A TREND towards rationalising franchise dealer networks could have an adverse effect on van fleets in the future.
Peter Golding, managing director at FleetCheck, said that a long-term situation was being created where many businesses were having to travel further for routine servicing, maintenance and repair.
He said the business argument for rationalising networks is easy to understand as franchise dealers often operate on very low profit margins and these are only going to come under further pressure as cars and vans visit workshops less, especially with the expected rapid uptake of EVs.
He added: “The fact remains that utilisation is a fundamental element of fleet management and having a vehicle off the road costs businesses money. The further away the franchise repair centre is, it is likely that it will take longer for servicing or repair to happen.
“This is especially important for van fleets. To an extent, car fleet breakdowns can be managed because their use is typically more sporadic – but vans are often used all day, every day and getting them back on the road is important.”
Golding said that the rationalisation of networks is something that appears to be happening without much discussion about how it will change provision of SMR for fleets.
He added that there was a definite possibility that the ongoing loss of franchise dealers was already driving more fleets towards independent garages.
“We have no industry-wide data on this but we are certainly aware of several fleets where this is happening. If the franchise dealer network effectively vacates an area, then it opens the door for high-quality independents to take over the business.
“This is, again, much more likely to happen with van fleets than cars but it is certainly the case that for many mainstream cars, having an independent service history rather than franchise is much less of an issue than it once was.
“Additionally, there is a general perception among many of our customers that it is already difficult to book into some franchise dealers. Independents are often simply easier to deal with in that respect, as well as being typically cheaper.
“However, it is difficult to argue with the advantages of geography. Our view is that local provision is likely to remain important to fleets, at least for the foreseeable future.”
Leave A Comment