UK Servicing or lack of!!!!

[Eric]

Ineos has a tough task ahead in the uk getting dealer / service network in place, whoever takes on the task is going to want a return on their investment.
You only need to ask yourself how many do you see on the road daily, for me I know there are not enough vehicles locally ( South Coast) to warrant a dealer or service agent, which is disappointing.

It is going to be a dealer that adds it to an existing brand, as a supplement not sole source income. Personally I'd have thought BMW dealers to be well placed

 

[NQ94]

Reading between the lines from my conversations with the CEO, they are not just going to jump into bed with the first dealership who wants to sell Grenadiers. I think they have a fairly robust vetting procedure.

There would be similar robust vetting procedures from the dealerships. Ineos would have to do some pretty hard selling to convince large dealers that their investment in the brand will pay off.

 

[Tom D]

There would be similar robust vetting procedures from the dealerships. Ineos would have to do some pretty hard selling to convince large dealers that their investment in the brand will pay off.

I have thought about that, Usually a new dealership will spend a lot on re-branding the premises. They'd need to sell quite a few cars to make it back.

 

[DoubleDoom]

It is going to be a dealer that adds it to an existing brand, as a supplement not sole source income. Personally I'd have thought BMW dealers to be well placed

I agree. In our area, the agent is changing (or has already changed) to the dealer model. However, some years ago, they moved their main dealerships (which they have a number of brands) into a selection of more modern units. Rather than close their old ones, they used repurposed them for smaller brands, used vehicles etc. They used one of their older Ford outlets for Ineos. However, the dealer also uses the same site for other jobs. So, they can retail and service IGs but also pick up the slack in other ways. The only thing I fear for that site is housing. New builds have been heading in that direction for many years and a couple of years ago, the location became surrounded with new builds to the side and rear.

The dealer model will mean that warranty work will be more lucrative to them compared to agent model.

 

[NQ94]

I have thought about that, Usually a new dealership will spend a lot on re-branding the premises. They'd need to sell quite a few cars to make it back.

Branding and sales training would be the cheapest part. Just supporting the brand is one of the biggest expenses. The technical training for techs, diagnostic licenses and the tooling to carry out repairs are a big commitment. Most OEM courses I have attended for fleets and while working for an OEM cost around Au$1 to 2k per person for a basic three or four day familiarisation and basic diagnostic course plus the same again for the specialised advance repair and overhaul courses plus techs labour and lost workshop revenue. The access to OEM diagnostics for each computer or device, manuals and parts catalogue subscriptions are a huge annual expense. Not even what people think are OEM owned dealers are immune from these expenses. Having enough cars to repair and service to offset the hidden expenses to deliver quality work and keep reputation would be a big concern for any dealer committing to or staying with a new brand.

 

[ECrider]

The weight of the vehicle also demands heavy duty lifts. One reason why Adventure Auto cannot service the cars at their Oxford branch is that their lifts there are not rated for the weight of our trucks. Think they are max 3 ton and H&S demand min 5t. So most car focused service sites cannot legally get the buggers in the air. More expense and/or restrictive options.

 

[Logsplitter]

The weight of the vehicle also demands heavy duty lifts. One reason why Adventure Auto cannot service the cars at their Oxford branch is that their lifts there are not rated for the weight of our trucks. Think they are max 3 ton and H&S demand min 5t. So most car focused service sites cannot legally get the buggers in the air. More expense and/or restrictive options.

Hence why why Ineos should be working with established agricultural and 4x4 service agents