Customers will not lose out, say garage

Saturday 1st October 2005, 12:00AM BST.

CUSTOMERS will not lose out because of a decision to withdraw a parts discount service to independent garages, Jacksons said yesterday.

Richard Millington, the group’s aftersales director, said that increasing costs and reduced margins made it no longer commercially viable for the group to offer a trade discount.

Jacksons were given the right to reply before yesterday’s JEP report was published, but chose not to comment.

The changes to the parts sales service will take effect from tomorrow, when independent garage owners will be sold parts at the manufacturers’ recommended retail price, excluding VAT.

The changes also include withdrawing delivery and credit account services.

Mr Millington said: ‘We are obviously keen to continue to sell parts to all customers.

However, we must also recognise that if we undertake unprofitable business we could jeopardise the future representation on many manufacturers within the Channel Islands.

We wish to stress that there are no changes to the prices or service provided to retail customers.’ He added: ‘Over recent years the retail prices of genuine parts from manufacturers have been reduced significantly.

Genuine parts, specifically designed for particular vehicles and whereby warranties are safeguarded, are now very competitively priced.

‘However, this has also led to reduced margins and thus reduced returns, and therefore we must follow the example of other franchises in order to maintain viability and to be able offer buyers the range of makes and models that we do.’ The independent garage owners said yesterday that they would be boycotting Jacksons and buying their parts direct from UK suppliers.

They called on Islanders to do the same.

They claim Jacksons have withdrawn the discount and made it more difficult for smaller garages to buy parts in the Island to force them out of business.

They also say that the move is a retaliation provoked by the number of customers going to the independents because of the higher cost of servicing at Jacksons.


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