Are Truck Tyre Dealers Being Relegated to Service Providers?

The subject of how to sell truck tyres is certainly a contentious issue. All parties involved feel strongly about their respective positions. If you ask a tyre dealer what they think about this question, the chances are they wont be happy with the status quo. But, as far as the large manufacturers are concerned, selling direct to fleets and supplying the associated services is the only way to give customers what they demand. However not everybody agrees. Other brands support the supply chain, ‘the way it has always been’. Tyres & Accessories invited readers and industry members to comment on our website’s ‘question of the month’: Are Truck Tyre Dealers Being Relegated to Service Providers?

One reader’s comment sums up the argument from the independent dealer’s point of view: “Manufacturers have enough influence through OEM if they sell direct to fleets they will force out independent retailers who are the lifeblood of the Industry and we are liable to get a “committee” of “big brother” manufacturers deciding who, what, where and when, which is not in the interests of the fleets or independent Retailers.

Some companies take an arguably more ‘pro-dealer’ stance. “Cutting out the middle man is not an advantage,“ says Westlake Tyres UK and Europe business manager, Rob Henderson “As far as Eskay Tyres is concerned, we would rather support wholesalers. There is a system, a chain and that’s the way it should be done.” Philippe Verneuil, chief operating officer, Michelin truck tyres Europe agrees. Speaking to an IAA press conference in Hanover he affirmed, “we have to ensure that we continue to serve loyally and effectively.”

A reader from the UK added his opinion: “This is a question of meeting customer needs – the industry would much prefer the status quo, but today the customer asks for something else, which can only be delivered by a multi-national organisation, but this does not necessarily threaten the tyre retailer – it gives him another opportunity.”

The fact is, no simple answer exists. According to another T&A reader, the problem is: “The modern fleet user depends upon time sensitive data being made available to him at the click of a mouse. Many dealers are well on the way to being able to handle the most complex of end-user business but, like any ‘chain’ it is only as strong as the weakest link so, until all dealers are equally well equipped, we must expect the manufacturers to take the lead in this market place. They, in the main, can handle the processing of data.”

The last word goes to a reader who thinks there is a much simpler solution. “There should be cooperation between retailers and the industry.” While some parties would argue that is already happening, like the subject in general, it is unlikely that everyone will agree.