There’s a new top team at Arriva Bus & Coach, which intends to build on the strong foundation of a respected business
The chances are that you may not have yet met Ed Potter or Andy Cullen; that’s hardly surprising as both only started in their respective positions of MD and Commercial Director at Cleckheaton-based Arriva Bus & Coach (ABC) last week.
However, both having come from Arriva Transport Solutions – the non-emergency patient transport arm of the group – means that since January they’ve been frequent visitors to the business to ensure a smooth transition.
With the retirement of previous MD Steve Hodkinson the previous Friday, it means there’s not been a gap at the top.
This is important as ABC is determined not to lose any ground in what is currently a very competitive market for new coaches. Yet that’s just one string to a bow that also comprises secondhand vehicles, leasing/rental packages, finance, repair and maintenance, plus a thriving parts business.
And, all are set to be improved further and grow.
Evolving ABC
“We’re evolving ABC into the next phase, focusing on really strong, stable, relationships with our manufacturing partners and being a business that understands customers’ expectations and responds to them,” says Ed.
“We want to develop our UK presence, especially in aftersales.”
The arrival of Ed and Andy aren’t the only changes at ABC. Although there are no changes to the established management team, Dave Gregory, previously Business Development Manager, is now Head of Sales. “That’s a recognition that we want to provide some strong leadership to our sales team and give it a higher profile,” says Ed.
Steve Fletcher, previously Commercial Manager, is now Head of Products. Says Ed: “We see him as our expert on our range on the technical side of the customer experience and also our key contact with manufacturers.”
Adds Andy: “He’s gathering feedback and suggestions and working with manufacturers to turn them into reality, playing to his natural strengths in the industry.”
Great foundation
Where next for ABC? Says Ed: “We’ve inherited a really exciting business with a great foundation, with huge opportunity to grow.
“We’re representing two outstanding brands in the UK – Temsa and Van Hool – and one of our initial priorities is to make sure that we’re making the best of these relationships and we’re seen as a really trusted and valued distribution partner, and maximising their penetration into the UK market.
“We’re also conscious that there is a clear need among coach operators for an outstanding aftersales network – that is, a specialist one serving their particular needs.
“We’ve got the core of a great aftersales offering here, with our workshop, parts department and field service. But we think the customers want more: more geographical spread, more specialisms and access to aftersales.
“We will gather some real insight into what our customers want that they don’t currently get, and then work out a way of offering it to them.”
Opportunities include planned field maintenance, and more with diagnostics capabilities.
Important player
Currently ABC supplies 12-14% of the new coach market, which fluctuates in total at 700-900 vehicles a year from all suppliers, depending on the year. Last year it supplied 76 vehicles.
Used remains a key component of the ABCs business, despite the downward pressure on the prices of new vehicles, which has a knock-on devaluing effect on used prices, making it “less attractive” for dealers than it was “in a previous era,” says Ed.
“There is a clear requirement for used vehicles,” adds Ed, “but we’ve got to be able to adapt to external pressures like emissions regulations in London and Clean Air Zones elsewhere.
“We’ve got to be agile enough to respond to that changing profile in the market, whether we’re selling a used vehicle or taking one in as a part-exchange.”
New vehicles
The market is “looking healthy” says Ed. “We’ve committed to a large order with Temsa that takes us through to March 2018, reflecting our confidence in the Safari and the increasingly-popular MD9 midicoach.
“We will also explore with Van Hool and Temsa as to whether they should be expanding the range they offer into the UK.”
As the exclusive distributor of Van Hool’s EX range – the cost-effective version of the premium TX model – ABC is keen to win more sales for it. The EX range was launched into the UK as a tri-axle, and Ed believes that there is an opportunity for a two-axle EX in the UK.
“We’re looking forward to exploring those opportunities with Van Hool later this year, and so is Van Hool for that matter.”
He adds: “Van Hool is clearly still an aspirational product and we should be proud of it. Van Hool is proud of it and our job is to represent it well in the UK.”
How sales are made will also subtly change, says Andy: “We’re also looking at how we offer customers the right products with a more targeted approach; this has started with Dave heading up the sales team.
“We’re re-visiting every aspect of the sales process right up to the handover,” says Ed. “When the customer comes here, we want to make sure we celebrate that event, which is clearly very significant for operators.”
“’What does it feel like being a customer of ABC?’: That’s the question we’re going to be asking,” says Andy. “How joined up does it feel, and where can we improve, for example with aftersales.”
Rental fleet
Not to be ignored is its 134-strong rental fleet: “It gives us a really good opportunity to bring new vehicles into the marketplace and give operators access to those vehicles, if a new purchase isn’t of interest to them. So we’ve got to make sure we keep that fleet refreshed,” says Ed.
“It’s a great way for us to bring emerging new products into the marketplace as well. For example, if we were to explore expanding the Temsa range, investing in bringing some of those vehicles into the rental fleet is a good way of getting exposure for them.
“Part of our unique offer is that we’ve got the backing of a large business, which means that we’ve got the resource to commit to speculative and stock orders, and we should make the most of the benefits of being part of a multinational organisation,” he adds.
Bus prospects?
While known as a coach dealership, the word ‘bus’ in the business’ title hasn’t escaped Ed and Andy, harking back to when VDL offered right-hand drive buses. “We’re interested in opening the bus door and seeing what’s behind it,” says Ed.
There may be an opportunity with the growth in demand for electric buses. “Temsa is developing an electric bus; it’s not hard to imagine a position not many years away when electric buses have a much larger place in the market than they do at the moment.
“We’d like to be able to offer that option to a market that would increasingly look to it. The question is whether there would be a big enough market in right-hand drive to support it.”
Time to talk
And, as for ABC’s presence at Coach & Bus UK, at the NEC on 4-5 October, there will be some announcements. What they will be, the team is remaining very tight-lipped about, but says Ed: “There will be a lot to talk about.”
