To help achieve this, the MG Rover parts supplier is offering franchised dealer groups the opportunity to develop their parts business supporting local independent dealers and the 230-strong XPart AutoService centre network.
“MG Rover parts give higher profit margins than other vehicle parts. There is a gross margin of more than 30%,” says Craig Cooper, general manager of XPart.
“We also try to minimize obsolescence. So once a trader is working with us we go to them once a month and do a stock clearance, effectively taking out the obsolete costs. This allows dealers to retain a high margin.”
XPart is hoping to grow its AutoService centre network to 250 outlets, which would then be adequate to ensure a 24-hour delivery guarantee on all parts.
“We support 1.8m Rover cars that are on the road and we take our responsibilities to them seriously. We have a 95% availability for these parts and a 99.8% availability for all makes parts,” says Cooper.