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’.
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.