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MVRA: “most VMs won't follow Ford decision to reduce discounts”

The private-company aftermarket trade organisation MVRA reports it has been contacting other manufacturers in the past six weeks to find out if they plan to follow Ford's lead in cutting repairer discounts. They won't, it says.

MVRA has also been in contact with several insurers to see if they plan to make changes to their standard bottom line discount on parts prices.

Mike Monaghan, MVRA MD says all the manufacturers he has spoken to have made it clear that they have no immediate intention of making changes to their parts prices, and that most insurers confirmed that they have taken action to reduce the impact of the changes introduced by Ford.

MVRA adds it is aware that some Ford dealerships are making ad hoc adjustments to parts pricing and discounting.

Monaghan concludes, "Ford may have unwittingly forced the issue of repairer reward. Repair jobs, and therefore repair profits, are made up of three elements, paint, parts and labour, and if this is to be substantially and permanently altered it raises a big question about how repairers are rewarded. MVRA is currently researching options and outcomes and plans to report on its findings in the next three months."

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