Car import logistics: Responding to changes
- Three of the main actors in the case.
- The actual distribution process.
- Direct role.
- Indirect role.
- Upstream actor in the distribution process.
- Downstream end of the process.
- The new rules of the Block Exemption.
- The production side.
- The distribution side.
- The Block Exemption: Impacts at the production and distribution level.
The whole car industry in Europe is experiencing great changes, mostly due to a new regulation imposed by the European Union of the Block Exemption. Aimed at increasing competition in car distribution, those new rules will have an impact on every actor involved, from manufacturers to car dealers and it will re-shape the whole industry. A new power balance will come up as manufacturers will loose some of their influence to car dealers on the distribution process. Let's focus on three of the main actors in the case: Europacar, Car Import Logistics (CIL) and Car Import Dealers. Europacar is a car manufacturer and one of the most important brands in Norway. CIL is the logistics department of Car Import, the importer for Europacar in Norway. Finally, Car Import dealers are responsible for selling Europacar cars to end-customers.
[...] HWB Management Briefing March 2006 : Impact of Block Exemption on car dealers Speech by Mario Monti (European commissioner for competition policy) at the 9th Annual European automobile conference: Car retailing at a crossroads: The new legal framework for car distribution (February 2003) Distribution Network in transition (Slides) : Gøran Persson, Leif Magnus Jensen Bohrman, E., Stenbrink, P. & Rosenberg, J. ?Overhauling European Auto Distribution,? McKinsey Quarterly, Issue Speech by Mario Monti (European commissioner for competition policy) at the 9th Annual European automobile conference: Car retailing at a crossroads: The new legal framework for car distribution (February 2003) Bohrman, E., Stenbrink, P. [...]
[...] Consequently, there will be fewer car showrooms but larger and bigger and customers will have to travel further to buy a new car. They will be able to compare price on the Internet but their will be fewer chances to play off one local dealer against another for the best trade-in deal for a particular new car. Another impact of the Block Exemption new rules will be an increase in dealer's operating costs since fierce inter-brand competition will continue to keep new car prices and margins down. [...]
[...] To finish with, a continuous improvement of employees' skills and knowledge will enable CIL to adapt to the innovations and differentiation trends which are affecting the car industry. Appendix Sources Persson, G. and H. Virum (2001) ?Growth Strategies for Logistics service Providers: A Case Study? The international Journal of Logistics Management 12, no.1. Gripsrud, G., (2004). The Marketing discipline and distribution research: Time to regain lost territory? In Håkansson H., Waluszewski A., and Harrison D., Rethinking Marketing. Developing a new understanding of markets. [...]