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on the whole Auto-motive Distribution Federation members enjoyed a buoyant 2004, but will the New Year continue the trend?
Changes in the market which I thought would happen in 2004 rather than now mean that the independent sector faces serious threats to its share of the market.
We are finally seeing the larger franchised groups establishing parts sales operations, which take advantage of their access to multi-brand parts in vehicle assembler boxes.
This type of dealer parts operation can give the independent garages, the ADF members' traditional customer, a feeling of security, particularly given some of the recent instances of warranty disputes, when claims have initially been refused on the grounds that the servicing garage has not used dealer-supplied parts.
Even when, as in several cases tackled by the ADF, the final result has been a reversal of the original decision, the lingering doubt placed in the mind of the independent
garage means they are more likely to buy from the dealer next time.
Independent distributors and motor factors must be sure that their customers understand how short-term a decision to buy parts from dealers is for the future of that independent garage customer. It's a message that everyone in the business should understand and articulate to their customers. This really does mean everyone – from van drivers, warehouse and counter staff, sales reps to accounts offices — not just the directors and senior managers.
There is a good case to be made. The independent can offer garages the genuine OE part and, where needed, alternatives. Service levels from the independent sector commonly surpass those of the dealer.
More importantly, the
garage should realise that any special treatment they receive now will be designed to bind them to the dealer. Eventually the garage will pay the price
of not supporting their independent partner, the
motor factor.
As for the ADF, we are ready to tackle the issues which face our members and give them assistance where needed and information to help them run their businesses.
Members should keep us in touch with the local issues affecting their business. Armed with their information, we can more effectively speak on behalf of our members.
This year's ADF Spotlight conference on 18 May will, in its changed format, give members more information and better access to the speakers than ever before.
Brian Spratt
Chief Executive
Automotive Distribution Federation
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