EC approves Kwik-Fit acquisition; 10 new centres planned for this year
Following the approval of its acquisition by Itochu Corporation, investment in new Kwik-Fit outlets is continuing with plans to open ten new centres this year and a similar number in 2012. Confirmed centre openings this year are in Farnham, Heywood and Scunthorpe, with other locations expected to be revealed over the coming months. These new sites add to those opened in recent months in Brentford, Brierley Hill, Bury St Edmunds, Charlton, Ipswich, Luton, Newport Pagnell, Rugeley, Thetford and Walsall. Prior to the launch of the latest centre investment programme, Kwik-Fit operated a 669-centre network, supported by a mobile fleet of more than 200 vehicles.
“Centre locations are continually kept under review,” commented Kwik-Fit Fleet sales director Peter Lambert. “The company has identified a number of hotspots where we do not have centre coverage. As and when suitable locations become available we have plans to open further outlets.”
Kwik-Fit is pushing on with its long-term investment strategy at a time that business is, in the company’s own words, buoyant. The fast fitter recorded a 43 per cent rise in MoTs performed and a 35 per cent increase in vehicle servicing during the first quarter of 2011 compared with the same period last year. This start to the year continues an already evident trend, added Lambert: “Last year saw a near 50 per cent increase last year in the number of fleet MoTs undertaken when compared with 2009 figures and a 16 per cent rise in fleet car and van servicing. Kwik-Fit may have been launched as a supplier of tyres, batteries and exhausts but today the company is a one-stop shop for all van service, maintenance and repair requirements.”
Peter Lambert shares that fleet operators and company van drivers are turning to Kwik-Fit for a number of reasons, including cost factors, the flexibility offered by Kwik-Fit’s opening hours and the availability of a mobile repair and replacement service. “At a time when many organisations, including some of our rivals, are scaling back investment and indeed closing centres, we believe our strategy will be rewarded with increased business,” he stated. “Investment, product development and new initiatives are vital in the fleet sector and Kwik-Fit is continually working to provide customers with an ever better service.”
On May 12 the European Commission announced it had cleared Itochu’s acquisition of Kwik-Fit holding company Speedy 1 Limited. After examining the operation, the Commission concluded the transaction “would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.” Its examination of the proposed transaction showed that “Itochu and Speedy together have only a limited market presence on the markets for automotive repair and replacement services and the wholesale supply of replacement tyres.” In addition, the Commission concluded that the “combination of Itochu’s activities in the wholesale supply of replacement tyres and Speedy’s activities in automotive repair and replacement services would not lead to shutting out competitors because a sufficient number of alternative suppliers exist from which the procurement of tyres would still be possible after the acquisition.”
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