ELECTRIC VAN TRIAL

A pair of electric vans have joined the fleet at Euro Car Parts’ Isle of Wight branch.

Read More

CAT CONVERSATIONS: GARAGE OF TODAY, TOMORROW AND THE FUTURE

Don’t miss out, sign up to CAT’s latest webinar on 21st April right now

Read More

£10 MOT OFFERED BY AGGREGATORS

GoCompare has struck a deal with garage comparison site Who Can Fix My Car

Read More

Go to comments

Your email address will not be published. Required fields are marked *