Discussion
Rumour, repeat rumour says its the fact that TVR insist the dealer purchase a certain number of cars per month. Also the Tuscan has proved a little more costly on warranty work than previous models and TVR do not allegedly pay the dealer the full hourly rate for said warranty repairs.
quote:
I see, but this can't be good for the factory can it? If dealers continue to suffer and drop the franchise who will sell their cars for them? TVR can't afford to buy a nationwide network of retail outlets to sell direct to the end users can they?
I think that dealer coverage in England is OK, with a reasonable spread of both franchised dealers and specialists. Its not so good up here in Scotland, which was one of the reasons I didn't buy one as the franchise changed hands around the time I was ready to buy.
>> Edited by douglasr on Tuesday 24th September 11:28
quote:
Rumour, repeat rumour says its the fact that TVR insist the dealer purchase a certain number of cars per month. Also the Tuscan has proved a little more costly on warranty work than previous models and TVR do not allegedly pay the dealer the full hourly rate for said warranty repairs.
Actually the stuff about the minimum order from the dealers part is true. This is a common strategy of manufacturers to try and iron out their peeky sales. This is especially accute with something like a TVR where they sell most of their cars in summer (for some strange reason). This is an attempt to get the dealers focused on selling cars throughout the year by forcing them to take a number per month....
Dont necessarily agree with that tactic, but from a sales point of view for TVR it is pretty much the way forward. The dealers that stayed francised during this change gives you a good idea as to the volume and customer base they have - i.e. they sell cars, not necessarily just have them parked outside.
The changes in the dealer chain have removed the old dealers that didnt want to agree to this principle and got new ones in that sign up to it from the beginning. It happens and for right or wrong it has / will create a more stable dealership network.
Alternatively you can do what VW and Merc have done - sack ALL dealers and get them to re-apply to be a dealer! Merc did this about 8 months ago and have lost something like 40% of the dealers (though most have passed to the larger chains like Sytner etc).... VW are just doing this now so expect to see the dealer chain shrink slightly and the names / people change at your local dealer.... Now thats the nasty way of doing this...
As for warranty work - this is a tough one. It is always problematic for ALL manufacturers. TVR have suffered a little with the Tuscan and the SP6 engine, but things are looking up as most of the problems have been sorted out now.... just dont expect BMW / Merc reliability.
Cheers,
Paul
mmmmm interesting
There were some long standing dealers amoungst those that no longer have TVR though were'nt there? Some with big dealer groups backing them. They must have had good customer bases surely? I had heard that some smaller dealers without that luxury had gone under because of the problems with Tuscan customers' cars.
Won't forcing dealers to carry stock have a negative effect on residuals as well? I assume the dealers have to buy the cars from TVR do they not? They will have to lay out cash for stock which will lie there through the winter gathering interest payments. This is another pressure to discount cars isn't it? This is no bad thing in it's self, sure, but not when it gives the resale price of the car you've had for a year a good spanking by a lot more than you got off the car from new.
If I went to a dealership and wanted to buy a car like a TVR I would expect a bit of a lead time wouldn't I? I would quite like it to be in the colour I had chosen as well (another barganing tool to knock the price down on a stock car)
I mean if I go to a dealer to order a car, if the lead time is, say, six months I don't think I would storm out of the showroom in disgust looking for another manufacturer to take my money who can supply me a new car off the floor would I?
Am I wrong?
I suspect the stock requirement was more to provide TVR with guaranteed cash flow (it started when things were a bit dicey about 18 months ago, layoffs etc). It is at the expense of the dealers like you say and that's a good point about the residuals, although the image of unreliability is one that TVR are still struggling with.
Think that tvr are making only 10 cars a week(?) these days and that a lot of these go to the dealers as the predetermined supply. There is so much more competition in the interesting and really fast car market these days that tvr really must have a tough job defining themselves. Long live the AJP V8 ! It would be really interesting to analyse the TVR ups n downs compared with economic climate, competition and such like. I assume that Peter W is very aware that this is just part of the natural cycle (s curve in trendy economics speak). They have shrunk back a lot and will wait to rise up again.
ps I can count the number of Y reg and newer tvrs I have seen on the roads on the fingers of one hand.
>> Edited by gazzab on Tuesday 24th September 20:54
ps I can count the number of Y reg and newer tvrs I have seen on the roads on the fingers of one hand.
>> Edited by gazzab on Tuesday 24th September 20:54
I think you've hit the nail on the head there PetrolTed.
Do you know about five or six years ago I heard of a dealer being penalised by the factory for "spoofing" cars. i.e ordering the cars under the names of fictitious customers so they could actually HAVE stock to sell off the floor as the cars were selling so well.
Times change eh?
>> Edited by radial valve on Tuesday 24th September 21:14
Tuscan 29
Defenitions:
Specialist dealer:
Doing what he wants regardless of manufacturers wishes by ignoring corporate standards or identity. (all of which has to be paid for by an official dealership as part of the franchise agreement) and not having to stand the losses on the short times given for new car pre-delivery preparation and vast amounts of warrenty work being paid at pittence hourly rates.
Oh and I forgot, not having to swallow the cost of a perfectly reasonable warrenty claim when the manufacturer dismisses it.
Seriously. I think an independant dealer has as much chance of keeping a customer happy as anyone with a TVR but I bet you chose your cars well (and perhaps may I dare say; your customers)
Good luck to you and post a stock list I might just not be able to resist a 5.0 Chim I've been promising myself !!
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