An increasing number of UK truck dealers will take on multiple franchises in the future, says North East Truck and Van (NETV) managing director Sandy McDonald. "But every OEM will tell you it's not going to happen," he says. He explains that one of the key business drivers to operating an additional franchise is that it allows dealers to maximise the use of their workshop. "By opening it to anther brand you increase the number of vehicles going through and make it a more viable and profitable operation," says McDonald.
This is particularly important, he says, for small markets, especially when you consider that trucks are getting more reliable and service intervals are getting longer. But McDonald, who operates eight dealerships across the North and North-East of England, stresses the importance of treating each one like it is the only franchise you operate. He says this is especially important when it comes to NETV's LDV franchise in Blaydon, Tyne and Wear, as there is some overlap between the LDV Maxus and Iveco Daily product. "Consequently, we have a separate sales team and sales manager," he says.
However, with the case of Fiat, it was not necessary to go down this route. "Not only are Fiat and Iveco from the same family, but their products complement each other perfectly," he says. "In this case we have been able to use the same staff and maximise our sales team." Despite Iveco "not being too thrilled" when NETV took on an MAN franchise in Hull, McDonald believes this makes perfect business sense. He says that MAN employs its own sales team and that he focuses on the aftersales side of the business.
NETV's Hino franchise in Billingham also has its own sales team. With the new 300-series 7.5-tonner, McDonald believes there is "remarkably little overlap with the Iveco Eurocargo as both vehicles compete in different sectors of the market". McDonald rates the Hino product highly and praises Toyota's business sense. "They have a thirst for learning and only bring in the right products. We have just had a good year with Hino." He has had a fantastic year with Iveco too, especially with heavy trucks. "The Stralis is definitely on people's shopping lists, and we enter 2008 with a strong orderbook," he says. As to whether NETV is happy with its five brands, McDonald says: "We are an expanding company and are always looking for opportunities."