Mazda delivers fleet orders within 10 - 14 days
Mazda is securing significant conquest fleet business following the establishment of a ‘fleet vehicle sold order pot’ programme, which key dealers use to meet corporate demand within 10-14 days of orders being placed.
Vehicle waiting lists at some manufacturers are an average 12-14 weeks with some order times stretching to six months and into mid-2011.
Mazda Fleet and Remarketing Director Peter Allibon said: “Many fleets and company car drivers are not prepared to wait that long for new company cars. As a result they are increasingly turning to Mazda and 15-20 percent of new business wins are as a consequence of having short lead times.
“Our fleet centres are already starting to take orders for delivery in March when the new registration plate is introduced. Some manufacturers will not be able to deliver new cars in March because they have such long lead times, but Mazda will be able to meet demand.”
In addition, Mazda is giving its popular lower medium sector car, the Mazda3, a New Year boost with power, emission and fuel economy improvements to the 1.6 diesel model that are expected to further boost fleet sales.
The current 109ps 1.6D is already the best-selling Mazda3 in the fleet sector, particularly with user?chooser drivers and contract hire and leasing companies, and the model now receives an additional 6ps taking it to 115ps with CO2 output reduced to just 117g/km
Meanwhile, Mazda is winning significant company car business with contract hire and leasing companies, with the multi award-winning Mazda6 continuing to lead the way. The Japanese marque has seen sales to Britain’s leading contract hire and leasing companies jump 20.9 percent in 2010 - a percentage gain significantly above that of a host of other brands including Audi, Citroën, Fiat, Ford, Honda, Jaguar, Vauxhall and Volkswagen.
Four strategically located Mazda fleet centres - Arnold Clark in Scotland, JCT600 in Bradford, Norton Way in Letchworth and Johnsons in Oxford and Swindon - handle approximately 65 percent of all Mazda’s contract hire and outright purchase fleet business.
Each quarter the four dealers forecast the model mix they expect to be most popular with fleets. The vehicles are then manufactured and held centrally on the dockside at Zeebrugge in Belgium. When fleet orders are taken, the dealers ‘pull’ cars from the ‘pot’ and deliver to customers within 10-14 days.
Since launching the concept in the final quarter of last year, the number of vehicles held at Zeebrugge has increased from 600 to 900 in the final quarter of 2010 - although the programme is totally demand led with no manufacturer push.
The majority of vehicles held are Mazda6 diesel hatchbacks and estates and Mazda3 diesel hatchbacks with dealers also forecasting the most popular colours - typically models are held in four colours - and trim levels.
Richard Siney, Operations Director at Norton Way Motors, said: “It is a stunningly successful initiative. This year we have supplied more than 2,000 fleet units for the first time and almost 30percent of that volume has been as a result of Mazda’s competitive lead times versus other brands.
“Our customers require cars because they are a business necessity and waiting times of 20 weeks or more being quoted by other manufacturers are simply unacceptable to them.”
The streamlining of supply has also brought benefits for the dealers with Mr Siney explaining: “Network efficiency has improved enormously as we do not need to keep stocks of vehicles. That means money previously invested in holding vehicles can be redirected, for example, into additional customer prospecting and more demonstrator models.”
Rodger Eyeington, Fleet Manager at JCT600 in Bradford, has seen corporate sales increase 10-15 percent this year as a result of model availability and he also highlighted improved cash flow benefits for the Mazda dealership.
He said: “Fleets are not prepared to wait three to six months for cars. When they are quoted that length of lead time they look to other suppliers and Mazda is winning business because of the quick delivery of vehicles.
“Fleets are cancelling orders with their first choice manufacturer and turning to Mazda because they are impressed that we can get a vehicle to them within two weeks. As more customers find out about our short lead times Mazda is moving to the forefront of choice lists.”
Mr Eyeington added: “Additionally, the dealership can reduce vehicle stocking levels and that is improving our cash slow which is a tremendous benefit.”
Graeme Johnston, who heads up fleet sales for Arnold Clark’s Mazda franchises and is based in Stirling, said: “The main benefits to ourselves as an accredited Mazda Motor UK fleet centre is that knowing we have access to hundreds of cars at anyone time we can effectively manage our order bank and have greater confidence over our competitors with regard to turning quotes into orders. To back this up over 70 percent of all orders we win are fulfilled via the ‘fleet sold order pot’.
“The main benefits to our clients are that with the ability to quickly secure stock on almost every occasion we are faster at supplying cars than our competitors shattering the myth of Mazda being a factory order manufacturer.”
Dave Rowe, Mazda franchise director at Johnsons, added: “We have definitely increased our fleet volumes with contract hire and leasing companies and end-user fleets because we are able to satisfy client order demand within 10-14 days. That in turn is adding to customer satisfaction levels. The ‘fleet vehicle sold order pot’ is a fantastic initiative.”
Now Mazda is looking to expand the initiative by allowing dealers belonging to its Business Development Programme to access the system. The Programme is focused on increasing corporate sales to the SME sector and involves almost 40 Mazda franchise dealers.
Mr Allibon said: “We will roll the initiative out to more dealers because of the lengthening vehicle build lead times of other manufacturers. Businesses and their company car drivers are only prepared to wait so long for cars and several months is unacceptable to many.”
