Kwik-Fit fleet group (incorporating Kwik-Fit Fleet in the UK and Netherlands, Pit-Stop Fleet in Germany and Speedy Fleet in France) has captured two more industry awards to add to the three the company has already won.
Fleet management company Zenith Vehicle Contracts, has appointed Kwik-Fit as its first-tier provider of tyres and tyre products. The move is a result of Zenith’s decision to upgrade its Servicecall operation, which manages the maintenance of its 15,000-car fleet. Servicecall has now been brought in-house and its business hours extended so they now run from 7.30am to 6.30pm. Kwik-Fit will handle all out-of-hours calls through its Tannochside call centre in Scotland.
A fast-fit store manager from Telford is set to embark on the biggest journey of his life. Mark Lee, Hi-Q’s Telford store manager, will set off on 27 May 2005 with 60 other people to trek The Inca Trail as part of MacMillan’s Peru Hiking Challenge.
STS Tyres & Exhausts has appointed a completely new management team at its Aylesbury branch. Francis Johnson and Paul Piggott, who have worked together in the sector for 12 years have joined the centre as manager and deputy manager respectively.
The recent acquisition of the AA by private equity groups CVC Capital Partners and Permira has led to management changes at Kwik-Fit. The initial impact was felt as soon as the purchase was made public when Kwik-Fit chairman, Sir Trevor Chinn, and chief executive, Tim Parker, announced that they would move to the AA on completion of the deal.
For a number of years there has been little in the way of flotations on the German Stock Exchange, but suddenly there has been a flurry of activity. German Post wants to float its subsidiary Postbank on June 21, but the fast-fit service chain A.T.U (Auto-Teile-Unger) wants to forestall the Post and get in with its own flotation beforehand, at the beginning of June. The flotation is being handled by Credit Suisse First Boston and HSBC, who expect to raise one billion Euros. UK investment company Doughty Hanson is the majority shareholder and it is not yet known whether it will sell its entire holding or retain a stake in A.T.U.
It was in August last year that Tim Parker (48) was named as the new Chief Executive Officer of Kwik-Fit, following the purchase of the company from Ford by CVC Capital Partners for a reported £330 million.
Back in May 1996, Kwik-Fit was on the acquisition trail, buying a number of independent chains. The then Chairman, and yet to be knighted, Tom Farmer, said that the group was aiming to build up a second retail chain, made up of regional companies with a strong local presence. They would retain their original identities and, in some cases, compete with local Kwik-Fit centres. Although there was no national identity, the second chain did have a name – Tyre Plus. Now, almost exactly seven years later, the situation is very different, as Kwik-Fit has announced that Tyre Plus is to be integrated into the group’s core operation, with all the fast fit business coming under a single management structure. Kwik-Fit, under its new owners CVC Capital, has been undergoing an extensive review of all aspects of its operations and the decision to integrate Tyre Plus is the latest result of this process. So what will it mean? Firstly, the Tyre Plus head office in Motherwell will be closed, as will other support offices around the country. The Tyre Plus chain consists of 256 centres and the initiative will see the closure of less profitable centres and those that compete with Kwik-Fit centres. In all, 140 Tyre Plus centres will be closed, with the remainder being re-badged as Kwik-Fit centres. What will happen to the employees in the centres that are to close? Kwik-Fit says that “the majority of staff affected will have their employment transferred to Kwik-Fit” and that the company is working closely with the T&GW trade union to ensure that staff are aware of their position and the proposals on offer. Redundancies will be kept to a minimum and Kwik-Fit will make a further announcement after having consulted with the T&GWU. When the dust has settled, the number of fast-fit centres being managed within Kwik-Fit GB will total over 700 and it is an indication of how the trade – and Kwik-Fit’s aspirations under the new management – have changed as, before the company was sold to Ford, its stated aim was to be operating from 2,000 service points by the year 2005.
Batteries have virtually become a “fit and forget” product, but the fast-fit shouldn’t forget that they represent a great opportunity for additional profit. Which batteries to choose? Which companies give the most help when it comes to deciding which battery is right for your customer? We take a look at what’s on offer; both products and after-sales service.
AA Tyre Fit carried out a survey of 50 randomly chosen drivers who had used the company’s mobile tyre fitting service within the previous 60 days. 21 of the respondents were fleet customers, the remainder retail. 86 per cent said they would use mobile fitting in preference to visiting a fast-fit centre, while four per cent preferred the latter. The reasons given for preferring mobile fitting were “more convenient” and “it allows me to make more efficient use of my time”. Location of mobile fitting was split almost equally between home, office and roadside. The findings came as no surprise to AA Tyre Fit General Manager David Goodyear, who said: “Customers have a perception of fast-fit centres as dirty and unpleasant places where they can spend an hour or more hanging around while their new tyres, which are nearly always a distress purchase, are fitted.
As part of its wide-ranging business review, Kwik-Fit has decided to focus its fast-fit operations under the single Kwik-Fit name, which will involve the integration of the Tyre Plus chain into the main Kwik-Fit business. This will entail the closure of the Tyre Plus head office in Motherwell and a number of support offices around the country. Tyre Plus operates from 256 sites and 115 will transfer to Kwik-Fit, with 140 centres being closed.
UK fleet tyre management company Tyreserve has changed its name to AA Tyre Fit. The change, effective from February 24, reflects the purchase of Tyreserve by the AA in June 2002. The company’s general manager, David Goodyear, said the change would bring the business – and its network of 3,221 independent fast-fit centres and franchise dealers – all the benefits of belonging to the most trusted brand in motoring services. AA Tyre Fit has also appointed Continental as an approved tyre supplier. The German tyre manufacturer joins Cooper-Avon as the only two suppliers whose products are offered to the company’s fleet and retail customers.
Ashford-based PK Commercial Tyres is a well-established Bandag franchisee, supplying quality truck retreads for a number of years. Managing director Paul Kuske has experienced both good times and bad, changes in the market and changes in user attitudes and the company has weathered it all, adapting to these changes. Recent changes in the retread market prompted Paul to re-think where the future lay for his company. The main problem is the increasing demand by customers for management information and a total tyre management service, rather than just product. “We found that we were having to sell the tyre over again – once to the end user and then to the tyre distributor or service provider” said Paul. There were other dangers too – if you use outside companies to provide the services that you are unable to offer, there is always the chance that they might compete for your contracts. “We lost two fleet contracts to a former service provider partner” he remembers. It was time for a re-appraisal of the company’s objectives. PK Commercial took over a retail tyre depot in Aylesford, near Maidstone, offering fast-fit services and MOTs for car drivers. The location and the diversification into car tyre retailing proved successful.
AA Tyre Fitting general manager David Goodyear says that using a mobile tyre fitting service can save a 500-vehicle strong fleet up to £20,000 a year. Estimates suggest that the average hourly cost of employment to a company for a fleet driver is £28.50 and that the average fleet car has 1.4 tyres replaced every year. On average, a visit to a fast-fit centre to have a tyre change lasts 90 minutes, it is claimed. For a fleet of 500 vehicles, this would cost employers almost £20,000. “Over a large fleet, that wasted time mounts up and the figures that we have compiled show it to be considerable cost. But it’s a cost that can be saved through mobile fitting. Most tyre replacement can be done by mobile fitters while a driver continues to be productive working in their office, or even relaxing at home during the evening,” he added.
In a report in its magazine Which? the Consumers Association criticises UK fast-fits, accusing them of recommending unnecessary work on customers’ vehicles. What do you think? Is such criticism justified? Is dishonesty rife in the fast-fit trade? Or is Which? overstating the problem? Whatever your connection with the tyre trade, or if you are a customer, we welcome your opinions and ideas. Read our article (PDF file, size: 44.5 kbytes, Adobe Acrobat Reader required) first and e-mail us your comments – this is a matter which has profound implications for the image of fast-fits and this is your chance to have your say.
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